OoTheNigerian

sometimes, I make a lot of sense.

Category Archives for: Technology

Nigerian Payments, Solved.

08 February 2016 by Oo Nwoye

Paystack is the easiest way to accept one-off and recurring payments online. We’ve figured it all out for you, from start to finish. No set up costs, no token, no redirects, no commitments.

Source: Paystack Blog

Oh my, I have waited to write this post for years! The title was ready 3 years ago.

For quite a long time, I and many others kept on lamenting about the dire state of Nigerian payments especially as it involved digital payments. It led me to write a blogpost where I lamented life as a second class citizen of the web saying

Don’t fucking worry about bridging the digital divide, just level the playing ground!

Of course I perpetually predicted payments solved every other year. and ranted when I had the opportunity .

Of course I am not including the times I shamelessly pleaded fro Stripe to “come to Nigeria” (Hey, don’t come now, we’re good) and my compatriots launched a petition to bring Paypal to Nigeria.

So what were the main issues?

it is practically IMPOSSIBLE to build an Internet company without the ability to collect money easily and store the cards securely to charge again.

Almost none of the YC companies would be viable without it. Same as Apple, Microsoft, Amazon etc.

Anyway, it’s all sorted now. A little boy in Jigawa can quietly build his SaaS company and get paid for it. A little girl in Ebonyi can easily sell goods digitally and sell to the world.

Take it from me, Paystack is a big deal and it is 100% Nigerian made for the make benefit of Nigerians and Africa. The recognition of its importance will be apparent soon

Shola, you did it man. Congratulations to you and your team. The real work begins now.

Leave a comment | Categories: Startups, Technology | Tags: ,

Remita, TSA and Four Questions Arising

17 November 2015 by Oo Nwoye

With the full implementation of the TSA policy by the Buhari Administration, SystemSpecs a Nigerian technology company has been accused of swindling the country of billions of Naira using Remita, a product of the company.

The aim of this blog post is to explain Remita’s role in the implementation of the TSA and try to highlight where the issues have come from and ask some pertinent questions.

First, some background information.

TSA, which stands for Treasury Single Account is a policy that intends to consolidate all government revenues in a single account. The idea is, whether you are paying N100 for injection in UBTH (University of Benin Teaching Hospital) or buying crude oil with hundreds of millions of dollars from NNPC, or paying NTA for adverts, all the monies would be domiciled directly into a single account at CBN (Central Bank of Nigeria)

Why is this necessary? This is to avoid situations whereby, administrators of various agencies (UBTH, NNPC and NTA in our examples) from having direct control over the money collected by their agencies. If they need money, they will have to apply to get it from the CBN account. No more dipping hand into the government purse to do “thanks for coming”

Remita, The Chosen One.

Before the TSA implementation, each of the government agencies decided where to open accounts to keep these government revenues and HOW to collect the monies. So the CMD (Chief Medical Director) of UBTH could decide to open 10 bank accounts for UBTH in 5 different banks after a lot of lobbying had been done by branch managers etc, NNPC could have another 20, NTA another 15. This is also where allegations of “fixing money” for interest used to come from.

The implementation of the TSA policy (enshrined in the constitution) was piloted by the Jonathan government. Only a few MDAs (Ministries, Departments and Agencies) like the FIRS were chosen to pilot this system.

For the pilot, SystemsSpecs built a product called Remita that could be used to collect and collate money through multiple channels and was chosen to be the software to be used for this collection.

That is the first issue

Sunk Costs and Competition.

There are 2 ways people usually pay for things in Nigeria either with cash deposits at the bank or cashier points, or using a credit/debit card at a POS or online.

BEFORE the TSA implementation, each MDA set up individual systems for collections. Companies like Interswitch, ETranzact, SocketWorks, etc (which primarily do online/digital collection) already spent LOADS of money trying to get the contract to give them the right to collect money on behalf of these agencies. In some cases, they had to build infrastructure in these MDAs (computers, Internet, Generator etc) to make their work easier.

SocketWorks for instance collects money on behalf of Immigration, Interswitch on behalf of many Hospitals and Schools etc, Same with ETranzact. And we are not including “other costs” of doing business in Nigeria. SystemSpecs also had a few customers.

The Buhari then put a deadline for the TSA implementation.

The CBN rationally decided to use the provider and product that had run the pilot system and that was SystemsSpecs’ Remita.

All of a sudden from sharing the spoils of various MDAs, all the other providers lost all those customers and commissions to “one Remita of a somebody”

All their hustle, down the drain.

That is the second issue.

Commissions and Payments

When a person or an entity collects money for you, it is the norm for the person to be paid part of the proceeds to collect and reconcile that money. For online payments, there are many players who share the ~2% fee that is charged the merchant. For cash payments, it is less standardized but it can be up to say 5% of each transaction.

So of the 1000 naira you pay to UBTH via Interswitch’s WebPay or PayDirect, they take ₦20. By the same calculation, if you pay ₦1 Million, they are entitled to ₦20 000. However, there is usually a cap on the amount of commission on each transaction.

Thought Remita transaction charges are capped even on their website, it seems the deal with the federal government is 1% uncapped.

That is the third issue

Double Charging

BEFORE the full implementation of TSA, monies had already been collected. So let us assume UBTH had ₦1 Billion in a Unity Bank account somewhere, they were given a deadline to transfer that money to the TSA domiciled with CBN.

Note that money in Unity Bank was ALREADY less the commissions paid to collectors like Interswitch.

In transferring that money to CBN, it is alleged that the Banks rather than using NIBSS (Nigerian Interbank Settlement System, a company owned by CBN and the Banks) and paying next to nothing, decided to do it through Remita who would take an uncapped 1% (25 million in this example) for doing absolutely nothing.

That is the fourth issue

In summary, here are the questions arising that are causing problems.

  1. How was SystemsSpecs/Remita chosen to be the sole collector for the Federal Government? Was the Procurement Act followed?
  2. What happened to the existing systems that were put in place especially the ones that had long term arrangements and high setup cost?
  3. How monies are ALREADY in the system (bank accounts) be transferred to the CBN account?
  4. As for the collection, what is the commission taken my SystemsSpecs? Is it (un)capped?

Those are the main issues from what I understand from all parties. Of course aw with politics, there people are mixing up issues to sell their agenda.

That Remita stands for Remi Tinubu Ahmed as much as Jega stands for Jonathan Ebele Goodluck Azikiwe.

My Comments.

  1. For once, it is a good thing that an indigenous company is being used for such a project.
  2. It is understandable if the Federal Government decides to use a single provider/system for the collection of taxes and revenue. However, it could be a big risk to have one single entity doing everything from Customs to Schools to FIRS.
  3. There should be a transparent procurement process for the service provision and more than one provider chosen.

Fun facts

People are usually crying that Interswitch is the bully. It is interesting to see Interswitch crying foul.

Remita actually uses Interswitch’s WebPay for the online collections part of the as a middleman for the online payments aspect. As at yesterday when I checked, it was no longer working.

Coincidence?

 

Thanks Boro for reducing the typos. 

4 comments | Categories: Nigeria, Technology | Tags: , , , , , ,

Why Aren’t Black Tech Founders And Executives, Speakers at Major Tech Conferences?

15 October 2015 by Oo Nwoye

From Left: Aston, Bilikiss, Obi, Juliana, Iyin

From Left: Aston, Bilikiss, Obi, Juliana, Iyin

As with any blog post on race, I have to include a prelude.

This post is neither meant to be combative nor to apportion any blame. It is merely to add to a continuous conversation about diversity in technology. This post is MY OWN observation made on behalf of MYSELF. If any statement here can be interpreted in more than one way, assume the less combative way and / or ask me for clarification.

I actually wanted to write this over a year ago. However, I had been advised about the risk of branding myself as a diversity activist rather than being primarily known as a technology person. And most importantly, to avoid the risk of pissing off the people who control the tech media. But there is only so long you can postpone a question that pops up in your brain daily. As for the risk, we are in the business of risk taking. 😉

Here is the issue

There are almost zero black faces speaking at the major tech startup conferences held in the US and Europe. And in the rare times they do pop up, e dey get k-leg (basically, it isn’t so straightforward).

Let’s check out the numbers of the most recent major/popular tech events (you can google for previous years).

Numbers are objective!

Conference Total Number of Speakers Number of Black Speakers Percentage of Black Speakers Notes
Disrupt SF 2015 83 3 4% Footballer, Snoop Dogg, Music Agent
Recode 2015 28 2 7% Movie Director, Lucious Lyon!
Disrupt London 2014 54 0 0% Thierry Henry is 1 of 20 this year
Le Web 2014 90 0 0% It happens.
Launch Festival 2015 71 7 10% The best I’ve come across. Nice one Jason.
The Next Web Europe 2015 53 0 0% :/

What you will notice is that in the rare times the black (wo)man is on stage, it somehow manages not to be those who are primarily in the tech field but say, in entertainment or sports. When it’s a tech person, s/he is mostly talking about diversity.

Here is the thing. This past year, I have personally emailed a few of these organizers to highlight the anomaly (no, I will not mention them). I have also recommended speakers. The responses (if they come) have not been positive.

Why are Black Speakers Important?

The Pattern Matching Loop.

When you make a decision based on historical data, you are bound to be biased by the data and produce a similar output. That becomes part of the data set and it continues…in a loop.

When tech black founders aren’t seen on stage (aka recognized as leaders in their field), fewer black kids would believe they have a future to excel in that field. The less black kids go into tech, the lower the chance the situation can change. Of course, that bias does not only influence the future black kids, it affects those looking for a co-founder, those looking for whom to fund etc.

I never blame those that pattern match; it is simply human nature.

Let me confess, if I have a few seconds to make a decision, I would not choose someone that looks like Jamie Oliver to make my jollof rice (don’t read the comments :)).

While it can be argued that food, music and some sports are cultural and therefore could have an inherent racial bias, tech isn’t.

5 years ago, I asked for the renowned black founders. While, there has been a lot of progress in that field since then, it has been against the odds.

The about pages and the speaker list of the tech conferences would have more influence on getting more diverse people into the technology field than any other thing I can think of. I know from first hand experience.

Here are some Black Founders and Technologists that should not be overlooked.

Clockwise from Top Left: Sim, Louise, Anthony, Tony

Clockwise from Top Left: Sim, Louise, Anthony, Tony

First, I have to apologize for putting their names here. Because there is this taint that comes from being used as an example. When they get justifiable noticed, it becomes, “oh, they are there to fill in a quota”. But that could not be further from the truth. These folks deserve to be on the largest stages and are needed to correct the flawed data that say none of the best  happen not to be black.

  1. Sim Shagaya (Harvard MBA, first Google Rep for Africa) is building a Nigerian e-commerce giant. Has arguably tamed the German Moving Train known as Rocket Internet’s Jumia with Konga. Raised $78 Million
  2. Iyin Aboyeji (University of Waterloo). At 24 he has finally got his stride in his 3rd tech startup and has co-founded Andela, the mill to churn out the next 100k technologists in Africa. Recently raised $10 million.
  3. Bilikiss Adebiyi (MIT). Using technology to help take away waste while making wealth and helping Lagos go green. Oh! She happens to be Black, Nigerian and Muslim.
  4. Obi Nwosu is co-founder and CTO at a top UK based BitCoin Exchange in the UK called CoinFloor. Doesn’t get more tech than that.

There are many more. However, let me not be accused of being biased towards Nigerians home and abroad. But Charity begins at home :)

Aston Motes was the first employee at Dropbox outside the founders. I do not recollect him being on any stage. He cannot be seen as a quota at any conference. And no, he is not a diversity expert.

Juliana Rotich of the BRCK team should be on every stage possible. BRCK is globally genius and should get much more love than it does.

Tony Gauda a TC Disrupt Finalist build Bitcasa, a Dropbox alternative. He is very qualified to be on any stage talking tech. And so is Anthony Skinner who was the CTO of Moz for many years, especially during their major technology transition. Louise, Kalam and Courtland are some of the black YC alums that are doing stuff as good as those speaking on any stage. So the question of affirmative action does not arise.

BTW, it took me 3 years to know that 2 Nigerian brothers founded a YC coy as far back as 2012. They just never happened to be on any major stage

Like I said above, I actually emailed a tech publication about their speaker lineup after one of their writeups criticizing the tech companies who had released their diversity reports. I didn’t get a response.

I am certain that there isn’t any conspiracy to deny black people in tech stage presence but it is quite easy to take certain things for granted if you are not checking yourself. One example I use to show there is no deliberate plan by white people is one of the quietly best podcasts on tech around, DRT. Only two black people out of the 104 guests so far and the first was number 99. Well, the host is a black british designer 😉

So how do we solve this?

To Affirm or Not to Affirm?

The biggest criticism of affirmative action is that it gives the impression that those who get in are not there based on their competence. Anyone who knows they are worthy on a level playing ground hates it. It is why I apologise to those people I named above. It would seem that they ordinarily would not qualify. That could not be further from the truth based on pedigree and results.

To me, I have started trying to see affirmative action as being more thorough and conscious. Instead of doing a quick Googling to see who to invite to the next conference, spend more time, go more further to find different types of people that QUALIFY to be on your stage. It is that simple!

I also think having a more diverse staff/speaker selectors at the disposal of those organizing tech events would help. People are quick to go for what and whom they know.

Though I fully respect and understand the need for minority focused events, I do not think it alone can help. We belong in the mainstream.

What finally triggered publishing this post (I wrote most of it a month ago) was the latest speaker announced for TC Disrupt London. When I finalized the draft for this post, they had 0 black people and I noted that there was still a chance to rectify it.

Then they chose Henry of Arsenal.

Please rectify.

PS: I hope because of this, I’m not punished covertly or overtly by the conference organizers I appear to criticize. This is to keep an important conversation going with good intention.

#OneLove

Click to Tweet this post.

PPS: Forgive typos. I just don’t see them. Thanks to Emmanuel, Banke and Sheriff for helping reduce them.

12 comments | Categories: Commentary, Startups, Technology, Uncategorized | Tags: , , ,

Watch out Swatch! Today, Apple Starts the Clock for You and the ‘Timepiece’

09 March 2015 by Oo Nwoye

I wanted to write this post after Apple announced the Apple Watch but decided to wait until the launch day.

For such an old device, the timepiece has not evolved for quite a number of years in terms of function. As the mobile phone became ubiquitous, the wristwatch being single function device lost is utility and became a full time fashion accessory. This changes today.

Before we talk about how Apple upends the cart, lets try and understand the meaning of time.

Understanding time

The Timeline Interface by Pebble

The Timeline Interface by Pebble

If you think about it carefully, time itself is not really important as its accuracy expires the second we look away from our watch/clock/timepiece. Time only really useful in context.

“How long before my flight?”
“How long before the match starts?”
“How long am I behind schedule for the meeting?”
“How long before I need to wake up?”

Watches should tell us the time and not us looking at the time and doing irrelevant mental math (this generation will ruin the brain)
With the sensors and app that will come with the Apple Watch, our watches will move beyond the time realm and prompt us with

“Dude you’re about to have a heart attack!”
“Dudette, your blood sugar is low. It’s time for your next insulin shot!”
“Mamalete, ya babylette’s temperature is too high. Nope, not Ebola”

Pebble with their timeline interface, and smartstraps have built the first wearable that’ll take input from our bodies, compute without us looking like dofusses.

Time to say goodbye, swatch

Swatch

A collection of Swatches

 

Swatch‘s business model has always been built around the uniqueness on the watch face and strap. However, the core of the watch remained below basic.

It is not even Apple that will turn swatch to blackberry, it is Pebble, the cross platform alternative to the Apple watch that gets it right; as regards to building and affordable mainstream wristwatch.

Why spend $150 for a piece of plastic that tell you the time and at best has a stopclock when you can get a device that gives you infinite number of faces and tell you a lot more stuff beyond the time plane.

Here comes the Apple

Apple Watch

Apple Watch Collection

I am not a fan of Apple products, however, if there is one company that can take a consumer electronics mainstream, is is Apple. They tell the cool kids when it is time to move.

Today they are taking the smart watch mainstream and we are going to have a number of casualties.

You might ask, what’s so different? Smart watches are not new!

Apple has attacked the segment not as a gadget like her predecessors in the Watch race but as a fashion item that happens to take the timepiece to the next level. Looking at the above, you would have to admire the three pronged approach

  • The Sports watch (Casio, G- Shock and co)
  • The Casual
  • The Luxury (Made of 18Karat Gold)

As you can see, unlike with Pebble (who have done a great job) and other tech companies, Apple has 10s of millions of iPhone owners who are tired with wristwatches that do not really do much. After a person’s watch stops her from getting a heart attack, and other countless answers and activities and uses like opening doors (I’ll send my key to your watch), cars etc. Would the person put a piece of metal or plastic on their wrist that does nothing more than ‘look good’?

Of course, there is the ‘little issue’ of battery life which will only keep improving . That is the only reason the death of Swatch and co will be slow. Death of course is certain for  a lot of the old brigade.

Hopefully, rather than laugh like Balmer, Swatch would be hovering around founder asking “Guy, how far na?”

As for me, I’ll be getting my first watch in 10 years this year and is is not going to be from the old brigade.

*ticktock*

This is my first post this year. I’d like to blog more frequently so I’ll probably increase commentary pieces. Not every time serious post. Sometimes, Apple. As usual, forgive typos and please point them out for me.

2 comments | Categories: Commentary, Technology | Tags: , , ,

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