Foreign airlines operating in Nigeria have contested claims by the Central Bank of Nigeria (CBN) that the outstanding foreign exchange (FX) obligations have been successfully settled.

This is coming against the backdrop of lingering efforts by the CBN to clear trapped airlines earnings, which has stood in the way of the operation of some of the International Air Transport Association (IATA) members in Nigeria.

Kingsley Nwokeoma, President of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), adamantly stated that there has been no discernible change regarding the clearance of foreign airlines’ trapped funds.

“If they say they have cleared the trapped funds, they should show us figures. They should tell us how much have been cleared. The last I checked, the status quo still remains the same,” Nwokeoma told BusinessDay.

Nwokeoma’s assertion comes a day after Hakama Sidi Ali, acting director of corporate communications at CBN, announced that the financial regulator had recently finalized payments totaling $1.5 billion, effectively addressing the residual balance of the FX backlog. But she also disclosed that independent auditors from Deloitte Consulting meticulously assessed these transactions, ensuring that only legitimate claims were honored.

“Any invalid transactions were promptly referred to the relevant authorities for further scrutiny,” Mrs Ali said.

However, Bankole Bernard, chairman of the Airlines and Passengers’ Joint Committee (APJC) of the International Air Transport Association (IATA), provided a nuanced perspective, acknowledging the clearance of trapped funds while highlighting lingering challenges.

Bernard revealed that while foreign airlines were offered the option to retrieve their funds from banks using the rate of the Investors and Exporters (I&E) window, they expressed reluctance due to disparities between the current official (NAFEM) rate and the rate at which tickets were initially sold. This discrepancy poses potential financial losses for airlines, prompting them to adjust pricing strategies to mitigate the impact of exchange rate fluctuations.

The standoff between foreign airlines and the CBN over trapped funds resulted in Emirates Airlines’ suspension of flight operations in Nigeria in late 2022, marking the second instance of such action.

Asked while Emirates has not resumed operations in Nigeria if truly the FX backlog has been cleared, Bernard attributed Emirates’s decision to hold back to a diplomatic dispute between the United Arab Emirates (UAE) and the Nigerian government, exacerbated by concerns over crime and safety in Dubai.

“The crimes Nigerians are committing in Dubai has made them refuse Nigerians from coming to Dubai. These crimes affect tourism. They do not want their country to be perceived as unsafe. Emirates still has their office in Nigeria and they have staff they are paying salaries,” he told BusinessDay.

Emirates’ withdrawal from the Nigerian market reflects broader challenges within the aviation industry, with trapped earnings reaching critical levels. In October 2022, Emirates suspended its services citing the inability to repatriate earnings amounting to $85 million amidst a total trapped fund exceeding $500 million. Nigeria’s situation is emblematic of global FX challenges, with IATA reporting outstanding obligations totaling $2.27 billion, with Nigeria accounting for a significant portion.

The crux of the issue revolves around the exchange rate mechanism utilized in settling the backlog between foreign airlines and the CBN. Both parties are engaged in negotiations, seeking to minimize potential losses emanating from Nigeria’s volatile FX market.

The United States government has filed a lawsuit against Apple, accusing the tech giant of monopolizing the iPhone ecosystem and crushing competition. In the lawsuit, the department alleges the company used its control of the iPhone to illegally limit competitors and consumer preferences, and in the process squashing innovation, BBC reports.  Apple denies the claims and promises to fight the lawsuit.

Good People, like China, America maketh and America also controls. Like I wrote when the world was predicting that Facebook (yes, Meta) was in trouble and could be broken, positing that it would not happen, America will not do anything that will harm Apple in the age of Huawei.

If you decide to break Facebook apart, one part will grow and dominate others. This is possible because of the positive continuum of network effect where the biggest keeps getting bigger and also better. I explained that in a recent piece in the Harvard Business Review. You can regulate Facebook but another company will come to take over its position because in this sector, it is winner-takes-all. Yes, the best wins.  Why? The scalable advantage improves with lower marginal cost.

This is my take: U.S. will not regulate Facebook or its web companies at the level many are expecting [I expect nothing to change except cosmetics reporting of violations] because it knows that Chinese competitors which are also well-funded will go after Facebook users across the globe. And even if U.S. regulates Facebook by breaking it, the best surviving part will grow to dominate over time because of network effect where the best gets better and bigger. We just have to agree that Facebook is an ICT utilities and I was very happy when my editors in Harvard allowed me to use that against the company. You negotiate with your utilities [ electricity, water] because you have no alternatives. That is where we are with Facebook.

Yes, no one will go after breaking Apple but this lawsuit could do one thing everyone wants to see in Apple: that the iPhone belongs to the village, and not just Apple Inc. Like in the Igbo Nation where kids are named “Nwaoha’ [a child to the whole village], the success of the iPhone does imply that Apple must look at it from that angle. The iPhone is a platform for commerce and Apple must allow markets to operate.

 Yes, if  “uwa bu ahia” [the world is a marketplace], Apple must allow the iPhone, one of the main tools in the market, to operate a lot more freely!

Indeed, the restrictions on how to collect payment is unfair and causing so many problems for Apple creators and builders. I am in support of the US Government to get that freedom for the world, from Apple.

What are you building? Remember: firms win by accumulating capabilities. From Google to Amazon, from Dangote Group to Indomie Noodles’ parent company, when companies accumulate capabilities, they operate in domains that generate higher value (usually upstream) compared with where most firms operate (usually downstream). Dangote Group can deploy massive assets and technical know-how in cement production, making it harder for new entrants and rivals.

JP Morgan has a balance sheet that is a “fortress” which means it is impenetrable and cannot fail. In other words, it has accumulated asset classes and clusters of resources that this bank can operate in ways no other global bank can.

When companies accumulate capabilities, they move to become category-kings which dominate their market and territories, through asymmetric competitive advantages on factors of production they have access to and utilize.

In this video, I explain how we can begin small (at the downstream level) and then transition to the upstream where more value is found in markets. It is about visioning and pursuing the best way to fix frictions in markets.

What do you think quitting means? Resigning from a job? Making a dramatic exit or even a dramatic exit speech?

Well, that differs from the situation at least 50% of the time. A more subtle and insidious trend is gaining traction in today’s workplace: “quiet quitting.“

Imagine a scenario where an employee, once enthusiastic and proactive, gradually becomes disinterested and passive. They no longer participate actively in team meetings, their productivity dwindles, and their once vibrant energy seems to have dissipated. They say “Yes sir” to everything without contributions and arguments. They are still at work, of course, but these days, they are doing enough to prevent them from getting fired. Their mind and spirit have already checked out despite physically showing up to work. This is the essence of quiet quitting – a silent departure from the job, often unnoticed until it’s too late. Quiet quitting refers to disengaging from one’s job and slowly withdrawing effort and commitment without overtly announcing an intention to leave. It presents unique challenges for employees and employers, and its implications for workplace productivity are immense.

Gallup’s 2023 State of the Global Workplace report surveyed 122,416 employed respondents over 15 years of age in more than 160 countries from 2022 to 2023. The report concluded that 59% of workers worldwide were “quite quitting.” Even more, it estimates that this quiet quitting is costing the global economy $8.8 trillion, or 9% of global GDP.

I find it most interesting that survey findings suggest that employees do not even realize when they have “quiet quit”. They fulfil their job requirements and do nothing more.

If you are an employee, recognizing the signs of quiet quitting within yourselves can be a crucial first step. It may manifest as a growing sense of disillusionment, a lack of motivation, or feeling undervalued or unappreciated. It is essential to take time to introspect and understand the root causes of these sentiments. Are there unresolved issues in the workplace? Are personal or professional growth needs being met? Are there issues of poor wages or a general lack of satisfaction? By identifying these underlying factors, employees can begin to address them proactively.

Moreover, open communication is vital. Rather than silently disengaging, you should strive to express your concerns and frustrations constructively. This could involve scheduling a meeting with their manager to discuss workload, career progression, or other relevant issues. By initiating these conversations, employees gain clarity for themselves and provide an opportunity for their employers to address any potential grievances before they escalate. Suppose after having this conversation, it becomes clear to you that there are not going to be any changes from your employer, or you still cannot picture a career future at the company. In that case, you can go ahead to plan your career move right away, instead of opting for quiet quitting. Your job should be free of the point in your career where you can get comfortable with doing the bare minimum.

Employers must remain vigilant and attuned to the signs of quiet quitting. It might take a dedicated HR professional to detect this, especially when the employer is very busy pursuing deals for the company. A culture of openness and transparency can really help you out here because if employees feel comfortable voicing their concerns without fear of reprisal, they will.

Have regular check-ins and performance evaluations to help identify any dips in engagement or productivity early on so that you can intervene before the situation deteriorates.If you notice any of these and need to discuss them with your employee, your tone should be more empathetic than vindictive.

As an employer, you should also strive to create an environment that fosters employee engagement and satisfaction. This could involve providing opportunities for skill development and career advancement, recognizing and rewarding outstanding performance, or simply fostering a sense of belonging and camaraderie within the team. Investing in employees’ well-being and professional growth can mitigate the risk of quitting quietly and cultivate a more motivated and productive workforce.

In addition to these proactive measures, employers should be prepared to address quiet quitting head-on. This may involve initiating honest and empathetic conversations with affected employees to understand the underlying reasons for their disengagement. It’s essential to approach these discussions with an open mind and a willingness to listen without passing judgment or jumping to conclusions.

Employers also need to be receptive to feedback and willing to implement necessary changes to address any systemic issues contributing to quiet quitting within the organization. This could involve reassessing workload distribution, improving communication channels, or reevaluating policies and procedures that may hinder employee satisfaction and engagement.

Addressing the quiet quitting phenomenon requires a collaborative effort between employees and employers. It’s not enough for employees to silently disengage from their jobs, nor is it sufficient for employers to disregard the warning signs. By fostering a culture of open communication, mutual respect, and continuous improvement, organizations can mitigate the risk of quitting and create a more fulfilling and productive work environment for all.