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…
OpenAI is suing Elon Musk over claims he has tried nonstop to slow down its business for his own benefit.
Elon Musk
The company accuses the Tesla boss of using “bad-faith tactics” against OpenAI to help him control cutting-edge AI technology.
Musk sued OpenAI chief executive Sam Altman last year in a bid to stop him from changing its corporate structure. Mr Musk co-founded OpenAI with Mr Altman but left several years ago.
Meanwhile reporters has approached his lawyer for a response to OpenAI’s lawsuit, which was filed on Wednesday.
The countersuit opens up a new front in the high-stakes battle between two Silicon Valley heavyweights.
“Elon’s nonstop actions against us are just bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit,” “Today, we countersued to stop him.”
Last week, a federal judge in Oakland, California, set a March 2026 trial date in Mr Musk’s suit in a bid to fast-track the legal fight.
US District Judge Yvonne Gonzalez Rogers previously declined to grant Mr Musk an injunction that would temporarily halt OpenAI’s conversion from a non-profit to a for-profit company.
She also said that she expected Mr Musk to give evidence in the case.
Musk alleges that OpenAI strayed from its founding mission as a non-profit to develop AI for the benefit of humanity and is therefore in breach of contract.
He left the company in 2018.
“This is about control. This is about revenue. It’s basically about one person saying, ‘I want control of that startup’,” said Ari Lightman, professor of digital media and marketing at Carnegie Mellon University.
Lightman said it has been a distraction from making AI safe and equitable.
“That takes a backseat with all this rigmarole over control and monetization,” Lightman said.
OpenAI claims Musk has “been spreading false information about us,” in a X post on Wednesday, adding “Elon’s never been about the mission. He’s always been about his own agenda.”
Musk’s xAI is a competitor to OpenAI, but has so far lagged behind. Last month, xAI aquiired Musk’s social media platform X formerly Twitter.
Musk claims the combined company, XAI Holdings, is valued at more than $100 billion.
In February, Musk made an unsolicited bid for OpenAI, offering to buy it for $97.4 billion, which Mr Altman rejected by posting: “no thank you but we will buy twitter for $9.74 billion if you want.”
In a major step toward strengthening border security and modernising travel protocols, the Federal Government has announced the introduction of automated landing and exit cards as part of its wider e-Visa solution. The new system, set to take effect on May 1, 2025, aims to eliminate travel bottlenecks while enhancing national security.
The initiative was unveiled during a joint press briefing held in Abuja on Wednesday by the Minister of Aviation and Aerospace Development, Festus Keyamo and the Minister of Interior, Dr. Olubunmi Tunji-Ojo.
The ministers emphasised that the project is a collaborative effort involving key agencies, including the Nigeria Immigration Service (NIS), the Federal Airports Authority of Nigeria (FAAN), and the Nigeria Civil Aviation Authority (NCAA), all of which will play a critical role in the rollout of the e-Visa and the new digital travel documentation.
“What we are doing here today is a further testament to the determination of this government to foster cooperation between key ministries that have mandates that overlap,” Keyamo stated. “Today is another example of that kind of cooperation and collaboration, and this has to do with the introduction of the e-Visa.”
Speaking on the importance of the new initiative, Minister Tunji-Ojo highlighted its significance to Nigeria’s security framework.
“This initiative has a very serious effect on our national security architecture. Prior to now, we have always had the exit and landing card in a manual way — travellers had to fill a paper form. But now the narrative has changed with the introduction of the e-Visa and automated exit and entry cards,” he said.
He explained that the process will now be completed digitally before boarding, with travellers required to fill out the landing and exit cards online and present them to airlines before being allowed to board.
“Nigeria is a country of 230 million brilliant people and we have to lead in terms of technology. In view of that, we are automating the visa process. The responsibility of coordinating and issuing regulations to the airlines lies with the NCAA,” Tunji-Ojo added.
“This shows our commitment to the protection of our country, to border security, and to ensure that our sovereignty as a nation is well respected.”
The interior minister further noted that the e-Visa system is designed not only to strengthen border controls but also to simplify entry processes for visitors.
“The e-Visa will make it easier for people to come into Nigeria while enhancing the security of our country,” he said.
General News
Leo Stan Ekeh Advocates for “Last Mile Takeover” at KongaFM Event, Pushes for Deeper Brand-Consumer Connections
At a recent industry gathering hosted by Nigeria’s pioneering Hit Music & Commerce Station, Konga 103.7FM, renowned tech entrepreneur and Chairman of Zinox Group, Dr. Leo Stan Ekeh, delivered a compelling case for revolutionizing how brands connect with consumers in today’s hyper-competitive market.
Dr. Ekeh positioned what he termed the “Last Mile Takeover” as the critical differentiator for business success in Nigeria’s evolving commercial landscape.
The event, themed “Consumer Last Mile Takeover – The New Key”, brought together entrepreneurs, marketing executives and brand managers from leading corporations to explore innovative approaches to consumer engagement. Ekeh, renowned for his transformative ventures in Africa’s digital space, emphasized that the final point of contact between brands and consumers represents the most valuable real estate in modern commerce.
In his address, Leo Stan charged entrepreneurs who are serious about growth to focus on that last engagement point, as the critical pivot. According to him, that is “where trust is built, loyalty is secured, and value is delivered.”
Dr. Ekeh believes that the media is the strongest link between brand and consumers, and his vision for deeper, more meaningful brand-consumer relationships is what gave birth to KongaFM. Konga 103.7FM is the latest addition to the Konga Group driven by cutting-edge technology and artificial intelligence.
Earlier in her welcome address, Ifeoma Ajumobi, Head of KongaFM, detailing the station’s unique architecture as a robust platform designed with robust support frameworks for brands and businesses, while delivering premium entertainment.
Since its launch in January 2025, the station has experienced remarkable growth, steadily expanding its fanbase and establishing itself as a powerful medium for consumer engagement.
The initiative garnered significant praise from brand representatives across various sectors, including those from Samsung, Nivea, Checkers Custard, Kenya Airways, Emzor Pharmaceuticals, Xiaomi, and LG, who frequently referred to KongaFM as a game-changing platform. Their positive feedback underscored the station’s emerging role as a critical tool for brand communication, particularly in terms of boosting FMCG visibility and fostering direct connections with consumers.
Peggy Abengowe, Marketing Manager, Checkers Custard Africa, applauded the station’s impact on distribution and visibility, while Oge Maduagwu of Samsung Electronics West Africa praised its innovative blend of commerce and technology. Rachael Okeke, Marketing Executive, Emzor Pharmaceuticals, in her words, described the establishment of KongaFM as a “win-win for brands and consumers”.
The event concluded with a unified call to action for businesses to leverage the unique opportunities offered by KongaFM, with Leo Stan reinforcing the importance of boldness in business.
Konga 103.7 FM is Nigeria’s first hit music and commerce radio station, designed to connect brands with consumers through music, storytelling, and targeted promotions. A brainchild of the Zinox Group and Konga, KongaFM is redefining the role of radio in Nigeria’s digital commerce era.
Businesses interested in exploring partnership opportunities with KongaFM can connect via the station’s social media handles @Konga103.7FM or stream live programming 24/7 through its official website for a firsthand experience of this innovative platform.
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