BUSINESS
Become a Billionaire with a Step by Step Guide
This is a special article because we’re really going to tackle the topic you’ve already discovered in the title.
Yes…! You can become a billionaire from scratch.
There are currently over 2,700 billionaires in the world and that number is growing quickly.
56% of billionaires out there are self-made!
Meaning, that they did not inherit the fortune, instead, they’ve build lucrative companies that got them to where they are right now. Currently, a new person becomes a billionaire every 36 hours.
Why? Mostly because of the internet, access to global markets, the influx of cash in the middle class and what used to be considered developing countries. Before you think you’ve got this in the bag, we have to keep it honest with you and hit you with the truth.
There’s a reason why only 0.00003% of the world population hits billionaires status. Big factors like: education, infrastructure, access to capital, desire, IQ, EQ and even luck, all play a major role in this.
And throughout this article, we will analyze the situation where most of these align for you just the right way. Follow this structure and even if you fail, you’ll still end up a multi-millionaire!
With that said… here are the 15 steps to becoming a billionaire from scratch!
01Start Super Early
Some people have what is considered the entrepreneurial gene.
Elon Musk sold his first piece of software when he was 12 years old. Warren Buffet made his first stock investment at the age of 11. At 12 years old, Mark Cuban was selling garbage bags door to door. Richard Branson started his first business at 16. And we can go on like this forever…
If you don’t have a rich father to give you a small loan of 1 million dollars, you’ll have to earn your first million yourself. The sooner you start the bigger the advantage you have, because you’re learning the most valuable lesson in business:
How to get people to give you money?
Think about it like this: it will take a couple of years before you identify a business that has a chance of success. Then with hard work it will take roughly 7 years for the business to mature. If you start when you’re 16, by the time you’re 25, money is no longer an issue.
If you’re a teenager, your time is now!
If you’re older than that, you just have to push yourself harder for the time you wasted.
02Educate Yourself Constantly
Books, interviews, documentaries, case studies, analyze other people’s businesses, analyze how other successful people behave and then emulate everything you learn.
Fortunately for you, quality information is cheap or even free.
Take yourself seriously and invest in books, audiobooks and anything that builds up your skillset. The quicker you are able to build skills in your inner-portfolio, the sooner you will be able to leverage them to accelerate your growth.
In this phase in your life, you need to master the fundamentals: becoming a self-learner, how to self-motivate, self-discipline, time management, sales, how to talk to people, how to build things, how to market, how to scale, how to manage people, how to speak & understand money.
Nobody can take away what you learn!
This is why investing in yourself pays the best dividends.
03Fail Quickly, But Keep Moving
You will fail and this is a fact.
You are too early in your journey, you don’t have enough knowledge, you don’t have enough skills, you don’t understand the markets or the consumers well enough and you don’t yet have people to guide you or save you.
Resilience is key!
The only way to become a billionaire, especially when you’re starting from scratch, is to absorb as much information as possible and transform it into actionable wisdom!
Do not be afraid to fail and do not give up if things don’t go your way.
LEARN! ADAPT! OVERCOME!
Every time you’re faced with a challenge, the market is testing your ability to perform. Failure is not the goal, but it’s part of the journey!
04Sacrifice Your Social Life & Work 80–100 Hours Per Week
We told you we were going to keep it honest. You simply can’t do both.
Building a solid business will require you to put it way above everything else. It will take so much energy, so much drive that there simply isn’t room for anything else.
This is the price you have to pay to escape mediocrity!
Just like a rocket, you’ll have to burn most of your fuel trying to escape the gravitational pool.
Working 40 hours a weeks is survival income! It will keep you fed and warm, but it doesn’t bring that lifestyle you’re looking for. The time you put in over that goes to your success. Relationships, family and sometimes even health will suffer in the process and there’s still a massive chance that you’re not going to make it.
This is why most people never do!
They’re not willing to pay this high of a price and it’s understandable. You can still be like everyone else and be happy. It’s your call to make. At the end of the day, this is one of the few things that is 100% your control.
05Build & Grow Your First Successful Business
In the first 10 years, you learned a bunch, you studied success in many forms, you understand how the market is changing. Inevitably, you’ve identified businesses that are within your reach and took that idea to the market.
Initially, you put a lot of work in yourself, then you started bringing people in. Money starts flowing in and you can start making moves. You test different strategies, different products. Some work, some don’t. You learn from them. The years go by like a roller-coaster!
You either having the best year of your life, or you’re thinking about quitting!
Every successful entrepreneur knows this feeling all too well! Yet you push through and half a decade later, you’re doing ok.
The temptation to spoil yourself is stronger and stronger than ever, but remain disciplined. You reinvest almost everything into the business and it continues to grow. You have a good understanding of how big this can get and what needs to be done in order to get you there. You have successfully matured yourself as a business person!
06Leverage Your Newfound Success To Meet Influential People
On the road to success, you’ve met several people who share the same drive or the same motivations as you.
They’re doing their own things but you share a sense of brotherhood because everyone goes through more or less the same struggles. These are the only people who to some degree understand you and they become your network. Some of them will become future business partners, others will be your mentors and some will open doors you’ve never seen before.
The power of this network is massive.
They will help you navigate life, they have contacts of their own, they’ve done mistakes of their own and the same as you, they’re more than open to share with the group.
You might have heard the term MASTERMIND before.
It’s when smart minds come together and help each other creatively solve problems… only that in business, the payoff is more monetary. The network you build around you will determine how quickly you move through wealth levels.
07Sell Your First Business, Become A Multi-Millionaire
You started with almost nothing and you’ve put years, sweat and tears into the business that’s now quite valuable.
It’s time to let it go…
It is incredibly rare for people to achieve billionaire status from their first few businesses, even in the technology space. In order to tackle big issues, you need money and you need people to trust you enough to give you that money!
Selling your first business is like building a past performance portfolio. It shows people that you can take an idea and execute it flawlessly until completion.
If you did everything right, a 7 figure payout should be within reach.
Everyday 1700 people become millionaires in the Unites States!
If previously geography played a decisive role in your success, as of 2020 you can no longer use that as an excuse. A laptop and an internet connection is the minimum barrier of entry in this race and considering you’re consuming this piece of content right now, you’re way past it.
Here’s the deal:
A million dollars is no longer a lot of money! It’s just a mental milestone you need to pass in order to move into real money territory. You have to enter this stage as quickly as it is legally possible.
Only at this point, you can finally start your race to 1 billion.
08Build A New Innovative/Disrupting Business
As you move into this new level of business, you’ll discover things are quite different. The stakes are higher and now you’re competing with the big boys.
They have all the money in the world, they have the infrastructure and you’re just a cockroach who’s trying to take some of their breadcrumbs. But, because you have your network, you have your track record, you now have access to other people’s money.
The only way to compete with the big boys is to be creative!
You can’t challenge them head-on, because they can bury you. You can’t do it cheaper and you don’t have access to the same resources as they do. Your best bet is to leverage your creativity and the latest technology available.
Statistically speaking, big business isn’t as agile and quick to adopt new tech, this is your window of opportunity. Plus they’re stuck in an old way of doing things because it worked for them for so long.
Quick reminder: Airbnb wasn’t invented by Hilton or Marriott.
Solve a problem, but in a new more efficient way leveraging modern-day tech. Have a look on the article below after completing this article:
Fix the following — If you want to be a BILLIONAIRE
If you want to be a billionaire, here are 15 problems you should solve to get there!
medium.com
09Expand Quickly & Aggressively
The moment you prove that your solution works, the race begins. It’s a race, between and how much the market you can acquire, before big business catches up.
This is why Elon is so aggressive with his electric cars, Volkswagen and Ford are breathing down his neck, so he needs to secure his position as a big player before they retrofit their production line.
This first mover advantage applies to every industry and it’s usually driven by social and technological change.
The model is simple: Prove the solution works, expand in new geography and use the money to come up with new solutions.
This is usually where businesses raise a second round of investment at a massive valuation that allows them to really have an impact. And based on the goals of the founder we’re faced with the following choice:
10Either Get Acquired Or Try To Build A Monopoly In Your Niche
The big boys are interested in what you’ve built, so they’re offering you buy you out. This is where Facebook pays $1 billion for Instagram or $19 billion for WhatsApp.
Again, this applies to every other industry as well. The moment you start making waves they start doing the math. It’s your choice if you want to sell or if you plan on beating them at the business game.
But you should know that they will come after you with everything they got. Look at Snapchat turning down $3 billion from Facebook, because they wanted to be the next Facebook.
If you go with the second route, execution is your only option. Yahoo! had the option to buy Google 2 times but failed to do so. First time for $1 million in 1998 and the second time for $3 billion in 2002. But because of their ability to execute, Google is now worth almost $1 Trillion.
So how do you become a monopoly in your niche?
- You Buy Out Your Competitors — That’s why every mammoth out there is on a shopping spree right now, from big tech companies to fashion retailers, everybody is buying.
- Make Your Competitors Redundant — This is done either through economies of scale, where they can’t compete in pricing. Meaning you simply can’t produce the same good cheaper than I can — or through technological innovation. Like, if you’re the iPhone to their Blackberry or if you remove their competitive advantage — the same way Facebook’s Insta-stories did with Snapchat.
11Focus On Big Ideas That Impact A Lot Of People
In order to build a multi-billion dollar business, your product or service will need to impact a lot of people. That’s just the facts.
The top 5 industries with the most billionaires are as follows:
- Finance & Investments: 310 billionaires; 14%
- Fashion & Retail: 235 billionaires; 11%
- Real Estate: 220 billionaires, 10%
- Manufacturing: 207 billionaires, 9%
- Technology: 205 billionaires; 9%
Basically, these are the industries that create everything you touch, use or wear. They shape reality. They build your cities, they finance the companies building cities, creating your clothes, the items you use and the digital services required to live a normal life.
5 billion people have a mobile phone. They all paid for their devices. They all use them to access the internet. At the end of the day, making a billion dollars is a rather simple math problem.
How can you extract $1 from a billion people? Or you can take $100 from 10 Million people? Or $10,000 from only 100,000 people. See where we’re going with this? To get handy with these calculations, give a look to:
MILLIONAIRE MATH: Explained
Millionaire Math: The way rich people think about making money!
medium.com
As the general population gets richer, you will see prices steadily go up. The best indicators are the costs of homes and smartphones.
12Invest In R&D/ Hire The Best Talent Money Can Buy
Staying relevant in a big boys game is incredibly difficult because there’s always a new innovative company coming for what you have while you’re busy holding your own versus your direct competitors.
The only way to keep yourself ahead of everyone else is to innovate. You’ve heard the term before but what does it really mean?
Innovation is the ability to connect the dots of reality in a never seen before way that adds value.
You can innovate in many ways. Take a concept that works in another industry and adapt it to your own. Innovate in design, in experience or come up with something the world didn’t know it needed.
The light bulb didn’t come as a result of incrementally improving the candle!
A company is only as good as the people who push it forward, and you need all the help you can get.
13Go After The Big Bucks
Remember the billion-dollar math we did earlier? Here’s a super valuable piece of advice:
Go where the money is!
If you’re going to work anyway, why wouldn’t you go after the big piles of money.
A great example of everything we mentioned today is a company by the name of UiPath. They’re building the AI bots that are doing repetitive tasks for companies.
Take a moment to think about it. How many accountants are there in the world? What is their economic value? How much are companies paying the entire accounting machine, from clerks, to invoice management, to data entry and so on…
Solve this problem once and then you take it to every big player who needs your solution.
Write this down:
A Transaction happens when the price paid is lower than the perceived value!
As long as you understand this, you will make money!
If humans are costing a bank $100 million per year and you offer a solution that does the same job for half the cost, congrats, you just earned yourself the contract.
UiPath went from 1 million to $100 million in yearly recurring revenue in less than 2 years. The company is now worth over $7 billion and growing quickly.
What is the fundamental way they did it?
They solved a problem for the people who have the means to pay for it!
14Secure Your Wealth — Diversify
Assuming everything has worked out in your favor, you are now finally rolling in money. Your shares in the company are worth a lot, you’re trending, people are looking up to you, it’s time to start taking money out and secure your wealth.
Invest in what you understand — buy land, real estate, art, shares in other companies, anything that’s long term.
Congratulations! You’ve made it.
You’re no longer just a paper billionaire. The moment your solid assets surpass $1 billion, you have secured your position as a billionaire. Your wealth is increasing so much every year that you no longer know what to do with the excess capital you have.
You can start foundations or help charities change the world for the better. You can divert some of the money your investments are making to research or whatever you feel passionate about. You’re surrounded by the right people, who make sure you get every deductible possible so that the wealth is secured.
Now, it’s up to you on what you want to do next…
15Bankroll Super-Business Savvy Individuals Or Do It All Over Again
Remember when you had all those creative ideas before you managed to conquer the world? Find people with the same spark you had in yourself and help them do the same.
That’s what venture capital funds are all about. They are the driving force behind the change-agents that are shaping the world. Governments have fallen way behind on innovation and at this moment in time, the private sector is what’s pushing humanity into the future.
If you still believe you have what it takes, do it yourself, dream bigger than you’ve ever dreamt before.
You want to cure the world of diseases like Bill Gates is doing? Do that!
You want to mine asteroids? Go do it!
You want to solve immortality! Give it a shot!
Take 1 million people to form a colony on mars? Why not?
We need billionaires who have the resources and the vision to push humanity into the next phase. We are reaching unprecedented levels of wealth and innovation ability. Humanity as we know it is on the brink of evolution. You can either be a driving factor or just an observer!
If you look at almost every self-made billionaire on the Forbes list, you will find that almost all of them follow this exact framework we have described for you.
Question:
And readers, looking back on what it takes to build this kind of wealth: Do you think the sacrifices are worth it?
Bonus:
Everyone wants to be a billionaire because it’s a round number. It’s the equivalent of “A LOTTA MONEY”, but at that stage, your wealth is just a number on a screen.
What most people really want is what comes with the idea of never having to worry about money again. Instead of billionaire status, we recommend you set a realistic goal of becoming a High Net Worth Individual.
These people have a fortune between 15 and 50 million dollars. If you’re smart, that’s more than enough to feel secure and enjoy a rich lifestyle.
No, you don’t have 2 private jets, but you’re super comfortable renting one whenever you need. You have solid investments that are covering every reasonable expense and you’re still left with more. If you chose to, you could stop working for the rest of your life and you would be fine.
We know you dream of retiring on a beach sipping mojitos, but surprisingly, it gets boring really fast, especially if you’re the type of person who built his fortune from the ground up. You can never really stop your mind from being what it really is — the mind of an entrepreneur!
Only this time, you’re solving business problems just for the challenge of it all. That’s where we wish all of you to become: So rich, that you solve problems just for fun!
AFRICA
Nigeria: Federal Govt Sets Up 14-Man Committee to Manage Petroleum Products Supply, Distribution
In a move to find lasting solution to the disruptions in the supply and distribution of petroleum products in the country, President Muhammadu Buhari has approved the constitution of a 14-man Steering Committee on Petroleum Products Supply and Distribution management, which he will personally chair, the ministry of petroleum resources announced yesterday.
The Steering Committee, which has minister of state for Petroleum Resource, Chief Timipre Sylva as alternate chairman is expected to among other things to ensure transparent and efficient supply and distribution of petroleum products across the country.
Other terms of reference are to ensure national strategic stock management, visibility on the NNPC Limited refineries rehabilitation programme and ensure end-end tracking of petroleum products, especial PMS to ascertain daily national consumption and eliminate smuggling.
To further ensure sanity in the supply and distribution across the value chain, Sylva has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure strict compliance with the government approved ex-depot and retail prices for PMS.
The minister has further directed the NMDPRA to ensure that NNPC Limited, which is the supplier of last resort meets the domestic supply obligation of PMS and other petroleum products in the country.
He further directed that the interests of the ordinary Nigerian is protected from price exploitation on other deregulated products such as AGO and DPK and LPG.
The federal government will not allow misguided elements to bring untold hardship upon the citizenry and attempt to discredit government’s efforts in consolidating the gains made thus far in the oil and gas sector of the economy.
Other members of the committee are minister of Finance, permanent secretary, Ministry of Petroleum Resources, National Economic Adviser to the President, director-general, Department of State Services (DSS), comptroller-general, Nigerian Customs Service (NCS), chairman, Economic and Financial Crimes Commission Member (EFCC), and commandant-general, Nigerian Security and Civil Defence Corps (NSCDC)
Others who made up the Steering Committee are Authority chief executive, Nigerian Midstream and Member Downstream Petroleum Regulatory Authority (NMDPRA), governor, Central Bank of Nigeria (CBN), group chief executive officer, NNPC Limited, Special Advisor (Special Duties) to the HMSPR while the Technical Advisor (Midstream) to the HMSPR will serve as Secretary.
AFRICA
Nigeria: Inside the Multi-Million-Dollar Business Dispute Between Emefiele and ‘Brother-in-Law’
John Omoile, who is demanding $36 million in damages, accuses Mr Emefiele of breach of contract, fraudulent inducement, negligent representation and fraud.
The governor of Nigeria’s central bank, Godwin Emefiele, is embroiled in a multi-million-dollar legal battle that has torn apart a once close family relationship. The legal tussle is separate from the troubles he faces over the handling of his job.
Mr Emefiele recently sneaked out and back to the country to avert the possibility of arrest by the State Security Service (SSS) who accuse him of financing terrorism.
He faces growing criticisms over the policies of the Central Bank of Nigeria (CBN) often blamed for some of the nation’s economic woes and the scarcity of newly introduced currency notes just days before the deadline it set for phasing out the old notes.
As all of these happen, Mr Emefiele quietly grapples with a long-running feud which climaxed in a $36 million suit filed against him by a brother-in-law, John Omoile, in faraway Texas, the United States of America, in 2021.
The legal duel between Mr Emefiele and Mr Omoile is still on at the US District Court in the Northern Texas District.
Mr Omoile is demanding $36 million in damages for the losses he allegedly suffered as a result of the CBN governor’s alleged breach of contract, fraudulent inducement, negligent representation and fraud in course of their business partnerships.
Apart from tearing apart a familial relationship, the feud has defied the larger family’s interventions, recorded a violation of a settlement agreement, and pitted lawyers engaged by both sides in the US against themselves.
The case has passed through at least five Texas law firms apart from the Nigerian lawyers keeping watch over the Nigerian end of the battle on behalf of the warring parties.
With the case just starting in court for the third time, Mr Omoile has indicated it will cost him $200,000 in attorney’s fees.
Mr Emefiele, too, has complained to the court that it will be extraordinarily burdensome for him to defend himself in the US, where he does not reside.
He has urged the court to dismiss the suit and hold that Nigeria is the appropriate jurisdiction to pursue the case, for reasons including the fact that the settlement agreement which covered all the issues between him and Mr Omoile was signed in Nigeria in 2014.
Background: Emefiele Vs Omoile
Mr Emefiele’s wife, Margaret, and John Omoile, a dual citizen of Nigeria and the US, are cousins raised in their teenage years by an aunt in Agbor, Delta State, South-south Nigeria, according to documents filed in court.
The bond between them was so strong that they regarded each other as siblings. When Margaret got married to Mr Emefiele, the CBN governor had no difficulty regarding Mr Omoile as his brother-in-law.
Court documents described in compelling detail the rosy past of their family relationship.
Mr Emefiele visited and stayed with Mr Omoile’s family in Texas, US, during some of his vacations. He described how he lavished Mr Omoile with gifts, money, and business opportunities over the years.
Also remembering their once affectionate family relationship, Mr Omoile said of how they “shared homes, spent holidays and family gatherings together, have been close family friends, and as detailed below, became business partners/joint venturers.”
Mr Omoile, on different occasions, helped the Emefieles to buy houses in his neighbourhood in Coppell, Texas.
Drawing from the familial bond, mutual trust and goodwill they had built in each other for decades, their rapport flourished and grew into a business partnership in 2004.
They sent funds to each other for personal investments and joint ventures in Nigeria and in the US.
But in the unsavoury turn of events, the previously trusted relatives now accuse each other of fraud, greed, deception, and extortion. The CBN governor, who vehemently denied wrongdoing, said the suit currently “is simply another attempt to extort $36 million” from him.
Zenith Bank stock investments
In 2004, Mr Omoile said he paid Mr Emefiele $50,000 for the purchase of an Initial Public Offering (IPO) investment in Zenith Bank in Nigeria, where Mr Emefiele was then an official.
In 2007, Mr Omoile received 200,000 additional shares from Mr Emefiele as a gift.
Mr Emefiele became the managing director of Zenith Bank in 2010 and the governor of the CBN in 2014.
Mr Omoile said he often raised questions but has yet to get an answer about the wide range of issues, including dividends issued, but not paid, the prices at which certain stock shares were supposedly acquired for him, “and the prices at which Defendant Emefiele actually acquired the shares.”
He accused Mr Emefile of continuing to “use his position as former Managing Director and current Governor of the Bank of Nigeria to actively prevent Plaintiff Omoile from getting a full and accurate accounting for his shares.”
Mr Emefiele and a contentious oil and gas partnership
In a related development, Mr Omoile recalled that in 2007, he, Mr Emefiele and one Pius Oyibo signed a tripartite agreement in Coppell, Texas, to form an oil and gas company on 7 December 2007. The proposed firm, called Noka Energy Nigeria Limited, was to buy, sell and transport petroleum products in Nigeria.
Mr Omoile recalled that he made several trips and several contacts on behalf of the partnership to Houston, the Caribbean, and Nigeria to meet with oil and gas executives.
He recalled Mr Emefiele’s investment into the venture to include $200,000 sent to him for the purchase of 10 truck heads from LKQ in Houston for the partnership.
He said he bought the truck heads, the number not specified, and shipped them to Nigeria, for the business.
He said he would later discover that Mr Emefiele did not incorporate Noka Energy Nigeria Limited as agreed, but instead formed Dummies Oil and Gas for himself.
Real estate business
In 2006, while the other business discussions between them were going on, they formed a partnership called Rosewood Malcom LLC which would buy, sell and develop real estate properties in the US.
The business plan, according to Mr Omoile, included him taking mortgages in his name for the benefit of the joint venture.
He said profit and loss were to be shared equally between the partners, but that that was not the case eventually.
He said once the joint venture started, profits were shared, however, losses were left for him to bear.
According to him, the venture acquired a property at 7026 W. 43rd Street, Houston Texas, for $141,000.
He also said he took a personal mortgage in his name for $167,000 from Wachovia Bank.
He recalled that as the properties’ market value crashed during the US economic meltdown between 2008 and 2009, he continued to be responsible for the substantial financial burden of mortgage servicing without any help or assistance from Mr Emefiele.
He added that he purchased a property in 2008 in Coppell with $360,000 sent by Mr Emefiele.
But he said he was bearing the tax liabilities on the properties from his personal business accounts. According to him, the total personal loss he incurred for the real estate partnership and out-of-pocket expenses meant to be paid by Mr Emefiele was at least $500,000.
Mr Emefiele offers defence
Mr Emefiele has yet to formally file a defence to the suit, but his side of the story can be gleaned from the troves of documents he attached as exhibits to his preliminary court filings.
In a letter dated 17 January 2022, Mr Emefiele’s lawyer, Nitor Egbarin, denied the allegations raised in previous ‘legal demand’ letters which Mr Omoile’s lawyer, Donald Kaiser Jr, sent directly to the CBN governor.
In the strongly-worded letter, Mr Egbarin said his client was not involved in the management of Mr Omoile’s Zenith Bank’s shares and could not have blocked access to the records of the investments.
He said the fact that Mr Omoile used the CBN governor’s business address as his contact address for receiving his brokerage account statement “is not a proof that my client had legal responsibility for managing John’s money in the brokerage account.”
He said his client is no longer the Managing director of Zenith Bank and is not Mr Omoile’s stockbroker.
“Your legal demand must be directed at John to provide you with his Zenith Bank accounts which he opened in Agbor and in Lagos. Proceeds from John’s brokerage account are deposited into John’s bank accounts in Lagos and in Agbor,” the letter read in part.
Also denying his client’s alleged breach of financial obligation to their real estate venture, Mr Egbarin went down memory lane, highlighting Mr Emefiele’s investments in the venture and financial assistance he had rendered to Mr Omoile.
He recalled that in 2006, Mr Omoile took out $200,000, using a pre-signed cheque, from Mr Emefiele’s bank account, and never accounted for the money meant to be used for estate development in Houston.
He said instead of using the money to develop the Houston property, Mr Omoile and his wife, on 17 January 2007, took out a $167,650 construction mortgage with Wachovia Mortgage.
He also recalled Mr Emefiele sent another $40,000 to Mr Omoile in 2009 for the purchase of a second real estate property on the plot next to the first property in Houston.
Tired of the frustrations from the investments, Mr Emefiele, according to his lawyer, decided to stop providing financial support to Mr Omoile in 2012.
But, the lawyer said, with a settlement agreement the brothers-in-law singed on 26 April 2014, Mr Emefiele agreed to relinquish all his rights in the two properties in Houston to Mr Omoile valued at over $207,650.
He said Mr Emefiele also paid off the Wachovia Mortgage balance of about $155,000.
He said the CBN governor also sent $250,000 requested by Mr Omoile to clear unpaid income tax in 2020.
He said, from 2006 to 2020, Mr Omoile had received at least $645,000 in cash in financial support from Mr Emefiele.
But he did not address the issue of the failed oil and gas business plan.
‘No more free food’
Mr Egbarin’s letter went beyond defending his client. It was an unsparing frenzied personal attack on Mr Omoile and his lawyer.
The letter describes Mr Emefiele as “a wealthy banker” and former chief executive officer of “the largest bank in Nigeria and West Africa” who has been “a generous donor, benefactor and breadwinner” to Mr Omoile over the years.
The CBN governor, according to the letter, “took care of John (Mr Omoile) as one would do of a brother-in-law,” providing “financial support to John and his wife and his children over the years.”
In a rather demeaning manner highlighting how much the relationship between the in-laws has soured, Mr Egbarin said his client was no longer prepared to continue to feed Mr Omoile. “You should advise John that my client does not wish to continue to feed him. John should pursue other means to make a living rather than continue to shakedown my client for more financial support.”
Turning on Mr Kaiser, Mr Egbarin accused him of incompetence and of having little understanding of the area of law he was handling for Mr Omoile.
He also accused the lawyer of making false claims about Mr Emefiele and of unethical practice by bypassing him to write directly to the CBN governor.
He said Mr Emefiele, on becoming the CBN governor, became a target for a lawsuit in Nigeria engaged by Mr Omoile for “harassment demanding monies for matters that had been settled in the 2014 Settlement Agreement.”
He said the letters of demand sent severally to Mr Emefiele to account for Mr Omoile’s shares is “an attempt to shakedown/extort my client for money.”
He ended the letter with a devastating salvo to Mr Omoile. “Finally, there is still nothing more my client will do for John. The gravy train has come to a stop.”
Members of the larger family called a series of peace meetings attended by the brothers-in-law to settle their disputes.
The meetings were held in Nigeria. Some of the meetings were also held via Zoom.
They finally reached an agreement in 2014.
With the hope of getting “relief from the mounting debts” resulting from the real estate losses since 2007, Mr Omile said, he signed the agreement with Mr Emefiele on 26 April 2014.
But both sides have accused each other of violating the agreements.
The family also again called a series of Zoom meetings to resolve the disputes in April 2020.
But in what would be the last straw, according to Mr Omoile, Mr Emefiele declared through his wife, Margaret, who represented him at one of the Zoom meetings, that there was never an intention to form and operate a joint oil and gas firm.
Mr Omoile said he realised then that he had been “induced with false statements and promises” to enter into a partnership with Mr Emefiele. He also said he realised that Mr Emefiele “never intended to follow through with his past promises”.
Unending Legal battle: Emefiele Vs Omoile
With settlement talks over, Mr Omoile took the decision to sue Mr Emefiele after the Zoom meetings in 2020.
In July 2021, he hired a Texas attorney, Kenneth Onyenah, who filed the suit claiming economic and actual damages against Mr Emefiele for the losses he allegedly incurred as a result of the CBN governor’s alleged failure to fulfil his financial obligations to him and their joint ventures.
He filed the suit at the US District Court of the Northern District of Texas.
But shortly after the filing, the lawyer withdrew the suit.
Mr Omoile said the lawyer withdrew the suit without prior communication or his authority in August 2021.
He added that the lawyer took the step after he was threatened by Mr Emefiele’s lawyer, Mr Egbarin. But Mr Egbarin said the lawyer withdrew the case after realising it had no merit.
Later in 2021, Mr Omoile hired Donald Kaiser Jr. to reopen the case.
On 12 May 2022, Mr Kaiser refiled the suit at the 68th Judicial District Court in Dallas County, Texas.
But following Mr Emefiele’s objection, the suit was removed from the state court “on the basis of diversity jurisdiction” to a federal court, the US District Court of the Northern District of Texas.
A new lawyer named Ewomazino Magbegor is now representing Mr Emefiele following the refiling of the case.
Mr Magbebor is the second lawyer known on record to have defended the CBN governor in the matter in the US. From Mr Egbarin’s letter, the plaintiff, Mr Omoile, has engaged at least three lawyers in respect of the case.
Mr Emefiele’s new lawyer, in November 2022, filed an application to challenge the service of the suit on the CBN governor through substituted means. He also sought the dismissal of the suit on the grounds that the court lacked jurisdiction on the matter.
The court’s decision on the application will determine the future of the case.
BUSINESS
Advertising Market Leaders Give 5 Marketing Musts for 2023
Learn from your experiences
Perhaps the final word goes to Soyoung Kang, chief marketing officer at beauty brand eos. As marketers start to think about the trends that will define their 2023, she urged them to also remember the lessons of the last few years. “As we try to understand how to navigate this macroeconomic climate, it’s really important for us as marketers to continue to push forward,” she said. “We have to stay agile. We’ve built all of these muscles during the pandemic where we needed to be able to shift investments as circumstances changed. It’s time to exercise those muscles again.”AGRICULTURE
How to Start a Cocoa Business in Nigeria and Make Money From It
People born between the ’60s and ’80s would definitely know the value of cocoa production in Nigeria. Cocoa is a crop Nigeria once banked on as its major exported cash crops before the oil boom. Nigeria was the biggest exporter of cocoa in Africa and one of the biggest in the world. Then Crude Oil came and poor agricultural management set in, costing the Nigerian economy badly and allowing Nigerian to lose the prestigious spot to a fellow African country, Cote d’Ivoire, who is now the largest cocoa producer in the world, followed by Indonesia.
When cocoa production and export are concerned, Nigeria only lives in past glory and if care is not taken, Nigeria might end up losing all it has gained from the export of what is touted as some farmers as the ‘Wealth Seed.’ The demand for Cocoa now is significantly higher than what the demand was, back then. When the agricultural spotlight is focused on Nigeria, foreign countries can vividly see the potentials in Nigeria and would quickly act fast in taking advantage of it, while Nigerians sit on a goldmine and yet they can’t see it but only look forward to foreign aid and investments.
Anyone looking to delve into Cocoa production business in Nigeria is in for a bit of a fortune if he really knows his onions. For a long time, Cocoa has been and would for a really long time still be one of the fastest-selling agricultural products in both the international market and the local market. As stated earlier, there is a high prospect for cocoa business to thrive in the country. This is because it is in high demand all over the world as it is used in the manufacture of different things such as candy bars, chocolate, cocoa powder as well as drinks and several others. Cocoa farming and beans extraction are labour intensive and the beans are fragile. This pushes many people from the business, especially in a country like Nigeria where there are deficiencies of preservative facilities.
Although Cocoa is not the easiest of crops to manage, once a potential merchant can sacrifice the time and the effort to have it planted, groomed and nurtured to its full maturity, he can keep getting attractive returns on it for a time as long as decades. Truth be told, cocoa production in Nigeria is one very under-exploited and under-utilised sector and Nigeria still needs as many farmers in the cocoa production section as possible, since demand continues to outweigh supply. There are still thousands of acres of fertile lands that can still be used for the planting and cultivation of cocoa. Just like any other business, a potential Cocoa merchant must have a well-designed business plan that will guide the cocoa business. This means that he must first sit down and work out things involved in the cocoa business and have a road map on how to go about it.
Delving into Cocoa Farming and Production
Starting the cocoa farming and production business in Nigeria isn’t as hard as it seems, especially if one can endeavour to gather the right information and knowledge about the business. Armed with the right knowledge on cocoa farming, botany, industrial value and demand chain, a potential cocoa merchant can be able to utilise and exploit the huge profits associated with the business, and with time he might soon become a big player in the cocoa production business.
It is also worthy to note that the returns on cocoa business start small but grows on bigger and bigger with time and the right amount of effort.
The first major step in delving into Cocoa Farming and production is Financial Planning
Anyone who has an interests in cocoa cultivation must first work out the different costs. Different costs are involved and fundraising for the business is also important. Furthermore, research has shown that cocoa can grow together with other cash crops like Coconut and Cashew so combining the production strategies is a good way to maximise profits.
Capital also plays a large role in the kick-off of this business. A potential merchant has to decide if he would be going into Cocoa cultivation large scale or small scale. This decision would influence the amount of capital he would be investing in the business. This is why a good Business plan goes a long way in determining the success rate of the cocoa cultivation business.
Other things needed are:
- Piece of Land: If the merchant wants to see through his business from start to finish, he would unavoidably need an area of land to start his cocoa business, but it all depends on what he can afford. For a small scale business, he doesn’t necessarily have to get farmland, as he can simply buy fresh cocoa seeds from farmers who’ll sell it at a much lesser price.
- Storage and Drying Space: The merchant would inevitably need to have a store or warehouse, secure enough to give his business (the cocoa seeds) the required safekeeping it needs. His business is his cocoa seeds, as he has no business with the pods. Also, the store needs to have enough space outdoors for him to spread his seeds. Cocoa seeds need to be dried in the sun for it to be usable. The drying period normally takes a period of two weeks.
- Relevant Equipment: The merchant would need equipment like the scale for weighing the bags, normal sacks and heavy-duty sacks, for conveying the seeds from one place to another, and a wide water-proof material that can be used in drying the seeds in open air.
- Cocoa Seeds: There goes the tiny but most integral part of the business. The cocoa seeds can either be bought from cocoa farmers or harvested if the merchant already has access to a cocoa farm, an option which is advisable later in his business when you have the money.
Land Preparation
Cocoa is a crop that cannot do well in all kinds of soil. This means that before a potential merchant commences the business, he must test the soil to determine the type of yield he would be able to attain during harvest season.
Crop protection and nutrient management are also important in this kind of business. Cocoa is known to grow well in some parts of Nigeria, especially the western part of Nigeria. One can consider acquiring land in any of these places to grow cocoa.
The Type of Cocoa Variety to Invest in
Another aspect a prospective merchant will pay attention to is the best variety to plant. This is that the reason soil test will help him discover the types of cocoa species that are compatible with a particular soil or environment.
There are at least three varieties on the market and they include the Trinitario, Forastero, as well as the Criollo. Apart from that, there are also some improved varieties, which can be gotten from other parts of the world, and these can do well in Nigeria.
Planting Process
Method of Propagation
When it comes to Cocoa cultivation, there are two options available to the merchant, which include the Vegetative and Seed propagation. A lot of people prefer Seed propagation because it seems to grow faster than the Vegetative propagation. Germinations starts within a week of propagation and moreover, a greater percentage of it can germinate (at least ninety per cent or more of the seed). The survival rate is higher in seed than in vegetative propagation.
Also, this stage is where the main business starts. A Cocoa merchant can also engage in mass production of cocoa after the seeds have germinated, he can transplant them using a perforated polythene bag. He can also sell some of the seedlings. Other merchants who deal in Cocoa seedlings will like to buy it.
On the other hand, many large-scale producers prefer the Vegetative option than the seedling option. Vegetation is grown through such methods like grafting, root cuttings, as well as stem budding and so on. In Nigeria, many cocoa farmers prefer the budding option.
Planting
When it comes to planting, the merchant has to be careful the way he plants it to ensure that it survives. If after testing the soil and he discovers that it is not that fertile, there are still other alternatives. He would have to dig a pit of about 50 by 50 by 50 centimetres. This advice is very important if he resides in the lateritic zones where the soil is known to be low fertile.
After digging the holes, he must make a soil combination of organic manure and topsoil and fill the pit with it. This is to enhance the survival rate. Those in fertile areas have nothing to worry about.
It is always recommended to plant it on a soil surface. The cocoa root grows well in surfaces irrespective of the depth.
After-cultivation Care
There are a few must-dos that attract a bumper cocoa harvest, time and resources are of the essence when taking care of the cocoa. Once the planting is finished, the next thing to do is to mulch the basins using organic manure.
Shoots emerging from the lower portions must be removed. This is to ensure healthy development and growth of the shoot. The planting can last three to four years, but the process always has to be weed-free.
Fertilisation and Manure
The essence of the soil test is to determine soil fertility. This can equally assist in determining the right type of manure to apply. In Nigeria, NPK fertilizers are popular and this can be applied in two equal splits.
The dose to apply depends on the yield wanted. For species that yield up to sixty pods yearly, the dose must be doubled.
In addition to that, the merchant can administer dolomite to each plant yearly. This can start from the third year of the cocoa plantation. The best method to administer fertilizer to the cocoa crops is to mix fertilizer with soil in a basin and administer it to the plant.
Pruning
The cocoa plant requires pruning and it grows in tiers. If properly managed, the plant can produce five fan branches. It is better if the growth is restricted just to one-tier. Because of that, there is the need for constant pruning.
Irrigation
Irrigation is necessary if there is no adequate rainfall distribution. Naturally, it grows well under well water. Supplemental irrigation is a necessity if the merchant stay in areas where there is no adequate water supply. Water is necessary because it helps cocoa plants to grow very well and makes the yield better.
Protection
Cocoa like other cash crops needs to be protected from diseases, pests, and vagaries of nature. The most important thing is to protect them from those harmful insects and pests around. There must be an adequate arrangement for chemical spraying and other ways of protecting it.
Harvesting
This is the time to yield the benefits of labour. It takes about one hundred and seventy days for the cocoa to be ready for harvesting. After harvesting the pods, the merchant can store it for four days. This facilitates fermentation. Furthermore, it makes superior quality cocoa beans possible. The pods should not be overripe before harvesting.
There are two harvesting seasons in a year; light and heavy harvest.
After harvesting, it is time for fermentation. With a good cocoa processing unit, the merchant is sure of producing different varieties of cocoa beans.
Marketing and Export
The target markets are food and beverage companies, soap making industries, chocolate producing companies etc. A ton of cocoa seeds is sold between $2195 – $3130 in the International market. Locally cocoa has a standard price of 50kg selling for ₦55,000.
There are a variety of ways that cocoa is exported from Nigeria. In some cases, one or even two middlemen are involved between the Nigerian farmers and cocoa exporters. The Nigerian trade begins with farmers working to harvest cocoa beans from the local crop. The following are ways in which cocoa beans are exported from Nigeria:
- Farmers to Small Buyers – Small buyers visit individual clients (farms) to purchase a share of the cocoa crop. In this method, small buyers may sell the crop directly to exporters, but more commonly the small buyers sell the cocoa to wholesale buyers who make the final sell to exporters.
- Farmers to Co-operatives – Farmer co-ops combine cocoa from several farms to sell to different agencies. The co-op purchases cocoa directly from farmers, and in some cases, sells it to exporters directly. In other cases, the co-op may also export the product directly.
Nearly half of all Cocoa in Nigeria is exported to the Netherlands (45%). Germany and Malaysia are ranked second and third in cocoa imports from Nigeria, importing 22% and 6.2% of Nigeria’s cocoa output, respectively. Other top importers of Nigerian cocoa include Spain, Italy, Belgium-Luxembourg, and China.
Nigerian cocoa and cocoa beans are usually exported in the raw or unprocessed form to chocolate processing plants in these countries. The cocoa is typically exported to confectionary companies to make chocolate bars and other chocolate products, such as candy, cakes, and chocolate beverages.
List of Cocoa Exporters in Nigeria
The International Cocoa Organization (ICCO) based in Ivory Coast maintains a directory of farmers, exporters, and other professionals related to the cocoa industry. Although Nigeria was a member in 2010, the country is not listed among the organisation’s members in 2018.
Cocoa Exporters in Nigeria
The list of cocoa exporters in Nigeria include:
- FTN Cocoa Processors Plc
- Ideal Risku Global Limited
- Saro Agro-Allied
- Tosmega Cocoa Nigeria Limited
- Akeen and Kamoru Nigeria Ltd
- Berveek Limited
- Cocoa Products (Ile Oluji) Ltd
- Remedy Crown Investment
- Shinwillcrown Cocoa Producing Company
The list of cocoa bean exporters of bulk and wholesale cocoa beans from Nigeria include:
- Agro traders Ltd
- Crystal Green Ltd
- Gbemtan Investment Ltd
- Olatunde International Ltd
- Agebelere Cocoa Farm
- Okon & Sons Integrated Services Ltd
- Ose Global Bizness Links Nig. Ltd.
- Terry Cocoa Merchant
- Yinka Akintilo Enterprises Ltd
Cocoa Production in Nigeria: Feasibility Study
The feasibility study included in this guide is for a medium cocoa production business, from the start to the sale of 500 bags of cocoa. The Capital covers from store set-up, land acquisition, seed purchase, production, and marketing.
The selling price of cocoa is the same almost everywhere. Each bag (A standard of 50 Kg) is being sold for about ₦55,000.
For a start, all the materials needed (Renting a store depends on location, purchase of needed equipment, planting and tendering, and so on, is approximately ₦3,500,000)
If the merchant starts harvesting after 18 months, (he can start harvesting as soon as that if he had planted the early-maturing, high-yielding and disease-resistant cocoa beans seed to boost his farm’s production in a short period of time).
₦55,000 X 500 = ₦27,500,000
(Return on Investment) ROI = ₦27,500,000 – ₦3,500,000 After 18 months of cultivation, the gain is a staggering ₦24,000,000; which isn’t bad at all especially since selling cocoa beans seed doesn’t take much marketing.
Issues Affecting Cocoa Export in Nigeria
Before you engage in the cocoa trade in Nigeria, it’s important to consider how to overcome common challenges affecting the cocoa trade and cocoa exporters in Africa. These concerns include everything from adequate production to transportation. Educating yourself on these issues may not eliminate the concern, but can help you determine a plan of action before engaging in trade.
- Roads and Transport – More than 30,000 tons of cocoa were found delayed in transit in the capital city of Lagos while en route to ports for export. Specifically, traffic, craters, and floods are to blame for the delay. This delay put strain on local businesses and some even sought loans to cover expenses while waiting for exports to be shipped and paid by buyers.
- Delays in cocoa production – For many years, Nigeria ranked fourth behind Ivory Coast, Ghana, and Indonesia in cocoa production, but a recent drop in production has lowered Nigeria’s position in the cocoa production chain to fifth, tied with Cameroon. Lack of support for farmers, including access to cocoa seedlings, price risk management, and pest control training are just a few factors that have led to a decrease in cocoa production. Many small farms harvest most cocoa in Nigeria throughout the southern region.
- Lack of farmers – Several news reports outline both the lack of younger farmers and the lack of interest of younger farmers in cocoa farming. This lack of interest has led to a decrease in the number of cocoa farmers. While there have been calls to stimulate the cocoa economy, the Nigerian cocoa production efforts faces significant challenges to its growth if enough young farmers don’t participate in the cocoa trade.
COCOA PRODUCTION: RISKS INVOLVED
- Managing a cocoa farm takes time, effort, patience and energy.
- Constant guard and protective measure against rodents and infectious parasites.
- Setting up a cocoa production plant is very capital intensive.
COCOA PRODUCTION: ADVANTAGES
- Cocoa sells faster than almost every other agricultural produce.
- The merchant would inadvertently be contributing to the nations GDP.
- A lot of beverage companies rely on cocoa for production, making it very profitable.
- As a young person, you can leave the circle of the unemployed.
- The ROI from cocoa and production is very attractive and is enough compensation for the merchant’s time, energy and money.