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How Nigeria, Other African Countries Can Forge an Inclusive Economic Recovery

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Tolu Oyekan Inclusive Economic Recovery

By Tolu Oyekan

As of this writing, the spread of COVID-19 in many African countries has been more contained, and the death toll lower, than some had expected in 2020.

The economic fallout of the pandemic for Africans, however, will be different and could be direr than for the rest of the world.

Sub-Saharan Africa accounts for more than half of the world’s populations living at or below the poverty line. A recent World Bank scenario estimates that COVID-19 could push up to 40 million people in Sub-Saharan Africa into extreme poverty, seriously eroding the progress that African countries have made to reduce deprivation during the past two decades.

When the pandemic was declared in April 2020, BCG counselled African governments to develop comprehensive plans in response to the health care crisis and take on broader economic and societal challenges.

We continue to believe that the best course for African leaders is to accelerate economic policy reforms and investments that accentuate inclusion and position countries for a stronger post-pandemic recovery.

Indeed, Africa’s economic recovery from the COVID-19 crisis depends on how effectively governments will be able to balance urgent actions to stabilize economies with the structural reforms needed to stimulate sustainable economic development initiatives. An inclusive approach to economic recovery can protect the most vulnerable populations in the short term and improve their prospects in the long term. Select initiatives in Nigeria present a case in point.

The Pandemic’s Economic Fallout in Nigeria

Nigeria is the largest economy in Africa and one of four African countries included on BCG’s Middle Billion list of rapidly transforming developing countries where local entrepreneurs attract global investment, especially in emerging tech-driven industries.

Yet, almost 83 million people—40% of the country’s population—live below the country’s poverty line of $381.75 per household, per year, according to the 2018–2019 living standards survey by Nigeria’s National Bureau of Statistics (NBS).

World Bank 2021 projections for Sub-Saharan Africa as a whole warn of protracted economic flux throughout the year. Even with a modest rebound from recession, there is a risk that a steep drop in per capita income could push tens of millions more people into poverty.

South Africa and Nigeria, the continent’s most populous country, face the most severe setbacks, according to the projections. Lower oil prices, combined with pandemic-related factors, add to the strains on Nigeria’s economy and the risks for its most vulnerable citizens.

These concerns prompted the Nigerian government to undertake a wide range of activities to stimulate economic growth with a focus on economic inclusion. Specifically, Nigeria aims to leverage public-private partnerships to create economic opportunities for marginalized populations.

In June 2020, Nigeria’s government revised its economic sustainability plan to double down on stimulus investments and policy interventions in order to revive the growth of bedrock industries (such as oil, tourism, and aviation), and accelerate growth in emerging businesses in other industries (such as small and midsize enterprises and alternative energy) that promote economic inclusion and opportunity.

Specifically, the government is focusing on expanding mobile smartphone service, digital financial services, and home-based solar electricity for low-income households.

Mobile Money and Telcos Connect

Using cash and paying bills in person have historically been the norm, especially among the unbanked populations. This has changed since COVID-19. From the early days of the pandemic, leading contactless payment startups in Nigeria launched initiatives to encourage consumers and merchants to sign up for their services. As BCG has written, financial institutions in Africa were the first to introduce mobile payments.

In Nigeria, the push for cashless transactions has prompted mobile money providers to leverage the networks of telecommunications companies in order to sign up mobile money customers. This is important because most poor Nigerians own a cell phone, but they don’t have a bank account.

The percentage of the adult population with access to financial services in Nigeria grew at a compound annual growth rate (CAGR) of 6% from 2008 to 2012 but by only 1% from 2012 to 2018, according to an annual survey by Enhancing Financial Innovation & Access, a financial-sector development organization. This low rate persisted despite meaningful reforms implemented by the Nigerian government before the pandemic to accelerate financial inclusion.

In 2018, for example, the government issued payment services guidelines for financial service providers and telcos seeking to expand their customer bases among the unbanked, especially in rural areas. However, it took some time for the Central Bank of Nigeria (CBN) to issue the licenses that telcos need to operate as a payment service bank (PSB).

In August 2020, the CBN licensed three new PSBs, which can now offer high-volume, low-value digital transaction services, such as remittances, microsavings accounts, and withdrawals. Extending the reach of mobile banking services to rural unbanked populations could also allow the government to deliver social welfare benefits directly to those citizens’ bank accounts.

Pay-as-You-Go Solar Service

The Nigerian government is aiming to install new home solar power systems and mini-grids for 5 million low-income households by the end of 2023.

Many of those households—which either rely on small, inefficient generators for electricity or have no power source at all—will need to use PAYGo, an instalment financing option offered with mobile money bank accounts, to purchase the installation kits for these systems. Customers with an existing mobile money account may apply and qualify for a PAYGo loan more easily than others.

Our analysis shows that a PAYGo loan would make solar kits affordable for about half of the 31 million households that do not have reliable electricity and may also be considered to be in a low-income bracket.

What’s more, we found that 3.2 million out of 17 million households currently using kerosene and candles as their lighting source could afford the monthly PAYGo payments based on their current spending on lighting, plus about 10% of their nonfood budget.

We expect that the scaling of mobile money accounts, along with home solar power kits financed with instalment loans, will have a sustained economic impact on low-income populations well beyond any 2021 recovery.

A recent USAID research brief estimates that 15% to 30% of PAYGo solar customers will create a credit history for the first time when they purchase a solar home system with a PAYGo plan. That credit history could, in turn, lead to other loans for large expenses, such as school fees, which can consume up to 40% of a family’s annual income. Credit histories are also a critical driver of growth for small-business enterprises and first-time business entrepreneurs.

The USAID brief also noted advantages for providers: PAYGo solar customers generate more than twice as much revenue per user for a mobile money provider than the average customer.

A Stronger Recovery and Future

While increases in poverty and economic inequality are possible, they are not inevitable. As we see it, the economic hardships caused by the pandemic give governments a chance to examine the strengths and shortcomings of past policies and strategies and address the current structural inequities in their economies.

Linking economic inclusion initiatives across several industries could also have positive, and enduring multiplier effects. Time will tell whether Nigeria’s inclusive recovery plans succeed. All African governments, and the policymakers who are working with them, must look beyond the crisis to ensure that the resources deployed today build a better foundation to achieve a more equitable future.

Tolu Oyekan is a partner in BCG’s Lagos office. He leads the firm’s work on total societal impact across West Africa and is a core member of BCG’s Corporate Finance & Strategy practice

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Strategies for Launching Your Real Estate Tech Startup Successfully

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Dalip Jaggi

By Dalip Jaggi

Launching a real estate tech startup requires a lot of focus. But at its core, the primary goal is to eliminate pain points commonly seen in the industry.

Unfortunately, the process of buying, selling, and managing a property is rarely straightforward in real estate deals. For one, there tends to be endless paperwork to complete, regular back and forth between agents and clients, and long drawn-out closing periods.

If you can create a real estate company that actively eliminates these challenges, it can be transformative for both agents and clients alike. However, getting to this stage takes a lot of work in terms of strategy and vision.

This guide will outline key strategies you can implement to help you launch your real estate tech startup.

Address a Specific Industry Need

The foundation of a successful real estate company rests on its ability to solve a specific, ongoing problem. Overly general solutions usually don’t resonate in the market, but a focused approach can build a loyal customer base over time.

To begin, you need to carefully analyze the market, looking for consistent challenges. This is more than just a surface-level skimming of the market. It means finding overlooked areas or specific pain points that significantly impact a particular group of users.

Try to focus on problems that might be solvable with new technology or unique market approaches. This ensures that your startup’s efforts are directed toward creating solutions that people genuinely want and are willing to use.

Clearly Articulate Your Brand Value

After finding a relevant market need, you need to clearly define what makes your new company different from existing competitors. This is your unique value proposition.

A strong value proposition requires more than just listing your product or service’s features. It should also explain the real, tangible benefits users can expect to experience. Articulate precisely how your offering solves the problems in your target market, and highlight the specific ways it stands out from other options available.

Create a Proof of Concept

Most startup companies that develop software will start with a Minimum Viable Product (MVP). An MVP has the fundamental features that software will have, but won’t include more sophisticated components that the customer may expect in a complete product. This keeps costs down while trying to develop a full-functioning platform or service.

The main goal of an MVP is user testing. They help capture a user’s first impressions of how the software performs in real-life scenarios. To gather meaningful feedback from your MVP users, you’ll want to ensure that only the most essential functions are present. Over time, feedback from MVP users helps you to prioritize relevant product additions.

In the iterative process leading to a fully launched marketable product, ensure that you try to incorporate any mission-critical improvements before launch. This will help to avoid major setbacks post-launch that might impact brand perception.

Gain Enough Financial Support

To move from a simple prototype to running an actual real estate technology company, you will need the right level of funding. There are different ways to obtain this capital, each having its own benefits.

At the outset, self-funding can help you continue to maintain control of the venture, although you may be a bit more limited in terms of initial growth opportunities. Working with a private investor, on the other hand, can lead to a sizeable cash injection in the business along with experienced mentorship to help you through the initial growth stages of your business. Unfortunately, though, this will likely come at the expense of giving away equity in the company.

Build a High-Performing Team

A successful real estate company needs a strong team. It’s important to try to source new individuals with a wide range of professional experiences. Among other skills, you should be looking for employees with strong real estate knowledge, a technical background, and a good understanding of sales and marketing principles.

Aim to source candidates who not only master these skills but are also passionate about the company’s goals. This helps build a sense of ownership and responsibility with all your team members, keeping everyone focused on ensuring the startup’s success.

Consider Integrating Helpful Renovation Tools

Homeowners and property managers are always looking for ways to increase a property’s value by completing various types of home renovation projects. By integrating helpful renovation tools into your software, you can help your new real estate technology quickly stand out in a crowded market.

Adding helpful features that let users estimate the costs of their renovation, plan different elements of a bathroom remodel, or track the statuses of their home projects can add significantly more value to your solution.

Put Together a Digital Marketing Strategy

Having a solid digital marketing presence is critical for new businesses to attract clients and expand their user base. This includes the use of SEO, paid advertising, and content marketing to increase brand visibility and create more touchpoints between businesses and potential clients.

Social media is equally important for helping to raise brand awareness. This helps you connect with clients directly and network with other industry professionals. By partnering with other real estate organizations, agencies, and commercial businesses, you’ll further help your brand’s visibility and credibility as you start launching new services.

Focus on Customer Engagement

Building lasting relationships with customers all rests on being able to provide excellent support. Earning their trust requires consistent dedication. This means responding quickly to questions and concerns that come up and keeping your focus on ensuring their satisfaction.

Actively soliciting user feedback, through surveys and reviews, allows you to take the necessary steps to improve their experience. It’s also important to keep users informed with regular updates and offer additional support to show them that they are a top priority. All of these initiatives add a personal touch to your brand, helping you stand out from others.

Give Your Startup the Best Chance for Success

Starting a successful business in real estate comes with its own set of challenges that need to be tackled. However, by following the strategies discussed, you’ll be sure to stand out in the industry better while introducing high-value solutions to your user base.

Dalip Jaggi is an entrepreneur, technologist, and passionate business leader sum up the core of Dalip Jaggi, co-founder of Revive Real Estate, a PropTech company to democratize house flipping. Since its 2020 inception, Revive has become the smartest solution for homeowners to maximize their home’s sales value across the nation.

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Sunusi Bature: Time to Take the Podium

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Sunusi Bature

By Ahmad Dambazau

The National Assembly is a constitutional locomotive for any purposeful democratic government, it provides checks to the government of the day and a legal basis for the system in general .This basically accounts for the high respect usually accorded and, of course, the attendant high expectation placed on it. The legislative arm of government like any other is saddled with the responsibility enshrined in the constitution and among such major functions includes representation, oversight and law making in addition to many other numerous functions.

Be that as it may, it has been a genuine cause for worry for Nigerians that, despite our series of experimentation with democracy, our legislators have performed below expectation. Their handling of national issues has especially remained without constitutional decorum and political experience required of people of their exalted status. Part 2, Section 4 of the 1999 Constitution, as amended, vests the legislative powers of the federation on the National Assembly which comprises the Senate and House of Representatives.

Dawakin Tofa ,Tofa and Rimin Gado Federal constituency  is  one of the few constituencies in Nigeria represented by the same legislator for 18 years(2007-2005) despite poor representation .

As the federal constituency searches for the best man  to represent them for this serious legislative task. One name keeping ringing bell is Hon Sunusi Bature Dawakin Tofa ,Media and Communication Expert and Director General  of Media and Publicity to Kano State Governor.Sunusi  has earlier served as the Chief Press Seceretary to the Governor in the early days of the administration .

Mallam Sunusi is a seasoned PR guru, development communication and stakeholder engagement expert with 21 years working experience in both international development, private sector and the Media in Nigeria.

He is a winner of the Cambridge education award on investigative journalism in 2008, Bature has worked at different capacities in various national, International and Bilateral organizations such as the British Foreign and Commonwealth Development Office (FCDO), the United State Agency for Internal Development (USAID), Bill and Melinda Gates Foundation, Save the Children International, Discovery Learning Alliance and the Rockefeller Foundation.

He held several positions which include General Manager Corporate Services at Dantata Foods and Allied Products Limited (DFAP), Director Stakeholder Engagement at YieldWise Project, Country Program Manager at Girl Rising (ENGAGE) Project funded by the US Government, State Project Coordinator for MNCH Campaign Project of the BMGF, Deputy Director Operations at Discovery Learning Alliance, State Program Officer, Policy Advocacy and Media Development, Communication and Knowledge Management Specialist among other positions.

Graduated with a Bachelor’s degree (B.A. Hons.) in Mass Communication from University of Maiduguri, Sanusi holds a National Diploma in Mass communication from Kaduna Polytechnic, a Higher National Diploma (HND) and a Postgraduate Diploma in Public Health Education and Promotion.He also bagged MSc. in Social Work with specialization in Community Development from Ladoke Akintola University of Technology, (LAUTECH) Ogbomosho, Oyo State and another master’s degree in Public Relations (MPR) from the prestigious Bayero University, Kano, Nigeria. He participated in the MSc program on Project Management at Robert Kennedy College, Zurich, Switzerland.Until his appointment, Sunusi Bature served as the Vice President, Nigeria operations for a UK based firm, Kingston Organic PLC.

Hon Dawakin Tofa has opened yet another vista of debate among electorates on the value of quality representation with vigour,expertise and experience of having a wider constituency responsibility and coverage .He has vindicated his mettle among his constituents that even as an appointee of the Governor  his eloquent consistent and fearless voice always seeking the improvement of lives of his constituents accountability  among representatives of the people.

He is truly a representative of the people though unelected going by the amount of work he was able to do for the overall benefit of his people. In fact, it is worth elucidating   that this PR guru was able to touch the lives of the people in his stewardship in the private and public sectors. So far he has proved to be one of the few politicians that attracts government presence to his community. No matter what anyone would say, the amount of dividends of democracy that this community leader was able to bring to the door step of the people is unmatched.

Sunusi Bature’s development credentials and landmarks speaks volumes. The highlights of which were stellar achievements of re-positioning the educational sector in the more definitive ,radically ,progressive and futuristic manner , not to mention the  capacity building, empowerment and educational scholarship for his people  ,all shone  brightly for both his admirers and  detractors to access.

The Director General of Media and Publicity to the Governor of Kano State, Sunusi Bature Dawakin Tofa, has been honoured with the prestigious Most Outstanding Spokesperson Award by the Nigeria Institute of Public Relations (NIPR) in collaboration with the Federal Ministry of Information. Dawakin Tofa was selected for this esteemed award in recognition of his instrumental role in promoting not only the positive image of the Kano State Governor and his giant strides also for effectively showcasing the only NNPP ruling state in Nigeria.

In the award citation, Mallam  Sunusi was hailed as an unwavering proponent of non-violent communication, renowned for his extensive network and adept delivery of practices with clarity in objectives, and strategic framing of engagements with his audience.His profound impact and effectiveness in perception and reputation management are highly commendable.

In whatever one indulges in there are always people to observe and give their verdict .It is a well- known fact that there is nothing stronger than the people’s verdict.it shows a collective desire which inevitably is the voice of reason. The momentum of Hon Sunusi Bature Dawakin Tofa legislative bid is gathering amongst all strata of the constituency is enough testimony that experienced count in the race for the parliamentary seat.

Dambazau wrote in from Kano

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Nigeria’s Mining Reforms: Unlocking Investment and Growth

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Illegal Mining Activities

Over the past two years, Nigeria has implemented key policies and reforms to revitalize its mining industry, attract investment and strengthen the sector’s contribution to GDP.

Recent government-led initiatives have streamlined licensing processes, removed bottlenecks and simplified market entry for international investors, enhancing production across the country’s 44 solid mineral types.

As Africa’s premier mining investment event, African Mining Week (AMW) 2025 will convene Nigerian and African stakeholders with global investors and industry leaders to drive deal-making and accelerate sector growth.

Launch of Mineral Resources Decision Support System

In May 2024, the Nigerian Geological Survey Agency unveiled the Mineral Resources Decision Support System to provide global investors with easy access to geological and policy data.

The platform markets Nigeria’s vast mineral resources and critical infrastructure, assisting investors in making informed decisions about the country’s mining sector. By enhancing data transparency and accessibility, the system aims to streamline investment processes and boost investor confidence in Nigeria’s mining industry.

Restructuring of Ministry

To improve efficiency, Nigeria restructured the Ministry of Mines and Steel Development in August 2023, creating two separate entities. The Ministry of Solid Minerals Development focuses on upstream activities and investment facilitation, while the Ministry of Steel Development oversees the development of steel and metallic resources to drive industrial growth. This restructuring aims to enhance sector-specific governance, attract targeted investments and accelerate the country’s mineral and steel value chain development.

Approval of Nigerian Minerals & Mining Bill

Approved in April 2023 and currently under public review, the Nigerian Minerals & Mining Bill aims to introduce incentives for foreign investors while strengthening local content requirements. Once enacted, it will become the sector’s primary legal framework, enhancing transparency and investor confidence.

The bill is also expected to modernize regulatory oversight, ensuring sustainable resource management and aligning Nigeria’s mining sector with global best practices.

Implementation of Nigeria Mineral Value Chain Regulations

Implemented in July 2021, the Nigeria Mineral Value Chain Regulations mandates local processing of raw minerals such as gold and lithium, encouraging downstream investment.

Following this policy, China’s Avatar Energy Materials Company launched a 4,000-ton-per-annum lithium processing facility in Nasarawa State in May 2024, while Ming Xin Mineral Separation Nig Ltd. is developing a lithium processing plant in Kaduna State to support EV e battery production.

These investments mark a significant step toward positioning Nigeria as a key player in the global critical minerals supply chain. Against this backdrop, AMW 2025 will provide a platform for industry leaders to explore Nigeria’s evolving mining landscape and engage with global investors.

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