E-Business
Jeff Bezos Trillionaire Tale and Nigeria eCommerce
By Aliyu Yakubu
America’s Jeff Bezos, founder of e-commerce giant, Amazon, is becoming a trillionaire in the midst of COVID-19 global pandemic. This is both good and bad news. Good news because it is the reward of foresight and tenacity.
Bad news because in the midst of the same pandemic, his e-commerce counterparts in Nigeria are counting losses. The difference is not in the business dexterity of Bezos nor in the poor marketing skills of the Nigerian counterparts. The difference, unfortunately, is how the two governments reacted to the pandemic and its attendant lockdown.
While the US government gave a clear signal to e-commerce companies in America to move freely during lockdown to make delivery in anticipation of a surge in online shopping, the Nigerian government did the opposite. It locked down e-commerce activities by not clearly classifying e-commerce companies and their workers under ‘essential services’.
This is the difference between a 21st century policy-smart government and a policy-dumb government. The US government anticipated a spike in online sales during the lockdown and gave free access to Amazon and other e-commerce workers. The Nigerian government was too happy to lock down e-commerce firms alongside other businesses.
Now, for the smartness of the US government, Bezos is walking his way to trillions. Imagine the tax that would add to US government purse. Imagine the number of jobs it will save when other companies around the world have either furloughed their staff or have sacked them outright.
This is a case of the absence of critical and strategic thinking in the Nigeria public ecosystem. Our leaders are not intentionally progressive. You cannot lock down a critical driver of the economy at a time you have decreed no-movement for the populace. It is also a function of low appreciation and lack of understanding of what e-commerce really means and how it works.
In the wake of the lockdown, somebody ought to have anticipated that Nigerians would resort to making online purchases, hence the overriding need to categorise e-commerce workers as persons on essential duty. The nature of e-commerce is that it’s unobtrusive, does not draw physical crowd yet it effectively services clients from its backend through the delivery channels. In this way, issues of non-compliance with social distancing and other precautionary protocols do not arise.
The paradox of the Nigerian e-commerce story during the pandemic is that they were lumped with other regular businesses and clamped with the same lockdown measure. They are not. Their staff were treated as non-essential duty persons. It took some explanation for them to be allowed to do their businesses during the lockdown. In some states, it was practically impossible as e-commerce delivery workers were either harassed or turned back from performing their duties.
For instance, some delivery staff of Konga, Africa’s fastest growing and most innovative e-commerce company, were either harassed or turned back from making deliveries. Delivery men were harassed while moving items inter-state. There were also reported cases of harassment within some metropolis. Lagos was no exception.
In Rivers State, not a single Experience Store was opened during the lockdown. Strict enforcement by the state government meant no e-commerce delivery man was allowed movement even within the metropolis.
You cannot build economies when you shut down all channels of trade. In the western world and Asia, persons on lockdown turned to online purchases to restock. Their governments clearly exempted e-commerce outfits from the list of companies that must remain shut for as long as the lockdown lasted. The net result is beginning to show in the balance sheet of Jeff Bezos’ Amazon.
Comparisun, a company which allows small- to medium-sized firms to compare different business products, projects that Bezos will by 2026 emerge as the world’s first ever trillionaire, an honour he won’t be sharing with nobody, not even with Bill Gates of Microsoft whose fortunes keep growing with the birth of more technologies.
Their projection shows Bezos reaching trillionaire status by 2026. The company said their projection is based on taking the average percentage of yearly growth over the past five years and applying it to future years. Comparisun shows Bezos’ net worth grew an average of 34% over the last five years.
As of Thursday May 14, Bezos’ net worth was estimated at $143 billion, according to Bloomberg’s Billionaires Index, which tracks the worth of the world’s richest people daily. Compared to last year, Bezos’ worth has surged by more than $28 billion. He profited heavily from the coronavirus pandemic. Shoppers denied access to physical stores turned to online stores to make purchases from groceries to gaming machines, toys for the kids and big toys for the parents. The lockdown was the appropriate time to change household electronics for most parents, just anything to fight the boredom.
In Nigeria, there were cases of security men delaying delivery for days by ‘impounding’ vehicles and keeping them for as long as they wished. Delayed delivery makes nonsense of e-commerce. One of the unique selling points of online shopping is prompt delivery of goods. Once purchased goods are delayed, the suspense dies and so does the utility of the goods. Unfortunately, this was what Nigeria’s e-commerce companies suffered during the lockdown. At a time they were supposed to win more patronage and disciples into the e-commerce family, they got stuck in resolving issues of violation of lockdown rules while their counterparts in Europe and America simply worried about their balance sheet.
Now, the difference is clear. Bezos and others are smiling to the bank; their Nigerian counterparts are counting losses. Lesson: When next you lock down a state or city, make sure that e-commerce workers are exempted.
However, beyond Nigeria e-commerce fraternity, Jeff Bezos himself must learn the lessons of his capitalist expansionism. When the news of his impending trillionaire status broke, Twitter went agog. Elizabeth Warren, business woman and Democratic presidential candidate tweeted: “While Bezos is on the track to become a trillionaire in the middle of a pandemic, Amazon is ending overtime pay for warehouse and delivery workers on the frontline. This is immoral.”
While I congratulate Bezos for his feat, I should also remind the Nigerian government that e-commerce deserves a better deal next time.
Microsoft has announced plans to invest $80 billion in the 2025 fiscal year to expand its data centre infrastructure.
The investment will focus on supporting the training of artificial intelligence (AI) models and the deployment of AI and cloud-based applications.
The company disclosed this initiative in a blog post on Friday, emphasising its commitment to advancing AI and cloud technology.
Since OpenAI launched ChatGPT in 2022, investment in AI has surged as businesses across sectors strive to integrate artificial intelligence into their products and services.
AI requires enormous computing power, pushing demand for specialised data centres that enable tech companies to link thousands of chips together in clusters.
Before now, Microsoft has invested billions of dollars to enhance its AI infrastructure, broadening its data centre network.
Analysts project Microsoft’s fiscal 2025 capital expenditure, including capital leases, to reach $84.24 billion, according to Visible Alpha.
The company’s capital expenditure in the first quarter of the fiscal year rose by 5.3% to $20 billion.
As the primary backer of OpenAI, the tech giant is considered a leading player among Big Tech companies in the AI race, owing to its exclusive partnership with the AI chatbot developer.
More than half of Microsoft’s $80 billion investment will be allocated to the United States, Brad Smith, vice chair and president noted in the blog post.
“Today, the United States leads the global AI race due to the investment of private capital and innovations by American companies of all sizes, from dynamic start-ups to well-established enterprises,” Smith remarked.
Nigeria Data Protection Commission (NDPC) has announced plans to significantly ramp up enforcement and impose substantial fines on data controllers and processors that violate the Nigeria Data Protection Act (NDPA) of 2023.
Vincent Olatunji, national commissioner/CEO. NDPC
This was disclosed by Dr Vincent Olatunji, national commissioner/CEO of the Commission, in a video message outlining the Commission’s 2025 agenda, shared on the agency’s social media platforms.
A statement issued by the Communications Division of the Commission on Friday quoted Dr Olatunji as saying that, “For data controllers and processors, there is going to be massive enforcement. We have never really issued any fine, but going forward, you’ll hear us giving heavy penalties.”
He assured Nigerians that their data rights, as guaranteed by the NDPA, will be fully protected, and defaulting data controllers and processors will face strict consequences.
The Commissioner highlighted the NDPC’s extensive engagements with stakeholders across public and private sectors to promote awareness and compliance with the Commission’s mandate.
The efforts, he said, have resulted in the signing of Memorandums of Understanding (MOUs) with key organisations, including the National Insurance Commission (NAICOM), National Lottery Regulatory Commission (NLRC), the Data Privacy Office of Canada, and the Dubai International Financial Centre Authority (DIFC), among others.
Dr Olatunji also shared that the NDPC will advance to the second phase of its Strategic Roadmap and Action Plan (NDP-SRAP 2023-2027) in 2025.
This phase is expected to create job opportunities within Nigeria’s data protection and privacy ecosystem, particularly for young people.
The Commission has been actively training Nigerians in data protection and privacy, creating a pool of globally competitive experts within the data protection sector in 2025.
“There are a lot of data controllers and processors that are looking for people to work with them. Now those that we have trained in 2024, those we have certified, we are going to do more this year to actually launch them to the job market where they can really work with data controllers and processors,” he said.
Additionally, the NDPC will continue nationwide efforts to promote data protection awareness.
The Commission aims to educate citizens about their rights and the importance of data privacy while reminding data controllers and processors of their obligations under the NDP Act.
Dr Olatunji emphasised that these initiatives are part of the broader goal to embed a culture of data protection and privacy in Nigeria.
As part of its international engagement efforts, Nigeria will host the “Network of African Data Protection Authorities Conference” in May 2025, with over 40 nations with existing data protection laws expected to attend.
According to Dr Olatunji, this global event will position Nigeria as a leader in the data protection ecosystem, and bring significant economic benefits to the country.
The NDPC reiterated its commitment to ensuring data protection and privacy become integral to Nigeria’s digital landscape, building trust and fostering economic growth, the statement added.
Nigeria Postal Service (NIPOST), achieved a 275 percent increase in revenue for the year 2024, according to Tola Odeyemi, postmaster general.
At the beginning of the year, NIPOST set an ambitious target of generating N10 billion in revenue.
Although specific figures for the end of the year were not disclosed, the reported increase suggests a significant recovery for the postal service, which had previously faced consistent decline.
Odeyemi, who made the disclosure while listing NIPOST’s achievements for the year recently, attributed the growth to a series of reforms aimed at enhancing service quality and eliminating revenue leakages
The NIPOST boss detailed the steps taken to boost revenue, noting the implementation of Point of Sale (PoS) terminals in high-transaction areas, which has streamlined payment processes and improved customer experience.
She said, “One of the major achievements for us in 2024 has been a 275% increase in revenue from 2023. We achieved this by plugging a lot of the revenue leakages that we have by deploying PoS terminals for payment in our high transaction areas, as well as ensuring that our quality of service goes up.”
Looking ahead, Odeyemi outlined NIPOST’s plans to sustain this growth trajectory.
She said the organisation has embarked on renovations and upgrades of key locations in Abuja, Lagos, and Kaduna, alongside enhancements to the Postal Institute, which is central to the agency’s change management initiatives.
Furthermore, she stated that NIPOST is gearing up for several major developments in 2025, including the rollout of a national addressing system and digital postcode services, specialised logistics for agriculture and healthcare, and a relaunch of its financial services.
“There will be infrastructure upgrades, which will take place across the Federation and there will be an increase in access to government services through your local NIPOST location,” she said.
Ex CBN Staff Sue Apex Bank, Demand Reinstatement, N30Bn Damages
FG to Activate Surveillance for Passengers from China amid Virus Scare
EFCC Sacks 27 Officers for Fraud, Misconduct
Airtel Laments 300 Percent Increase in OPEX. Backs Tariff Review
KPMG Recognizes PalmPay for Excellence in Its 2024 West Africa Banking Industry Customer Experience Survey
Nigeria Risks Missing out on $1.2 Trillion AI Opportunity- NigComSat
MTN Nigeria Renews Spectrum Lease Agreement with NTEL
NERC Discloses $5.7 Million Debt Owed by International Customers for Q3 2024 Electricity Supply
Corporate Blackmail, My Story as a Case Study, by Leo Stan Ekeh, Chairman Zinox Group
Starlink to Hike Internet Tariff in Nigeria from January
News1 day agoWHO Declares New COVID Outbreak in China Global Health Emergency
News1 day agoSpaceX Announces Starship’s First Satellite Deployment Test
Telecom1 day agoSubscribers’ Group Threatens to Sue Telcos over Proposed Tariff Hike
E-Business1 day agoMicrosoft to Boost AI Growth with $80Bn Investment
News1 day agoZinox Demands Apology from Falana over Alleged Defamation, Reputational Damage
E-Financial1 day agoSEC to Intensify Crackdown on Ponzi Schemes this Year
Telecom24 hours agoFirm Highlights Skills Development to Drive Data Center Expertise and Sustainability
News1 day ago21 Bank Accounts Frozen by Abuja Court Over Alleged Money Laundering