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Category: Business and Economy

Over 20,000 Nigerians Employed For Lagos-Ibadan Rail Project – Amaechi
Project complies with local content law. Sources local materials from the country
CCECC training 180 Nigeria engineers in China to take over running of the project
Building an assembly plant in Kajola and a transport university in Daura as CSR projects
Project worth 1.6 billion dollars not 33 billion dollars
By Dino Amadin
Minister of Transportation, Rt. Hon. Chibuike Rotimi Amaechi has said that over 20,000 workers were engaged for the ongoing construction of Lagos-Ibadan rail project. This, he said is in compliance with the local content law inherent in the 1.6B dollar contract agreement between Nigeria and China.
Amaechi made the clarification at a public hearing in Abuja, Monday, while responding to concerns by the House of Representatives Committee on Treaties, Protocols and Agreements that local content was not observed in the course of the project.
He said, “There are over 20,000 Nigerian workers employed for the construction of the Lagos-Ibadan railway project, only 560 of the workers on that project are Chinese,” adding that most materials for the project were locally sourced except for those that were manufactured outside Nigeria.
“We have over 150 Nigerians being trained as Engineers in China. The Chinese has also built two training institutions for us, one at Idu and the other one is the Transportation University in Daura, Katsina state,” Amaechi said.
The minister also revealed that only a contract of $1.6b was awarded by the present administration in the Ministry of Transportation as against the allegations by the committee chairman, Hon. Nicholas Ossai that there was a $33b contract awarded by the present administration.
“Mr. Chairman, there is no $33bn contract in the Ministry of Transportation. What we have is $1.6b awarded by this government for Lagos-Ibadan, for which the Chinese government is providing $1.2b and we are providing the remaining $400m.”
Amaechi restated that the coastal rail project may not sail through if the House committee continues its investigations on the project before the loan is granted.
August 18, 2020
Why Inner Galaxy Steel Company is not slave camp
The Inner Galaxy Steel Company Limited has refuted allegations of running a modern day slave camp in its facility in Umuahala, Obuzor Asa, Ukwa West LGA, Abia State.
In fact the company has produced documents and pictures to prove that it is running a healthy environment for workers who are mostly Nigerians to thrive in their job.
The Chinese company, which manufactures steel, iron and allied products, in a statement made available recently described the allegation of holding workers’ hostage in the last three months in prison-like camps as “a deliberate fabrication, mischaracterisation and misinformation concocted by the operator of the said Twitter handle at the instance of those who engaged him for the hatchet job.”
The statement signed by Nnamdi Nwokocha-Ahaaiwe, chief counsel to Inner Galaxy Steel Company, said: “It is instructive that the faceless operator behind the Twitter handle, @Truthfully83 stated clearly in his reference post that it is “IN THE LAST 3 MONTHS AND COUNTING” that the alleged hostage imprisonment of workers arose.
There is no allegation that any such situation has existed in the previous years of the existence and operations of the company.
“The critical question which any unbiased, open minded, truth-seeking person should ask therefore is: what happened in this LAST THREE MONTHS AND COUNTING from the 12th day of August 2020, that led to the alleged “hostage imprisonment of workers”?”
The true facts as explained by the company are that “with the onset of the Covid-19 pandemic worldwide, individuals and companies were confronted with a situation of unprecedented crises the likes of which had not been witnessed by most people alive today and which no one predicted or planned for.
“Companies were confronted with so many issues for which difficult decisions had to be made. With respect to the specific matter in issue, our clients had to determine what to do in respect of about forty percent (40%) of their workforce who live and come to work from Obigbo and environs in Rivers State, which is about ten minutes’ drive from the Company’s premises.
“This was because the Rivers State Government had announced that it was going to completely lock and seal its borders with its neighbuoring States, of which Abia State is one. This meant that those employees of our clients who live and come to work from Obigbo and environs will be unable to come to work for a period which it was difficult to determine as no one knew when the pandemic would be over.
“At the same time most States in the country, including Abia State, announced lockdowns and curfews such that even intra-state movement became cumbersome.”
According to the statement, it also became clear that for a long period which would be difficult to determine, our clients will be unable to operate at full capacity, rendering many workers redundant. This is because, the main input of production of our clients is scrap iron and the suppliers send trucks/trailers of the materials from all corners of the Federation, ranging from far-flung locations like Sokoto, Maiduguri, Lagos, etc.
“All intra State borders were to be closed and only vehicles bearing food, medicines and other essential items were authorized to operate; scrap irons and other raw materials of our clients was not one of the items excluded from the ban on inter-state movement.
Even distributors would find it difficult to come and evacuate their goods. The entire production process and business of the company was to be severely impacted negatively, one way or the other.
“At the time this pandemic crisis began, many factories/plants in Europe and the Americas were being completely shut down because they had become “super-spreaders” and hotspots of Covid-19.
The environment and conditions prevalent in big factories and plants such as those operated by our clients are such that if very strict safety protocols are not implemented, it takes only for one employee to bring the Covid-19 virus to the plant from home, and it will quickly spread among workers in the factory/plant until it becomes uncontrollable.
“In one Company in Sagamu, Ogun State, (which was widely reported), about 107 employees contracted the Covid-19 virus within the factory premises, within a forty-eight (48) hour period and the company was shut down by the Authorities.”
To ensure that there was no spread of coronavirus in the company, Inner Galaxy immediately instituted very strict and rigorous Covid-19 protocols, providing one mask every day for each worker and making provisions for over 55 hand-washing/sanitizing stations all over the premises.
The problem was that there was no way of controlling and guaranteeing that when the workers return to their homes, they would be able to keep to the same rigorous safety measures/protocols being implemented within the factory complex.
It was because of this that the management of the company “called a meeting of all the workers and made it clear that by virtue of the foregoing factors/considerations outlined above, those of them who wished to continue working during the indeterminate period of the pandemic, will have to be housed within the company premises as they may not be able to get to work from their homes once the full lock down, curfews and other measures came into full implementation.
“The issue of the Company management being unable to ensure compliance with full Covid-19 safety protocols while workers were in their individual homes was also highlighted.
The company made an offer: those who agree to stay within the company premises until the pandemic is over and restrictions in movement relaxed will be housed in temporarily, hastily erected accommodation as such did not exist prior to this time. Those who could not stay, either because they have families they could not abandon in the middle of a pandemic, particularly when no one could predict how long it would last or for other reasons will be furloughed to be reabsorbed once the crisis was over or abates and things return to normal.
“While furloughed, they will be paid fifteen thousand naira only (N15, 000.00) per month until they resumed work. Those who chose to remain within the premises to work will receive their full salaries and substantial bonuses calculated according to their level; the bonus is between twenty thousand naira (N20,000.00) to thirty thousand naira only (N30,000.00) monthly. These can be easily verified by anyone,” the statement said.
The company has about 1,500 Nigerian workers at full capacity with very few Chinese in its employ. “There is no way these huge number of workers can be muzzled and happily, when the aforesaid Federal and State delegations paid surprise visits without prior information to the management of the company, they were able to interact with all the workers on the premises, interrogate them and make their own findings of the facts of the matter,” it stated.
“It is important to stress that at no time was anyone forced to stay within the premises against their will; this was optional and those employees who felt comfortable with the arrangement, agreed to it and are to be handsomely rewarded while those who felt unable to stay were furloughed and also offered compensation for the period they will not work.
“The company admitted to the Federal and State delegations that the accommodations could have been better but this was hastily arranged, temporary accommodation put in place for such vast number of workers at VERY SHORT NOTICE.”
The statement noted that “The Federal Government delegation recommended improvements that can be made to the accommodation and stated that they will return within two weeks to determine compliance. The management of the Company is cooperating fully with the authorities in this regard.
“Already, the management of the Company had immediately after setting up the temporary housing to abide the end of the pandemic period, commenced building permanent structures in case of future emergencies. The company has already started constructing two buildings to house employees when similar situations arise in future. As at the date the Federal and State delegations visited, one of the buildings was already at 90% completion and the other at 65% completion,” it stated.
Inner Galaxy Steel Company Ltd. was registered with the Corporate Affairs Commission,, CAC, Abuja in 2012 and built a multi-billion-naira iron, steel and allied products manufacturing plant in Ukwa West LGA of Abia State. The company premises, which is almost a mini-city, is located at the border between Rivers State and Abia State on the side of the latter State. The major product of the company is steel/iron rods. The company has all these years operated peacefully with its employees and lived peaceably with its host communities.
August 17, 2020
Youths group carpet FCT Minister threatens to shut down Abuja
By Lawrence Ekwonu
Youths under the auspices of Nigerian Youths Organisation (NYO) have said if the government fails to address the continued dwindling economic situation, it would shut down the Federal Capital Territory (FCT) in a massive protest.
This was disclosed in a press conference tagged: ‘FCT Must be Delivered,’ organised by NYO and Coalition of FCT Youths Organisations, where they expressed concern over the FCT administration led by the Minister, Muhammad Bello’s decision to allegedly completely bury key revenue base of the FCT.
Comrade Isreal Opalewa, Chairman of NYO, FCT chapter, who spoke on behalf of the youths, explained that they have been monitoring activities of the FCT and it’s area councils, and have come to conclude that the none interested attitude of the FCT leadership to inaugurate an economic team, in order to reboot the economy of the territory, has further made the FCT a failed state.
The youths, however, called on President Muhammadu Buhari to make a change of government in the FCTA within one month or they will not hesitate to call for a massive peaceful protest that would shut down the entire FCT.
“The shortfall of revenue generation currently rocking the FCT led administration, demands serious attention since the All Progressives Congress (APC) is believed to have come with a complete mantra of Change and Next Level that Nigerians yearn for.
“We have forwarded letters to relevant offices for prompt action to be taken. The present FCT administration is battling with governance issues of revenue generation, while the managers of the territory have failed to utilize other glaring opportunities for boosting its economy.
“It may interest you to know that the solution to the dwindling revenue generation in the FCT lies in the willingness of the administration to open up and embrace the numerous opportunities for private sector investments, including some being driven directly by the APC-led federal government,” Opalewa said.
The youths said it is no longer news that the revenue generation of the FCTA has nosedived over the years, and the dreams of the founding fathers of FCT may continue to go down the drain if the situation of gradual but consistent degradation is allowed to continue.
August 16, 2020
Ghanaian authorities insist on $1m fees on Nigerian businesses
By Dino Amadin
Ghanaian Ministry of Trades has rejected claims of unfair treatment by Nigerian traders in the country during the enforcement of the Ghana Investment Promotion Council regulations.
It insists that the traders must pay the required taxes and other fees imposed on them by the authorities.
This is happening despite the intervention of the presidents of Ghana and Nigeria through the Economic Community of West African States.
A Nigerian trader whose shop was forcefully locked up by the Ghanaian security officials had recorded a video of the incident in which they asked him to pay the $1 million registration fee.
The victim had shown the officials his business registration certificate and other documents but the enforcement team was adamant as they insisted on sealing his premises.
But speaking on the incident on a Ghanaian radio station, Starrfm, the Head of Communications, Ministry of Trade, Prince Boakye Boateng, said the Nigerian traders had failed to honour an ultimatum to meet the requirements.
He said, “It cannot be we’ve been insensitive; if that is what they’re saying, I’ll be disappointed because I’ll rather say they have rather been unfair to us as a regulatory body because we have given them more time than enough to the extent even the Ghanaians thought that the ministry was not even on their side or the ministry wasn’t ready to even enforce the law.”
He recalled that the shops were locked last December and later re-opened following the intervention of President Nana Akufo-Ado.
According to him, the traders complied but have not regularised their documents for verification.
Boateng explained that the law being enforced gave the Ghana Union of Traders Association the right to be the sole traders in the local market.
August 16, 2020
NPA recieves largest container vessel ever in Onne port
By Dino Amadin
Nigerian Ports Authority has announced the berthing of the biggest container vessel ever in Nigerian waters.
The Maerskline Stardelhorn vessel with length overall of 300 metres, width of 48 metres was received at the Federal Ocean Terminal (FOT), Onne in Rivers State at 1620 hours on Saturday, August 15, 2020, according to the NPA.
Jatto A Adams, General Manager, Corporate and Strategic Communications, said the vessel, which has a capacity of 9,971(TEUs) is a flagship from Singapore.
The team that received the vessel was led by GM Alhassan Abubakar.
“The vessel, which was brought in from Fairway Bouy Bonny with the aid of three Tugboats operated by three of the Authority’s pilots was received by Ports Manager of the Onne Ports, Mr. Alhasssan Abubakar.
“The Authority is delighted to state that the landmark arrival of the biggest gearless Maerskline vessel at the Onne Ports is a result of management’s determination to improve the patronage of the Eastern Ports.
“It is an indication of the fact that the Eastern Ports are equipped to receive all manner of vessels and an expansion of the options of consignees in the Eastern and northern parts of the country.
“The Management of the NPA congratulates its team at the Onne Ports Management also appreciates all stakeholders at the Onne Ports for their cooperation towards seeing that the vessel berthed safely without any challenge.
“The Authority assures of its commitment to ensuring that all ports locations in Nigeria work at their optimal capacity and the repositioning of Nigerian ports as the hub in the sub-region,” Adams said.
August 16, 2020
DMO Tells The World The Facts About Chinese Loans to Nigeria
Against the backdrop of a series of reports credited to several persons on the subject of loans obtained from China, the Debt Management Office (DMO) has considered it necessary to provide substantial details, encouraging the public to be so guided by the facts there highlighted.
On how much loan Nigeria has taken from China, Ms. Patience Oniha, Director-General (DG) of DMO, says as at March 31, 2020, the total borrowing by Nigeria from China was USD3.121 billion (N1,126.68 billion at USD/N361). This amount, according to her, represents only 3.94 percent of Nigeria’s total public debt of USD79.303 billion (N28,628.49 billion at USD/N361). Similarly, in terms of external sources of funds, loans from China accounted for 11.28 percent of the external debt stock of USD27.67 billion at the same date. These data, show that China is not a major source of funding for the Nigerian government.
Shedding some light on the terms of the loans from China, she explains: “The total borrowing from China of USD3.121 billion as at March 31, 2020, are concessional loans with interest rates of 2.50 percent p.a., tenor of twenty (20) years and grace period (moratorium) of seven years. The terms and other details of the loan are available at www.dmo.gov.ng.”
“These terms are compliant with the provisions of section 41 (1a) of the Fiscal Responsibility Act, 2007. In addition, the low interest rate reduces the interest cost to government while the long tenor enables the repayment of the principal sum of the loans over many years. These two benefits, make the provisions for debt service in the annual budget lower than they would otherwise have been, if the loans were on commercial terms,” she states.
Speaking on what were the loans used for, the DG says the USD3.121 billion loans are project-tied loans. The projects, 11 in number as at March 31, 2020, include: Nigerian railway modernisation project (Idu-Kaduna section), Abuja light rail project, Nigerian four airport terminals expansion project (Abuja, Kano, Lagos and Port Harcourt), Nigerian railway modernisation project (Lagos-Ibadan section) and rehabilitation and upgrading of Abuja – Keffi- Makurdi road project, flagging a full list of the projects on www.dmo.gov.ng.
The impact of the loans, in her words, “is not only evident but visible. For instance, the Idu – Kaduna rail line has become a major source of transportation between Abuja and Kaduna. Also, the new international airport in Abuja, has improved air transportation for the populace, while the Lagos – Ibadan rail line when completed, will ease traffic on the busy Lagos -Ibadan expressway.”
In her opinion, the projects also have the added benefits of job creation, not only by themselves but through direct and indirect service providers, a number of which are small and medium enterprises (SMEs).
Her position corroborates the widely accepted view that investment in infrastructure is one of the most effective tools for countries to achieve economic growth and development. Using loans from China to finance infrastructure is thus in alignment with this position.
On the process by which the loans were obtained, Ms. Oniha further states: “The principal process and requirements for borrowing by the government are expressly stated in the DMO Establishment (ETC) Act, 2003 (DMO Act) and the Fiscal Responsibility Act (FRA), 2007. Section 21 (1) of the DMO Act, ‘No external loan shall be approved or obtained by the minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution’ and section 41 (1a) of the FRA, ‘Government at all tiers shall only borrow for capital expenditure and human development, provided that, such borrowing shall be on concessional terms with low interest rate and with a reasonable long amortisation period subject to the approval of the appropriate legislative body where necessary’, are instructive in this regard.
For detailed information on the borrowing process and required approvals she charges the public to go to “external and domestic borrowing guidelines for federal government, state government and the Federal Capital Territory (FCT) and their agencies”.
Stating the connection among the ministry and the agencies involved in the processes of securing loans, Oniha makes it clear that the Federal Ministry of Finance, Budget and National Planning works with the ministries, departments and agencies (MDAs) under whose portfolio a proposed loan falls and also with the DMO. “Thereafter, the approval of the federal executive council (FEC) is sought. It is only after the approval by FEC that His Excellency requests for the approval of the National Assembly (NASS) as required by section 41 of the FRA, 2007. More importantly, it is only after the approval of NASS that the loans are taken and Nigeria begins to drawdown on the loans,” she also states. In summary, borrowing is a joint activity between the executive (FEC) and the legislative (NASS) arms of government.
The rigor involved in the loan documentation could not miss her explanations; the loan agreements, according to her, “are reviewed by legal officers of the Federal Ministry of Justice and the legal opinion of the Honourable Attorney-General of the Federation (AGF) and Minister of Justice is obtained before any external loan agreement is signed.”
On whether China can take possession of the projects financed by them if Nigeria defaults in the servicing of the loan? Oniha also explains: “Firstly, Nigeria explicitly provides for debt service on its external and domestic debt in its annual budgets. In effect, this means that debt service is recognised and payment is planned for. In addition, a number of the projects being (and to be) financed by the Loans are either revenue generating or have the potential to generate revenue.
It would be recalled that Mrs. (Dr.) Zainab Ahmed the Honourable Minister of Finance, Budget and National Planning, had earlier in the year reaffirmed her position that Nigeria does not have a debt problem but the challenge of under-performing revenues, which makes debt service obligation a struggle for the country. Then, before the outbreak of globally threatening coronavirus (COVID19), she had insisted that at about 19 percent of its gross domestic product (GDP), Nigeria has no debt crisis, but that of revenue.
However, Mrs. Ahmed did acknowledge that there is a problem. According to her, what Nigeria has is a revenue challenge. She also noted that since this problem was identified, the President Buhari-led government has been working hard to solve it by looking at various means to boost revenue. “Currently, Nigeria’s debt is at N25 trillion; that is about $83 billion. And at $83 billion, we are just at 18.99 percent…So, 19 percent debt to GDP. I hear people say Nigeria has a debt problem. We do not have a debt problem. What we have is a revenue challenge and the whole of this government is currently working on how to enhance our revenues, to ensure that we meet our obligation to service government as well as to service debt.”
In recent months, global crude oil prices have plummeted due to an outbreak of the coronavirus across almost all nations of the world. Not long ago, Nigeria’s government revised the 2020 budget oil benchmark from $57 per barrel to $28 while production output was also revised from approximately 2.1 million barrels to 1.7 million per day.
There were key highlights released at the webinar conference by Ahmed which includes plans to defer debt service obligations to 2021 and beyond until macro conditions improve. Shedding further light, the minister had stated, “it is not debt forgiveness; it is just rescheduling of our obligations.”
August 6, 2020
Diplomatic immunity not same as commercial immunity say Malami, Ameachi
By Joyce Babayeju
Minister of Justice and Attorney General of the Federation, Abubakar Malami today joined Minister of Transportation, Rt Hon. Chibuike Rotimi Amaechi to set the records straight on Nigeria’s sovereignty not being at risk in the country’s loan agreements with China.
There is a difference between international diplomatic immunity ‘which has to do with a nation’s sovereignty, independent existence’ and commercial immunity which has to do with a commitment to ensure repayment of loans’, Malami explained while answering questions alongside Amaechi on a TV programme, Tuesday.
He said the misconception is that the National Assembly is looking at the diplomatic immunity as against the commercial immunity of a country when it has to do with loans, adding that there is no concession whatsoever made as it concerns Nigeria’s diplomatic immunity.
“If you talk of immunity within the context of diplomatic immunity which has the implication of the independence of a state and its institutions in its own right, there is no concession whatsoever made by Nigeria as it relates to diplomatic immunity that has to do with its independent existence as a nation, neither was any concession made as related to institutional diplomatic immunity of the Nigerian institutions.
“But when you talk of immunity within the context of commercial sense, that is where I think we need to clarify issues with particular reference to the loans and commercial transactions among nations.
“Concessions relating to immunity for the purpose of provision of commercial guarantee are a normal, traditional ritual. Nations enter into respective interstate agreements and in the course of so doing, surrendering their jurisdictional immunity.
It is on account of that for example that you see Nigeria signing an agreement with other institutions or nations and agreeing to a choice of territorial jurisdiction for the purpose of determining disputes when they arise.
So that is how eventually you see Nigeria submitting to jurisdiction for determination of a trade dispute in UK, in Paris and in other international fora or jurisdiction even when Nigeria as a nation has diplomatic immunity.
“And now that brings you to commercial immunity. The context and the implication of a commercial immunity or sobriety.
It’s indeed embedded in an appreciation that country A requests for a loan facility from country B and then country B is entitled as a matter of right to extract a commitment, an understanding that at the end of the day, the loan advance will eventually be paid. So it is indeed a concession and sobriety, giving an undertaking, providing a guarantee for repayment of the facility when the need arises.
“So commercial immunity is in essence a mere guarantee that allows an advancing state an opportunity, right and power to claim back the financial advances made to a party state and that in its own right is indeed to an asset for the purpose of repayment of the loan.
It is in no way extended to perhaps concession to diplomatic immunity by which you now surrender the rights, privileges and independence of a nation state. But it is a commercial term that is restrictive, exclusive to an asset, a commercial asset for that matter in the event of default,” Malami said.
The AGF added that the clause is a mere guarantee, a commitment that allows an advancing state (the lender) the powers to claim back an asset for the purpose of repayment of a loan and is in no way connected to the sovereignty of a country.
“The bottom line is to appreciate the difference between International diplomatic immunity which in its essence and right is an immunity relating to the independent existence of a state, and a commercial immunity which in essence is a commitment that you are now conceding that in the event of default of payment of an advanced amount of money, you will have the right to now attach the commercial asset of a borrowing state for the purpose of satisfaction. So that is where I think the misconception set in. Misconception to the effect that the National Assembly is in essence looking at the international diplomatic immunity as against commercial immunity which in its own right is operated only to guarantee the repayment of the advanced loan,” he stated.
On his part, Minister of Transportation, Chibuike Amaechi again dispelled the notion that Nigeria’s sovereignty has been signed off to China in obtaining the loans.
He said, “Nobody has signed out anything. A sovereign nation is a sovereign nation, nobody can recolonise us. We must learn to pay our debts and we are paying, and once you are paying, nobody will come and take any of your assets.
Amaechi said the previous administration cannot even be blamed for the loan or clause in the agreement because it is a standard clause.
“We will not blame President Goodluck Jonathan’s government for taking the loan, because like I said, it is a standard clause in every loan agreement. That clause enables the lending country to go to arbitration. It creates an avenue for them to be able to retrieve their funds in the case of a default.
If therefore there’s an asset that has been mortgaged, they must be able to get to that asset. If you don’t waive that immunity, they cannot. It’s a standard clause in every international loan agreement.
“If the National Assembly says we have signed out the sovereignty of our country, so why did they approve? Didn’t they see it before approving?”
August 4, 2020
China scores milestone with launch of BeiDou Global Satellite Navigation System.
By Dr. Austin Maho
In a major landmark on June 23, China successfully launched from the Xichang Satellite Launch Center in Sichuan Province, its latest satellite of the Beidou Global Satellite Navigation System.
By this feat China has significantly boosted it geopolitical clout as the system is a rival to the United States owned and controlled Global Positioning System (GPS)
The launch represents the final step in a series of satellite launches conducted by China throughout the early months of 2020
The final launch on June 23 successfully delivered into orbit the 55th and final satellite of the Beidou third-generation constellation thereby completing the network
Information from Chinese media shows that the launch was “a complete success,” and described by Xinhua news agency shortly after the launch as “a milestone in the nation’s space endeavor”
Chinese President Xi Jinping, himself was on hand to officially commissioned the system at a ceremony at the Great Hall of the People in Beijing, to underscore the importance of the launch.
President Xi declared during the launch that the 55th and final geostationary satellite in was operating successfully having completed all tests.
The BeiDou satellite system started providing navigation services in 2018. According to information from the China Satellite Navigation Office, the system consists of: 3 satellites in geostationary orbit (GEO); 24 satellites in middle earth orbit (MEO); and 3 satellites in inclined geosynchronous orbit (IGSO).
The system offers positioning accuracy within 10 meters horizontal and 10 meters vertical (5 meters in the Asia-Pacific Region); a velocity measurement accuracy within 0.2 meters per second; and a timing accuracy of 20 nanoseconds.
The completion of the third-generation BeiDou system is a development with significant implications for Chinese military capabilities and also offers immense commercial possibilities especially to countries within China’s Belt and Road Initiative.
All Belt and Road countries are expected to benefit form the BeiDou Navigation Satellite System as China is making the system free to member countries. Already there is a BeiDou Navigation System Centre in the North African country of Tunisia. The centre was established in 2018 in Tunis as a Centre of excellence in Africa.
The centre is designed to serve as the gateway for Africa and Arab countries and to further space cooperation between Africa, the Middle East and China.
The system would further aid, land surveying, environmental monitoring, precision agriculture, disaster reduction, and maritime transportation. The siting of the African and Arab Centre of Baidou is a great boost to African countries and an important step in deepening mutually beneficial China Africa cooperation
BeiDou has similar capabilities like the U.S. Global Positioning System (GPS) and the Russian GLONASS network, BeiDou apart from having security applications is a civilian-led program intended for commercial and scientific purpose.
Accorting to analysts, a major advantage of the system over the US GPS system is that as well as being a navigation aid with an extremely high degree of accuracy, the system also offers short message communication of up to 1,200 Chinese characters and the ability to transmit images.
The implication is that, BeiDou can effectively, compete against US GPS, Russia’s GLONASS and the European Union’s Galileo networks.
BeiDou is also a major boost to China’s security as it does not have to rely on US GPS for guiding its missiles, with rising tensions between both countries.
China can easily counter a US intervention in a potential conflict if access to US controlled GPS is denied.
The BeiDou system would also give a boost to China’s economic and political leverage in the years ahead as all countries within the Belt and Road Initiative who would be providdd free access to the network
China have over the years developed its space cabailities in spite of limited cooperation with other countries, which included the construction of a space station, exploration on the surface of the moon among others.
August 3, 2020
Shoprite begins process to leave Nigeria
After series of loses occasioned by policy inconsistency, exchange rate volatility, double taxation among others, Shoprite, Africa’s largest food retailer, is planning to leave the Nigerian market.
In a trading update filed at the Johannesburg Stock Exchange (JSE) today, the retail giant said it was planning to discontinue its operations in Nigeria.
“Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited,” the update read.
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time.” the report said
Shoprite launched in Nigeria nearly 15 years ago, opening its first store in Lagos in December 2005. It currently has several outlets across the country
August 3, 2020
Hadiza Bala-Usman and the Nigerian Calamity
By Yemi Adebowale
Hadiza Bala-Usman assumed office in 2015 as the Managing Director of the Nigerian Ports Authority (NPA) with so much enthusiasm. She came with a reform agenda, largely, to block leakages of revenue and to stifle
companies/contractors taking advantage of the NPA to line their pockets with money due to the federal government. Hadiza hit the ground running, tackling the big boys milking the country at the ports. It was as if for once,
all revenues due to government at the ports would be realised and those exploiting the system would become history. But five years down the line, most of the steps taken by this young woman to block leakages have been successfully reversed by the powers that be in Abuja.
Hadiza is obviously tired, but still hanging on for God knows what. Her brawls with our system present some of the contradictions that have kept our country paralysed. They exemplify the tragedy of the Nigerian nation.
Let’s look at the Secure Anchorage Area, created on the Nigerian high sea by a Nigerian private company since 2014 and provides security at a high cost in USD to vessels calling at the Lagos ports. Normally, the business of protecting ships on the sea and our territorial waters is largely that of the Nigerian Navy. This is backed by our laws. Over the years, the NPA assists the Navy with equipment to carry out this task.
Unfortunately, the leadership of the Navy provides the services to the Hosa Wells Okunbo-led firm in charge of the so-called Secure Anchorage Area exploiting foreign ships heading to Lagos ports. Vessels purchased by the NPA for the Navy to secure our waterways are used to service the secure anchorage.
The SAA managers tell ship owners that they run the risk of being attacked by pirates if they don’t use the secure anchorage. Nigerian consumers are paying heavily for this. How? The cost of shipping goods to Nigeria increases with this extra security bill for ships, which is invariably passed on to the final consumers – Nigerians.
Hadiza moved against the cartel, declared the operation of the secure anchorage firm illegal and pressured the Navy to assume its responsibilities. Unfortunately, nothing happened thereafter. The Navy snubbed her and refused to kick out Hosa Wells Okunbo, while the powers that be in Abuja refused to back Hadiza. Of course, one powerful cabal is running the show at the secure anchorage. Hosa Wells Okunbo is a key member of the ruling APC. He dines with any government in power.
His conspirators, the Nigerian Navy leadership inclusive, are Nigerians above the laws of our land. This is why a private company can slice out a portion of our territorial waters and name it, “Secure Anchorage Area”, then, charge foreign vessels in USD for protection. It can only happen in Nigeria.
The big men in Abuja are not concerned about Nigeria’s security and the rising cost of shipping goods to Nigeria. For obvious reasons, those with statutory responsibility for the security of the country’s waterways – Nigerian Maritime Administration and Safety Agency (NIMASA), Marine Police, and the Nigerian Navy – are unperturbed by the activities of the secure anchorage firm.
Early this year, a frustrated NPA wrote to all Mariners in the Lagos Pilotage Area, warning against patronising the Hosa Wells Okunbo’s SAA. It states: “NPA is ensuring a safe NPA Lagos Anchorage (NPA LA) in the Lagos Pilotage District (LPD).
The Secured Anchorage Area (SAA) whose Centre Point Coordinates 06° 17’30N/003° 12’00E and radius of 2.5NM is discontinued with immediate effect. NPA Lagos Anchorage (NPA LA) is now the only designated anchorage in the Lagos Pilotage District (LPD). Owners, Agents and charterers should ensure that the contents of the Lagos Pilotage District notices to Mariners are made known to their Masters and persons in-charge of their vessels and marine operations whilst within the jurisdiction of this Pilotage District.”
It is still business as usual at the SAA. As at press time, Hosa Wells Okunbo and the other schemers were still smiling to the banks with their US Dollars from the secure anchorage, while Nigerians are forced to pay more for goods shipped into the country. Vessels pay $2,500 for the first day at the anchorage and $1,500 for following days. Some stay as much as 30 days before exiting the anchorage. The talk about war against corruption does not apply here. What a country!
Hadiza’s NPA also moved to ensure that the federal government gets full value for its land at Tarkwa Bay, Lagos, by sanctioning Amy Jadesimi’s Lagos Deep Offshore Logistics Base (LADOL) for allegedly violating the terms of the land leased to it in the area. LADOL is profiting at the expense of the federal government by sub-leasing 11.2 hectares of the total 121 hectares leased to it at huge amount without recourse to NPA. The firm is believed to have collected $45 million from Samsung Heavy Industries Nigeria Limited (SHIN) for the sub-leased land for which it paid $524,105 to the NPA.
The land lease was revoked by Hadiza and the firm was granted a fresh lease under new terms, excluding the 11.2 hectares that constitute the premises of the fabrication and integration yard of SHIN. The 11.2 hectares was then leased to SHIN at $219,700 annually. The powerful LADOL mounted pressure on the big boys in Abuja and Hadiza was told to step back. So, LADOL retains its deal with SHIN, and it is still beaming to the bank at the expense of Nigeria.
What about the Calabar Channel dredging contract scam? NPA paid $15 million to a company called Niger Global Ltd for the dredging of the Calabar Channel. Hadiza came in and terminated the contract for non-compliance with due process and requested for a refund of $15 million payment made to the company for lack of evidence of dredging claimed. The firm is yet to make the refund and the promoters are walking free.
The termination of BUA Terminal lease agreement in Port Harcourt, over non-adherence to development plan, has also been tactically reversed. NPA moved against the terminal over health and safety issues. The owner of BUA pressed the Abuja button and Hadiza was asked to step back.
So, what happened to Hadiza and her reforms at NPA? What happened to all her moves to ensure that the federal government gets good returns from its ports and surrounding land? The NPA boss was simply swallowed by the big men in Abuja and some chieftains of the ruling All Progressives Congress.
Hadiza was told to keep off Secure Anchorage, OMSL Limited, LADOL, Niger Global Ltd, BUA Terminal and the rest of them. At the NPA, the hypes about accountability and transparency by the Buhari government have been discarded. This is the tragedy of the Nigerian nation I have been talking about. For Hadiza, I am shocked that she is still parading herself as the Managing Director of the NPA. She ought to have resigned to make a statement. This is the only way we can build a new Nigeria.
August 1, 2020