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Opay: Are Nigerians Really Helping Startups to Grow or Killing them?

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When business owners say it is difficult to operate in Nigeria many people do not understand especially those who do not own any business. It always looks rosy from the outside but when you pay close attention to these startups operating in Nigeria you realize that they are just there struggling. 

Even some actions portrayed by the government seem hypocritical and usually go the opposite direction. For a government to ensure that businesses become more sustainable within its environs, then, it must think beyond just signing several MoUs with investors and sending representatives during launch.

It’s about developing the right policies to ensure that businesses operate peacefully while making it easy for them to scale and sustain. It is about lowering taxes and eliminating unnecessary levies. 

In Lagos State, the biggest problem is traffic which appears to be an insurmountable task. It does not matter if there are policies in place to mitigate the ever-rising surge. The reality remains that to date, residents have continued to have been affected by the problem. 

And I find it ludicrous for someone to think that bikes operating in the state is the major reason for the gridlock. Shying away from the major problem to inconsequential matters is just heartbreaking. The dilapidated state of the roads is the major cause of traffic in Lagos. Period!

Interestingly, the emergence of bike-hailing startups in Nigeria’s economic hub was to save millions of Lagosians from the none-stop traffic.

Nobody wants to waste 3 hours on a thirty minutes journey, that is the problem these startups are solving. 

More so, the fares charged by these bike-hailing startups via their Apps are way too low compared to what the regular bike man charges on the streets of Lagos. Tremendously, residents who can afford these low cost services get relieved from the damning Lagos traffic.  

With any of the bike-hailing Apps, you can just book a ride, in a few minutes, the riders arrive and take you to your destination. Let me also remind you that, these startups have taken off many unemployed Nigerian youths from the streets, so, their so-economic impacts in general cannot be questioned. 
Before Gokada, Oride and Max.ng, three of the major startups in the space, commenced their operation they met certain requirements.

And I must tell you that it wasn’t an easy one. The Lagos State Government proposed regulations that include licensing fees and annual taxes. 

Each of the bike-hailing startups was required to pay annual licensing fees of 25 million naira ($70,000) per 1,000 bikes and then 30,000 naira ($83) per bike after the first set of 1,000. The startups are also expected to pay annual taxes on revenue. 

After Opay had acquired its operational license from the Lagos State Government. The startup also rubbed minds with MC Oluoma, the leader of the National Union of Road Transport Workers (NURTW). Both parties signed a pact and this essentially involves Opay remitting some portion of its profit on a monthly basis to NURTW.

All of these MoUs that were signed was to ensure that riders on the platform do not encounter problems while operating in Lagos.
The truth is the regular Okada rider does not enjoy this sort of operational freedom in Lagos. They are constantly harassed by the Police and another gang of miscreants known as Agbero.

At designated checkpoints, they pay a certain amount of money to them. This is a reoccurring phenomenon in the state. 
As a resident who continues to patronize Opay ride services, I can attest that Opay riders have enjoyed certain rights and privileges.

However, in the last couple of weeks, the story has changed and could go worse if not speedily and properly handled. 
First, riders on the Opay platform are getting arrested by the Police, while the Agberos have began to demand money from riders.

The Lagos State Government claims that the seizure of Opay bikes was geared towards sanitizing the Lagos highways. What will the Lago State Government gain if they continue to seize Opay bike? Absolute nothing. These riders are not causing traffic or any mishaps to Lagosians. In fact, they are doing what the Government has failed to do. 

Even the Agberos are taking advantage of the situation. And it’s quite sad State Government uphold the ”Agberos” in high esteem. These bunch of miscreants are becoming too powerful and enriching themselves via extortion from transporters.

If Lagos State Government claims it does not hold them in a high esteem, then, they should be banned their operations. But then, if you get them banned, how will politicians get thugs who will help them snatch ballot boxes during elections? 

Further, another observation is that Opay riders are beginning to exhibit their innate greed instincts. The average Nigerian wants to exploit, that’s the sad truth. During peak hours, usually from 4 pm, Opay riders purposely go offline. The end goal is for them to charge you like the regular Okada rider. Once they are offline, the App will not be able to generate the amount to be paid after a ride. 

Normally, when you book an Opay ride, the App shows the amount you are to pay at the end of the trip. Ironically, the average Opay driver during peak hours wants to inflate fares. During those peak hours, when you request a ride, they hardly accept the request because the fare is just too small for them. 

At this point, it is imperative for Opay to critically introspect and have another discussion with the Lagos State Government to thrash out these recent unwelcoming and ugly incidents. If the State does not address the issue of Police harassment and extortion from Agberos, then, they should have an alternative plan. If it’s not going to cost them financially, then they should consider closing down it Oride business and focus on other services. 

Conclusively, Opay should be stringent with riders on it’s platform and have an effective monitoring system that detect riders who go offline during peak hours for selfish aggrandizement. Once a rider does provide a justifiable explanation for not being online during peak hours, they should be stop such rider from operating. 

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The Economics of Product Decisions: Applying Behavioural Economics and Game Theory in PM

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Amarachi Nnochiri
Amarachi Nnochiri

Product managers often need to make a clear-cut decision: what should we build next? But the decisions which hold real importance go beyond adding features.

It’s about getting what makes people tick.

It goes way beyond what you would expect, getting into how people behave and using game theory.

These areas give insight into how users decide and how a product’s design can improve growth and keep people interested.

This is what Amarachi Nnochiri excels at. She is a senior product manager that knows how to use economics and psychology in her job.

She goes beyond simply managing product tasks; she develops whole product systems based on how users think, feel, and use a service. Her background shows how understanding human psychology and behaviour can give you a significant advantage in the competition.

One idea Amarachi uses is  “loss aversion.” In this scenario, people feel worse about losing something than they feel good about gaining something of equal value.

She uses this when designing her products, mostly when it comes to pricing and getting people to try new strategies. For example, instead of giving a free trial, she might use a freemium setup where users get some stuff for free but could lose it if they don’t buy an upgrade. This pushes them to pay.

She might also use progress bars or streak counters, since losing progress gets people to keep using the product.

Amarachi also uses ideas from “game theory” to get how users act and change their behavior. She realizes that users are doing more than operating a product, but are playing a game with other users or with the product itself. She designs things that use ideas like “Nash equilibrium,” where nobody can do better by changing what they’re doing. For a social product, this could mean creating a system where doing something good for yourself (like inviting friends) also helps everyone else. This makes the whole thing stable and positive.

Her know-how in game theory also applies to making strong “network effects.” This means making stuff that gets better as more people use it.

A good example is a social network where each new user makes the product more helpful for everyone else. Amarachi endeavours to make things go viral on purpose, not just by luck.

She might use “commitment devices,” which are things that make a user stick with a behaviour by making them depend on it socially or functionally. For example, inviting team members to a tool makes the user stick with the platform and makes the product’s network stronger.

This way of thinking is better than just following the usual steps. By using these economic and psychological tricks, Amarachi develops competitive advantages which are difficult to replicate.

She knows that a company’s best thing is not just a simple interface, but a product that’s designed to sync with how people behave.

Her product choices aren’t just about the needs of users, but equally focus on motivating them to like the product, use it, and stick with it.

In her work, choosing a subscription price isn’t just a business thing; it’s about behaviour. Designing a social feed isn’t just about the content; it’s about balancing what people want and watching how they interact. Amarachi knows extensively about the economics of product decisions. This makes her products innovative and appealing to human behaviour, which leads to more use, keeps people around, and helps the product grow. She’s a leader in product management, where identifying customer desires is backed by understanding human motivation.

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Glo reduces international call rates 

By Sandra Ani

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Glo and Globacom


Technology Company, Globacom, has announced significant reductions in its International Direct Dialing (IDD) rates, making international calls more affordable for its existing and new customers across Nigeria.

Effective August 10, the new rates began applying to over 15 popular international destinations, including United States which will has moved to ₦30 per minute, down from ₦35, United Kingdom is now N350 from ₦400, while India also moved down to ₦40 from N45.

The rates for China, Saudi Arabia and Cameroon however recorded major reduction moving to N75, N300 and ₦700 respectively.


The reduction was also extended to African countries including Benin Republic which goes for ₦650 per minute, Niger Republic ₦750, Ghana ₦500, and Togo ₦650. United Arab Emirates also moved from ₦450 to ₦325, Germany to ₦550, Côte d’Ivoire ₦700, Libya ₦700, while calls to Malawi is now N1,100 from ₦1,200.

Glo aims to provide more value for its customers through these revised rates, encouraging them to make Glo their preferred network for international calls. New IDD bundles will also be introduced, offering frequent international callers even more attractive deals.

Globacom, which remained optimistic that frequent international callers will benefit immensely from the reductions in IDD bundles, enjoined customers to take advantage of the new rates to stay connected with friends and business associates across the globe.

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Oil subsidy removal freed up resources for infrastructure – Enugu Governor 

By Orji Israel, South East Correspondent

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Oil benchmark

The Executive Governor of Enugu State, Peter Mbah, has attributed the financing of numerous infrastructure projects embarked by the state government to the oil subsidy removal policy of the President Bola Ahmed Tinubu administration.

He made this declaration at the Govermment House, Enugu, during a courtesy visit by a delegation of federal government led by Minister of Information and National Orientation, Mohammed Idris, as part of activities lined up for the 2-day Citizens’ Engagement Series in the South East geo-political zone.

“For us in Enugu, we are able to accomplish all we promised our people during the campaign, thanks to the bold decision taken by President Bola Tinubu, which has freed up resources needed to execute humongous capital projects,” said Governor, while listing ongoing projects in the state, which include the construction of 7,000 classrooms, 3,300 hospital beds and 2,000-hectare of 260 farm estates across the 260 wards of the state.

Governor Mbah also pledged more support for the policies of the federal government, saying they are in the best interest of the people of the state.

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