Now that ROK studios has been sold to Canal+, IROKOtv plans to focus on growing its subscriber base, so says Jason Njoku.
According to the IROKOtv founder in a recent blog post, “We intend to continue to focus our efforts on subscriber growth as the only KPI which really matters. That will be at the expense of any cash flow or EBITDA profitability in the near future.”
Though he did not disclose the value of the ROK sale, he confirmed that the cash realised from the sale was now enough to pursue this goal of growing his subscriber base to over 1 million.
He also added that “once IROKOtv gets to 1m+ subscribers, the intention is to explore a listing on London Stock Exchange.”
He however admitted that he would have to invest in content, product, engineering and most importantly distribution to even remotely stand a chance of reaching this goal.
DISTRIBUTION
To solve the distribution issue, he said that this would require IROKOtv to successfully scale its outbound (telesales) efforts. The plan is to scale agents to 1,000 by 31 Dec 19, 2,000 total agents at 31-Dec-20 and 2,500 total agents at 31-Dec-21. IROKOtv would also need to invest in marketing and productivity (new hardware / CRM system) which should yield immediate results from August 2019 onwards.
IROKOtv is discontinuing the kiosks programme to focus on the telesales organisation and/or its dealer network. It intends to scale dealership programme from 112 currently to 500 before the end of the year. This will then be scaled to Accra and throughout Ghana in order to extend the content distribution reach. The objective is to remove the friction of content.
INTERNATIONAL AND AFRICA
As per growth internationally and in Africa, IROKOtv says it would invest equally in both areas as it focuses on subscriber growth. It will introduce an international annual plan of $25/year compared to the current $60/year which is seen as relatively expensive. This new price point would be supported a consistent and performance-driven marketing budget equal to that in Africa.
Another key point is the new diversification strategy. IROKOtv wants to diversify from just 100% Nollywood into being a major African distributor of Bollywood, Telenovela, Korean and Kids content.
It hopes that this will ultimately help increase its annual ARPU from ~$8.3/year (Nollywood only) to a more meaningful $12–15.
For comparison’s sake MCA’s DStv & GOtv, The largest PayTV operator in RoA generated annual ARPU of $32.4/customer in their last FY. That is between DTH and DTT. $12–15 annual ARPU remains reasonable considering the content offerings.
LIQUIDITY
As IROKOtv approaches its 10th anniversary in 29 months, it plans to focus on the business with an eye to liquidity event in the near future. It wants to list the business. Hence it is looking at a listing on the London Stock Exchange.
The target valuation would be anywhere north of $100m+. This will most likely be in 2022, where its revenue would be $20m+ with an operating margins of <$1m (or possibly negative).
It appears that Jason has all the plans to make the goal happen. All we have to do is bring out our popcorn packs and watch the unfolding of next great Nigerian success.
That Nigerians are poor readers, save for utilitarian purposes, is no more news. But there is a proliferation of online bookstores, even in the country, writes RAHEEMAH AROGUNDADE
No reading culture
Recent studies reveal consistent decline in the reading culture in Nigeria. The past was reportedly better, with the country’s rich literary history, typified by the number of prominent authors and eggheads. Over the last three decades, this issue has been the subject of discourse among Nigerian literati, yet no visible result.
There are growing concerns about the future of the country, if inhabitants swim in the pool of illiteracy. Statistics from the World Culture Score Index ranks Nigeria among the countries with the lowest reading culture.
Unenviable number
The National Commission for Mass Literacy, Adult and Non-Formal Education survey revealed that 38 per cent of Nigerians are illiterate.
According to the survey, 40 per cent of primary school pupils cannot read for comprehension. Sadly, this pervasive issue is one that still troubles the Nigerian society as its adverse effect permeates the entire system.
Utilitarian reading
Mr Nathaniel Okwoli, the chief executive officer of BooklifyLimited, an ed-tech company focusing on educational solutions for tertiary institutions, noted that most Nigerians read for utilitarian purposes, especially in academic environments.
He told Africana Entrepreneur that “those who argue that Nigerians read have not factored in the environment in which they are found reading.”
According to him, students read to pass impending tests and people are rarely found reading for pleasure like in other climes.
“In the academic environment, people read out of the necessity to pass or achieve academic excellence. This is a different form of reading. When people ask if Nigerians read, they want to know if we read for pleasure or knowledge, not just to fulfil an academic condition. From this, we realise that Nigerians do not read.”
Home page of Booklify.ng
Causes
United Kingdom-based award-winning author, Mrs IbitolaAdebayo, explained to Vanguard that the inability of parents and guardians to buy books for their wards led to poor reading habits.
She agreed that the reading culture in Nigeria had dwindled drastically.
“I realised during my tour in some parts of the country that reading culture has dwindled over the years. Studies have also shown that 40 per cent of Nigerian adults never read a fiction book from cover to cover after leaving school, and that over 30 million Nigerians have poor reading skills. In many universities, most students do not read, even the few that read merely do so to pass examinations.
“The implication is that poor reading skill makes a child develop poor attitude towards school, creating self-esteem problems later in life.
“Parents, being the principal educators, should buy books, encourage their kids to read newspapers, magazines and other literature,” she said.
On his part, Okwoli said, “In a population of about 200 million people with high level of poverty, it is not expected that people would take out time to read for pleasure. Clearly, the statistics are against us.
“It is not just about having a poor reading culture; it is the absence of the culture in the first place. People have multiple thoughts eroding their minds. A random survey will show the number of Nigerians who do not have time for reading. Only few read for pleasure in this environment.”
Some other stakeholders have fingered the primacy of information technology as a contributor to the decline in reading culture.
Still, others believe that the standard of education in Nigeria is the major reason for poor readership.
Benefits of reading
Despite conflicting opinions on the causes of poor reading culture, everyone seems to agree that the benefits derived from reading are numerous and monumental for societal, personal as well as mental/intellectual development.
Reading encourages curiosity, quick learning and develops one’s critical thinking skills and problem-solving abilities. It also aids better understanding of a seemingly difficult topic.
Regular and consistent reading boosts one’s mental capabilities, makes one more informed, improves one’s vocabularies and enables one to insightfully contribute and evaluate situations. That is part of the reasons it is said that readers are leaders.
Home page of lantern-books.com
Survival of online bookstores
Surprisingly, irrespective of this low readership, more and more online bookstores are springing up. While this form of entrepreneurship is significant, it is quite unexpected to see them thrive in the Nigerian environment.
Okwoli said that while running his online bookstore, he noticed that only a few people read for pleasure, to gain knowledge or for self-development. Even those who read for any of the above reasons find it difficult to buy books.
“If we want to record more sales and progress, we may need to focus on building a reading culture in the first place,” he suggested.
Realising that Nigerians have not imbibed the reading culture, Booklify had to change its techniques for more inclusive strategies.
“We have made all the mistakes for today and are better equipped. We understood that distribution is crucial, so apart from listing Booklify App on Google Play Store, we decided to work with partners that will help us achieve our goals better and faster in terms of distribution,” he said.
Chief executive officer of Purple Shelves Limited, Mrs Amarachukwu Chimeka, however, said that “wide readership of a particular book depends on the relevance of its content to the Nigerian audience.”
She added that despite the perceived poor reading culture, her business was faring well.
Bruno Oaikhinan is the Chief Executive Officer and Chief Inspiration Officer of Bruno’s Place Unisex Salon, a beauty and style outfit at Ikeja City Mall, Lagos, and Jabi Lake Mall, Abuja. RAHEEMAH AROGUNDADE and EMMANUEL MONYEI engage this former banker who advises budding entrepreneurs to embrace mistakes as part of the bargain. Excerpts…
Anyone who reads your book, A Banker Turned Hairstylist, will not have problems realising that the story was about you. So, why did you decide to end a well-paying bank job to establish a salon?
I did not quit the bank; it was the bank that left me. I was actually asked to resign and I had no better choice than hairstyling. Today, it is paying my bills better than when I was working in the bank.
What motivated you to write the book?
I wrote the book to document my experiences so far; for others to read and run with. There is so much to learn from reading the book.
What did it feel like leaving the corporate world for free enterprise?
I thought working in the bank was the best thing that could happen to me, or anyone. I am glad I was asked to resign. Today, I am an employer of labour.
Some say that in this part of the world, it’s not so common to see male stylists; how do your customers, especially the females, see the male stylists?
What drives the beauty and fashion industry is controversy. The trend now is that the ladies prefer the guys doing their hair, while the guys prefer a good female barber. We follow trends in Bruno’s Place Unisex Salon. We have very good male hairstylists/braiders and many female barbers.
Apart from the financial prospects in this business, what else did you consider before taking it as a viable business option?
In addition to the lucrative nature of the business, I saw it as an opportunity to transform lives. I have trained and converted many cleaners to hairstylists, barbers, nail technicians, pedicurists and manicurists.
Bruno’s Place has, over time, caught people’s attention. What sets you apart from other operators in the industry?
Bruno’s Place is the first salon to operate in a mall in this country. Malls happen to be very expensive locations to set up a salon. We have been operating in malls for the past six years.
How did your business gain so much popularity? Is it the branding or advertising strategy?
I am a certified brand strategist. I utilise all the experiences I have gathered working in the bank and those I acquired training as a brand strategist to work. Bruno’s Place is not just a business, but also a brand. Business may die, but a brand lives on.
What unique feature does Bruno’s Place offer customers?
We provide a very convenient environment with competent staff who are very good at their trade.
How lucrative is the style business?
We are doing very well as a business.
Cross section of customers and workers at Bruno’s Place, Ikeja City Mall. Photo Credit: @brunooaikhinan’s Instagram page
To begin such business, what range of capital would be needed?
It depends on a number of factors, including your target market, ambience, products, etc. You can start with an amount ranging from N500,000 to N20m.
What major challenge have you faced in the business so far, and how did you tackle it?
The major challenge I have experienced at the start was manpower. Thereafter, I developed a system of training and employing those who desired to stay and work with us.
Most successful businessmen have role models, people they look up to and model their business after. Do you have any?
Bobby Eke is one major person that really showed me the secrets of this business.
What strikes you most about him(Bobby Eke)?
He is talented and well-packaged.
What would you say has been instrumental in the growth of your business?
My character, attitude and personality. I believe that one’s attitude reflects on whatever he does.
Given your experiences, what lessons have you learnt about entrepreneurship?
I see every seeming mistake as a blessing in disguise. Never be afraid to make mistakes or fail. If you must fail, fail forward.
What is your advice for younger ones interested in this line of business?
Study the trade before you go into it. Have a purpose. What you stand for must reflect in the products and services you render to your customers.
One of Nigeria’s indigenous digital payment service providers, Xpress Payment Solutions Limited, has said it is vigorously driving and deepening financial inclusion by taking financial services to the unbanked, particularly rural dwellers.
The Managing Director/Chief Executive Officer, Xpress Payment Solutions, Oluwadare Owolabi, said this at the 19th Annual Digital PayExpo Conference and Exhibition in Lagos while speaking on ‘Payment initiatives driving digital financial services innovation.’
According to him, until payment services are taken from major cities and towns in the country to the unbanked rural dwellers, the financial inclusion target of the Central Bank of Nigeria may not achieve the set objectives, and many will denied access to financial services and products.
The three-day event brought together digital service providers and relevant stakeholders, with the theme, ‘Finclusion: Aligning expectations with the digital financial service business case.’
Owolabi said, “In driving or deepening digital payment services in the rural areas in the country, we have our licensed super agents that enabled us to recruit and deploy agents across the nation. So, we are focusing mainly in villages in unbanked areas.
“That is what Xpress Payment Solutions is doing. We are available in the rural areas across the country and we are located in those villages. And this has facilitated the growth of the financially included.”
On threat posed by quack payment service providers, Owolabi suggested that the CBN should set up a machinery through which it will receive feedback on the activities of those providers and devise means of arresting the situation.
He said, “The CBN should have a machinery to understand what is going on in the market. They should have machinery that drives report to them. They should have machinery to see what is happening outside of us. The CBN is a regulator and should do more to cover every nook and cranny of the country.”
According to him, to upscale the financially excluded would require cooperation from the service providers and the regulators and pushing services to the unbanked locations before the country can achieve the desired set objectives.
Photo Credit: Google.com
He said, “There is a lot of work from all parties, from the country, the regulator and each party providing services. We all need to work together and collaborate to drive financial inclusion in Nigeria either through technology, processes, people and training. All parties need to work on it.”
Owolabi, who posited that access to financial services was a major challenge faced by third-world countries like Nigeria, explained that digital payment services were impacting the country’s economy.
He added, “Transactions are being seen across the board; funds that are being transferred are recorded on a daily basis by the Nigeria Inter-Bank Settlement System and we can see that things are moving but the money moving is still restricted to the urban areas. We’ve not seen a lot in the villages; we’ve not seen a lot in the North, we’ve not seen a lot there yet. Those are the ones we need to see.
“The people need to be financially included. It’s not only in Lagos. Until we take digital payment services to the nook and cranny, particularly the villages, we are not going to see much successes in what we do.”
In her address, the Managing Director, Intermac Consulting, Jacqueline Jumah, said transformative innovations in technology could drastically drive presence and scale when offering financial services, opening doors to the unbanked and underbanked populations.
“Financial inclusion, at its most basic level, starts with having an account – financial institution account or mobile wallet – but it doesn’t stop there; people can only fully benefit when there is regular usage. In recent times, we have witnessed incredible innovations in products, and initiatives to support the delivery of financial services, promoting the uptake and Xpress Payment deepens financial inclusion through digital payment
One of Nigeria’s indigenous digital payment service providers, Xpress Payment Solutions Limited, is vigorously driving and deepening financial inclusion by taking financial services to the unbanked, particularly rural dwellers.
The Managing Director/Chief Executive Officer, Xpress Payment Solutions, Oluwadare Owolabi, said this at the 19th Annual Digital PayExpo Conference and Exhibition in Lagos while speaking on ‘Payment initiatives driving digital financial services innovation.’
According to him, until payment services are taken from major cities and towns in the country to the unbanked rural dwellers, the financial inclusion target of the Central Bank of Nigeria may not achieve the set objectives, and many will denied access to financial services and products.
The three-day event brought together digital service providers and relevant stakeholders, with the theme, ‘Finclusion: Aligning expectations with the digital financial service business case”. The theme was built around key contextual subjects that influence the development of digital financial services.
Photo Credit: ShutterStock.com via Google.com
“In driving or deepening digital payment services in the rural areas in the country, we have our licensed super agents that enabled us to recruit and deploy agents across the nation. So, we are focusing mainly in villages in unbanked areas, bringing people to bare.
“That is what Xpress Payment Solutions is doing. We are available in the rural areas across the country and we are located in those villages. And this has facilitated the growth of the financially included,” the managing director said.
On threat posed by quack payment service providers, Owolabi suggested that the apex finamcial regulator in the country, central bank should set up a machinery through which it receives feedback on the activities of such and device means of arresting the situation.
He said, “The CBN should have a machinery to understand what is going on in the market. They should have machinery that drives report to them. They should have machinery to see what is happening outside of us. CBN is a regulator and should do more to cover every nook and cranny of the country.”
According to him, to upscale the financially excluded would require cooperation from the service providers and the regulators and pushing services to the unbanked locations before the country can achieve the desired set objectives.
Owolabi stated further, “There is a lot of work from all parties: from the country, Nigeria, from the regulator, CBN, from each party providing services. We all need to work together and collaborate to drive the financial inclusion in Nigeria either by technology, processes, people, training even the country pushing transaction to mobile devices, pushing transactions to agents, pushing transactions to other nook and crannies where there is no financial services today and let them use agents to drive that financial services. All parties need to work on it.”
Owolabi, who posited that access to financial services was a major challenge faced by third world countries like Nigeria, explained that digital payment services are impacting the country’s economy.
He added, “Transactions are been seen across board, funds that are being transferred are recorded on daily basis by Nigeria Inter-Bank Settlement System and we can see that things are moving but the money moving is still restricted to the rural areas. We’ve not seen in the unbanked, we’ve not seen a lot in the villages, we’ve not seen a lot in the North, we’ve not seen a lot there yet. Those are the ones we need to see.
“The people need to be financially included. It’s not only in Lagos. Until we take digital payment services to the nook and cranny, particularly the villages, we are not going to see much successes in what we do.”
In her address, the Managing Director, Intermac Consulting and market expert in digital financial services, Jacqueline Jumah, noted that transformative innovations in technology can drastically drive presence and scale when offering financial services, opening doors to the unbanked and underbanked populations.
“Financial inclusion, at its most basic level, starts with having an account, financial institution account or mobile wallet, but it doesn’t stop there, people can only fully benefit when there is regular usage. In recent times, we have witnessed incredible innovations in products and initiatives to support the delivery of financial services, promoting the uptake and usage of products and services and showcasing the business case for financial inclusion,” she said.
The Nigerian automobile industry is saturated, birthing a good number of traders, engineers and other auto artisans. EMMANUEL MONYEI peeps into the world of these ‘autopreneurs’
With about 14 million cars plying roads across Nigeria, including the five million private cars and about 220,000 commercial vehicles in Lagos State, those with free enterprise spirit eke out a living from mechanical engineering and sale of spare parts.
Forget the ‘dirty’ nature of used parts retail business; the lucrative nature could blow minds. Dealers make as much as 200 per cent profit, as, according to them, used goods don’t have fixed value.
A brake expert, Mr Adedoyin Adekanye, who practises his trade at Owode market in Ikorodu, is of the view that ‘autopreneurship’ is the place to make a living.
He told Africana Entrepreneur, “The trade is very profitable, as every part of a vehicle has its expertise. As you can see, I am a brake master. There are other people who specialise in otherareas. The vehicle compartments are much; that is why I advise anyone who wants to pick up a trade to go for auto mechanic, as it can take care of one’s needs.”
This business seems to run in his family. His father was an overhauling mechanic, while his son, Omotayo, was learning auto electrical.
According to Adekanye, autopreneurship has made a lot of people in Lagos. He added that “auto mechanical engineering pays more than most white collar jobs.”
The capital-intensive nature of the spare parts retailing aspect of the business discourages many who would have ventured into it. This boosts the apprentice culture popular in south-eastern Nigeria.
An auto spare parts dealer at Ladipo Market, Friday Akhagomah, gave credence to this.
“You don’t start auto spare parts business with chicken pea. That is why most people have to serve and learn the tricks of the business from a tycoon who in turn settles them after some years of loyalty and service.
“I spent 13 years with my oga (master) before I finally gained my freedom, and he settled me with my first shop in the second line there. It is three years now since I had my freedom and I have been able to own two shops, which I use to take care of my family here in Lagos and in the village. I have a car,” he offered.
Buyers & Sellers of Spare parts in Ladipo Market, Lagos. Photo Credit: guardian.ng via Google.com
Akhagomah, who said he made an average profit of N15,000 daily, added, “Our market (Ladipo Market) is known to have any spare part you need. There is always an inflow of customers even from neighbouring states.”
He asserted that the nature of roads in the country, ironically, boosts the business.
“As vehicles develop faults, they need to be fixed and bad parts replaced. So, auto mechanic engineers and spare parts vendors come in handy,” he said.
When asked how he could certify the authenticity of products, he stated, “All my items are ‘Belgium’ (a term used to describe European used goods). I don’t buy China-made (term for inferior materials). You see, Belgium goods last longer; that is why in this market, people refer customers to my shop, as they know that I sell authentic materials.
“My oga would always say that what keeps a businessman in business is the ability to stock quality products at affordable prices. Though China-made goods are good, they don’t last long; that is why I don’t settle for them when I go to re-stock.”
An engineer with Elizade Motors, who identified himself simply as Chinedu, said that efficiency in autopreneurship was a product of theoretical and practical training. He stated, “The best engineers are the ones with both practical and theoretical knowledge.”
He reportedly graduated with a B.Sc in Mechanical Engineering from Ahmadu Bello University. While in the university, he learnt automobile overhauling, and by the time he was through with his National Youth Service Corps assignment, he learnt the electrical aspect of automobile engineering.
“This basic knowledge has made me a better engineer than my colleagues in the field,” Chinedu said.
He added that aside formal education, the passion and love for the profession should come first. “There are lots of Mechanical Engineering students and apprentices without the passion for it. It might be as a result of suggestions from family members or societal pressure. That is why you see a lot of people go into it and don’t succeed.
“Although we all know that success is from God, hard work is needed to get to the pinnacle of glory.”
According to him, no mechanical engineer should complain of low income, as the amount of cars that ply Nigerian roads, coupled with the bad roads, makes the business worthwhile.
With a Bachelor of Pharmacy degree from the University of Ife (now Obafemi Awolowo University) in 1990, Mrs. Olayinka Adegoke-Sanusi started her pharmacy business in 1993. Over time, she opened a chain of pharmaceutical stores at various locations in Lagos with the name ‘De Royal Treet Pharmacy’. In this interview with RAHEEMAH AROGUNDADE, she lists the essential ingredients for success in business.
What is your first business venture?
As a pharmacist, you can work in a hospital, practise community pharmacy or be an industrialist producing drugs. As it was back then, I had the impression that community pharmacy would afford me the flexibility I desired to take care of my family. Hence I chose to practise community pharmacy. My first pharmaceutical store was established in 1993. Others came not too long after.
What motivated you to start other businesses?
Aside that my other businesses were borne out of necessity, I always desired to contribute my quota towards the society’s development. After the pharmacy, I established a school in 2006 to train brilliant students who will be future leaders within this country and beyond.
Also, I have always dreamt of having an event centre and rental service. When the opportunity came, I simply worked on it and in 2009 started the event centre and rentals.
The Royal Treet Pharmacy
So far, how are the businesses doing?
Managing a business requires great effort, let alone managing more than one. At first, it wasn’t so rosy combining all the businesses; but with time, I realised I had to employ an efficient manager who ensures that all business activities run smoothly by following the Standard Operational Procedures (SOP) for each of the businesses.
What major challenge have you faced as an entrepreneur?
The greatest challenge I have faced is manpower. Like they say, getting the round peg into the round hole can be quite difficult. Likewise, getting the most suitable and qualified professionals for each of the businesses posed a challenge. Getting professionals to work in the pharmacy was difficult. Also, getting education specialists and grounded academics to work in the school was similarly challenging. In the event centre and decorations, we use casual workers most times. We ensure that we have a list of casual workers who we call at any time we need their services. For the school, we employ competent and qualified teachers whom we train in-house. We also employ suitable professionals for each of the pharmaceutical shops.
Mrs. Olayinka Adegoke-Sanusi
What advice do you have for prospective entrepreneurs?
First, whatever business you decide to go into, have sufficient knowledge about it to prevent extremely bad situations. Being adequately equipped will prevent mishaps.
Second, adequate management of staff is very important. This is because staff management differs according to business.
In addition, having a comprehensive and unambiguous business plan is required. By doing this, you know exactly what you want to achieve. It will further help you prevent waste of resources.
Also important is the separation of the finance for each of the businesses. It is wise to know the appropriate authorities administering and regulating the activities of that specific business.
Given the chance to start all over, what would you do differently with the wealth of experience you have gathered so far?
I would avoid things that would make me lose a lot of money, which include selling on credit.
To run a successful business, what are the important factors to consider?
For a business to run successfully, one would require adequate manpower, financial discipline, appropriate timing of the business, intensive marketing and advertisements, drawing a business model and plan, and employing proficient personnel and sufficient financial capacity.
Tony Elumelu Foundation and United Nations Development Programme will empower 100,000 additional entrepreneurs in seven Sahel African countries over in the next 10 years.
According to a statement made available to our correspondent by TEF, applications are open for entrepreneurs from eight African countries.
“We are pleased to announce the partnership between the Tony Elumelu Foundation and UNDP to empower 100,000 additional entrepreneurs in seven Sahel African countries over a 10-year period. This is in addition to the 10,000 African entrepreneurs that the Foundation is already committed to,” the statement read in part.
“Starting this July, applications open for African entrepreneurs residing in the following countries: Nigeria (Northern), Niger, Chad, Cameroun, Mauritania, Mali and Burkina Faso.”
TEF, with this partnership, lifts thousands of African entrepreneurs who have not been selected for its TEF Entrepreneurship Programme.
“With more partners on the way, we hope to do much more – we are unleashing the potential of the African continent.”
RAHEEMAH AROGUNDADE and EJIRO AWHANA write on the prospects of corporate, technology-driven commercial motorcycle business in Nigeria’s business capital
Our technologically aware world is birthing innovations and opportunities. The major benefit derived from the proliferation of Internet-related services has made life easier in commerce, education, transport, health and other sectors.
Transportation is the fulcrum of every modern economy, measuring its effectiveness.
Commerce is part and parcel of every society, but the efficiency at which people move goods and services from one place to another determines the strength of the economy, the quality of life and the growth of such society.
Corporate motorcycle business is raising the bar, with the inclusion of e-commerce services.
Better alternative
Due to their ability to beat the gnarling Lagos traffic by snaking through ‘impossible’ pathways and any available space, motorcycles are seen as a faster alternative to either private or public vehicle. Here, the preference for motorcycles is understandable. In a city where you have to wake as early as 4a.m. to avoid getting caught up in traffic and consequently miss appointments, people are bound to choose motorcycles as real time transport mode.
“Motorcycles are generally faster, especially when considering traffic congestion in big cities like Lagos. Unlike public buses or cabs, the motorcycles do not have to stop at any point to pick passengers. We see that this wastes people’s time and hinders them from meeting appointments. Also, not everyone can affordUber or Taxify because of the charges. These are some of the reasons motorcycles are preferred to other forms of transport in Lagos,” explained a Gokada staff simply identified as Ade.
In Lagos, with an estimated population of 17.5 million, approximately 227 vehicles are on every kilometre of road, according to statistics. Yet you see people always stranded at motor parks and lay-bys. This not only proves that the number of cars is insufficient, it also reveals that almost half the population of the city depend on public transport. Bernstein’s report projected that the number of cars in the world will double by 2040. Hence, the need for and creation of more job opportunities around the automobile industry.
The population of Lagos necessitates the provision of many alternative means of transport to cater for the needs of the residents. That is why, apart from public vehicles and motorcycles, corporate vehicle and motorcycle businesses are sprouting. Prominent among the corporate vehicle business are Uber and Taxify, while among the corporate motorcycle businesses are Gokada and MaxOkada.
Enter the flagship
Chief executive of Gokada, Deji Oduntan, describes his company as an on-demand transportation company that has been redefining the transport system in Lagos by leveraging technology to connect users to the closest riders within their location.
“The need to solve the transportation problem in Lagos and reduce the way traffic affects its inhabitants brought about the conception of Gokada. The question was, how do we get Lagosians to their destinations 50 per cent quicker and in a safe way?
“Motorcycles are the quickest mode of transport in Lagos; so it was a no brainer. Gokada was created to revolutionise the regular Okada (commercial motorcycle) system, while creating jobs for the unemployed and providing a fast and cheap service for commuters,” he told an online medium, Pulse.
Since its inception in 2017, Gokada has registered over 1,000 motorcyclists in Lagos. Their mode of operation portrays skill and efficiency to solve transportation issues in Nigeria.
MaxOkada Operatives Photo Credit: ventureburn.com via Google.com
High returns Africana Entrepreneur gathered from some corporate motorcyclists that they make between N7,000 and N12,000 daily and ‘deliver’ N3,000 to their employers every weekday. In a day, each rider reportedly makes an average of 10 trips, which implies that thousands of Lagosians patronise them.
According to Oduntan, the earning of each rider depends on their ability to attract clients, but they can earn between N40,000 and N200,000 monthly.
“So far, we have empowered over 1,000 drivers, and with the launch of the Driver Training School, we hope to empower thousands more who will be trained on riding Gokada bikes, customer service techniques, and using the app. They will also be given the opportunity to own the bikes after one year of service, among others,” he added.
Problems solver
Evidently, the corporate motorcycle business does not just improve the transportation challenges in Lagos. The operators testify to its efficacy in solving the unemployment question and empowering people.
A corporate commercial motorcyclist identified as Ola stated. “If we are to pay the N3,000 for about a year, we own the bike. We have a mechanic workshop that sees to rider’s needs. We take the bikes there for repairs at very little cost and that really helps us.”
Fringe benefits
Also, these corporate riders are obliged some benefits enjoyed in the corporate world like pension and health services.
“Through Gokada, riders are able to own their bike after one year of service. Riders, on average, earn twice what they previously earned. Gokada supports drivers with pension plans, recreational and health services,” says Oduntan.
Quality staff, service
Unlike the conventional motorcyclist, these newbreed riders are trained in safety and their behaviour on the road monitored.
Oduntan explains that Gokada riders are extensively trained in defensive driving behaviour with the safety of their customers always in mind.
“Apart from that, the riders are being monitored to assure customers’ safety. Additionally, the riders can either hail the motorcycles or request riders through the mobile app.
“The cost of Gokada rides starts from N100 and it goes higher depending on the final destination.
“Unlike traditional motorcycles, Gokada bikes run above 200cc+, which means they can take longer distance trips and have greater freedom of movement within Lagos. You can get a trip from Lekki to Gbagada, for instance, which regular motorcycles cannot do. Our riders are trained and our rides are very safe. We recorded 0.013 per cent accident rate last year,” he added.
Challenges
These corporate motorcyclists are not spared of the harassment by local government revenue collectors. But Gokada has promised to address that challenge.
Like any other metropolitan city, traffic congestion is a norm in Lagos. But Gokada’s innovation has indeed redefined transportation in Lagos. Lagosians can now plan their movement more accurately.
In this feature, EJIRO AWHANA looks at the coffee revolution in Lagos, as a free enterprise opportunity and solution to social and climatic realities
Rains. Cold weather. Suicides. All have created a need; the need to keep the body warm and reduce depression. Pepper soup joints are ideal to keep the cold at bay, but not many can afford a plate, especially with the ailing economy. Again, some people are allergic to meat and fish – the solid contents of the broth.
Again, with the rampant suicide cases, even among youths, coffee becomes more useful for its ability to reduce depression. Even comedians purportedly die of heart attack and depression.
This has raised the need for café in a metropolitan city like Lagos.
The term ‘café’ was derived from French (meaning ‘coffee’). It is usually a relatively small place that sells non-alcoholic beverages along with a few items of food such as sandwiches and pastries.
In this clime, cafes are not common, but in elite territories like Lekki in Lagos. A handful of them could also be found in Abuja, the Federal Capital Territory.
For Lagos life
Lagos is unarguably Nigeria’s economic nerve. Nigeria’s version of New York, ‘the city that never sleeps.’ It is one city in Nigeria that moves on the fast lane; everything must happen now and fast. To be regarded as a Lagosian, your energy level has to be at a certain standard to keep up with the fast paced life.
With its developing status, residents of Lagos have started to embrace coffee, even with the dearth of cafés, to ‘recharge’ and keep up with the fast pace life that Lagos has thrust upon them.
Now some coffee companies employ cart pushes to take the brew to every nook and cranny of the city. These vendors can serve you along the streets.
The growing number of cafés in Lagos attests to the fact the city is finally worming up to the coffee idea. Many a Lagosian drinks coffee for the experience.
Café shops began to dot the Lagos landscape about 15 years ago, with the likes of Chocolate Royale setting the pace. Presently, there are several coffee shops spread across the state, from the island to the mainland.
Status symbol
Many have ascribed presence at cafés as a status symbol, not the love for the brew.
Akinjide Peters, manager of Krispy Kreme, one of the many coffee shops in Lagos, said, “There is the emergence of a middle working class in Nigeria; they drink coffee mainly for the experience.”
According to him, the middle working class has begun to drink coffee to set them apart as new breeds taking on a completely whole new lifestyle.
Fuelled by enterprise
The coffee revolution is due primarily to the audacity of entrepreneurs who saw opportunities hidden under layers of supposed culture and tradition. They saw potential in a whole new alien idea. Unlike other climes where there is a tradition of coffee or tea drinking, Nigerians do not show preference for either.
Seeing the advantage of selling an entire new product over the years, the shop-owners took on the challenge and now coffee has begun to appeal to a certain strata of the Lagos population.
Tayo Oyeyemi, a regular to one of the cafés, said before taking espresso for the first time, he thought it was that horrible brew he drank while in the university to keep up at night so he could read.
A shop-owner on the mainland, Kunle Ajebi, told Africana Entrepreneur that he saw the need for Lagosians to begin to enjoy the coffee experience. He pointed out that his café, aside serving great coffee and pastries, is an interesting place for networking and relaxation.
Great cafés in Lagos
Eatdrinklagos carried out a survey on a number of shops that sell great coffee. All met the obvious requirement of serving great coffee and pastries, but they got thumbs down for other reasons. The survey also showed that while some were great meeting places, others fell short of that recommendation.
In scaling them, the survey pointed out that a good number of the cafés have excellent customer service, while some of them cannot be recommended as a meeting place. Some offer free Wi-Fi. But some were adjudged fast and reliable, others were found wanting.
Pricing
The survey also looked at the pricing. Some were pocket-friendly, while others would leave the average person jaw-dropped.
Photo Credit: theculturetrip.com via Google.com
Origin
An Ethiopian shepherd reportedly discovered coffee in the ninth century. He found out that his goats were more energised and unruly when they ate a certain unknown berry (later discovered to be coffee beans). Since then, coffee has been brewed and drunk by millions all over the world.
Half a billion cups
Trying to estimate the amount of coffee drunk each year all over the world will be a wild guess. Many have agreed that placing the figure at about 500 billion cups will not be too off the point. From the Middle East to Europe, across the Atlantic and now Africa, coffee remains a strong competitor to tea.
Health benefits
Several hundreds of researches have been conducted over the years into the health implications of consuming coffee. Coffee has a great number of health benefits. Recent research published in the New England Journal shows that drinking two to three cups of coffee a day reduces by over 40 per cent the risk of having heart failures and certain types of cancer.
According to Caffeineinformer, there are more than 20 good reasons to drink coffee. They include protection against cirrhosis of the liver and Parkinson’s disease, lowering risk of heart disease, Type 2 diabetes and Alzheimer’s disease, reducing suicide risk and depression, and for a stronger deoxyribonucleic acid (DNA).
Downsides
Coffee also has its down side, which is mainly addiction. Like any other addiction, trying to quit may trigger withdrawal symptoms like nausea, headaches and irritability.
Opportunities
In adjudging the viability of coffee becoming a mainstay in Nigeria’s social circle and gatherings, Peters said that in the not-too-distant future, many of the big coffee brands in the world like Star Bucks and Costa Coffee would come to Nigeria for their own market share.
There is a plethora of opportunities in the business.
Homegrown coffee
Recently, it was discovered that in certain parts of North East Nigeria, chiefly Taraba State, a certain variety of coffee beans could be grown.
Abraham Joda, a budding entrepreneur in the coffee growing district of Taraba, says that coffee growing is still in the trial stages and that although he dedicated a portion of his farm to growing it, it is not yet commercially viable.
He added that he had not got a good strain that would completely adapt to the Nigerian climate, pointing out that small farmers like him could not take the task of researching and developing one.
Joda called on bigger farmers and research institutes to develop a variety of the coffee bean that would grow well in the country and compete with the Kenyan variety, which is known for its full-bodied flavour and strong fragrance, with a slightly winey and acidic aftertaste.
He was beyond exasperation. After years of work, the literal hard labour, the sweat and grime; everything was a waste. He had no choice; he had to shut down operations of his feed mill.
Temilade started a feed mill after his father’s death left him with an inheritance. Before then, he ran a small poultry and had to travel miles to the nearest feed mill to prepare the formula he used in feeding his birds. Seeing his plight and those of other poultry and fish farmers in his locality, he decided to set up a feed mill with his inheritance.
At first, it sounded all easy on paper; but he quickly realised that all is not what they seem. He soon ran into difficulties in getting the needed machinery and had to pay consultants to get him started. After a few false starts, operations soon began in earnest and his profit projections were soon exceeded.
Temilade soon started going against all the tenets of a successful entrepreneur. There was no difference between the business account and his personal account. He soon started spending money on his personal needs at the detriment of the business.
Being the only miller in his locality, Temilade soon started treating his clients with disdain, thinking he could continue his monopoly.
Another entrepreneur started a smaller feed mill and soon all of Temilade’s clients began to patronise the competition. The usurper soon got a tangible loan from a microfinance bank and expanded operations. He was able to meet the needs of farmers in the locality and beyond.
Temilade tried changing business tactics, but it amounted to nothing. With long spells of zero patronage, he had to throw in the towel.
He agreed that although he had a wonderful business idea and executed it perfectly, he lacked the wherewithal to keep the business afloat.
He made a number of mistakes that he acknowledged. First, he did not keep his books properly. He had a terrible customer relation and he had poor work ethics.
Temilade is not alone, as several other entrepreneurs have had to close shop due to same mistakes.
Gbolahun Olayiwola, a financial expert and consultant, places the lifespan of the average business at two to three years. He has pointed out that the major failings of business owners are that they lack the fundamental skills to succeed in the ever-challenging business world.
Recent records presented by the Corporate Affairs Commission (CAC) shows that there has been an increase in the number of businesses registered. With the 50 per cent slash on registration, several hundreds of new and existing businesses are being registered monthly across the country.
Olayiwola pointed out that many of these businesses would not stand the test of time, as about 40 per cent of them would go under within the first three years.
The Internet has several thousands of write-ups on what one needs to know before starting a business. There are also several thousands of published materials in bookstores that discuss succeed in business.
Young Nigerian entrepreneurs. Photo Credit: guardian.ng via Google.com
Experts spring up every other day explaining how their new-found idea proves to be the secret to making it in the ever competitive entrepreneurial world. They are all helpful. In fact, experts say the more self-help materials you read, the more likely you are to turn those words into action.
The list is inexhaustible. It is important to note that although one should be careful before applying every rule to business, it is not harmful to know the rules.
Investopedia suggests the following tips:
1. Get organised
To be successful in business, you need to be organised. Organisation will help you complete tasks and stay on top of things to be done. A good way to do this is to create a to-do list each day. As you complete each item, check it off. This will ensure you don’t forget anything essential to the survival of your business.
2. Keep detailed records
All successful businesses keep detailed records. By keeping detailed records, you know where the business stands financially and what potential challenges you could be facing. Just knowing this gives you time to create strategies to overcome those challenges.
3. Analyse your competition
Competition breeds the best results. To be successful, you can’t be afraid to study and learn from your competitors. After all, they may be doing something right that you can implement in your business to make more money.
4. Understand the risks and rewards
The key to being successful is taking calculated risks to help your business grow. A good question to ask is: What’s the downside? If you can answer this question, then you know what the worst-case scenario is. This knowledge will allow you to take the kinds of calculated risks that can generate tremendous rewards.
5. Be creative
Always be looking for ways to improve your business to make it stand out from the competition. Recognise that you don’t know everything and be open to new ideas.
6. Stay focused
The old saying, Rome was not built in a day, applies here. Just because you have opened a business does not mean you are going to immediately start making money. It takes time to let people know who you are; so stay focused on achieving your short-term goals.
7. Prepare to make sacrifices
The lead-up to starting a business is hard work. But after opening your doors, your work has just begun. In many cases, you have to put in more time than you would if you were working for someone else, which may mean spending less time with family and friends, to be successful.
8. Provide great service
There are many successful businesses that forget that providing great customer service is important. If you provide better service for your customers, they will be more inclined to come to you the next time they need something, instead of going to your competition.
9. Be consistent
Consistency is a key component to making money in business. You have to consistently keep doing what is necessary to be successful day in and day out. This will create long-term positive habits that will help you make money in the long run.
