Archive for the ‘Nigerian’ Category

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NSE Crisis – Another Scary Story?

Friday, August 6th, 2010

Is the NSE Crisis another scary story for Nigerian Investors?

Many are yet to recover from the exposure of the rottenness that existed in the Nigerian financial sector by Sanusi. It is heartbreaking and worrisome that another bad news is making round that Nigerian Investors in the capital market are in for another shocker! Just like we were lied to when the banking crisis started, some people who claim to be experts are telling investors not to get worried because the crisis in the Nigerian Stock Exchange (NSE) will have no effect on the performance of the market.

Does one need a prophet to tell that there will be a negative effect? It is obvious that some innocent Nigerians who had trusted the leadership of NSE with their life savings are about to wake up to a bad reality. I won’t be surprised if after investigation and forensic audit is carried out, we discover that the ex-leaders of the NSE are found wanting!

Several people in and outside Nigeria has pointed out that Nigeria is blessed with everything except one critical item, GOOD LEADERSHIP. In every area innocent Nigerians have been made to pay dearly for crimes committed by LEADERS who are not accountable to the people. Our leaders reigns as demi-god who exist above the rule of law.

Activities of leaders are shrud in secrecy and crimes are committed and covered up. Atrocities only get discovered when it is too late and much damage has been done to the system. Unfortunately, even when the atrocities are finally discovered, the guilty ones still go unpunished because of the poor legal system we have in place. Cases of open looting of state and federal treasuries gets buried under bureaucracies and legal-webs that makes it difficult to obtain justice.

Now that the stock market has gotten another shock, wither shall the Nigerian Entrepreneurs go for investment?

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Posted in Investing, Nigerian | 7 Comments »

GSM Short Code Service or Fraud!

Saturday, July 10th, 2010

The GSM Short Code Service has suddenly become another platform for fraudster to rip-off gullible Nigerians.  It is a case of robbing several gullible Peters to pay one Paul, while pocketing the remaining  proceed.  Here is my personal observation. I noticed some months back that I kept receiving unsolicited SMS from strange five digit numbers. Each one requesting that I send SMS to the five digit number in other to win a million naira or some other fantastic gifts.

FIFA 2010 World Cup was used as a bait

The volume of such SMS increased as the FIFA 2010 world cup football competition started.  I started receiving as much as three such unsolicited SMS messages per day. I guess the euphoria provided by the world cup created a conducive atmosphere for those behind this new scheme to con unsuspecting Nigerians into parting with their money.

Some of my friends played the SMS Short Code Lottery

Some of my friends actually sent SMS to those five digit numbers, expecting that they will win a million naira or some other fantastic gift. One of them confessed that he didn’t realize when he sent as much as N1,000 in piece meal to such short codes. Yet he won nothing. I am yet to meet one person that has won anything from such.  Never mind adverts on Television and Radio stations, those are just part of the gimmicks to con unsuspecting Nigerians into responding to such SMS.

GSM Short Code Fraud!

Naturally, I don’t like lottery. I believe it is morally wrong to collect money from several individuals and then give a small percentage of it to one individual while the rest of the contributors go away empty handed.  I consider such an illegitimate way of making money since the odd is always in the favor of the one who organizes such lottery.

It is personal greed that makes people not to bother about the fact that for every one person that wins a lottery, there are thousands that have lost money into the organizers pocket. So the organizer can best be describe as a legalized con artist. He collects from all with fake promise but only part with a fraction of what he collects! I know this sounds controversial, but that is my humble opinion. Back to the topic, GSM Short Code Service.

Is Anybody Regulating the GSM Short Code Service?

To the best of my understanding, the GSM Short Code Service in Nigeria is presently being used for lottery  (the government agency responsible for licensing such activity however is in slumber, so every Tom, Dick and Harry are carrying out the activity without obtaining lottery license).

BlackBerry Bold Offered For Thirty Naira (20cents)!

You feel that is outrageous. Well, that is the kind of offer I received. I’ve reproduced verbatim the SMS I received. It offered me a BlackBerry Bold worth N63,000 for a token 20cents if only I agree to be greedy enough to part with 20cents.

From 33114

Get a chance to win a blackberry Bold this week as the World Cup Quiz comes to an end. Simply text START to 33114 and you could be the Ultimate Winner! N30/SMS

What do you think? An outrageous offer? Sounds too good to be true? Well, let’s keep the emotions out of this and be factural. If you analyse the SMS message above, you will notice the following facts:

1. The subscriber is being asked to acquire a Blackberry Bold for N30 (ordinarily, one will need about N63,000 to purchase one here in Nigeria)

2. The message stated clearly that the subscriber could be the Ultimate Winner! (at least the sender was fair enough to indicate that this is nothing but a gamble. Since the subscriber is greedy enough to want a Blackberry Bold that is worth sixty-three thousands naira for just thirty naira)

3.The bet is placed once the subscriber responds to the SMS.

Since I love maths, I quickly did a little calculation and discovered that it only takes 2,100 gullible or greedy people to pay for the Blackberry, then the rest of the fund realized will simply be counted as profit by the person who set up the GSM short code.

Unfortunately, it is not all that even part with a gift. Someone was bold enough to confess that he simply pocket the money without parting with anything of value to the subscribers. The claim was made in a forum, so it wasn’t possible to identify the fellow. But it goes a long way to reveal that responding to such SMS is foolish as you will be making someone rich at your own expense.

Are the Nigerian Telecoms Operators Collaborators?

It bothers me that the GSM operators in Nigeria are willingly or unconsciously collaborating with the con artist in this rip-off. The GSM Short Code Service has suddenly become the new way some fraudulent Nigerians are robbing others of their hard earned cash. They have become so successful that they are now making boast of their nefarious activities. One of them even claim it is a new way of making money online!

If you’ve been enriching others by responding to such stupid SMS messages, I advice you stop as you may never win a dime. Even if you indeed win something, your conscience will prick you that you are enjoying what was deceitfully stolen from others.  I might be sounding religious, but that is the truth, you can deny it all you like.

I will like to hear others opinion on the legitimacy or otherwise of the GSM Short Code Service. If it is not fraud, then what is it?

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Posted in Nigerian, small business | 44 Comments »

Outrageous Bank Charges!

Wednesday, April 14th, 2010

Outrageous bank charges in my account, this is unacceptable! It is not often that I make  a post because I’m angry. But this post, Outrageous bank charges was inspired by the activities of my banker that I just discovered this morning. I wasn’t planning to make any post today, but I got angry enough to hit my computer keyboard, because I’m definitely going to reclaim those bank charges or look for a better banker. Here is the story and I will be glad to read your opinion.

I got a cheque from a foreign firm who places adverts on this website (I do make money online you know). The cheque was for $125. Small amount I know, but that’s what makes the big bucks when it comes from different streams. Well, with excitement, I deposited the cheque in my domiciliary USD account with my banker, one of the famous Nigerian Banks (some are no longer famous, if you care to know why, read this post, .

The cheque was credited into the account and I went home smiling that in another 21days (well, from experience that is what it takes before a foreign cheque gets cleared into a Nigerian domiciliary account),  I will have access to the fund. However, I was shocked to discover when checking my account online the following day that the figure credited into my bank account has been reversed. A new figure for $100 was now credited! That was so confusing. I’ve never heard of such before. What manner of accounting is that? At least the cheque figure should be credited and then whatever charges the bank wants to make can now be debited into the account with explanation. Well, that wasn’t the case.

Careless me, I forgot to take the issue up (I guess I was too busy chasing more money online). I forgot all about the transaction until this morning when I discovered that I have been charged another $10.50 for the same cheque (21days is accomplished, the cheque from the foreign firm has cleared). Also, another $20 was charged as handling fees for sending the cheque from Nigeria to the foreign firms banker! For crying out loud, it is just a piece of payer, almost weightless! Isn’t this courier charge outrageous!

Anaylsis of The Outrageous Bank Charges

A quick analysis of all the charges got me angry. First, $25 charged for unknown reason, another $10.5 charged for unknown reason and finally $20 charged as handling fees. That means a total charges of $55.5 out of $125! That is a whooping 44% of the cheque value. So, while I labor tirelessly trying to make money online legitimately, my banker is sitting in the comfort of his office and taking out 44% of the proceed without my authorization. And nobody deemed it necessary to offer some explanation on why my internet business proceed should be divided between me and my banker in a manner I consider unfair.

My Reaction To the Bank Charges

If they had taking 10% or 20% of the proceed, maybe I would have been too busy to notice, but they took 44%. Of course, that was too much for me to forget. I paused my online business activity and made a franctic call to my account officer, ready to express my grievance. Unfortunately, he was not available to pick the call. That did not disuade me from making more effort, 44% of my earning can’t just end-up in the banker’s pocket without me putting up a fight. I quickly drafted an email and fired same with a note of urgency to the customer care service of my bank. It has been over 30 minutes since then, but there has been no respond. My account officer called back and I narrated the situation, he too promised to look into it, but there has been no response till now.

Nigerian Entrepreneurs Doing Business Online Please Help

Am I using a wrong bank?

Is this what other Nigerian Entrepreneurs doing businesses with foreign firms go through?

Was it stupid to have agreed that the foreign firm issue a cheque in settlement of the service I rendered?

What are the best steps to take when disputing bank charges?

Can bank charges be reclaim in Nigeria? I know it is possible elsewhere.

I need answer to this because it was not a one time deal. Another payment will be due soon. (I’m still making money online legitimately though I live in Nigeria!) The foreign firm does not use AlertPay, PayPal, is yet to remove Nigerians from her blacklist. So, what other options do you suggest for receiving money from this online business client?

This is not the first time am dealing with a foreign cheque. I’ve not really been careful to determine if the bank charges was fair or not. However, this particular incidence is a good starting point. I may not have noticed the outrageous bank charges if the cheque was for a five digit figure! I need your opinion on this, especially naija online entrepreneurs. Are you experiencing outrageous bank charges?

Update: Poll added based on readers demand (credit goes to Willo and McNeri) 😉

[poll id=”1″]

Note: You can choose up to 2 answers.

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Posted in Entrepreneur, Nigerian, small business | 49 Comments »

Thinking About Business In 2009

Thursday, December 31st, 2009

Just Thinking About Business in 2009. The year 2009 is almost over. Less than 24hours to go. Looking back, one will ordinarily exclaim what a year! There were so many dashed business hopes and unfulfilled dreams. However, amidst the economic crisis and financial troubles in Nigeria (and really in many parts of the world), some entrepreneur learned lessons that will eventually yield them good dividend in years to come.

I had my business dreams and goals for the year 2009. About half of them suffered as a result of harsh economic environment. However, instead of getting depressed and feeling gloomy, I’m all excited because I learnt some valuable lessons which I wouldn’t have learnt if there were no economic challenges facing Nigeria.

It is true that we all often underestimate what we are capable of achieving. The truth often comes out when there is intense pressure and the survival instinct buried deep down within jumps into action. Even though I lost some business deals and made some losses this year, I can proudly say that I’m ending the year better than I started. The crisis that hit the Nigerian stock exchange market affected my asset and cashflow negatively. It was a financial disaster I won’t forget so soon. However, in the bid to recover from the adverse effect, I discovered some other opportunities of making passive income which I never considered before. So, I can actually say that it wasn’t altogether a bad year. Something good came out of the financial crisis.

My balance sheet may not show a fantastic result by the close of business today, but then, intangible assets are never easy to measure. And that is the area I have sown seriously waiting for a bountiful harvest in years to come.
Also, I have invested heavily in self development. I’ve come to understand that what makes an entrepreneur successful is more about who he/she is not what he/she has locked up in a bank or possess as physical assets.
So, my conclusion is that the year 2009 has been a wonderful year for the Nigerian Entrepreneur. How has it been with you? I wish you a prosperous year 2010 😉

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Posted in Nigerian, small business | 6 Comments »

2009 Is Not Over Yet!

Tuesday, December 1st, 2009

2009 Business Year Is Not Over Yet!

The year 2009 is not over yet, even though it is natural to feel like given up the dreams you have for your business at the beginning of this year, I want to encourage you to stay in there and do the best you can. Your success as a business person is not determine by the fatness of your bank balances nor your turnover figure, rather is is the  inner satisfaction that you have put in your best as an entrepreneur to achieve the goals you set out to achieve during this year. Since there are still 30days more to go, don’t ever think of giving up. What you were not able to achieve in the past months can still be achieve in these remaining days if only you can belief and persist. Even if that is not feasible, you can at least improve on your present position. 😉

Coping With Adverse Economic Realities in Nigeria

For Nigerian businessmen, especially the small scale entrepreneurs, the year 2009 has been a tough one. There has been several challenges threatening to wipe out businesses. It all started with the global economic crisis which was carried over from last year. Unlike in other developing nations where entrepreneurs were being informed on the effect and likely impact the economic recession will have on their local businesses, Nigerian entrepreneurs were lied to!
Our so called financial experts predicted that the global economic crisis will have zero impact on local businesses. Of course I knew as at then that they were being economical with the truth. How can Nigeria which operates a consumer based economy be dreaming of staying stable while those countries she buys products from are badly affected?
Well, the truth is out now. Nigeria did not only suffer from the global economic crisis, she also was badly affected by home grown economic crisis. The financial institutions in the country gave everyone a bad jolt when it was discovered that their management have been playing with depositors and investors fund. Too bad.

Well all that is stale news now. The important thing is what you do with the situation at hand. While going over my goals for the year at first I was depressed to note that the overall performance has been really poor due to adverse operating environment. But then on a second thought, I realized that I’ve learnt a lot of lessons which I won’t have had the opportunity to learn if things have worked the way I wanted. What I really need to do is to find a way of making those lessons pay dividend as the nations economy recovers!

So while the year 2009 may be reflecting in your statements of accounts as a year of poor turnover, I want you to realize that the hard lessons learnt will eventually pay huge dividend in time to come. Instead of  complaining and getting depressed, look out for opportunities to make some additions to the income you’ve already generated so far.  That is the entrepreneurship spirit. Tell yourself, 2009 is not over yet!

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Posted in Entrepreneur, Nigerian | 2 Comments »

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