Scam alert!⚠️ Stay sharp.👀
Hello Venturer,
N300 billion!
That's how much Nigerians have lost to investment scams in the last five years. And this only accounts for the cases that got media attention. I don't know about you, but it makes me wonder what the actual figure is. And more importantly, makes me question why people keep falling for these investment scams?
Is it greed, desperation, vulnerability, or sheer stupidity? The answer is staring us in the face. Unemployment is at an all-time high, and inflation has eroded the value of the Naira as commodity prices soar. How do Nigerians cope?
"But, some people are just greedy", you say. True. However, greed and desperation are two sides of a coin in this case. Both can make a person vulnerable and stupid. And as our writer, Oluwatosin Ogunjuyigbe, points out in his analysis of this issue, there are other important factors at play.
Find out why Nigerians keep falling for investment scams in this issue of VA Weekly.
Hadassah Egbedi
Editor, Ventures Africa
What's New
Why do Nigerians keep falling for investment scams?
In the last five years, Nigerians have lost no less than N300 billion to investment fraud. For context, that’s about the combined revenue generated by Rivers, Abuja, Delta and Kaduna in 2020. Last year, three milion Nigerians lost money to Ponzi schemes. It’s fascinating that a country where being streetwise or “sharp” is claimed as a common virtue still has millions falling for these scams. Read more.
Facebook: What's in a name?
Facebook has rebranded with a new name - Meta - to focus on building the metaverse, an intended successor to the mobile internet, interlinking virtual reality and augmented reality. The effect of a name change is double-edged. A brand’s name can make or break it. What will be the long-term impact of Facebook’s name change? Read more.
Cash vs stocks: How Nigerian "tech bros" want to be paid.
Technology is quickly gaining strength in Nigeria’s economy. Some have even referred to tech as “Nigeria’s new oil”. However, tech talent is still scarce in Nigeria. While the scarcity problem remains, it should make bargaining ownership stakes easy for the few available. But equity does not seem as desirable in Nigeria. Learn more.
Autochek secures $13.1 million seed funding to scale its technology.
Autochek, the automotive technology company facilitating auto financing across Africa, has secured $13.1mn in seed funding. As part of Autochek’s growth strategy, the capital will be deployed to bolster its core auto loan processing platform and deepen its footprint in West Africa, starting with its recent entry into Cote d’Ivoire. Read more.
A Bitcoin ETF is live, but what does it matter?
Last Tuesday, October 19, 2021, a highly-anticipated bitcoin exchange-traded fund (ETF) started trading. What this means is the most widely traded cryptocurrency is available to most investors with a brokerage account. For cryptocurrency enthusiasts and investors looking to capitalize on the growing popularity of exchange-traded funds, the possibility of an ETF that tracks bitcoin is the best opportunity for this type of connection. Learn more.
😁 ICYMI👇🏾
What is the worth of Nigeria's plundered artefacts?
There are around 900 objects from the historic kingdom of Benin in the British museum’s collection, and over 100 can be seen in a permanent changing display within the museum’s galleries. The worth of these artefacts is better described as invaluable because, beyond their monetary value, which cannot be quantified, they hold deep cultural and spiritual values, as Adichie said in Berlin.
What does the global Afrobeats boom mean for showbiz in Nigeria?
Beyond the soothing melodies, the industry is contributing to youth employment and empowerment. According to Statista, Nigeria’s music industry is expected to be worth $44million in revenue by 2023. This impressive stat points to one thing — that music is a business that puts food on tables. Read more on how showbiz is doing in Nigeria.
What you need to know about Nigeria's VAT battle.
The FIRS warns that VAT collection in Nigeria can only work at the national level, not at the state level. Muhammed Nami, the Executive Chairman of FIRS, cited issues such as input-output mechanism and differences in tax rates as factors that will impede VAT collection at the state level. He illustrated thus, “If a business person buys goods in Osun state, pays a purchasing VAT in the state, and takes the goods to sell in Sokoto state, he will also be charged VAT. Learn more.
Does Nigeria really need a stronger Naira?
Nigerians seem to be so obsessed with the exchange rate that we barely pay attention to the economy. And as the naira depreciates, we groan and panic. Even the Central Bank of Nigeria seems to be missing the mark on this. Many Nigerians believe the naira’s weak exchange rate is the problem, but maybe that isn’t the case. Learn more.
Creating wealth through the e-Naira.
The Central Bank of Nigeria has joined the list of countries with digital legal tenders with the recent launch of the e-Naira, a central bank digital currency that will operate using blockchain technology. Find out how Nigerians can create wealth through the e-Naira.
#VANUGGET
Remember to stay safe!
