THE NIGERIAN INDUSTRIAL REVOLUTION -
A blueprint to our ascension to economic power.* (Ignore if you aren’t business minded)
Written By John Obidi
I just got news that GTBank has finally disabled the use of their Naira Mastercards for cross border transactions.
I cannot blame them. They actually lasted longer than I predicted. Our forex system is too unpredictable.
The remedy has been to acquire a USD MasterCard which can be funded in USD. But that too is unsustainable as the value of the naira is in an apparent inexorable free fall.
Businesses with naira revenue and dollar costs will continually have to suffer lower margins, with the weakest ones falling victim to natural selection.
Arik felt the punch, now KFC will be closing 2 of their branches.
I foresaw this in 2014 and began preaching it (http://GoogleDollars.com), but only a few heeded. Most of my Nigerian brethren were too cynical for their own good. Not my problem.
What is the solution? The same thing that the AGROPRENEURS have learned to do in these times.
Produce -> Process -> Export.
This way, your revenue stays in USD, just as your costs are also in USD. Your profit will be in USD and as the NAIRA falls, you'll have more Naira.
I'm not asking you to cultivate crops, but to mine what lies between your ears.
PRODUCE content that is in international demand. This isn't about pure passion anymore. This is economics. They want it? Produce it.
PROCESS it to ensure internationally competitive standards and quality assurance. I talked about this in my live video 2 days ago.
EXPORT/Sell your knowledge using payment systems that will funnel your revenue back to you.
Rinse and repeat.
One company cashed out with this principle from right under our noses. It's called IrokoTV. I saw an article that said that investors who backed them early with about $600k exited with around $2M.
Have you noticed how the above figures stayed in healthy dollars despite our oscillating economic fortunes as a country?
Earning in dollars will stop the bleeding. However, it is not the final solution.
Please note that the Federal Government (though largely bereft of ideas) does not hate Nigerians. Members of The President's economic team truly believe that they're doing the right thing.
The intention was that if we were starved of imports (via CBN's card restrictions), we would either find local alternatives and/or produce our own.
This hasn't worked because apparently, even the CBN's magic wand is on low battery. UP NEPA.
The strategy looks good on paper, but this is not the United States. This is not the UAE. This is not even Brazil of yesterday.
This is Nigeria. There is no light. And we're still looking forward to affordable High speed internet like we expect Jesus to return.
How the heck are we to produce a Nigerian version of AWeber, Bluehost, Clickfunnels, Google, Youtube, Facebook, etc. Do you know the crippling costs of running servers on diesel?
The solution? THE CLOUD.
Using modern cloud services from Big Brother (Google, Amazon, Microsoft), Nigerian software developers can simulate server environments and build world class solutions to their heart's content. Trust me, we have the most talented software engineers here. I've seen them.
These cloud services are reliable and ridiculously cheap. With them, you can setup any online service and compete globally even though you have no light in your house.
With the proliferation of these services, there will be no need for Nigerians to fund PayPal to pay for their business costs. We would be able to pay in NAIRA as our software needs will be satisfied by 'Made in Aba' alternatives.
According to the law of demand and supply, what would happen if we needed less dollars to run our businesses? Yes you guessed it.
A dollar that is in lower demand results in a cheaper dollar. A cheaper dollar in this context means a stronger naira. You see where this is going?
You're probably thinking, "How can it be this easy?"
Well, the only way this blueprint can be truncated is if Google and Amazon decided not to let us into their cloud services. That's not going to happen, and if it does, we'll find another way.
I'm just free styling this Sunday afternoon. If I went on and on with this, this post would become a book. Please do further research and think on these things.
Remember the famous quote by Alvin Toffler "The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn."
Stop looking at Dangote for now. The new age industrialists will become millionaires and billionaires from things one cannot physically touch.