General News
Why Only Truly Indigenous E-Commerce Companies Are Champions
By Dr. Ajit Sigh, international trade lawyer spoke in Lagos on a short visit to Nigeria
By midday on Tuesday September 4th 2018, a remarkable development,whose reverberations are still felt today, shook the e-commerce world and the whole of Wall Street.
Amazon, an American e-commerce giant, had followed Apple Inc. to become the second U.S. company to reach $1 trillion in market value after the company’s shares climbed 1.9%, briefly topping the $2,050.27 needed to push the company’s value above $1 trillion.
To put this in sheer perspective, it is fitting to bear in mind that Nigeria’s current external reserves is pegged at $42.3billion (as at October 25th), a figure which amounts to less than five per cent of Amazon’s worth.
Available data shows that it took Amazon only about 165 trading days to grow its market value from $600 billion in January 2018 to its valuation of $1 trillion in September 2018 – an astronomical rise that saw it put daylight between it and the likes of Microsoft and Google’s parent company, Alphabet. Conversely, Apple needed about 183 trading days to hit the $1 trillion mark after it reached $900 billion in November 2017.
Amazon’s rise can be put down to its unalloyed status as a disruptive force of commerce, with analysts and other Wall Street watchers predicting the company’s imminent overtaking of Apple as the biggest and most valuable company in the United States.
Indeed, the identity of the first five companies on the list of the world’s most valuable companies – Apple, Amazon, Alphabet Inc., Microsoft Corp. and Facebook Inc. – further goes to demonstrate the pre-eminence of tech companies and the undeniable role of technology in the emerging world order of digital wealth where oil, previously the most valuable resource, has been relegated to the back-burner.
Despite its disruptive business model and series of high-profile acquisitions which have undoubtedly boosted its revenues, Amazon remains an e-commerce company – a sector that is fiercely indigenous.
With the backdrop of all the arguments against some of its unfair business practices, Amazon remains a hit with a large segment of the American populace who are traditionally at home with online shopping. According to research, an estimated 79 percent of Americans shop online, a figure that amounts to abouteight in 10 Americans.
While Amazon can be reckoned with as a global e-commerce behemoth, there is no denying the fact that, it will struggle to replicate the brilliant success it has enjoyed in other climes.
As part of its expansionary plans, Amazon has spread its operations to over a dozen countries including the United Kingdom, India, China and Singapore. While sales outside the United States amounts to about a third of its total earnings, the company has also come to learn that selling abroad is not easy. In addition, it has also come to the realization that, e-commerce is best left to the indigenous players who understand the terrain and idiosyncrasies in each country.
Though it has enjoyed a fair measure of success in India where it has attempted to take on FlipKart – the country’s predominant indigenous player – with lower prices, Amazon has been almost an abysmal failure in China – the world’s fastest growing e-commerce market. Alibaba, Pinduodo, Taobao and others are deeply entrenched in the country owing mainly to their understanding of the complex vortex of persuasions influencing the shopping habits at play in that country. Today, Amazon struggles to retain a foothold in China, whereas Alibaba enjoys over 50% of the market share.
Considering the immense financial resources and spending power at its disposal, one will expect that Amazon will conquer every market it berths in. However, the incontrovertible fact remains that, to succeed in any market requires more than just financial power, but a large dose of street-smartness, an understanding of the people and a business model that is realistic and suited to their local circumstances.
Here in Nigeria, the reality is not much different.
Ingrained in the cultural complexities of a society or people are certain peculiarities or predilections, all of which contribute to shaping their every tradition, including their shopping habits.
Despite the growing popularity of online shopping, the average Nigerian, try as hard as you can, will never shake off the practice of preferring to see, touch and/or experience a product before parting with hard-earned money, thereby justifying the increasing relevance of brick-and-mortar stores in Nigerian e-commerce.
Trust also remains a major issue.
In spite of the large strides recorded in the e-commerce sector, many Nigerians are still understandably reluctant to drop their credit card details online due to the real and ever-present potential of cyber-fraud. Others, who have managed to embrace the e-commerce revolution, are still keen to put their trust in the confidence-inducing personal touch that the patronage of a physical retail store inspires. What about the millions of unreached or under-served Nigerians in the hinterlands, devoid of a reliable internet connection and the basic requirements to embrace e-commerce?
It must be stated here that the e-commerce industry also has the capability to unmask mere hype from substance.
Since Nigerians got bitten by the e-commerce bug, the country has seen several foreign players, many of them backed by angel investors and venture capitalists. These fancy new shoesemerge on the scene by painting a larger-than-life picture of overwhelming boom only to fade away after a while and exit the country quietly.
The scenario is a simple but vicious one: the investors are buoyed by projections of Nigeria as Africa’s biggest market, blessed with a youthful, aspirational population on the verge of cracking the e-commerce conundrum and exploding into a money-spinning investor’s dream.
But what happens?
These foreign investors, for all their good intentions, remain what they are famous for: profit-seeking, short-term oriented business impresarios. Once they get tired of seeing their investments fail to yield the promised returns, the patience wears thin. Once this happens, it is only a matter of time before Nigeria counts the many-faceted costs of another failed venture.
History and statistics have revealed worldwide that, only a truly indigenous e-commerce company backed by its own people has the staying power to stick and stand the test of time, irrespective of the regulatory, operational and industry-specific challenges that may arise. Indeed, only a locally-backed e-commerce company with a realistic business model that is not short-term in outlook, can invest significantly in infrastructure and care sufficiently not to embark on random job cuts, all in a bid to satisfy the cravings of impatient venture capitalists.
Nigeria boasts perhaps only one of such powerhouses in Konga – which recently combined its operations with Yudala, another bold player with a futuristic but realistic e-commerce model which has been widely aped by other global e-commerce companies, Amazon inclusive.
Where an e-commerce company proves itself adept at adapting to local circumstances; when it has the boldness to accommodate or fuse online shopping with cost-intensive offline stores nationwide which cater to the needs of the unreached, thereby bringing the convenience of e-commerce home to them; when a business invests considerably in massive regional warehouse facilities; refrains from retrenchments or down-sizing even in the most harsh business cycles and quietly goes about empowering more Nigerians with employment opportunities through its expansionary and ambitious projects, then you are closer to building an e-commerce giant that can rival the Amazons and Alibabas of this world.
Konga owes it to every Nigerian to remain in business forever…
Authorities in seven African countries have arrested 306 suspects and seized 1842 devices in a sweeping international operation targeting cyber-enabled fraud and scams.
Dubbed Operation Red Card, the effort ran from November 2024 to February 2025, focusing on dismantling cybercrime networks that defrauded over 5000 victims through mobile banking fraud, investment scams and malicious messaging app schemes., according to infosecurity-magazine.com
In Nigeria, police arrested 130 suspects, including 113 foreign nationals, for running fraudulent investment schemes and online casinos.
Authorities found that criminals funneled illicit proceeds into digital assets to obscure their financial trails.
Investigations also uncovered signs of human trafficking, with some individuals coerced into participating in the scams.
Law enforcement seized: 26 vehicles; 16 houses; 39 plots of land; and 685 electronic devices
In Rwanda, 45 individuals were arrested for orchestrating a social engineering scam that defrauded victims of more than $305,000 in 2024.
Scammers posed as telecommunications employees and falsely claimed victims had won lotteries to extract sensitive information.
Others impersonated injured family members to request emergency financial assistance.
Authorities recovered $103,043 and seized 292 devices.
South African authorities arrested 40 individuals and confiscated over 1000 SIM cards, along with 53 desktop computers and towers linked to a sophisticated SIM box fraud scheme.
This setup allowed cybercriminals to disguise international calls as local ones, facilitating large-scale SMS phishing attacks.
In Zambia, law enforcement apprehended 14 members of a cyber syndicate specializing in malware attacks.
The criminals sent phishing messages containing malicious links, infecting victims’ devices and taking control of messaging and banking apps. This enabled them to access financial accounts and further spread fraudulent links.
The operation was carried out through INTERPOL’s African Joint Operation against Cybercrime (AFJOC) initiative, which supports law enforcement efforts in combating cyber-threats.
The United Kingdom’s Foreign, Commonwealth & Development Office funded Operation Red Card under the AFJOC initiative, allocating £2.6m to enhance Africa’s law enforcement capabilities in detecting and preventing cybercrime.
The seven participating countries – Benin, Côte d’Ivoire, Nigeria, Rwanda, South Africa, To and Zambia – continue to collaborate on intelligence-led cybercrime investigations.
“The success of Operation Red Card demonstrates the power of international cooperation in combating cybercrime, which knows no borders and can have devastating effects on individuals and communities,” commented Neal Jetton, Interpol’s director of the cybercrime directorate.
“The recovery of significant assets and devices, as well as the arrest of key suspects, sends a strong message to cyber-criminals that their activities will not go unpunished.”
The UK Foreign, Commonwealth & Development Office (FCDO), Nigeria’s Federal Ministry of Innovation, Science & Technology (FMIST) and Ghana’s Ministry of Environment, Science & Technology (MEST) has announced the official launch of Sankore, a £1.9m initiative aimed at boosting science, technology, and innovation (ST&I) ecosystems in West Africa.
Sankore, part of the UK- Africa Technology and Innovation Partnerships (ATIP) Programme will strengthen UK ties with Nigeria and Ghana, supporting key agreements like the UK-Ghana ST&I Strategy (2023- 2027) and the UK-Nigeria Strategic Partnership signed in November 2024 by our Foreign Secretary, David Lammy MP and Nigeria’s Minister for Foreign Affairs, Yusuf Maitama Tuggar.
Focusing on Nigeria and Ghana, Sankore will work closely with actors in West Africa to:
– Support the operationalisation of the Ghana National Research Fund (GNRF) and the Nigeria National Research Fund (NRF).
– Support Nigeria to operationalise its National Research and Innovation Council (NRIC).
– Facilitate the commercialisation of innovative solutions in priority economic sectors such as agriculture and energy;
– Enhance the policy and regulatory environment for innovation, improving data accessibility and transparency for ecosystem actors;
– Establish a demand-driven Helpdesk supporting FCDO and government partners, providing expert guidance and advice.
Speaking at the programme launch in Abuja, UK’s Head of Intergrated Strategy and Delivery Unit, Ms. Susan Mshana, explained that the Sankore programme is an exciting addition that will strengthen the UK’s long-term partnership with West Africa governments and drive economic growth through innovation.
“By leveraging our skills, resources and expertise, we aim to accelerate shared goals of economic diversification job creation and improved service delivery in Nigeria and Ghana,” She added.
Also speaking, Ghana’s Minister of Environment, Science & Technology (MEST) Hon. Dr. Ibrahim Murtala Muhammed, said: “Innovation is a key enabler of a strong and inclusive economy. Sankore will be a catalyst to securing Ghana’s future as a hub for scientific advancement and technological innovation in the region, and we look forward to collaborating with the many partners who are bringing knowledge and expertise to this joint endeavour.”
Additionally, the Hon. Minister of Science, Technology, and Innovation in Nigeria, Chief Uche Geoffrey Nnaji said: “Our goal at the FMIST is to foster sustainable development by promoting homegrown innovation while integrating global scientific advancements to ensure Nigeria’s progress on the global stage and Sankore represents an important next phase in our valued and productive partnership with the UK in driving a brighter future for all Nigerians through cutting-edge technology and economic progress.”
Sankore will be delivered by the United Nations Educational, Scientific and Cultural Organization (UNESCO), and Results for Development (R4D) collaborating with local and international partners to ensure effective implementation and knowledge transfer.
The initiative will run for 15-month, concluding by 31 March 2026.
Fidelity Bank Plc, has once again highlighted the importance of promoting non-oil exports as it recently hosted the 18th edition of its dedicated capacity development training tagged Export Management Programme (EMP 18). The programme, which was held recently in Lagos provided a platform for entrepreneurs interested in exploring global trade opportunities to scale and acquire relevant expertise.
L-R: Prof Frank Ojadi, Director, Export Management Program, Lagos Business School; Stella Nwuke, Team Member, Export & Agriculture Division, Fidelity Bank Plc; Emem Bassy, Managing Partner, Peony Dynamic Resource Limited; and Emmanuel Nwalor, Team Lead, Export & Agriculture Division, Fidelity Bank Plc; at the closing ceremony of the 18th edition of the Fidelity Bank Export Management Programme (EMP 18) held at the Lagos Business School recently.
Hosted in partnership with the Lagos Business School (LBS), the 5-day intensive program focused on equipping entrepreneurs with the skills and knowledge needed to explore international market opportunities and strengthen their capacity to thrive in the export sector.
“At Fidelity Bank, our strategy to enhance non-oil exports is guided by the significant opportunities it offers to our customers and the national economy. This is why we offer a comprehensive suite of financial, advisory, and market-access solutions for businesses aiming to engage in international trade.
“Our market-access initiative, EMP, launched in 2016, has trained over 1,600 entrepreneurs. Today, we completed the 18th cohort with high-caliber participants and a 150% oversubscription. This indicates a promising future for Nigeria’s non-oil exports,” explained Isaiah Ndukwe, Divisional Head of Export and Agriculture at Fidelity Bank Plc.
Facilitated by key industry experts in the exports space, EMP 18 took participants through several sessions focused on critical areas in global trade such as Export Finance Instruments, Export Documentation, Accessibility of Export Markets, amongst others.
A key feature of the training was a facility tour of one of Nigeria’s busiest Export Processing Terminals (EPT) located in Ikorodu, Lagos state. The full-day visit, which was anchored by officials of the Nigerian Customs Service (NCS), gave participants a first-hand feel of the necessary procedure and requirements for securing regulatory approval for exporting from Nigeria.
One of the program participants, Patrick Ulayi Awu-Patricks, Managing Director/Chief Executive Officer, Alliance & Frontier Limited, commended Fidelity Bank for its leadership in deploying capacity-building initiatives in the non-oil exports sector. In a discussion with journalists, he stated that EMP 18 provided invaluable exposure to the opportunities in the export business noting that, “There are lots of non-oil exports opportunities and entrepreneurs must be able to identify and capitalize on these to be able to play effectively in the international trade space. This course has given me insights into the power of data which is essential for strategic decision-making.”
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 8.5 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is the recipient of multiple local and international Awards, including the Export Finance Bank of the Year at the 2023 BusinessDay Awards; the Banks and Other Financial Institutions (BAFI) Awards; Best Payment Solution Provider Nigeria 2023; and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards. It was also recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023 and the Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
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