Economy
Surviving Harsh Realities of Setting up Business in Nigeria: The Story of Jumia
Nigeria, despite being the largest economy in Africa, is one of the toughest places to establish small and medium scale businesses. This is because the economic environment is quite unfriendly as entrepreneurs have a potpourri of challenges to deal with. Some of these challenges include lack of power, limited capital, double taxation, unstable economic policies, and inadequate infrastructure among others.
Consequently, the chances of startups and businesses surviving are very limited or minute in Nigeria
Despite this, there are a handful of small businesses that are braving these harsh economic realities and have grown beyond their humble beginnings. They are now serving millions of customers across Africa. A very good example is Jumia.
How Jumia started
Every global business did not just scale within months of being established. It must grow slowly, raise capital, break even and eventually become profitable. It can take years to hit the point of profitability in a country like Nigeria.
Jumia is an eCommerce company founded by Jeremy Hodara and Sacha Poignonnec in February 2012. The company started operations in Nigeria and Pakistan that same year under the name Kaymu; after receiving an undisclosed amount of seed funding from Rocket Internet. Although Kaymu has been rested, the online platform has become an ecosystem that has different verticals including travel, food, house and cars.
Through the years, it has expanded operations to 14 African countries and does not seem to be soft-pedalling.
The impact of Jumia
When Jumia debut in Nigeria, there was nothing like eCommerce. It was completely a new business endeavour or field that had not been fully exploited. What even made a lot of people sceptical is the possibility of ordering goods online and it will be delivered at your doorstep. Impossible!
But Jumia drove through these hurdles and today the eCommerce platform has millions of customers.
Additionally, Jumia has empowered thousands of Nigerians through its J-force programme and vendors selling on the platform are smiling to the bank.
Since the beginning of 2019, it has been reported that famed online businesses have shut down or left the country. But, Jumia Nigeria’s no 1 shopping destination continues to steadfastly innovate and satisfy the needs of its esteemed customers.
Now the Alibaba of Africa
Alibaba is the Chinese eCommerce platform founded by Jack Ma. Over the years, Alibaba and the likes of Amazon and eBay have tried to enter into Africa but the groundworks that have been done by Jumia is making that entry very difficult. This is because Jumia keeps consolidating its market position in its key markets as well as innovating.
Hence, it was not a surprise when asked during an interview with the Africa Report that if Jack Ma or Jeff Bezos knocked on Jumia’s door with an offer they could not refuse, Sacha Poignonnec, the CEO of Jumia said: “I’d be very proud that they take the time to travel to us and see it. Certainly, we would have to think about it.”
The story Jumia is one of perseverance in a country where it is difficult for startups to survive. The startup is not relaxing as it has said it is here to stay and it is Afrocentric business focus will continue despite the many challenges.
By Adedapo Adesanya
The Senate has passed a bill to repeal and re-enact the law establishing the National Insurance Commission (NAICOM), paving the way for the regulatory agency to be renamed the Insurance Regulatory Commission (IRC).
The legislation, titled the Insurance Regulatory Commission (Establishment) Bill, 2026, was passed after the Senate considered and adopted the report of its committee on banking, insurance and other financial institutions.
The Chairman of the committee, Mr Adetokunbo Abiru, the senator representing Lagos East, who presented the report, stated that the proposed legislation was necessary because the existing National Insurance Commission Act of 1997 had become outdated and no longer reflected the realities of Nigeria’s evolving insurance industry or global regulatory standards.
According to the Senate, the decision to change the Commission’s name was informed by the need to eliminate confusion associated with the existing designation and to better reflect the institution’s regulatory mandate within Nigeria’s insurance industry.
The bill also provides legal protection for the commission and its officers against adverse claims arising from the lawful execution of their statutory duties.
However, he noted that the commission’s enabling law had become obsolete, exposing significant regulatory gaps that required urgent legislative intervention.
‘The current National Insurance Commission Act 1997 is outdated and does not adequately address the emerging economic growth, needs and development of the insurance business,” the lawmaker said.
He explained that the new legislation seeks to strengthen the independence of the commission by empowering it to make regulatory decisions without undue influence in the country’s insurance sector.
According to him, the bill also enhances the commission’s authority to exchange information and collaborate with domestic and international regulatory bodies, issue regulations, guidelines, standards and directives on insurance-related matters, and intervene more effectively in financially distressed insurance companies to protect policyholders and preserve financial stability.
This marks yet another move to strengthen the country’s insurance sector following the enactment of the Nigerian Insurance Industry Reform Act (NIIRA) of 2025 and the industry-wide recapitalisation exercise, which will wrap up by July 31.
By Adedapo Adesanya
About 143 companies that successfully passed the technical and prequalification stages of the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) 2025 Licensing Round will, today, compete for 50 oil and gas blocks at the commercial bid conference in Abuja, the final stage in the allocation process for the assets.
The commission said only the prequalified companies have been invited to attend the event, which will hold at the Conference Centre of the Transcorp Hilton Hotel, Abuja, stressing that participation is strictly by invitation.
The commercial bid conference will determine the successful bidders for oil and gas assets located across Nigeria’s producing and frontier basins.
The 50 blocks comprise 16 onshore blocks and 18 shallow water blocks in the Niger Delta, one deep offshore block, three onshore blocks in the Benin Basin, four in the Anambra Basin, four in the Chad Basin, and four in the Benue Trough.
According to the commission, the winning bids will be determined through a transparent evaluation process based on clearly defined commercial parameters. These include the signature bonus offered by bidders, the proposed work programme commitment and the level of performance security provided. The final selection will be based on a weighted technical and commercial score.
The licensing round is being conducted under the provisions of the Petroleum Industry Act (PIA) 2021, which requires a transparent and competitive process for the award of petroleum assets.
NUPRC had announced the commencement of the 2025 Licensing Round on November 11, 2025, before opening the online bid portal on December 1, 2025, to enable interested companies to register and participate in the exercise.
To ensure prospective investors fully understood the requirements, the commission organised a pre-bid conference on January 14, 2026, at Eko Hotels and Suites, Lagos. The event provided detailed explanations on the licensing guidelines and bidding procedures to registered participants and other stakeholders.
Registration and submission of prequalification documents closed on February 27, 2026, while the prequalification evaluation was completed on March 16, 2026.
NUPRC disclosed that 286 companies initially submitted applications for prequalification.
Following the evaluation process, 196 companies were cleared to participate in the technical and commercial bid stages.
The prequalified 143 companies eventually submitted a total of 200 bids for the available oil and gas blocks. These companies are now set to compete at the commercial bid conference, where the financial offers will be opened and evaluated to determine the eventual winners.
The licensing round is expected to attract fresh investment into Nigeria’s upstream petroleum sector, boost exploration activities across both producing and frontier basins, increase crude oil and gas reserves, and support the country’s drive to grow production and government revenue.
It also underscores the regulator’s commitment to implementing a transparent, competitive and investor-friendly licensing regime under the Petroleum Industry Act.
By Adedapo Adesanya
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained all key monetary policy parameters following the conclusion of its two-day meeting on July 21, 2026, on Tuesday, maintaining its tight monetary policy stance to curb inflation and support macroeconomic stability.
According to the Governor of the apex bank, Mr Yemi Cardoso, who chaired the committee, the Monetary Policy Rate (MPR), which serves as the benchmark interest rate, remains at 26.50 per cent. The MPC also retained the asymmetric corridor around the MPR at +50 basis points and -450 basis points.
In addition, the Cash Reserve Ratio (CRR) for commercial banks was left unchanged at 45.00 per cent, while the CRR for merchant banks remains at 16.00 per cent. The committee also retained the CRR on non-Treasury Single Account (Non-TSA) public sector deposits at 75.00 per cent, with the liquidity ratio at 30.00 per cent.
The decision reflects the apex bank’s continued commitment to containing inflationary pressures through a restrictive monetary policy while safeguarding the resilience of Nigeria’s financial system amid ongoing macroeconomic adjustments.
By keeping all policy tools unchanged, the MPC signalled its intention to continue managing excess liquidity in the banking sector and maintain stability in financial markets.
The move is also expected to provide greater policy certainty for investors and businesses monitoring the country’s monetary policy direction.
The latest decision also means borrowing costs are likely to remain elevated in the near term as the central bank continues to prioritise price stability over monetary easing.
Analysts had expected the CBN committee to retain the rate after Nigeria’s headline inflation came in at 15.91 per cent as of June 2026, marking a slight decline from 15.93 per cent in May.
However, even as overall price growth has moderated significantly compared to previous periods, food inflation remains a persistent challenge, accelerating to 17.52 per cent in June.
