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Angola Quits OPEC Over Output Dispute, Exposing the Rift in the Oil Cartel

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The Republic of Angola’s abrupt departure from the Organization of the Petroleum Exporting Countries (OPEC) marks a decisive turn in the group’s unity, raising concerns and signaling a growing rift within the coalition of oil-producing nations.

The move announced following a cabinet meeting on Thursday, lays bare a deepening conflict between Angola and OPEC, exposing underlying tensions over output limits that failed to accommodate Angola’s diminishing oil production capacities.

Minister of Mineral Resources, Diamantino Azevedo, voiced Angola’s disillusionment with OPEC, stating, “Our role in the organization was not deemed relevant… it no longer makes sense for us to remain in the organization.”

This rupture evolved from a deal in June, which allocated a higher production target to the United Arab Emirates, compelling Angola to accept a reduced output limit for 2024, per Bloomberg.

Angola’s oil capacity has plummeted by nearly 40% over eight years to approximately 1.14 million barrels a day, accentuated by insufficient investments in aging, deepwater oil fields, according to data from Bloomberg. However, the quota debacle intensified when OPEC, following a delayed ministerial meeting, imposed an even more stringent production cap of 1.1 million barrels a day, exacerbating the already strained relations between Angola and the organization, Bloomberg reported.

This situation significantly reduced the country’s production below the target agreed with its OPEC counterparts, contributing largely to the dispute.

While Angola’s decision to exceed the imposed quota may be symbolic due to its dwindling output, it underscores the breakdown in relations between the country and OPEC. Industry analysts speculate that this move might not significantly impact global oil supplies since Angola was already operating near full capacity, disregarding OPEC+ quotas.

There’s “no impact on supply forecasts as Angola is already producing at full capacity rather than limiting output due to OPEC+ quotas,” said Richard Bronze, head of geopolitics at consultant Energy Aspects Ltd. It “doesn’t directly impact quotas or production plans for other OPEC+ countries.”

This dissent, previously expressed in private by other members, indicates a growing discord within the cartel’s leadership, potentially posing future challenges.

However, Javier Blas, a Bloomberg analyst said while Angola’s exit mirrors the limited impact of previous departures – Indonesia, Qatar, and Ecuador, it signals some troubling developments for OPEC.

“The announcement, with the government in Luanda openly expressing its frustration with the cartel, sheds some light on an open secret: Lots of OPEC member countries are less than happy about the direction the group has taken over the last few years under the leadership of Saudi Arabia,” he said.

Blas noted that the bone of contention, which has been expressed always in private by other members of the oil cartel, is that Riyadh is trying to keep oil prices too high, close to $100-a-barrel, which is propping up rivals, notably the US shale industry.

If OPEC continues doing so, he said, sooner or later it would have to cut production even more, ceding more market share. Other OPEC members would be happy with oil prices lower, in the $60-to-$70 range, he added.

This complaint is accompanied by another one: Riyadh, under its Energy Minister Prince Abdulaziz bin Salman, appears unresponsive to the concerns raised by others and is seemingly attempting to coerce dissenting views into submission.

“The departure of Angola makes it more likely that Riyadh will have to let the UAE to produce, over time, even more oil. The risks for OPEC start in Luanda — but ultimately end more dangerously in Abu Dhabi,” Blas noted.

As tensions escalate, Angola’s departure could foreshadow a more tumultuous path ahead for OPEC, triggering uncertainties in the global oil market.

Nigerian On-Demand Logistics Startup DropX Shutdown Operation

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DropX, a Nigerian on-demand logistics startup that uses an app to facilitate deliveries for businesses, has shut down after two years of operation.

In a lengthy post on LinkedIn titled “CLOSURE- We Threw in the Towel”, the startup Co-founder Praise Alli-Johnson divulged the struggles that led to the shutdown of DropX.

Disclosing the factors that led to the closure of the company, Mr. Praise, started by stating that at the initial stage, DropX set out to build a hyperlocal delivery platform, connecting businesses and individuals needing to deliver any item with independent delivery agents, which without any challenge.

He noted that the company’s user growth was smooth because businesses in need of delivery services are abundant. The company implored a strategy of offering free delivery on the first 3 orders which saw it easily onboarded 2,000 users.

However, trouble started looming for the company when there was a challenge in trying to find the balance between driver pay expectations and what users were willing to pay.

To address this, he noted that the company aligned its prices with those of Bolt and catered exclusively to high-value customers dealing with bulk food deliveries, cakes, luxury goods, etc.

Here is an overview of several other challenges that led to the shutdown of DropX, as disclosed by the company’s Co-founder Praise Alli Johnson;

Hyperlocal and Ubiquitous was a lofty ambition:

According to him, he stated that it quickly became apparent that users were scattered across Abuja, from Wuse 2 to Kubwa, from Apo to Gwagwalada. Users outside of Wuse 2, Maitama, Asokoro, and environs weren’t getting responses as they were too far apart. The company worked on getting more users in town (Wuse 2, Maitama, Asokoro, and environs, and around the Garki area), and hired corp members, all hitting the street, and the problem was solved.

• High demand:

Mr.Praise disclosed that since DropX drivers also worked for other ride-hailing platforms like Bolt and Uber, the company found itself competing for time and pricing. Demand surged from 2 PM in the City of Abuja, leading to increased delivery requests on the DropX platform.

There was an attempt to fix this by implementing a surge model like Bolt and Uber, but users disliked it, often canceling their requests. A second attempt, making surges visible to drivers only, was met with mixed success. The company ended up paying the difference just to keep orders going, meanwhile, the problem was only solved partially.

As the company’s user base expanded, he disclosed that he realized the car driver model couldn’t accommodate all user segments; as there was need for more bikes. DropX hit the street and got independent delivery bike drivers onboarded. Despite onboarding independent delivery bike drivers, the company learned they couldn’t serve their high-value clients adequately.

• The problem of options:

With both bikes and cars on the platform, everyone wanted cheaper deliveries. Requests for bikes skyrocketed, and requests for cars dropped, even the high-value clients that started using DropX because the company was using cars.

At this point, bikes weren’t enough, so we are back to the problem of high demand and failed requests. After calling to beg users to try the car option when they can’t find a bike, we decided to find a solution while we threw money at the problem again — we paid drivers the difference”, he noted

• People problem:

According to him, some users engaged in off-app deals with drivers, taking cash off the app. The company later got to a point of funding deliveries from salaries, thus not generating income.

The CEO noted that while navigating these challenges, the company continued funding delivery differences just to stay afloat. It found itself relieved on days with low delivery requests.

Founded in 2021 by Praise Alli-Johnson and Oluwatope Liasu, DropX entered the logistics scene with an ambitious goal to transform local deliveries in Abuja by connecting businesses and individuals with swift, reliable services.

UK Supreme Court Denies AI Recognition as Inventor, Raising Questions on Patent Law Evolution

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In a groundbreaking decision, the UK’s Supreme Court delivered a verdict reiterating the non-recognition of AI algorithms as inventors, marking a pivotal moment in patent law. The case revolved around US computer scientist Stephen Thaler’s pursuit of patent registration for inventions attributed to his AI creation, DABUS.

Thaler’s endeavor to secure patent rights for DABUS-generated innovations, such as a novel food container and a flashing light beacon devised in 2019, faced initial rejection from the UK’s Intellectual Property Office (IPO). The IPO’s stance rested on the premise that patents could only be attributed to human individuals or corporate entities, not AI systems.

The recent Supreme Court ruling unequivocally upheld the denial of Thaler’s appeal. Judge David Kitchin emphasized that while the case didn’t delve into the patentability of AI-generated technical advancements; patents inherently demand a “natural person” as the inventor for enforcement purposes.

He said “technical advances generated by machines acting autonomously and powered by AI should be patentable,” but patents can only be assigned to human creators, and the inventor must be a “natural person” for a patent to be effectively enforced.

This ruling aligns with a precedent set by the US Supreme Court, reinforcing that AI lacks the legal status to be recognized as an inventor. Intellectual property expert Rajvinder Jagdev underscored similar decisions across European courts and Australia, all underscoring the fundamental principle that inventors must be human individuals.

Thaler’s legal representatives voiced apprehensions about the ruling’s adverse effects on industry growth and AI integration. Conversely, the Supreme Court acknowledged the existing inadequacies of patent laws in safeguarding AI “inventions.” An IPO spokesperson embraced the ruling, saying it clarifies the current state of patenting related to “artificial intelligence machines.”

However, the decision prompts pertinent inquiries into the adaptation of patent systems to accommodate AI-generated creations. Giles Parsons, an IP lawyer, deemed the Supreme Court’s decision as “unsurprising” and anticipated minimal immediate impact on the patent framework. Parsons reiterated that AI algorithms remain classified as tools, not independent agents, within legal contexts.

The IPO emphasized the ongoing necessity for discussions on reshaping patent systems and intellectual property frameworks to effectively navigate the complexities arising from AI-generated innovations. It acknowledged that the current paradigm might not comprehensively address the multifaceted nature of AI-based inventions.

The ruling underscores the many issues facing the evolving AI industry – ranging from its perceived threat to civilization to the need for regulation. From the UK to the US, the authorities are still grappling with the exigencies of AI, making efforts to create unique rules for the industry complicated.

Elon Musk Expects X to Launch Payment Services by Mid-2024

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X CEO Elon Musk, has announced that the launch of payment services on the social networking platform, is expected to occur around mid-2024.

Speaking on X Spaces, hosted by Cathie Wood, founder and CEO of Arkinvest, Musk said he expects the payment services to be fully launched sometime in the middle of next year.

He further noted that the company’s plan to roll-out payment services, hinges on approving pending money transmitter license applications, which often involves several rigorous processes.

Musk said he would have launched payments on the social platform earlier, but was weighed down by bureaucratic processes. He added that he isn’t perturbed about the company transmitter license applications being rejected, acknowledging that X had been a bit late in submitting all necessary documents.

It is worth noting that in the platform’s bid to launch deeper into payments services, X  snapped up money transmitter licenses in a number of U.S. states last week.

On December 15,  X took a step closer to offering payment features after receiving a money-transmitter license from a 13th U.S. state. The new payment licences from the states of Arizona, Georgia, Mayland, Michigan, Missouri, New Hampshire and Rhode Island are among the first steps to be taken in a bid to launch its own payment features and thus to realise Musk vision to emulate his first payment company Paypal.

X strategic state-by-state expansion into payments is crucial, as full nationwide coverage is necessary for the platform to offer comprehensive payment services across the US. Also, it grants X the ability to facilitate money transfers and paves the way for the company to allow users to send money to one another, similar to PayPal’s Venmo.

Since acquiring X (formerly Twitter) in October 2022, Musk said he envisions transforming the social networking platform into an everything app, which is similar to popular Chinese app WeChat.

Musk had told X employees that users should be able to conduct their entire financial life on the platform, and that he expects new features to be rolled out by the end of next year.

Meanwhile, Musk’s vision goes beyond enabling payments within the US, after X CEO Linda Yaccarino confirmed in a blog post that while X has already secured money-transmitter licenses in several states, X is moving toward launching a global payment system.

If X launches payments by the middle of 2024 as proposed, it will officially have what experts said are the key ingredients of an everything app.

Supreme Court Upholds Enugu State’s Gov., Peter Mbah’s Election Victory

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In a decisive ruling, the Supreme Court on Friday affirmed the election victory of Governor Peter Mbah in Enugu State, dismissing the appeal filed by the Labour Party (LP) and its candidate, Chijioke Edeoga.

The apex court upheld the unanimous decision by a five-man panel of Justices led by Justice Mohammed Garba, affirming the validity of Governor Mbah’s election.

The LP and Edeoga’s appeal sought to challenge the outcome of the gubernatorial election that took place on March 18. However, the Supreme Court found no grounds to overturn the concurrent verdicts of the Enugu State Governorship Election Petitions Tribunal and the Court of Appeal in Lagos, which had dismissed all allegations against Governor Mbah of the Peoples Democratic Party (PDP).

Addressing the issues raised in the appeal, the Supreme Court ruled in favor of Governor Mbah and the PDP, further reinforcing the earlier decisions made by lower courts.

Justice Garba held that the three witnesses presented by the appellants regarding their matter were identified as petitioners’ witnesses (PWs) one, two, and three. These individuals were among those whose written statements, given under oath, were deemed inadmissible as they had not been submitted alongside the initial petition.

“The evidence of PW 1, 2, and 3 is where the issue of non-qualification was based. The evidence having been expunged for being legally inadmissible, there is no evidence to support that allegation of forgery of certificate

“The allegation, as contained in paragraphs 24 and 25 of the petition is not supported by valid evidence. There is no merit in this issue,” he said

The Court of Appeal in Lagos had previously upheld Governor Mbah’s election, dismissing three critical issues raised by the LP and Edeoga. Specifically, the court stated that the appellants failed to substantiate their claim that Governor Mbah was unqualified to contest the election. Despite alleging over-voting in Mbah’s strongholds, the appellants failed to provide the voters’ register as evidence.

In the appellate court’s unanimous judgment, it was concluded that the LP and its candidate did not present sufficient grounds to nullify the Enugu State Governorship Election Petitions Tribunal’s initial ruling, which had dismissed their case. Consequently, the appeal was deemed lacking in merit, affirming Governor Mbah’s victory.

Following their dissatisfaction with the appellate court’s judgment, Edeoga and the LP escalated the matter to the Supreme Court, where they faced another defeat on Friday.

The Independent National Electoral Commission (INEC) had previously declared Mbah of the PDP as the winner of the gubernatorial contest after securing 160,895 votes. Edeoga of the LP trailed with 157,552 votes, while Frank Nweke of the All Progressives Grand Alliance (APGA) secured 17,983 votes, coming in third.

The LP and its candidate contested the election results, claiming they had secured the highest number of valid votes. They also alleged that Governor Mbah submitted a forged National Youth Service Corps (NYSC) Certificate to INEC, challenging his eligibility.

In addition to other observations, the court noted that the appellants, initially petitioners at the tribunal, presented eyewitnesses purportedly serving as polling unit and collation agents. However, during cross-examination, these witnesses confessed that they were not lawfully appointed to hold those roles as stipulated by relevant legal provisions.

Furthermore, the judge highlighted that the statements provided by these witnesses were nearly identical, differing only in names. Consequently, such evidence was deemed inadmissible and held no substantial value in the case.

“PW26 was the appellant state collation agent, he gave hearsay evidence because he was not at the ward collation centers for him to give admissible evidence of all that happened at all the ward collation centers.

“The tribunal was right to have held that the petitioner failed to prove with evidence that the second respondent (Mbah) was not elected with a majority of valid votes cast in the election.

“I have no reason to interfere with the concurrent findings of the two lower courts on the issue,” he said.

Based on these, the Enugu State Governorship Election Petitions Tribunal dismissed these allegations on September 9, affirming that Governor Mbah met the necessary qualifications for the election, including possessing a valid school certificate or its equivalent. The tribunal also highlighted the need for criminal allegations like forgery to be proven beyond reasonable doubt, rejecting certain witness testimonies for not being filed with the petition.

Mba welcomed the judgment, describing it as “a nudge to continue to provide water in every nook and cranny of Enugu State; to build smart schools in all the wards of our state; to sustain the provision of security; to provide massive infrastructure and roads development; to build a new set of leaders of tomorrow who will face the global challenges headlong.”