Startup funding, Peter Obi's third force, and the NSE's surprising performance

Hello Stears community,

Here is your recap of the five articles that we published this week:

Who is funding Africa’s startups?

Foreign investors facilitated 66% of deals in the African startup ecosystem between 2019 and 2022. If you subscribe to the 17th-century English quote, “He who pays the piper dictates the tune, " there's a lot to examine. It turns out that when we look at how Africa’s ecosystem stacks against other nascent ecosystems, there’s a resemblance with the ecosystems of Southeast Asia and Latin America (LatAm) between 2010 and 2015. Nnamdi digs into the data to help us understand Who is funding Africa’s startups?

How can the government increase tax revenue?

If you care about the viability of Nigeria’s states, you care about the state of non-oil revenues and the plans to grow it. Tax revenue makes up the bulk of Nigeria's non-oil revenue. And that is where the struggle begins. The average income in at least 21 Nigerian states is below the income tax liability threshold or ?30,000, making them heavily reliant on the federal government for revenue. So you see, much progress depends on the answer to How can the government increase tax revenue?

Will banning okadas make Lagos residents more secure?

A pyrrhic victory is one that comes at a great cost, perhaps making the ordeal to win not worth it. The data below suggests that the okada ban led to a reduction (but not total eradication) in okada-related security incidents. But what about the numerous costs? Increased unemployment and other security risks are likely inevitabilities; Adesola digs into the data in Will banning okadas make Lagos residents more secure?

What is the role of Peter Obi’s third force?

Campaign season in Nigeria kicks off in exactly one month, September 28th. At family gatherings everywhere in Nigeria, the question of who we should vote for is afoot. Social media is swelling with the energy of Peter Obi’s third force. Unfortunately, no third force has ever come close to winning a presidential election in Nigeria, so cynicism automatically kicks in whenever the idea of voting for one is discussed. But a third force does not have to win to change the course of history. Our guest writer, and student of history, Feyi Fawehinmi, explains in What is the role of Peter Obi’s third force? And our subscribers had a lot to say.

What is driving Nigeria's stock exchange's positive performance?

When you look abroad, increased fears of a global recession have translated to negative stock market performances in major economies such as the United States (US) and the United Kingdom (UK). As you’ll see in the chart below, Nigeria’s stock market continues to outperform major stock markets. How come the Nigerian stock market is thriving when the economy is crashing? This is precisely the kind of puzzle we love to dig into at Stears. Read our perspective on What is driving Nigeria's stock exchange's positive performance?

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Fadekemi Abiru

Editor in Chief

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