ECONOMY | LOGISTICS | LIFESTYLE | POWER
Take Me Back to 2019
- Pascolo
Based On Logistics
- Every Day Big Man
Is It OK? - Lush Lash
Up NEPA - Odudu A.
“I hope that as you’re reading this, someone shouts “April Fool” and brings an end to what is going on in the world at the moment, because orisirisi nkan lo’n sele.
Amidst the chaos, we hope this edition brings you some peace, knowledge, laughter and hope; from how we can power on with the sun on our side, to starting a second-hand fashion business, to how things move based on logistics and finally what all this means for our daily lives.
I leave you with words from the greatest philosopher of our time, Azeez Fashola: Coro behind our backs but +234 iwo mafo, stay happy and se jeje.
We hope and pray for a better day.
Madam Bisi, happy to see that market is now open for business...phew!
Yes oh, but I still prefer transfer, abeg. Not too comfortable with cash yet.
Or I can give you my sterilized POS
Take Me Back to 2019
- Pascolo
What in the World is happening?
It's been three months into the new decade, and I won't even lie, our tired is already tired. To whoever pissed off 2020, we apologize. Remember 2019, when our biggest problems were high inflation, japa, election and global warming. This year has been a case of 'Gbas, gbos—wetin Sanusi no go see for emirate'. The drama over the last three months is enough for another season of 'Fuji House of Commotion' and it's just April. The year started with the US and Iran trading words; things got heated when the US military killed Iranian top general Qassim Soleimani and it looked like both countries were on the verge of war. However, Iran scored an own goal that diffused the tension quickly. Guys, if there was World War 3, nobody would have been prepared. That loss of innocent lives helped prevent a war. May the souls of the departed rest in peace.
Honestly, the US president was going through stuff too, so a war may have been distracting. America was in a state of higihaga during the impeachment trials.
But Donald, the president of the people, was fully exonerated by the Senate and life went back to normal—or so we thought.
Since we prayed into the new year, we Africans believed that our pasts would not catch up to us, but South Africa received the first gbas when they went into a recession. We have supported their rescue plan with Ngozi Okonjo-Iweala - a daughter of the Giant of Africa. Godspeed to them. Dear Serians, this gist I gave about other people, it's pride that's worrying me. When the year started, we were buoyant. Our overall GDP showed a resilient economy that is, no matter the weight of elephant, e no fit cause
earthquake. Though the borders remain closed, there was still chicken, inflation rose and bread became more expensive. As a benevolent somebody, our able God(win) continued to manage things using CBN action; more importantly, he reduced ATM and mobile transfer charges (baba for the man dem) and pushed banks to lend more to the public. We want you to know that before all this noise about borrow at 1%, we had told you guys about Specta (Sterling you're doing well). The most importanter is that VAT increased and so did allawee (Ajuwaya is impressed).
The government is trying to tell us not to panic and to spend… or so we thought. COVID-19
As eventful as the year has been so far, nobody could predict what was to come after. The biggest news of the year has been Covid-19, the new Coronavirus that originated from the Chinese city of Wuhan, showing the world how truly connected we are and how weak our health systems are.
“The world has witnessed over 768,363 cases and over 36,912 deaths in 199 countries (it might have changed by the time you are reading it - it is not our fault; we never start live broadcast). While the good news is that recovery is at 81 percent, the spread rate has been quite alarming, growing as much as 200% in one day in some countries. It has seen China; the global manufacturing hub shut down its economy. The Chinese economy accounts for more than 8% of the global economy, only third behind the US and EU, (both of whom have also recorded a slowdown). Coronavirus isn't even a respecter of celeb status, infecting rich and poor, sportsmen, movie stars, presidents and even Health ministers.
While the world struggles to deal with the biggest pandemic in modern history, Nigeria has been having its own share of control and airport closures. With a total of 111 confirmed cases, three deaths and three full
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recoveries, the country has to a large extent tried to put systems in place to contain its spread - at least for now. If you can take heed of all the instructions from NCDC and maintain proper hygiene, we will all be fine. Global economy has been one of the most hit with disruption in g l o b a l s u p p l y a n d e c o n o m i c a c t i v i t i e s , g l o b a l manufacturing giants like Apple, Hyundai, Peugeot, Procter and Gamble, Sony, ZTE, Erickson have had to cut down their revenue forecast since production had been halted at the start of the year."
has taken a major hit, losing more than $40 billion already. The Diamond Princess cruise ship, which docked with about 700 cases of the coronavirus reported may serve as a deterrent against cruises, even after the outbreak has been contained.
To Cruise or Not?
Cancel Culture
With this virus, everything has been cancelled.
According to Bloomberg, the economic impact of this pandemic could see recessions in the U.S, EU and Japan and the slow growth rate could cost China well over $2.7 trillion in lost output — equivalent to the entire GDP of the U.K. We can't give you the Naira equivalent—the money is much. In an attempt to stall the pandemic, many countries have adopted a cautionary measure to trade aka 'please stay at home'. The US closed its borders to the EU, UK and Ireland, Russia to China and global trade seems to be threatened. The aviation industry contributes about $2.7 trillion (3.6%) to the global gross domestic product (GDP) and with Covid19, airlines have lost more than $113 billion due to travel bans and scant plane bookings even with cheaper flight fares (who wants to travel?). If you see the picture making the rounds on the internet of the Kabba in Mecca, you'll know that this thing is real.
Russia Roulette
As if the coronavirus wasn't enough, tensions increased among oil producers who have tried to stabilize the prices for the reduced global demand in the market. However, the inability of the leading OPEC representative, Saudi Arabia and Russia to reach an agreement on production th quotas triggered a 27% drop in the price of crude on 8 of March 2020, its lowest in more than five years. Market prices are now at $19.84 per barrel, and it is not a good sign for any of the parties involved. Outside of the Middle East where the cost of production is lowest, with prices as low as $25 per barrel, the cost of production could force other producers including Nigeria and the US out of the market. For instance, Nigeria will be unable to sell its oil since our cost of production is $38. Since oil accounts for more than 70% of our revenue and foreign exchange, dollar rates have gone up and panic in the market has set in.
Uncle Godwin of the CBN has however assured us that the increased rate is under control and will not last long but this development is an issue for revenue especially as we budgeted $57 per barrel for oil.
Now the Federal Council has cut our budget by 30% i.e money no dey again but ogoro must still chop since oil money is our business and now $1 equals 380, we will be fine laslas..
Mamba Mentality
COUNTRIES WITH CONFIRMED COVID-19 CASES
Football is also cancelled! It is the worst news you could give a football fan. All the top leagues have been postponed causing an estimated loss of $200 billion and if you are a Liverpool fan, this season could be your greatest nightmare. The tourism industry has already lost more than $2 trillion since the outbreak with countries like Cape Verde, Tanzania and Greece(Santorini people) expected to reduce their revenue projections. In 2017, boat cruises contributed more than $117 billion to the global economy. Today, the sector
The thing that can save us now, is for Nigeria to start a side hustle because oil has dried up… for now. But you guys know say Naija no dey carry last. Since we have land, we can do Agriculture and agro processes, we can put policies in for trade since we have market and we can improve our tax collection model because we need money.
But don't worry whatever happens, We full ground, no shaking. My people just know that where there's a casting down, there will be a lifting up for us.
Stay safe guys!
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Based On Logistics
- Every Day Big Man
This is probably the first time anyone has used this term “Based on Logistics” to talk about actual logistics. This is clear evidence that majority of Nigerians are “Serians” at heart. We appreciate you and accept you into our humble community.
The recent okada ban in Lagos really opened our eyes to the importance of motorcycles in the everyday lives of Nigerians. From commercial transportation to product delivery, motorcycles have become an integral part of how individuals and businesses operate. Regardless of the ban, we thought to let you know that if you have been considering switching careers to become an okada rider, you just might be on the right track.
In 2020, everybody is buying things online. E-commerce businesses have grown significantly and expanded their offerings into newer markets. Scrolling through Facebook, Instagram and Twitter, you can't miss the array of updates and sponsored posts—from “jojowears”, ”dudu's kitchen”, “delah's accessories” and several other businesses like them—leveraging the power of social media to access a global online market. These businesses are facilitated by the e-commerce principles of online orders and quick item delivery.
Everyday big men like me, and my other millennial and GenZ colleagues need everything like yesterday; hence businesses must be able to deliver products to our doorsteps almost as soon as we make the orders. So, for internet businesses—shoe and wig sellers, food vendors and others—everything is based on logistics. The need for quick deliveries gave birth (pun intended) to a new logistics market using motorcycles. I like to call it “okada logistics” or Okadagistics.
Wetin Dey Locomote
The most popular users of okada logistics are small scale e-commerce businesses. These businesses deploy quick logistics to deliver food, fashion items, books and almost any other thing you can buy online. Beyond e-commerce, quick logistics are also important for other sectors like healthcare (for the quick transportation of blood samples, medical items etc) and agriculture (for the quick movement of farm produce).
How did we get here?
Many people might think okada logistics started when formal companies started branding motorcycles with fancy boxes and catchy logos; but if you've ever seen several tubers of yam or two goats tied to the back of a motorcycle; that, my friend is okada logistics. Social media and the expansion of the e-commerce sector to accommodate several small-scale businesses have however increased the need for quick deliveries.
A few years ago (in the stone ages), people might have been required to go to a post-office or find a taxi driver to deliver items within a city. Obviously, post offices will take days to deliver and Lagos traffic makes it very difficult and expensive for companies to deliver small products with cars. Today we see “GIG”, “Jumia Foods”, “Max.ng” delivery motorcycles and several other small brands breaking into the market daily. Even our beloved Gokada recently transformed their bike hailing service into a delivery service, as His Excellency implemented the okada ban
A quick “Google search” and you will see several articles teaching people how to start quick logistics businesses in Nigeria.
Logistics business
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This clearly reveals the increasing demand for okada logistics and the intensified efforts to create more suppliers of the service. In other news, if you need to 'level-up' your logistics business, gladly walk into your one-customer bank and let's talk business. Okadanomics
As at 2014, there were 8 million registered okadas in Nigeria. In more “Serious” terms, there are more okadas than people in many Nigerian states. Obviously, this number has risen significantly in the last six years, especially with the influx of motorcycle-based transport and logistics businesses. As the commercial centre of the country, Lagos accounts for a significant portion of this number, especially before the okada ban. At the time, there were over 500 registered bike logistics businesses using about 100,000 bikes to deliver items across the state on a daily basis.
In 2019, logistics was the 4th highest contributor to the transport sector GDP. Okada logistics is clearly here to stay, and as more cities become urbanised, they too will begin to experience some “Serious” okadanomics. I guess that is the whole point of this article: to let all “Serians” know that motorbikes do not just get our items delivered faster, they are also driving our economy and businesses to faster growth and development.
The next time you see an okada rider, walk up to them (don't shake their hands #COVID19Mentality) and tell them they are doing well”.
These activities have grown the logistics sub-sector of the Nigerian economy by a cumulative 23% in the last seven years and it continues to expand yearly.
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Is It OK? - Lush Lash
Akube Balanciaga
In Obalende, Lagos, a young bus conductor wears a bright red t-shirt with the inscription, "Here comes trouble" (lol! The irony). A teenage girl dons another with the inscription "flirty, dirty and single" innocently. For decades, Chuka in Yaba market and Emma in Aswani have kept the trade secrets of some of the fashion slay we have come to know and love. From young girls and boys to low-income families, people have depended on second-hand markets to provide clothing for them at very affordable rates, which is the main attraction. These same markets have provided jobs and created a means of income for other families. As viable as this sector is, Uncle Godwin does not want them to access funding for trade (FX) and does not want their products to come in. In spite of these challenges, the second-hand market keeps growing.
Digital platforms/social media have increased the proliferation, so he had better let them in so everyone can cashout. Bend Down, Select
Walking through Kotangora or Aswani markets on market days, the most chanted phrase is “bend down, select” as traders urge customers to dive into the bale of clothing to choose their style and size. Thrifting has since moved from Chuka's physical shop in Tejuoso to “scroll and select” on IG. Like everything else, thrift fashion has gone digital. From web-based platforms like jiji.ng to Instagram handles like @thriftstunner and
@thriftandtees, second-hand clothing has become more accessible and the elimination of face-to-face interaction (as in, never to be caught unfresh) has encouraged more people to patronise the stores. If it can be digitized it can be formalised, regulated and even taxed especially as this sweet market serves more than 30 million Nigerians.
Okrika O.B.O. We've since moved past the perception that second-hand fashion is restricted to the low-income earners—there is a whole industry that caters to second-hand luxury items. Whether second-hand or tear-rubber, a Hermes Birkin is a baby girl handbag and vendors are cashing in daily on the “Okirika O.B.O.” market. You know I always hook you up with new hustle , if you are currently thinking of how you will hammer this 2020, make it a habit of going to yard sales and closet cleanout/charity sales of Bling lagosians, cop a few items (I bet they'll be in pristine condition) and sell the well photographed items on your Instagram!
Obviously, when Sinzu Money and Jacuzzi spend, it is emoney, especially because of the volume of money spent and their exposure to modern digital payment technology. The heavy cash flow in these transactions makes them ripe for taxation and formal integration into the economy.
Nigeria, my Nigeria In her glory days, Nigeria was ranked as the second largest textile hub in Sub-Saharan Africa just behind South Africa, representing 63% of the textile capacity in West Africa, before neglect and policy inconsistencies capsized the sector. The number of textile and garment factories fell from 175 in the mid 1990s to less than 25 in 2010, while employment from the sector dropped from 137,000 in the 1990s to 24,000 in 2010.
Consequently, this led to the decline in cotton lint production from 98,000 tons in 2006 to 55,000 tons in 2010 and export of cotton went down from $44 million to $31 million.
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...there is a whole industry that caters to second-hand luxury items. With lowered cotton cultivation and processing, the government has now tried to rejuvenate the sector. One of the ways they are doing that is by discouraging okrika market. The concerns of the government about secondhand items are premised on the perceived competition with the local producers.
However, experts and local producers have argued that second-hand markets are not in competition with them as there is naturally a price and quality variance in both categories of clothing. That is to say, our producers and the Oks can function together so instead of strangling the growth of the sector we should find ways to formalise and integrate it. Blow Agenda – Version 2 Instead of clamping down on this sub-sector, the government should capitalise on the second-hand market as another avenue to generate revenue. (rhymes). In fact, the sector should be promoted since they deal in goods that can be taxed a second time. ThredUP, the world's largest second-hand shopping destination recently closed on $100 million fresh funding from investors.
Therefore, encouraging policies that will ease the sourcing of items to grow the digital space could also be a source of Foreign Direct Investment.
Get to know all available weapons before playing the game
sterling.ng/cov19
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Up NEPA - Odudu A.
A Journey Down Memory Lane
“Up Nepa!”—a slang we know too well and with the way things are going, our children might know it as well. Growing up, nothing got us more excited than having light at home. Now grown and mature with bear bear, we're still excited by it after a long day. Apart from corruption, insecurity and Big Brother, nothing gets people talking more than 'not having light'. Electricity generation in Nigeria began in 1896, fifteen years after its introduction by our colonisers and was transformed into National Electricity Power Authority in 1972. Since then, like St Louis sugar, power generation has remained the same—largely insufficient to cater for the growing population. How can Nigeria now have 4G and a Google office, but power is still the same; brethren this is a call for prayer!
What is even more wonderful is that the electricity tariff in Nigeria is one of the highest in Africa at an average of N31.5 per kwh. The regulatory environment has created a highly inefficient industry with high rates and poor service delivery. Oluwa wetin dey regulate?
As I was researching, I found out that only 30% of Nigerians are connected to the national grid, with a combined energy demand of 30,000 megawatts. Guess how much the distribution companies are able to give?
3600 megawatts—12% of the demand. At the end of Q3 2018, Nigerian Electricity Regulatory Commission(NERC) made more than N1.08 billion in revenue at a 65% efficiency rate from power distributed to less than 30% of our population. With 13 power stations and over N2 trillion invested in the sector, why is the largest economy in Africa struggling with power distribution?
Anyway, when the going gets tough, the tough get going. The World Bank has been clamouring for us to use alternative sources to improve access to power. Think about it please, the best light and filter is Sunlight. Why are we not using it more? The Next Big Thing
Solar Power as a service also known as (Solar PaaS) is a structure where consumers are not required to own solar generating units i.e. actual infrastructure but will be billed only based on the wattage of electricity consumed. While PaaS is yet to be an acceptable venture by many, several companies in Nigeria are already taking bold steps into this form of energy generation and consumption. 'IMPERIUM' is one of them.
Though there are other approaches to access Solar Power through outright purchase or lease to own structures, Solar PaaS allows customers subscribe to the service at an agreed fee as against paying bills per kilowatt generated by the solar panels. Check us out at altmall.ng Power To The People
In this era of the new coronavirus, having light is so important because we shouldn't be going out anyhow. Netflix is now in Naija, IrokoTV is going strong and WhatsApp video call is not bad. For us to survive social distancing, we need power.
May God light up our path.
The truth is we can only pray to God at this point as he holds all power in his hands. Well… prayer and also become ministers of power in our homes and offices. Heaven helps those who help themselves my people. Ghost-Town
In 2018, MTN, reportedly spent more than $40million on power generation for its businesses. The company primarily powers base stations for about 20 hours daily to keep its network online; see ehn, MTN should tell us another story as to why network is still so poor abeg, even though NEPA no try truly. This is the story of most businesses in Nigeria who have to rely on alternative sources outside the grid. Just think about it, if you have not invested in a generator (diesel and petrol), candles, inverters and rechargeable lamps and fans, are you really in business in this Nigeria?
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I hope you enjoyed being ‘Serious.’ Follow the guidelines below to stay safe!
Wash your hands frequently with soap and running water
Avoid touching your eyes, nose and mouth with your hands
sterling.ng/coronavirus
Seek medical help early if you show the symptoms