Feature/OPED
How JumiaPay is Helping Customers to Save Money
By Adedoyin Giwa
For tech companies playing in the e-commerce space, payment gateways are crucial to development and profitability.
Many household names in the e-commerce space commenced operations relying on existing e-payment services in their checkout pages. As their businesses grow, they are conscious that by redirecting customers to the external payment page, they are effectively relinquishing control of their brand’s checkout experience.
There’s also the issue of shopping cart abandonment. This is usually associated with checkout processes constituting a barrier in the way of customers making payment, which in turn makes online stores lose customers and potential sales.
To ensure a more streamlined checkout procedure, e-commerce brands result in setting up on-site payment options for customers. America’s Amazon introduced Amazon pay in 2007.
Today, the brand has grown to allow customers to pay with their Amazon accounts on external merchants’ websites. Also, Alibaba launched Alipay in 2004, five years after it commenced e-commerce business.
These moves are also mirrored in Africa’s e-commerce space. There has been a tradition of general resentment towards the internet payment system on the African continent, despite increasing craze for mobile technology among African youth.
Though most African e-commerce platforms have relied heavily on the cash-on-delivery model, some are making efforts to move transactions towards the proprietary payment system. To encourage the shift, a market leader like Jumia offers incentives such as cashback when customers use their payment systems, JumiaPay.
E-commerce companies’ primary aim is to get paid easily for purchases made on their platform, but their on-site payment services provide encryption that keeps customers’ information secured, thus improving customer experience. On-site payment option also provides customers with a faster, convenient shopping and check out experience.
Conventional banks and external payment platforms often have all sorts of transaction issues which at times take days to resolve and can make customers wary of the process. However, shopping on Jumia platform with JumiaPay makes such issues easier to resolve when they occur.
Beyond the ease, data security, and convenience of shopping and payment options, the payment services of e-commerce platforms offer more to customers.
For instance, with JumiaPay, customers can also pay electricity bill, Pay TV subscription, and mobile recharge. The interesting part of paying via the JumiaPay app is the added incentives.
A unique offering of the service is that there are no hidden charges on payments made through the platform; meaning a free payment gateway which affords customers to save more by avoiding extra charges associated with other service providers.
Added to this incentive is the opportunity for customers to enjoy exclusive discounts from Jumia brand partners when they pay via the JumiaPay app.
A good example is the recent Jumia Brand Festival where the platform brought together global product manufacturers like Samsung, Nokia, HP, Nexus, XIAOMI and several others for direct sales to customers. The week-long campaign did not only allow customers to save money, but those who made payment transactions on the JumiaPay app got extra discounts on their deals.
From all indications, e-commerce brands are gradually taking up a crucial link in the e-payment space by offering more to customers who embrace the on-site payment option.
Therefore, while Nigerian customers take advantage of the ease and comfort of e-commerce services, they can optimize e-commerce for better deals by opting for payment through on-site payment products of their preferred online platforms.
Feature/OPED
The Need to Promote Equality, Equity and Fairness in Nigeria’s Proposed Tax Reforms
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
Feature/OPED
NNPC Versus Dangote Refinery
By Kingsley Omose
The drama playing out in the oil and gas sector between the Nigerian National Petroleum Company (NNPC) Limited and Dangote Refinery LPZ in a way mirrors the clash going on in the political arena between the advocates of the status quo and those who want to chart a new way forward, and this has implications for the future of Nigeria.
For decades, Nigeria used earnings from its vast oil and gas resources to fund a consumptive lifestyle for its people. While the politicians in power, and the military before them were left to spend government revenues as they liked, they responded by having policies which were literarily bribes to Nigerians.
These bribes constituted of the provision of subsidised petroleum products and electricity, and with a near abscence of tax collection from Nigerians who in turn expected free health care, free education, security, and good infrasture as the bare minimum from their leaders whether military or political.
And because the oil and gas production was there to provide US Dollars that had no bearing on the productivity or unproductivity of the Nigerian people, importation became the norm to satisfy the love of Nigerians for the good things of life that money can buy.
Like the proverbial ostrich that buries its head in the sand and is oblivious to the realities, no one bothered to plan for the future and so as the Nigerian population grew exponentially, revenues from oil and gas production became increasingly unable to fund Nigeria’s consumptive economy.
Resort to local and external borrowings by government including the printing of tens of trillions of Naira in an effort to continue to keep afloat Nigeria’s consumptive economy have only succeed in worsening the quality of life of Nigerians and made living conditions in the country hellish.
Violent groups mostly made up of young people whether as cultists, militants, terrorists, armed robbers, kidnappers, agitators, 419ers, or thugs, have sprung up and are charting their part, and along with the abuses in the corridors of power and the failings in the security services, all these make for a very combustible environment.
There are those who believe ramping up oil production to at least 4 million barrels of oil per day and increased monetisation of vast gas resources even if this is done at the expense of Niger Deltans, will increase US Dollar earnings to refloat Nigeria’s consumptive economy and it will be business as usual.
This is unrealistic because there is no other country in the world like Nigeria with a monoproduct economy that has over 210 million people where 70% are below the age of 30, 42% are under the age of 15, and that has the largest population of young people in the world with a median age of 18 years.
As the Word of God says, Where there is no revelation, the people cast off restraint (Proverbs 29:18). This is the crux of the matter, that there are not enough productive activities going on in Nigeria to adequately engage the productive energies of at least 70% of Nigerians. In other words, for those we regard as the energy of the future, Nigerians below 15 years of age who constitute 42% of the population, their future is characterised by even greater HUSTLE.
This is the context in which to view the conflict between the poster child of Nigeria’s consumptive economy, NNPC Ltd with close to 6000 employees that on the average earn N100 million each going by its yearly N600 billion wage bill, and Dangote Refinery with over 15,000 employees that can produce petroleum products both for local and international consumption.
What Nigerians need to understand is that while Dangote Refinery may have had a long gestation period, an ecosystem was created in Lagos State that enabled this poster child for Nigeria’s emerging production economy to see the light of day, and principal to that was the political stability in Lagos State.
It is with this understanding that Nigerians should welcome and endure the twin pains of petroleum products pricing deregulation and the floating of the local currency, the Naira which have caused inflation to hit hard the pockets of Nigerians. Nigerians must endure this transition to secure the future of their children.
It is with this understanding that Nigerians should endure the regular collapse of the national power grid and power outages despite increased electricity rates because the country is transitioning from a consumptive to a productive economy in order to productively engage those who have the energy of the future.
The need for the passage of the following pending bills in the National Assembly: the Ministry of Finance Incorporated (Establishment) Bill, 2023, the Investments and Securities (Repeal and Enactment) Bill 2024, the Joint Revenue Board of Nigeria (Establishment) Bill, the Nigeria Revenue Service (Establishment) Bill; the Nigeria Tax Administration Bill, and the Nigeria Tax Bill, should also be viewed with this understanding.
Additional reforms will be required in the mining sector to attract the big players while local steel manufacturing will be needed to meet the developing demands of a productive economy for rail tracks, trains, bridges, skyscrapers, automobiles, aircrafts, ships, and much more.
In time, the reforms will shift to governance and electoral reforms, educational and healthcare reforms and such as will be required to reposition this tithe of the blackrace in a changing world where the instability released into the global order from January 20, 2025 will fundamentally change the world order as we know it today.
Feature/OPED
A Policy Blueprint for New Era of African Innovation
By Doron Avni
The dawn of the AI age presents a unique opportunity for Africa. With the right policies, the continent can experience accelerated socio-economic progress. According to a recent study by Public First, AI could increase the Sub-Saharan African economy by over $30 billion annually and is already revolutionizing various African sectors.
For instance, AI-powered ultrasound checks are accessible in remote areas, AI combined with satellite imagery helps assess village electrification, and AI and cloud connect youth with jobs via mobile search.
As the AU Commissioner for Infrastructure and Energy, Dr Amani Abou-Zeid wrote in the introduction to the recently adopted Continental AI Strategy: AI “is seen as a driving force for positive change, socio-economic transformation, and cultural renaissance.”
Strong government policy is crucial for unlocking Africa’s AI potential, and new research confirms this critical link. The Google-commissioned AI Policy Blueprint for Africa report by Nextrade Group, which surveyed over 2,000 African students, businesses, and organizations, reveals a striking connection between policy readiness and AI adoption.
The report demonstrates a clear correlation: African countries with established, pro-AI digital policy frameworks also have significantly higher AI adoption rates than their peers with less mature policy frameworks. This is especially timely as governments across the continent are actively working on AI strategies at the national level, with some already having adopted them. This data underscores the vital role governments play in creating an environment where AI can flourish.
To guide this crucial government leadership, the AI Policy Blueprint report provides a practical roadmap. Building upon the foundational recommendations from Google’s AI Sprinters report, this blueprint offers specific policy guidance across four key pillars: infrastructure, skills development, investment in innovation, and responsible AI regulation.
For each pillar, the blueprint outlines specific policy actions African nations can take to accelerate AI adoption and maximize its benefits for their citizens. The report was designed to help policymakers in the task of translating the exciting vision of the recent AU Continental AI Strategy into practical policies aimed at achieving it.
One of the most important recommendations the report makes is on data readiness. The blueprint emphasizes the importance of ensuring access to high-quality datasets that reflect Africa’s diversity.
Governments can achieve this by opening up non-sensitive public data for AI development, promoting data transfer across borders, and encouraging the use of privacy-enhancing technologies (PETs). The blueprint also stresses the importance of harmonized data protection frameworks to ensure privacy and security as AI systems are deployed.
Crucially, the blueprint advocates for a “cloud-first” approach in the public sector, where governments prioritize cloud-based solutions for data storage and service delivery.
By migrating to the cloud, governments can effectively manage and process the vast amounts of data required for AI, unlocking its potential to improve public services and address critical challenges. The report, scanning the global horizon for AI policies, mentions Singapore as a prime example, where the government has issued guidelines that allow for greater flexibility in using personal data for AI development while still protecting privacy.
This call for government leadership is echoed by the very people who stand to benefit most from AI. The report reveals a groundswell of excitement among African businesses, especially fast-growing firms, with many seeing AI as “absolutely transformative” for their operations and predicting significant revenue gains—as much as 20% annually.
In fact, almost 90% are already applying AI to research, data analysis, marketing content creation, and even coding. Moreover, a majority of Africans believe AI can boost productivity and accelerate national development. These individuals and businesses expressed hope that governments will proactively support this progress by ensuring AI is used safely and responsibly, equipping young people with essential AI skills, and helping small businesses leverage this powerful technology.
Governments must also lead by example, actively adopting AI within their own operations to demonstrate its value and build public trust. The report found overwhelming support for this approach, with over 80% of respondents agreeing that governments should invest in AI to improve public service delivery.
The adoption of AI by governments not only improves government efficiency but also inspires confidence in AI across all sectors, encouraging wider adoption.
At Google, we are committed to being a steadfast partner for African governments, businesses, and individuals on their journey to capture the vast opportunities presented by AI. We believe in the power of technology to drive progress and improve lives, and we are dedicated to supporting Africa’s digital transformation.
Our recent announcements, including a $5.8 million commitment to AI skills development and the expansion of speech technology to include 15 more African languages, demonstrate our ongoing investment in the continent’s future.
We are committed to working with African governments as they embrace AI, not just as policymakers but as active users, demonstrating its transformative potential to their citizens and the world. We are confident that by working together, we can unlock Africa’s immense potential and build a future where AI empowers everyone.
Doron Avni is the VP of Public Policy and Government Affairs for Emerging Markets at Google
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