Good day,

Have you ever bought an outfit you really loved at first, only to find out that it doesn’t fit and you can’t return it?

Well, that just happened to us. We bought an outfit —Clooout.com—but are a bit concerned it doesn’t fit. Why? Too many ‘o’s. Should we simply take out one o or go with a different name?
We are still open to name suggestions, please reply to this email with your name suggestion. 

And by the way, it’s totally okay to suggest your name if you’re that proud of it. 😉

Keeping up with Dangote
 



Mohammed “Mo” Ibrahim, a Sudanese-British billionaire, businessman, and founder of Celtel had a chat with Africa’s richest man —Aliko Dangote during the 2019 Ibrahim Governance Weekend in Abidjan, Côte d’Ivoire.

While most people spoke about Dangote withdrawing $10m cash just to see if he truly had money, there were more interesting things said in that interview.


So what’s Dangote up to?

Expanding Cement Production. 

There’d be a $2 billion expansion of the cement business this year. This would increase production capacity to 40 million tonnes in 14 countries.
FYI: Benin republic doesn’t allow the importation of cement from Nigeria it’s neighbour, but buys from China.
Why? Nobody seems to know why yet.

Agriculture
Dangote is investing less than $2 billion in rice production. The goal is to produce 1 million tonnes of rice parboiling and processing plants by partnering with farmers to give them seed to plant. Also to provide them with fertilizer and offer to buy the rice produce back from them. 
We bet you wish you were a rice farmer right now 😉
In the next 4 years, this could generate 150,000 jobs. 

Oil Refinery
Dangote bought 2 oil blocks from Shell and is building a refinery that costs between $12-13 billion. This project currently employs 70,000 at the construction phase but when construction is over it would employ about 3,000 – 4,000 people.

$12-13 billion! Why so expensive?
Because Dangote had to do the following:

  • Buy 2.7 million Sq metres land at Ibeju Lekki, Lagos. That’s about 473 times the size of a football field.
  • Spend 10-11 months filling the land with 365 million cubic meters of sand from the sea because it’s a waterlogged area.
  • Construct a 30 km of fencing around the land, 136 km road network and 213 km drainage.  If you’re walking at the average human pace of 1.4 meters per sec you’d walk 100 km in 20 hours, now that’s if you don’t take a break at all. Phew! 😓
  • Build a port to ship in materials because no port in Nigeria is good enough.

What should we expect from the refinery?
It should produce 650,000 barrels per day, 32m tonnes of petroleum products per year, and 3 million tonnes of urea and ammonia —fertilizer.

Social Good
And because it’s not all about making money for him, he founded the Dangote foundation in 1993, which focuses on health, education, empowerment and disaster relief. It received a $1.25b endowment a few years ago. Now, that’s a lot of money to do good. 👏

Why does it matter?
Burna Boy was right when he said: “Dangote, Dangote, Dangote still dey find money o”.

Confusion in the Air

What happened?
There seems to be some discrepancy on how many people travelled by air and how much was made from flight ticket sales nationwide last year in Nigeria.
The Nigerian Civil Aviation Authority says 14.17 million passengers flew in 2018, a 20.8% increase from the 11.3 million who flew in 2017. The body of travel agencies declared N525 billion ($1.5 billion) ticket sales for 2018, hinting an improvement in air traffic.

On the other hand.
The Global Distribution Service (GDS) providers, the middlemen between the airlines and agencies, say there was a five per cent decline in crowd which means less revenue.
For example, President of a leading GDS provider, Gbenga Olowo, says 3.6 million international passengers flew in 2018, contrary to NCAA’s four million claim.

Wait, What is GDS?
GDS is a network or platform that enables travel agencies and their clients to access travel data, shop for, and compare reservations options and book travel. They basically have all the air travel information.

Why does it matter?
If we can’t determine accurately the number of travellers and revenue, how can we truly know the sector is fairing, how can we make projections for revenue estimates? Why should anyone invest in this sector?

An idle m̶i̶n̶d̶ Oil block is the… 

What happened?
The Department of Petroleum Resources says out of 390 oil blocks in Nigeria, 211 are yet to be allocated by the Federal Government.

Why does this matter?
Between 2008 and 2017, Nigeria produced about 7.8 billion barrels of crude oil with crude oil production hovering around 1.9 – 2 million barrels per day. Also within that same period, Nigeria lost N205.4 billion worth of petroleum products to vandals who hacked into the petroleum products pipelines of the Nigerian National Petroleum Corporation (NNPC). 
This doesn’t sound like progress to us 🙁

In the words of the minister of Petroleum, Kachikwu; “You cannot explore if the right to prospect is not granted, and you cannot grant unless there is a bidding process. And you cannot bid if the environment is not conducive.” He continued. ‘In the Gulf of Mexico in the United States, they do bidding round twice a year. But the last time we did any licensing round in Nigeria was 2007.”

Nigeria is kinda stagnant here and not giving more people access to discover more oil.

Incorrect Credit alert

Imagine you’re expecting 100 Naira and you receive 30 Naira instead, What would you do? 
Maybe you’d shrug it off saying 100 Naira is nothing to you. We get it, your money grows like grass 🙌 , or maybe you’d be bothered and try to find out what happened to the remaining balance. Now, what if we add 9 zeros behind those figures? Yikes 🙀

Okay, What what’s the news here?
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) —the guys responsible for monitoring the money due to come in and payments made from the federal account, says it should have received N100 billion for stamp duties but only received N33 billion. so It would probe 22 commercial banks over remittance of stamp duty since 2000.

What’s Stamp duty in Nigeria?
Normally, stamp duty is a tax levied on financial transactions and documents. It is also charged when sending out documents through the post office.
However, some time ago when oil prices were down, the federal government told all commercial banks to deduct the sum of N50 on every bank deposit with a value of N1,000 and above to help augment the insufficient revenue oil generated.

Is that why Banks are removing money from my account anyhow?
This applies to only current accounts and not savings or salary accounts.

So What are the banks doing about this?
For one, Standard Chartered Bank filed an appeal against the movement and got a positive verdict from the Court of Appeal (Lagos Division) that the Stamp Duty Act of 2004 did not mandate commercial banks to deduct N50 on bank deposits. According to the Appeal Court, “electronic transactions were not covered by the Stamp Duty Act of 2004.”

More Money to Jam Up 

Boom play, a Lagos, Nigeria-based music streaming service which also operates in Ghana, Kenya and Tanzania, raised $20m in funding. Boom play is owned by Transsion Holdings (makers of Tecno, Infinx, Itel) and Chinese Internet tech leader NetEase. 

As of February 2019, the company which started in 2015 had over 42 million users and 5 million songs.

Did you say 42 million users?
Yes, We did. Considering the fact that Boom play comes pre-installed on Transsion smartphones—the best selling phones in Africa—and it is also available via downloads on other smartphones, 42 million users is possible.
By the way, Boom play defines a user as anyone who logs into the app more than once after first downloading or opening an account. 
Hmm is that definition good enough? 🤔

How does it stack up against Apple music and Spotify?

A little Caveat: We don’t have the numbers of Boomplay’s paying users, the figures above are Spotify and Apple Music’s paying users vs Boomplay’s total users. So it’s not a fair comparison.
However, Take a wild guess, how many paying users do you think Boomplay has?

Why does this matter?
It’s important to have more players in music streaming space because competition drives innovation.
Also, since no one except the investors knows the exact number of paying users, we’d have to hope that Boomplay is really doing well.

More Money to Jam Up 

Boom play, a Lagos, Nigeria-based music streaming service which also operates in Ghana, Kenya and Tanzania, raised $20m in funding. Boom play is owned by Transsion Holdings (makers of Tecno, Infinx, Itel) and Chinese Internet tech leader NetEase. 

As of February 2019, the company which started in 2015 had over 42 million users and 5 million songs.

Did you say 42 million users?
Yes, We did. Considering the fact that Boom play comes pre-installed on Transsion smartphones—the best selling phones in Africa—and it is also available via downloads on other smartphones, 42 million users is possible.
By the way, Boom play defines a user as anyone who logs into the app more than once after first downloading or opening an account. 
Hmm is that definition good enough? 🤔

How does it stack up against Apple music and Spotify?

A little Caveat: We don’t have the numbers of Boomplay’s paying users, the figures above are Spotify and Apple Music’s paying users vs Boomplay’s total users. So it’s not a fair comparison.
However, Take a wild guess, how many paying users do you think Boomplay has?

Why does this matter?
It’s important to have more players in music streaming space because competition drives innovation.
Also, since no one except the investors knows the exact number of paying users, we’d have to hope that Boomplay is really doing well.


What do tree and banks have in common?

Branches 😊

Branch, a fintech company, which has more than 3 million users in Kenya, Nigeria, and Tanzania, as well as India and Mexico, uses smartphone data including GPS data, call logs, contact lists, and texts such as bank balance messages and bill payment receipts to determine creditworthiness.

K, So what happened to them?

Branch raised $170 million in funding i.e the funding comprises of $100 million debt financing – loan and $70 million in equity —a purchase of ownership.

Why should I care?

Source: Atlas by Quartz

Clearly, the most money is going to fintech. It appears there’s never been a better time to get involved in fintech than now.

In search of greener pastures

What percentage of Nigerians do you think plan to leave Nigeria within the next 5 years?

  1. 20%
  2. 45%
  3. 101% —even Nigeria wants to leave Nigeria 😭


If you chose option b, you were correct. Nearly half (45 per cent) of Nigerian adults say they plan to move to another country within five years in a recent survey conducted by the Pew Research Centre.  
From this survey Nigeria has the highest share of citizens who want to leave, in Tunisia it’s 24% while in Kenya it’s 19%.
To be honest, We are not really shocked. Are you?

Why are they leaving? 
Same old reasons: Unemployment and Poverty. 
Everyone wants a better life. We already know Nigeria is the poverty capital of the world—87 million Nigerians live in extreme poverty. And Recently, there were rumours that almost 26 million people applied for NNPC recruitment. The signs are glaring, times are hard.  Who wouldn’t want to leave? 🙄

Why should you care?
The UN-International Organisation on Migration (IOM) says it has been involved in returning over 12,700 irregular migrants from different countries back to Nigeria in the last two years. It’s not that rosy in the overseas also.

Everyone wants to go to Canada, We get that; but before you leave, also know that it’s important to have a reasonable plan and that it’s cold out there.


Mass Protests everywhere


What happened? 
After 20 years Algerian President Abdelaziz Bouteflika resigned, following weeks of mass protests against his 20-year rule. He then set up an interim government that would last for 90 days, but the people of Algeria would have none of this.
The citizens of Algeria are protesting against this interim President, asking Abdelkader Bensalah—the interim president— to step down as the acting head of state. 
Does this make you feel better about our “democrazy” or not?😏  

What does it mean? 
The interim president promised to organise free elections within his 90-day tenure.  However, it looks like Mr. Bouteflika is tricky and Algerians don’t trust him. In 2013, during his fifth term, he agreed to the demands of the people but postponed the elections to a later date. Scam!
Algerians believe 90 days is enough for the government to come up with a figure head and prolong the transition to democracy. 

Big Picture: What the people of Algeria want is a democracy and huge institutional reforms.

We don’t want any more




What happened? 

The military has taken control of Sudan following the arrest of President Omar Al-Bashir.  
Why? Bad governance—Inflation rate is at 72%, Corruption—as up to $9 billion of Oil revenues was embezzled.  Although the military council has promised the political groups to hold a meeting on forming a civilian government, the Sudanese Professional’s Association (SPA) is not having it.

Why is the SPA doing strong head? 
They said in these exact words that the military is “not capable of creating change” Ouch, that must really hurt. The SPA has held a protest to resist the military moves to peacefully restore Sudan to a civil government. In Nigerian pidgin, SPA says, “We no want o.”😆 What a razz group?! Phew.  
Anyways, the military replied saying that they are not greedy for power. Who should we believe now? 🤔

Big Picture: The people of Sudan want peace. A peaceful and democratic transition.

 

Brexit moves into extra time

Source: Chappate



What happened? 
The European Union leaders have granted the UK a six months extension to Brexit.
October 31st is the new deadline, this averts the prospect of UK of leaving EU without a deal. This new deadline also falls on Halloween day  👻 Spooky!

What happens next? 
EU leaders advise the UK to make use of the time given to them wisely. 
In the words of the EU President, Donald Tusk, “Let me finish with a message to our British friends: This extension is as flexible as I expected, and a little bit shorter than I expected, but it’s still enough to find the best possible solution. Please do not waste this time.”

What do we think?
Abeg, they should do and conclude this Brexit 🙄😑