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Home Blog Page 3545

Effective Hybrid Working In The Age of Remote and On-site

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To adapt to recent changes in the work environment, workplaces are now adopting a two-tiered workforce. This means having some completely remote workers and some that are entirely on-site. This is different from a hybrid work plan where your workers work a couple of days remotely and the remaining days on-site.

With a two-tiered workforce, the employer would define the job descriptions and define those that a remote talent can do and those that require physical presence at the office location. For instance, you could decide to have the customer service and marketing team work remotely so long as they deliver on their targets and KPIs. On the other hand, the logistics department may need to be entirely on-site to ensure that orders are correctly packaged and sent out for delivery.

It may not always take this form, though. For instance, even within a department, one or two roles could be remote, while the others would be on-site. The implication is that you could have people work together for months without physically meeting.

Why a two-tier workforce?

The global talent pool has many more options for you as an employer and could give you the ability to get some of the best talents in a role outside your physical location. So, while you can have the on-site team doing their part, it is okay to tap from some outstanding talents outside your location. Remote work allows organizations to access a diverse talent pool, breaking geographical barriers and fostering a more inclusive hiring process.

Since this offers the employer flexibility to tap into a wealthy global talent pool, it comes with challenges. Mainly, it can create a sense of division and isolation between team members if there is no proper structure or culture to manage the situation. There could be a breakdown in communication, collaboration, and overall team cohesion.

Conversely, many remote workers report higher productivity levels, citing fewer distractions and a more comfortable work environment as contributing factors. Also, the on-site team may experience increased productivity due to a focused work environment and immediate access to resources.

Challenges you can expect with a Two-tier workforce

  1. Communication Disparities:

The absence of casual, in-person interactions that typically characterize an on-site team will be missing in a two-tier workforce, impacting team building and camaraderie. Also, occasional breakdowns in effective communication can lead to misunderstandings, missed information, and a lack of cohesion.

2. Cultural and Team Dynamics:

Team dynamics may differ between remote and on-site teams, potentially leading to feelings of exclusion or a lack of understanding. This way, establishing a unified organizational culture transcending physical locations becomes crucial to maintaining a cohesive workforce.

How to get the best of a Two-tier workforce

  1. Make use of Unified Communication Platforms: The use of robust communication tools can facilitate seamless collaboration and real-time interaction for both remote and on-site teams. Also, the management will need to include regular video meetings into the schedule, plus some other virtual team-building activities that can help bridge the communication gap and build some camaraderie.
  2. Equal Access to Opportunities: Ensure remote and on-site employees have equal access to career development opportunities, promotions, and recognition programs. Implement transparent performance evaluation processes to mitigate bias and ensure fairness.
  3. Cultural Integration Initiatives: Establish initiatives that foster a sense of unity and shared identity among all employees, regardless of their physical location. Come up with fun projects that get team members across departments to collaborate and work together.

Dangote Refinery Gears Up for Production as First Crude Shipment Arrives

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Nigeria’s monumental $19 billion Dangote Refinery project is set to commence fuel production as the first crude shipment arrives at the facility, marking a significant milestone for the country’s oil industry.

The OTIS tanker, carrying a 950,000-barrel cargo of Nigeria’s Agbami crude, set sail on December 6 and is en route to Lekki, the nearest land port to Dangote’s offshore crude receiving terminal, according to industry sources and tanker tracking data reported by S&P Global. The tanker is expected to arrive on December 7 around 8pm.

This development follows months of delay that has dampened the hope of many Nigerians who are hoping on the refinery to ease the pain of the high cost of petroleum products, orchestrated by the petrol subsidy removal.

The state-owned Nigerian National Petroleum Company (NNPC), which holds a 20% stake in the refinery with a payment mechanism that includes both cash and crude oil supply, chartered the Suezmax tanker, symbolizing the initiation of crude supplies for the refinery’s operations, according to industry reports.

While many attribute this development to the NNPC’s reported plans to supply the Dangote Refinery with six crude oil cargoes in December for a test run, it unequivocally signifies the initiation of the refinery’s full-scale operation.

Despite the refinery’s official completion in May, the lack of domestic crude feedstock had hindered oil product manufacturing. To address this, the NNPC recently entered an agreement to supply 6 million barrels of crude oil as feedstock to the Dangote refinery in December, aiming to kickstart operations.

However, a development last month, when a report emerged that the NNPC is facing challenges in meeting its obligation, cast doubt on the refinery’s capacity to commence operation. The NNPC is expected to supply crude oil worth $1 billion to the Dangote Refinery, part of its payment for the acquisition of a 20 percent equity stake in the refinery.

The Agbami crude, operated by Chevron, is one of Nigeria’s major deepwater developments with a daily output of approximately 100,000 b/d in the central Niger Delta. It is known for its light sweet crude qualities with a specific gravity measuring 47.9 API and a low sulfur content of 0.04%, yielding significant proportions of naphtha and kerosene.

NNPC has chartered further shipments from various Nigerian offshore fields to the refinery, signifying the beginning of a series of scheduled crude supplies throughout this month, according to industry insiders.

The Dangote Refinery, located on the outskirts of Lagos, faced recurrent delays since its announcement in 2013. Despite substantial installation progress in 2019, delays persisted.

In June, a report from Energy Times indicated that the refinery is not anticipated to become operational until March 2024. This delay was attributed to the refinery being at an 88% completion stage, with some equipment still awaited from manufacturers. Additionally, those components that had been installed were yet to undergo the necessary integrity tests at the commissioning stage.

The refinery, designed to process multiple crudes concurrently, aims to process three Nigerian crude grades — Escravos, Bonny Light, and Forcados. At full operational capacity, the facility is expected to produce a daily output of 327,000 b/d of gasoline, 244,000 b/d of gasoil/diesel, 56,000 b/d of jet fuel/kerosene, and 290,000 mt/year of propane/LPG.

While Dangote officials anticipate an initial output of 370,000 b/d, industry analysts expect the refinery to reach its full operational capacity around mid-2025, though potential delays still loom.

The commencement of Dangote’s operations raises hopes for Nigeria’s aspiration to reduce its reliance on petrol imports, potentially transforming the country’s oil industry landscape.

Nigerian Banks Directed to Remove Non-Deposit-Taking Financial Institutions from Fund Transfer Channels

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Banks in Nigeria have received a directive from the Nigeria Interbank Settlement System Plc (NIBSS) to eliminate non-deposit-taking financial institutions from their NIP (NIBSS Instant Payment) fund transfer channels. 

The affected entities include switching companies, payment solution service providers (PSSPs), and super agents. The NIP fund transfer channels encompass USSD, mobile banking apps, POS, ATMs, as well as web and internet platforms.

According to the circular issued by NIBSS, the inclusion of non-deposit-taking financial institutions as beneficiaries on NIP funds transfer channels violates the Central Bank of Nigeria (CBN) Guidelines on Electronic Payment of Salaries, Pensions, Suppliers, and Taxes dated February 2014.

The circular explicitly states, “listing non-deposit taking financial institutions such as switching companies (switches), Payment Solution Service Providers (PSSP), and Super Agents (SA) as beneficiary institutions on your NIP funds transfer channels contravenes the CBN Guidelines.”

However, the circular clarifies that while these financial institutions will be prevented from receiving inflows, they are permitted to process outflows as inflows to banks. It emphasizes that switches, PSSPs, and SAs may process outward transfers as inflows to banks but cannot receive inflows, as their licenses do not permit them to hold customers’ funds.

“For clarity, Switches, PSSPs, and SAs may process outward transfers as inflows to Banks but are not to receive inflows as their licenses do not permit to hold customers’ funds,” the NIBSS stated.

This action aligns with the New License Categorization of the Nigerian Payment System, which specifies that among various payment licensing categories—such as Switching and Processing, Payment Solutions Services encompassing Super Agent, PTSP, and PSSP—only MMOs, standing for Mobile Money Operators, are authorized to hold customer funds.

The enforcement of this policy will impact fintechs without banking licenses, requiring their removal from banks’ fund transfer channels. These platforms will still be able to facilitate outward transfers to banks but won’t be able to receive fund inflows. 

While the directive is geared towards regulatory compliance and adherence to CBN guidelines, it may have consequences for small business owners who heavily rely on these fintech platforms for their financial transactions. 

The expectation is that affected fintechs will swiftly pursue banking licenses to continue their operations without interruptions. Hence, fintech companies aiming to provide specific deposit-taking services may opt for Microfinance Banks (MfBs), while larger entities such as telecommunications companies choose Payment Service Banks (PSBs) if they intend to offer such capabilities.

Several fintech companies such as Opay, PiggyVest, and Flutterwave, who are not affected by the new directive, have quickly issued statements to allay the fears of their customers.

OPay: “We wish to state that OPay is not affected by the recent circular published by NIBSS. The focus is on Payment Service Solution Providers, Switches and Super Agents. OPay is a Mobile Money Operator (MMO) licensed by the CBN and insured by the NDIC. Your funds are safe and secure with OPay.”

Piggyvest: “Hi guys! Kindly note that Piggyvest is not affected by the recent NIBSS circular. Please disregard the misinformation. All Piggyvest virtual account numbers are provided by our licensed partners and do not fall into any of the listed categories. Your funds remain safe.”

Paystack: “Hi team, we wanted to reassure you that the recent NIBSS circular does not impact Paystack-Titan or any other Paystack services. We developed Paystack-Titan in partnership with Titan Trust Bank in a way that allows the service to operate compliantly, and it passed review from NIBSS.”

PocketApp: “Hello, Following the recent NIBSS circular, kindly note that PocketApp is a Mobile Money Operator duly licensed by the CBN under Abeg technologies. Our virtual account numbers are provided by licensed bank partners and they do not fall into any of the categories listed by NIBSS. Rest assured, your funds remain safe.”

Flutterwave: “The recent NIBSS circular has ZERO impact on our services because we are not deposit-taking like a bank. We are a licensed Switching and Processing company & an International Money Transfer Operator – this means our services remain unaffected, and we will continue to deliver best-in-class excellence to you, our customers. We are connected to NIBSS for the purpose of outward money transfer in Nigeria. Rest assured, we are open for business as usual!”

The affected fintechs are listed below: 

Fintech Unicorn Flutterwave Secures Money Transfer Licenses For 13 U.S States

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Nigerian Fintech Unicorn Flutterwave has announced the securement of money transfer licenses for 13 U.S. states.

This license will enable faster, more affordable, and secure transfer of money from the United States to Africa and back.

The states include Arizona, Arkansas, Maryland, Michigan, Delaware, Georgia, Maine, Mississippi, Missouri, New Hampshire, Iowa, North Dakota, and South Dakota.

Flutterwave’s 13 new licenses is in addition to its partnership with another licensed financial institution which enables the startup to serve customers in 29 states in the U.S.

Announcing this feat, the company’s CEO Olugbenga Agboola said,

“I’m pleased to share that Flutterwave has acquired money transfer licenses in 13 new states in the US and can now operate in 29 US states.  Making transfers to and from the USA is about to get faster, cheaper, and super secure. That’s great news for our Send App by Flutterwave and users and for our Flutterwave’s enterprise clients that use our trusted services for last-mile payout globally.

“In our bid to connect Africa to the global economy, we’re focused on providing trustworthy solutions that bridge that payment gap while also saving time, money, and effort! This is another step in that direction and I’m personally excited to see the massive opportunities that come from it. Our journey is just getting started and the road ahead is long but we’re more than capable.”

Also speaking on Flutterwave’s new license in the U.S, Executive President, of Global Expansion and Partnerships at Flutterwave Stephen Cheng said,

“Getting these licenses expands our regulatory footprint, demonstrates our ability to deliver services with safety and soundness, and fosters the trust of regulators, partners, and customers. We are growing and are committed to servicing customer needs in as many geographies as possible with a significant African Diaspora. These licenses reflect our commitment to working with regulators across various markets, following their requirements, and ensuring the safety of customer funds. We will continue to create an environment of safety and trust”.

Sending money from the United States to Africa can sometimes be challenging for the African Diaspora. With Flutterwave’s new money transfer licenses in the U.S, this will enable a swift and seamless transfer of funds.

This significant move solidifies Flutterwave’s position as a key player in the fintech ecosystem, reflecting the startup’s commitment to ensuring the easy flow of cross-border transactions from the diaspora community back home, via its Send App.

The company enables international payment processing in 150 currencies and multiple payment modes, including local and international cards, mobile wallets, bank transfers and barter by Flutterwave, among others.

With its resilience and commitment to the African community, Flutterwave continues to transform the way Africans transact on the continent and worldwide.

Aggregation, Smiling Curve and Why Nigeria Is Disconnecting Many Fintechs from NIBSS’ Instant Payment Outward System

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In 2018, I wrote a simple post and a Kenyan member of parliament asked to speak with me. I had written that the ordinance which Kenya was trying to approve WeChat Pay in the nation could pose challenges to its banking system:

 “The Kenyan banking regulator has run a regulatory regime where market forces are allowed to play. Allowing WeChat and Alipay in Kenya would certainly have real challenges to the Kenyan banking system. Even in China, WeChat has become so popular that local banks are having liquidity problems as what users do is to move their monies from their bank accounts into WeChat, and from there spend as they want. The banks have become pipelines into and out of WeChat and nothing more.

“For the banks, this is a very huge test because if WeChat warehouses lots of cash in its platform, some banks may fold. Interestingly, that is what Alipay and WeChat plan to do”. Kenya changed the structure!

On Dec 5, 2023,  the Nigeria Inter-bank Settlement System (NIBBS) sent a circular, and asked for switches, superagents, and payment solution service providers, to be disconnected from the NIBSS instant outward payment system. NIBBS noted that these companies are “non-deposit taking financial institutions”, and by implication should not “hold customers’ funds.”

The next day we received a list of companies which are alleged to have contravened this policy. Simply, most of the major fintech companies in the payment space are affected.  

Good People, while these fintechs are not the real culprits, but if you are paying attention you will notice that Nigerian banking is under stress despite the “huge profits” they declare yearly. Those profits are vapour-profits, powered by mindless fees on customers and FX-anchored arbitrages.  When it comes to real banking, which is interest-anchored banking, Nigerian banking has disappointed.

And that disappointment is evident as there is no catalytic project in Nigeria which any bank can come and claim that it funded. In America, banks tell you dams, bridges, etc they financed and challenged Americans to support them so that they can finance the future for shared prosperity and progress.

Why are banks under stress? It has to do with the aggregation business model. These fintechs which have figured out how to aggregate users are capturing value, making it challenging for banks. In other words, one fintech handles $14 billion monthly in Nigeria and if a huge part of that stays in its wallet, that is money not for the banks to lend. It is key to note that Nigeria’s largest financial institution does not have a bank license; it is a fintech aggregator which delivers APIs which millions of users use to collect payments.

And the big one, when these startups operate, they stay at the edges of the smiling curve where they capture value. What that means is clear: they can quickly improve gross margins at a pace banks which fund the foundational stacks cannot.

So, in the end, the government wants to help the banks, to ensure the deposit funds stay with them so that they can fund businesses via loans. This is not a new policy across nations; in small regions in China, fintechs are mandated not to allow funds to stay more than 3 days in wallets without moving them to banks. China did that to save many small banks which were running into liquidity problems due to WeChat and AliPay.

It does seem like Nigeria just woke up. Yet, this should not affect these fintechs as their business models are not built on lending. So, not holding the customers’ funds will not derail them at scale.