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Nigeria Leads SA, Others in Online Shopping

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  • Nigeria Leads South Africa, Others in Online Shopping

A recent survey has shown that Nigerians shop more online than other sub-Saharan African (SSA) countries.

According to GeoPoll, which conducted the survey on five African countries including Nigeria, South Africa, Uganda, Kenya and Ghana, said though there have been significant growth in online shopping on the continent, but SSA still don’t trust e-commerce sites.

GeoPoll is the world’s largest mobile survey platform, with a network of 200 million users in Africa and Asia.

According to the survey, 66 per cent of Nigerians buy items online every few months compared with 60 per cent in South Africa and 45 per cent in Kenya.

However, at least 55 per cent of Ghanaians and 51 per cent of Ugandans have never bought anything online.

The report discovered that many of those who had tried online shopping had only tried it once.

Among the top reasons cited for not frequently using online shopping sites were lack of trust, shipping costs, unsupported payment methods, or because a friend had a bad experience.

The GeoPoll revealed that many complained of unreliability of some sites, poor delivery and the purchase process. Others felt that there is no need for online purchases as the items were readily available at their local store.

The majority of shoppers in Kenya, Nigeria and Uganda paid on delivery for items bought online. However, in South Africa, 50 per cent of shoppers preferred to pay using their debit card and a further 26 per cent use their debit card for online purchases. Cash on delivery in South Africa is also the preferred mode of payment at 20 per cent compared to mobile money.

Already, eCommerce sub-Sector in Nigeria is estimated to worth $10 billion with some 300,000 online orders expected each day. The worth is projected to hit $13 billion by 2018.

Indeed, despite the economic gloom in Nigeria, eCommerce players claimed about 20 per cent growth in traffic at the just concluded ‘Black Friday’ sales.

The Black Friday, which ran between November 23 to 29, across different eCommerce platforms including Jumia, Konga, Yudala, Spar, Dealdey, Kaymu among others in Nigeria, is usually the Friday after the American Thanksgiving, and it is one of the major shopping days of the year in the United States.

Konga, through its Yakata 2016 sales, claimed to have witnessed the company’s biggest shopping period in its four year history. The online ecommerce giant revealed that it processed 155,000 orders totaling N3.5 billion within the sales period.

Konga Chief Executive Officer (CEO) Shola Adekoya, said: “Yakata 2016 has exceeded all of our expectations in terms of sales; we had been cautiously optimistic that we would improve on last year’s period, but with the Nigerian economy as it currently is, we had been conservative with our projections. However, it seems that there are hundreds of thousands of savvy shoppers keen to make their Naira go a little bit further at the moment; hence they came to Konga to find the very best deals.

Statistics from Jumia showed higher growth. The firm said it recorded 219.13 per cent session that is 4,919, 331 against 1, 538, 578 of last year. In terms of users, Jumia claimed 158.61 per cent (2, 117, 840 vs 818,929) and 93.3 per cent page views within the period.

Yudala also claimed to have witnessed huge traffic on the plaftrom, stressing that within the first 12 hours of its Black Friday, it recorded a sales of about N450 million.

Speaking to The Guardian, Vice President, Yudala, Prince Nnamdi Ekeh, said people took advantage of the opportunity to shop immensely.

He pointed out that some people actually shopped ahead of the Christmas period.

Ekeh pointed out that between December 2015 and November 2016, prices of electronics rose by 60 per cent and some other items because of currency issues among others, “so people just latched on the opportunity of this Black Friday to shop ahead.”

CEO Jumia Nigeria, Juliet Anammah, said Nigerians have not stopped buying but have instead, re-prioritised their shopping needs “and so retail stores are seeing more purchases in household items and children’s items rather than the regular impulse buying of clothing items.

According to a recent KPMG report, in seven sub-Saharan countries, e-commerce makes up one to three per cent of the gross domestic product, GDP, which is the total value of goods produced and services provided in a country annually. It is predicted to make up 10 per cent of total retail sales in key markets by 2025, with 40 per cent yearly growth over the next 10 years. The total retail economy is projected to grow rapidly, along with the population as a whole and its spending power per capita.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Telecommunications

Lagos Residents Frustrated by Rapid Data Drain, Call for NCC Action

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Lagos residents are expressing increasing frustration over what they describe as the rapid depletion of their data bundles.

Many subscribers are now calling on the Nigerian Communications Commission (NCC) to address their concerns as they suspect changes in billing practices by telecommunication providers.

Numerous subscribers have reported that their data does not last as long as it used to. A Lagos-based teacher, Mrs. Nafidah Zaynab, shared her experience, stating that a N2,000 data bundle, which previously lasted almost a month, now depletes within just a few days.

This sentiment is echoed by many, including Idowu Anabili, a trader who has reduced his data usage due to rising costs.

Abdullahi Yunus, who runs a café, noted a significant increase in his data expenses, spending between N70,000 and N100,000 monthly, up from N30,000. He attributes this spike to faster data consumption.

Telecom operators deny any wrongdoing, attributing the faster data consumption to increased usage by subscribers.

An anonymous official from MTN explained that the variety of activities performed on smartphones has increased, leading to faster data usage.

Airtel Nigeria’s spokesperson, Mr. Femi Adeniran, suggested that background apps and high-definition streaming contribute to the issue.

Despite complaints, operators assert they have not officially increased data prices. They emphasize that automatic app updates and other technical factors may be responsible for the perceived quick depletion.

Experts suggest that the challenging economic climate may be pressuring telecom companies to subtly reduce data value.

The industry has reported a 43% rise in operational costs, although no formal tariff hikes have been announced.

The NCC has clarified that it has not authorized any increase in data tariffs. The commission highlights technical factors like automatic video play and app updates as potential causes for quick data depletion.

In a bid to assist consumers, the NCC has advised turning on data saver modes and managing app updates to conserve data.

To combat the issue, Mobile Network Operators (MNOs) have initiated a campaign to educate consumers on optimizing their data usage.

They recommend practices such as disabling automatic updates and closing unused apps.

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Social Media

Meta Shuts Down 63,000 Nigerian Accounts in Sextortion Crackdown

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In a significant move to combat online crime, Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, has removed 63,000 accounts in Nigeria linked to sextortion scams.

This sweeping action is part of Meta’s ongoing effort to address the growing threat of digital extortion on its platforms.

Unmasking the Scammers

The crackdown, which took place at the end of May, targeted accounts engaged in blackmail schemes.

These scammers posed as young women to coerce individuals into sharing intimate photos, which were then used to extort money from the victims.

The removal follows a Bloomberg Businessweek exposé highlighting the rise of such crimes, particularly affecting teenagers in the United States.

The Global Impact

The U.S. Federal Bureau of Investigation (FBI) has identified sextortion as one of the fastest-growing crimes targeting minors.

The schemes often lead to severe consequences, including the tragic suicides of more than two dozen teens.

In one high-profile case, the death of 17-year-old Jordan DeMay in Michigan led to the arrest of suspects traced back to Lagos, Nigeria.

The Role of the Yahoo Boys

Many of the dismantled accounts were linked to the “Yahoo Boys,” a notorious group known for orchestrating various online scams.

These individuals have been using social media to recruit and train new scammers, sharing blackmail scripts and fake account guides.

Meta’s Response

Meta’s spokesperson emphasized the company’s commitment to user safety, stating, “Financial sextortion is a horrific crime that can have devastating consequences.”

The company is continually improving its defenses and has reported offenders targeting minors to the National Center for Missing & Exploited Children.

To enhance protection, Meta has implemented stricter messaging settings for teen accounts and safety notices regarding sextortion.

They are also employing technology to blur potentially harmful images shared with minors.

Ongoing Efforts

Meta’s actions highlight the complex and evolving nature of online crime. The company has pledged to remain vigilant, adapting its strategies to counter new threats as they emerge.

“This is an adversarial space where criminals evolve to evade our defenses,” Meta noted.

Looking Forward

As digital platforms continue to grapple with issues of privacy and security, Meta’s recent actions demonstrate a proactive stance in safeguarding users.

By dismantling these networks, the company aims to reduce the prevalence of sextortion and foster a safer online environment for all.

The crackdown serves as a reminder of the need for continued vigilance and collaboration between tech companies and law enforcement to protect individuals from the harmful effects of digital exploitation.

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Fintech

Flutterwave Celebrates Inclusion in CNBC’s Top 250 Global Fintechs

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Flutterwave has been recognized as one of the Top 250 Fintech companies globally by CNBC and Statista.

Joining the ranks of industry giants like Ali Pay, Klarna, Piggyvest, and Mastercard, this accolade underscores Flutterwave’s impact on the financial technology sector.

This honor follows Flutterwave’s recent inclusion in Fast Company’s Most Innovative Companies list, highlighting the company’s pivotal role in transforming Africa’s payment landscape.

The recognition is a testament to Flutterwave’s dedication to innovation and excellence in providing seamless payment solutions across the continent.

Expressing gratitude, Flutterwave acknowledged its talented team, supportive board, reliable partners, and loyal customers for contributing to this success.

The company continues to drive progress in the fintech industry, reinforcing its commitment to enhancing financial accessibility and inclusion in Africa and beyond.

Flutterwave’s recognition on these prestigious lists marks a proud moment and a significant milestone in its journey, reflecting the company’s growing influence and leadership in the global fintech arena.

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