Boom and burst? Heck no!🤑

Nov 05, 2021

Hello Venturer,

Thank God it's Friday, another beautiful weekend to relax and read our stories.😉 I mean, how else would you be spending the weekend? Well, whatever you decide to do, VA Weekly is a certified weekend buddy.😁

Okay, okay, on to the gist of the day. If you are a Nigerian living in Nigeria, chances are you know a tokunbo car (used car) dealer, you've seen a "car for sale” sign today, or someone on your social media has posted a car with "flash sale", "pre-order" or "refer and earn" caption this week.

Yes, it seems everyone is a used car dealer now. No surprises there as the industry is booming. Nigeria spent N140 billion importing used vehicles in the first quarter of 2021, and about 250 cars have been imported into the country every day for the last five years.

In business, there's often a boom and burst cycle. However, in the Tokunbo car industry, it's a boom and boom cycle. What gives? Find out in today's issue of VA Weekly.

Adekunle Agbetiloye

Staff Writer, Ventures Africa.

What's New

Why the tokunbo car dealership in Nigeria is here to stay.

Transportation is a significant expense for Nigerian households, so owning a vehicle is pertinent. However, the standard of living limits the options of the average Nigerian. More than 90 percent of Nigerians cannot afford new cars, aka tear rubber, so they opt for tokunbo cars. As a result, used cars make up 95 percent of Nigeria’s auto industry. Read more to know why the Tokunbo car dealership is here to stay.

Does Nigeria have a revenue or spending problem?

Oil traders are having quite a year. In April 2020, oil was undesired in the market — so much that some contracts traded negative. At the start of 2021, many were uncertain about oil demand. But today, oil is one of the best-performing commodities of the year. Global oil prices have more than doubled this year, the biggest rally in more than ten years. That should mean Nigeria is raking in a lot of cash, right? Well, I hate to break it to you, but Nigeria is still broke. Learn more.

Preparing jollof rice in Nigeria now costs a fortune.

This year, Nigeria has experienced an unbearable hike in commodity prices, and it shows no sign of slowing. The economic situation of the country is forcing citizens to empty their pockets to meet basic needs. In its quarterly SBM Jollof index report for Q3 2021 titled Jollof Index: Prices be Swingin, SBM Intel, a geopolitical research firm, revealed the cost of making a pot of jollof rice for a family of five in Nigeria has risen by 4.98 percent. Read more.

Why it's urgent to invest in African smallholder farmers.

As the world recovers from the unsettling effects of the COVID-19 pandemic, the agricultural sector should be a beacon of hope to the 490 million Africans living in extreme poverty. But unfortunately, climate change threatens smallholder farming on the continent. According to a UN International Fund for Agricultural Development (IFAD) report, climate change could reduce staple crops by 80 percent in eight African countries by 2050. Read more.

The Coca-Cola system and sustainable manufacturing in Nigeria.

For many consumers, especially in developing countries, their interest in products lie primarily in the direct benefit the products avail them. Not many actually pay attention to the impact of their consumption on the environment in the short term and on the world, for the long term. This may be the reason why the manufacturing practices of many organizations in developing countries mirror the level of public interest in sustainable manufacturing. Learn more.

VA Weekly