Nigeria


15
Jun 11

Nigerian VC Firm Invests Into Social Mobile Music Service, Spinlet.

Spinlet, a cloud-based music streaming and storage app maker based in Finland has received a significant undisclosed investment from Verod Capital an emerging markets investment firm based in Nigeria, with interests across several sectors.

via Nigerian VC Firm Invests Into Social Mobile Music Service, Spinlet | TechLoy.

I am quite surprised but happy all the same that a Nigerian based VC firm is traveling all the way to Finland to make it’s first Internet startup investment. The good news is that African startups no longer  have the excuse “there are no VC’s here”. The bad news is that if a Nigerian based VC firm does not deem it worthy to invest in a local internet startup, how do we expect the foreign ones to have faith in us?

PS: This is my first ‘commentary styled’ post here. It makes me feel less bad/lazy about not posting often.


23
May 11

6 Lessons Nigerians Should Learn From Sarah Lacy

Sarah Lacy might have come and gone but the lessons I learned from her (directly and indirectly) have stayed with me and I thought I should share them.

1. No Excuses: The first thing I and several startup guys in Nigeria used to welcome Sarah was a litany of challenges we are having in Nigeria; preventing us from succeeding. No light, no broadband, no VC’s, government is not helping, no good developers, Nigerian girls use weave-on too much (ok, I sort of made that up).

Her response was concise: No excuses, the best entrepreneurs thrive in constraints. Constrains are what create opportunities that allow the best of entrepreneurs to make it big.

When you think in terms of opportunity, you will find yourself making a business out of what is constraining other people.

I will blog about one idea that came up the very day I stopped looking at the absence of light as a limitation but an opportunity.

2. Accept/Embrace Reality: When Sarah called Computer Village the ‘Nigerian Best Best Buy’ and showed the ‘Nigerian app store’ quite a number of people were offended. In fact at Garage48 one accosted me and told me if I saw the way Sarah was insulting Nigeria. I asked him the following questions.

Where did you buy this your laptop?

Where did you buy your phone?

Where did you buy Microsoft office and photoshop?

He smiled and said “kai! na wa o!”. I asked over 10 people on the table the same questions and it was an ‘aha moment’ for them all.

So why is this important?

If you do not understand your market you cannot take advantage of it.

A few people who still believe in Nigeria’s pseudo modernity wanted Mega Plaza to be shown as our main distribution nerve of computers, mobile phones and peripherals, but that would be lying to our selves. An error in that thought was learnt by Nokia and co when they came to Nigeria.

Nokia opened their shops on the Island, people strolled in played with the phones there took a ride to computer village and made their purchases.

So how does this affect us a startup entrepreneurs? If you are selling software, or creating hardware; if you do not have a presence or your main distribution in computer village, you might be doing it wrong. (*cough* INYE *cough*).

When I met Jason of NollywoodLove, naive me asked him why he was in FESTAC and not on the island, he told me plain and simple (and in Bri ish accent) “I have to be near Alaba. That is where my money is”. Of course the pseudo mordenites would say Silverbird is our ‘wood’, set up shop there and wonder why they are out of business in 3 months.

So I guess you now see the importance of the hawkers, they are Nigeria’s Vending Machine.

3. Don’t read TechCrunch: This one surprisingly caused quite a fuss with some people. Of course You are not banned from reading TechCrunch. What was meant is that you should pay more attention to other markets that are similar to yours so when the information that is influencing manifests itself, you will not be cloning Twitter but will be cloning (Bangladesh classifieds market)

On TechCrunch you will not read about the fact that 70% of Nigerians are unbanked and the startups that are working to take advantage of that opportunity. On TechCrunch you did not hear about how no single Nollywood video was on-line legally; you/we kept wondering how on earth we could compete with Netflix while Jason did the obvious: get a Partnership with Google; Buy Rights of Nollywood Videos put them on YouTube and is on run to hit $1m revenue this year.

On TechCrunch you will read about Square but that cannot be big in Nigeria yet (5% of banking population have cards), you should be reading Kenyan Tech blogs to learn about how companies are taking advantage of the new economy Mobile Money is bringing. You will not read about how people in some countries use Taxi’s a a payment distribution system. e.g Give the RedCab guy N1,500 Naira) and he credits your Facebook account with $8.

Of course another reason she said we “should not read TC” is the stories written there are not a true representation of startup reality even in Silicon Valley.

She just wants to stop you from feeling suicidal when you cannot raise $41million for your photo sharing Nokia app.

NB: Don’t read Mashable. As in.. Don’t.

5. Embrace the Foreign Companies: This one is personal. BSL (Before Sarah Lacy) I was ‘angry’ that Google, Microsoft and co were not doing enough to develop the ecosystem. Irritated with the elaborate marketing activities being organized by Google in the name of ‘developer days’; offended that Google was promoting creating content farms and slapping adwords as ‘startup ideas’; suspicious of their ‘Greek Gift’ of fiber/broadband to Nigerian Universities. Worried about the impact Google’s creation of competing startup products would impact our little guys (hello Google Trader, Baraza, Free SMS). She made me realize that proper engagement will allow us harness the potential FDI. Welcome engage and learn from them like China did. Because you know what? They do not owe you nada.

6. Do your own PR: This is an indirect lesson. When I read Sarah’s account of her brush with danger at Alaba, I smiled to myself. The very same story using the same facts could be written from a different perspective.

“Alaba Security forces were informed of suspicious looking foreigners walking briskly and taking pictures. Considering the recent invasion of Alaba market and a swoop by copyright agencies which caused traders losses ammonting to several millions of dollars, Bones and his team had to act fast. they accosted the people, who had no coherent explanation about their mission at Alaba market. They had to be taken away for further screening… blah blah blah”

What I am trying to get here is that if she wanted, she could have ‘spun’ the story in a way that favored Nigeria and made the bones and co. heroes’. But in reality, she needed to make the story interesting to her readers (I enjoyed it).

The fact of the matter is that most Nigerian are always looking for who will do PR for them. They get angry when BBC does a Lagos Documentary and does not focus it on Lekki Phase 1. We look up to Guardian UK or New York times to do favorable stories on us or write stories from our perspective. Now, we look at SABC to do the same for us. Una no dey shame?

Well, let me break it to you; if NTA was not a PILE of SHIT that is what they are supposed to be doing. If Thisday and co were not the Nigerian Government’s Press Release companies, that is what they should have been doing.

When CNN and co were instigating hatred towards the Arab world, you know their response?

AL Jazeera.

 


9
Apr 11

“Security Questions” in a Facebook Age.

In the process of registering for a Nigerian mobile payment service Pagatech, I came across this screen below. 

paga

In the Facebook age, most of the normal security questions can be gotten from your Facebook profile. I cannot believe “Your mother’s maiden mane” is still considered a security question on Paypal and banks.

I think it is rather impressive that Pagatech has gone the extra mile to create questions that a a bit harder to answer via “Facebook research”.

The challenge to this method though is this; is something that is not worth Facebook putting a field for easy to remember? Most of the questions above have the propensity to change with time or to have different answers depending when or how it was asked.

For example, the question “What city  do you want to visit in the world” can change depending on if i have eventually visited the city in question or something occurs that makes another city more attractive.

Is there any database of “Facebook research immune” security question available that services can tap into?

In this age, I would have expected biometric passwords (fingerprint) to have started being ubiquitous. Maybe utilising the finger print scanner or the use of a webcam.

Maybe I am thinking ahead of myself.

 

HN comments should be here


6
Apr 11

Why does NCC Keep Quiet as Nigerian Telcos Scam Subscribers?

I have complained numerous times about the abuse of my phone number in the hands of Airtel, GLO and MTN. Everyday, these GSM providers spam me with one promo or another. Airtel’s is particularly getting out of hand.

I just received the following poorly constructed, all caps message from Airtel

CONGRATULATIONS! SIMPLY TEXT YOUR NAME TO 444 NOW! 08125780850 (my number) RECEIVED AN URGENT CALL FOR AIRTELS N1 000 000 CASH DRAW TONIGHT! SUBSCRIBE FOR N100 DAILY.

Now what is the difference between this and a typical scam message? I definitely did not receive any urgent call.

Of recent, almost all companies in Nigeria; Banks, FMCG’s, Radio Stations etc, have continually promoted the culture of winning money without any effort. While their’s is a bit disappointing, the telcos have taken it up a notch.

They are abusing the fact that they have our numbers entrusted to them to look for dubious was to skim us off money.

Their ‘intelligent’ business model is this, everyday, spam your 20 million subscribers at no cost, then get say 1,000 00, 000 to pay N100 for the chance of winning N1 million and viola, they have a revenue of 100 Million of which N99 million is profit. (Note: in the message above N100 would be deducted daily)

This is immoral and criminal and should be stopped immediately.  the Telco’s are taking advantage and abusing their positions as the holders of our information.

Can you imagine if banks mass messaged all their customers asking for the deduction of N100 from their accounts for the chance to win big?*

These Telcos are the same people the Government of Nigeria has mandated us to submit all our personal data, including bio data to. What a huge shame!

In any decent promo, especially the one’s that cost money, participants are supposed to opt-in and have the  ability to opt-out easily.

I am hoping that the regulatory body NCC would look at this and stop these companies that already provide terrible service at very high cost  from fleecing us further.

With this ‘promo culture’ promoted by otherwise ‘reputable’ organizations rampant in our system, it is easy for people to fall for scams when yahoo boys send similar messages.

How do we stop this nonsense? How do we get the message in front of the right eyes?

Or am I the only one that has a problem with it?

*I will not be too surprised if someone submits a ‘brilliant proposal’ for this one day.