What you need to know
There are many things going on in my country NIGERIA and would like to inform you guys from tech to the economy. If you notice of recent twitter NG, the new monetary policy laid by the CBN has been occupying our timelines (depends on your following…actually) but would break down the big grammar *winks*
Recently made a visit to Ventures Platform a curated innovation hub where tech-enthusiasts, freelancers, start-up entrepreneurs, and professionals on the go, who share common attitudes, interests, and goals can meet, network and create. They are basically interested with innovative techies that have ideas ranging from fintech, art tech, health tech and so on. VP is a comfortable space that spurs creativity; a place we know will get you producing your best work even its structure is an innovative one… for Christ Sake..its been made up of containers.
There are also other platforms that seek to give young entrepreneurs the opportunity/platform to develop their big ideas such as Co Creation-hub, Andela, Tech Her and of which serves as a hub for tech innovators in solving some of the challenging problems on the African continent.
I would implore young techies within Abuja to take advantage of this opportunity which is a 16 week incubator program and of course the amenities that would spur innovation are been made available (seed funding, a comfortable workspace, a cafe, kitchen, a gym a campus for those that don’t reside in Abuja or Nigeria)
By the way i want to use this medium to congratulate our very own Iyinoluwa Aboyeji founder of Andela, a two-year-old startup, trains software developers in Africa and gives them full-time roles at international companies.
The best way to create the future is to create it
It already employs nearly 200 engineers in its offices in Nairobi, Kenya, and Lagos, Nigeria. It announced weeks ago that it has banked $24 million in a round led by Mark Zuckerberg and Priscilla Chan’s fund, the Chan Zuckerberg Initiative. It also scored a new investor, GV (formerly Google Ventures) in the fresh round of financing. it would be of interest to you that E as he is usually called don’t know why…had a previous startup called FORA and of which he had fold up and move on to the next project ANDELA.
Please view his story here quite an inspiring one https://medium.com/@iaboyeji/how-andela-was-founded-f32b22808b8a#.xp06wvgsm
I came across an article written by Efosa Ojomo (Researcher with Clay Christensen at Forum for Growth & Innovation at Harvard Business School) on how one man is using disruptive innovation to transform higher education in Nigeria. He highlighted on the issues the educational system faces; substantial teaching facilities and dreadful living conditions.
It is very difficult to see how Nigerian graduates will be able to compete with graduates from other counties with education generally but higher education in particular, is taken more seriously. That is where GOSSY UKANWOKE comes in.
Gossy founder of Beni American University BAU seeks to improve the state of higher education by focusing on the vast majority that do not have access, lack of skill, money or time. I see it as a way giving/impacting skill into young Nigerians, as you well know Nigerian institutions is all about cram, pour and delete don’t get me wrong though, a few are cool but still wont give you that advantage in the society, you could do your research on how many Nigerians flunk to other countries in pursuit of education even to an extent of sending your kids to have secondary education overseas…don’t open ya mouth seen it with my eyes at my place of work. I went through the site http://executive.bau.edu.ng/about/ and checked their programs i was impressed, worth the hype. The programs basically give you the tools that can help your organization grow, improve efficiency, drive sales, manage organizational change, adjust to global competition or provide better service delivery. Just about to enroll in one of its programs and then would give you guys a feedback *winks*
The social space has given young entrepreneurs the opportunity to showcase their products, thanks to Sen. Ben Murray Bruce who came with the rhetoric #buy9jatogrowtheNaira which came as result of the ban of some commodities well not actually banned but such products which are a total of 41 were inadmissible to forex, well wasn’t shocked my fellow youths bounced on it and show cased their goods with the hash tag attached to it. i kinda noticed some shoe designers, some where great others were like…..
Some products by these youngsters that i have come across one form or the other…..
Fokolade Temiloluwa a shoe designer at first i was scared of trying out his products but when i saw the value of our currency and how much to purchase a lovely shoe from I GOT A SHOE PROBLEM then is aid to myself why not…
@fireofola Soupamarket believes that no person regardless of financial status shall compromise the quality of food they feed themselves or their family. They are committed to achieving this in ways that are organizationally and financially sustainable and environment friendly. Fola who owns a soup market of various delicacies and makes me salivate when i see her updates and to even adapt to the tech age guess what? she has an app..
@theempirejane who makes/creates lovely designs on domestic products such as bedings, pillows, throw pillows, gifts and corporate gifts…..
would definitely pitch her goods to my superiors
@realwecyclers Wecyclers offers convenient household recycling service using a fleet of low-cost cargo bikes. We are powering social change using the environment by allowing people in low-income communities to capture value from their waste. The aim is to build a low-cost waste collection infrastructure while raising general awareness on the importance of recycling for environmental sustainability and social welfare gained from reduction in pollution and diseases like malaria.
@tocurisauce i have actually not tried their products but its actually on my to do list..
I guess our social space must have been occupied by the anticipated decision by the CBN monetary policy, well let me break it down for you
The term “floating” in exchange rate context refers to the exchange rate of a country that is not fixed but “floats” to the direction of demand and supply. If demand is high and supply is low, the exchange rate floats higher. When demand is low and supply is high, the exchange rate floats lower. When demand and supply are nearly equal we have an exchange rate balance or equilibrium.
“Devaluation” means official lowering of the value of a country’s currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency. In Nigeria and most developing countries, devaluation is more synonymous contextually with the Central Bank depreciating the currency. For example, when the CBN moved the exchange rate from N197 to N250 it was a devaluation. Nigerians have had their share of the national cake for years (lmao, i will explain). The f.g had been subsidizing imports for years which lead to high demand for imported products and high demand for forex and as well during this period had a good inflow of forex from our natural resource which has become a curse “sobs” OIL but as we all know to every advantage there is also a disadvantage.The devaluation is a good thing as it would spur growth - investment/FDI/FPI. It could also be bad for Banks as they bad loans denominated in US dollars could be difficult for debtors to pay hence the sacking of staffs to shore up revenue.
The CBN says that 10.1% of all the loans in Nigeria’s banking system have gone bad — in other words they will never be repaid. A lot of these loans were made in foreign currency and given to local oil and gas companies when crude oil prices were $100 per barrel.
Between 2012 and 2014, an estimated $10bn was lent to local oil companies to purchase assets from foreign oil conglomerates.
Once the naira starts to float, banks will have to adjust the naira value of these loans on their books. In turn, the increased burden on the borrowers is likely to push more of them into bad loan territory.
To my friends that asked whether Bureau de change will still exist, below is your answer.
Will this new policy eliminate black market operators and do I still need to track parallel market rates?
Parallel markets will still remain, however we believe their influence will be mostly minimal and not like we have them today. As such, tracking that rate is still important provided that is where you still buy and sell dollars. As our forex markets develop, the CBN will introduce structures that will cater for the very retail end of the market. For example, some retail FX operators can deal only in online transactions, others purely cash while some card based transactions. BDC’s are expect to eventually play a crucial role in this new exchange rate policy. They will handle the retail end of the market where the ordinary Nigerians goes to buy and sell forex. Their roles will be similar to what the likes of Travelex do in Europe.You will still be able to buy forex officially by bidding through your bank. Your Form M’s and other documents used by importers to pay for goods abroad will be based on the interbank market rate. If what you want is a cash transaction, then you’d have to rely on the parallel market at least for now.
It all depends on the forces of demand and supply. This in effect means that we can see the Naira trading at N400 or N500 or N200 or N250 it all depends on the forces on demand and supply.One of the major issues we had with the previous fixed exchange rate policy was scarcity. Because of the scarcity of forex, people tended to front load purchase even of they really don’t need the money immediately. Some even bought just to hoard and hope that prices will rise again. Whilst, scarcity can’t be ruled out completely we believe you will always have access to buy dollars provided you meet regulatory or the banks criteria. The only difference is that the price could be high if supply is limited and low if supply is readily available.
My focus actually is the quality of our innovative/creative products and services. This is the period were companies/firms/SME’s would display a BULLISH nature. Okomu Oil Palm has reported a 98 per cent increase in full year profit after tax to 2.6 billion naira, The company has also declared a 10 kobo dividend for the year. Even London-listed Lekoil, one of several small Nigeria-focused oil explorers listed abroad, has decided to use the naira’s slide to its advantage by paying for some domestic services with local currency.
If you only do what you can do, you will never be more than you are.
We might have a surplus from our Balance sheets (Balance of Trade= export — import) Why? The naira has been devalued hence it would make our goods cheaper for the International market to purchase and expensive to import but it all depends on if we take advantage of this period. The trend ‘Made in Nigeria’ wasn’t a bad idea but also an avenue to be innovative in our various forms of production and R&D. In the 1950’s Sony had a very instructive vision statement “Become the company most known for changing the world wide poor quality image of Japanese products” Made in Japan was a huge joke — as we now see today made in japan now means “excellente”. The bulk is left for this growing entrepreneurs to take good advantage of this opportunity especially in this period of the free fall of the NAIRA. I used to be one of those Nigerians that loved foreign goods because i couldn't see any authentic “Made in Nigeria” product apart from our noodles and pasta lol… My folks once argued with me about Made in Nigeria products(no thanks to Oga Bruce and Oga BuBu’s stubbornness on not devaluing) and that they would be purchasing Nigerian goods Nasco to be precise and even get a globacom simcard because its made by a Nigerian i laughed. Months later, my folks had a change of heart. Going back to what i said earlier, Andela was an idea which lead to a multi- dollar investment not naira and Beni American University was also an idea that would help young Africans adjust to global competition and provide better service delivery. Hence let the packaging be as important as the content let it not be on the basis of nationalistic sentiments alone.
And on this note……guys go get your thinking caps on.