Lagos-based delivery startup, Kwik, is planning to raise €2 million to facilitate its plan to scale up business in Nigeria’s economic capital. The startup, which began operations in Lagos last year, wants to increase its competitiveness especially now that Gokada, Max, and other bike-hailing operators are trooping in to the last-mile delivery market.
Kwik has been raising funds, including a personal investment from Ubisoft‘s Founder & Chief Executive Officer, Yves Guillemot. Although the investment by Guillemot was not disclosed, the CEO of Africa Delivery Technologies, Romain Poirot-Lellig, told Nairametrics that it is in the process of raising €2 million. He also disclosed that “we have more commitments in this round, but they have not been disclosed.”
Africa Delivery Technologies is the company behind Kwik Delivery. It launched in Nigeria last year to compete in the delivery service, with a focus on business to business. Note that the last-mile delivery business is a budding market that has recently witnessed the influx of bike-hailing operators.
Bike-hailing operators grab market share: The ban on bike-hailing in Lagos compelled most of the operators to switch market and change their services into last-mile delivery. Interestingly, the entry of Max, Gokada, and Opay into the last-mile delivery business has slashed the market shares of traditional delivery firms like GIG Logistics, Kwik, delivery man, Easy Dispatch, Brain Express Courier, etc.
But Poirot-Lellig said the company is “not concerned” about the influx of bike-hailing operators. Kwik had announced last year that the company reached 2000 verified customers two months after launch, and has since grown that number to 10,000 B2B customers. Some of its clients include Medsaf, SPIE and Mitsubishi.
Coronavirus aiding Kwik amidst lockdown: While some businesses have shut down because of the Coronavirus pandemic, delivery firms have become essential service providers, helping to deliver parcels to those in need of them.
“The terrible situation of Covid-19 has made life much harder for many Lagosians and their businesses. Delivery platforms have proven a vital tool to provide essential products to Lagos homes and busineses.
“We joined hands with SPAR Nigeria to put together in a few days a reliable delivery service for groceries, enabling Lagossians to keep feeding their families without exposing themselves,” Poirot-Lellig told Nairametrics.
With the hope of raising €2 million, the founder said its objective, “is to scale up the business in Lagos and to participate actively to the digital transformation of commerce and last-mile logistics in Nigeria.”
Kwik has expansion plans: Poirot-Lellig also revealed that Kwik plans to expand into other cities in Nigeria in the coming years.
“We plan to make the Kwik delivery service available to customers and delivery partners in other major Nigerian cities, while making sure that we keep growing the user base in Lagos.”
BREAKING: CBN retains MPR at 11.5%, holds other parameters constant
The Central Bank of Nigeria (CBN), voted unanimously to keep the Monetary Policy Rate (MPR), at 11.5%.
The Monetary Policy Committee (MPC), of the Central Bank of Nigeria (CBN), has voted unanimously to keep the Monetary Policy Rate (MPR), at 11.5%.
This was disclosed by Governor, CBN, Godwin Emefiele while reading the communique at the end of the MPC meeting on Tuesday. Other parameters such as Cash Reserve Ratio (CRR), Liquidity ratio, and asymmetric corridor remain unchanged.
The committee highlighted that inflation continues to be influenced by structural policies, increase in petrol price and latest #EndSARS protest.
Highlights of the Committee’s decision
- MPR was kept at 11.50%
- The asymmetric corridor of +100/-700 basis points around the MPR
- CRR was retained at 27.5%
- While Liquid Ratio was also kept at 30%
More details shortly…
Port Harcourt Refinery to get a facelift in Q1 2021 – NNPC
NNPC is set to commence the second phase of the rehabilitation of the Port-Harcourt Refinery in the first quarter of 2021.
The Nigerian National Petroleum Corporation (NNPC) is set to commence the second phase of the rehabilitation of the Port-Harcourt Refinery in the first quarter of 2021.
According to the African Business Intelligence Report, NNPC is working hard and round the clock towards ensuring that four refineries are up and running by 2023.
The Group MD of NNPC, Mallam Mele Kyari made this disclosure and said, “The vision of revamping the pipelines is in tandem with the Refineries Rehabilitation Project, which we have promised to deliver by 2023. I am happy to announce that the funding challenge which had stalled the second phase of the rehabilitation of the Port Harcourt Refinery has been resolved. The contract for the second phase will soon be awarded and work will commence in Q1 of 2021.”
According to Mallam Kyari, a lot has been put in place to boost exploration and production with a view of achieving 3m barrels per day production target.
What you should know
Nairametrics had reported that the first phase rehabilitation was to take place 2 years ago and to be executed by Milan-based Maire Tecnimont S.p.A, in collaboration with its Nigerian affiliate, Tecnimont Nigeria.
It was expected that after the phase-1 of rehabilitation, the Refinery complex should be able to reach its 60% capacity utilization.
Further rehabilitation of the PHC refinery is expected to enhance its production capacity to meet its production targets
Putting the refineries in good shape to produce optimally would stem down the huge imports of the refined petroleum products, considering that about 90% of the refined petroleum products consumed in Nigeria are imported.
YULETIDE: Petrol scarcity not in sight according to PMS data – PPPRA
Petroleum Products Stock Data compiled by the PPPRA suggests there may not be any fuel scarcity this yuletide season.
It appears petrol scarcity is not in sight, at least during the coming yuletide season and in the foreseeable future.
This is according to the Petroleum Products Stock Data, compiled by the Petroleum Products Pricing Regulatory Agency (PPPRA).
According to the data available on the PPPRA website, the current stock level of Premium Motor Spirit (PMS), also known as petrol or gasoline, stands at 2.705billion litres.
- Of the total litres, Land-based Stock accounted for 1.243billion litres, representing 46%.
- Marine Stock accounted for 1.462billion litres, representing 54% litres.
Further checks indicated that NNPC and two other marketer’s association – MOMAN and DAPPMA, are in charge of the product. They operate in five designated areas – Lagos area, Port-Harcourt area, Calabar area, Warri area, and Kaduna area.
- Of the 1.24 billion Land-based Stock, NNPC owns 604.7 million litres, representing 49%.
- DAPPMA owns 545.1 million litres, representing 44%.
- Major Marketers own 93.7 million litres, representing 8%.
Of the Marine stock of 1.46 billion litres,
- 1.25billion litres belongs to NNPC and it’s offshore, while 215.59 million litres is total Jetty at Berth.
- DAPPMA owns 131.38million litres of the total Jetty at Berth, representing 61%.
- Major Marketers own 42.77million litres, representing 20%.
- NNPC owns 41.44million litres, representing 19%.
- Lagos area has the highest closing stock (596.20million litres), followed by Port-Harcourt area (212.43million litres), Warri area (198.29million litres), Calabar area (58.91million litres), and then Kaduna area (57.97million litres).
(READ MORE: NNPC to end oil-for-fuel swap system)
- As at the release of the data on November 22 by PPPRA, 10 out of 11 vessels discharged the 215.59 million litres at different Jetties, with the other vessel given nomination to discharge.
What this means
With the national average daily consumption of PMS put at 56 million litres, it means the current stock level of 2.71 billion litres will sustain the country for at least 48 days, all things being equal.
The only worry is affordability, considering the recent hike in petrol depot price by the Petroleum Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
What you should know
Nairametrics recently reported that the recent adjustment of the ex-depot price of petrol may result in increased pump price of the product. PPMC increased the ex-depot price of the product to N155.17 per litre from N147.67 per litre.
The ex-depot price is the price at which PMS is sold by the PPMC to marketers, which indicates that marketers would be dispensing the product to motorists at a price higher than N155.17 per litre. Hence, the average current pump price of PMS is N170 per litre.