In the midst of the national paralysis, I want to commend a young man who joined Tekedia Mini-MBA with no clarity on how to execute an idea he has nurtured over the years: exporting agro products to Europe from Nigeria. Today, Elwin Mubba just sent me a note that “ElwinGroup has successfully completed her NonOilExport of one of her Agro Products (Turmeric) to the EU. ..Thank you for the Tekedia MBA course”. Congratulations.

I also want to thank our Faculty Victoria Madedor for her course on alternative funding. That course opened avenues and Elwin was able to get necessary support.

In the video as they boxed the products into containers, you will notice one thing: a big “Proudly Nigerian” on the boxes. That proudly Nigerian is absolute because Elwin and his team designed, constructed and commissioned the factory in Awka with all materials sourced locally. As I reported last year when he sent updates to me, he used “export” and  “99.5 purity guaranteed” to describe his playbook. Today, he has delivered. Well done Elwin Group.

Join the next edition of Tekedia edition which begins June 7.

Elwin Agro-Processing Plant is Ready To Serve in Awka Nigeria

This is looking great for Dangote Refinery after Nigeria indicated that it would take 20% equity in the refinery: ‘Yes, the Nigerian government through NNPC, the national oil corporation, is planning to acquire 20% of equity in Dangote Refinery: “I can tell you today that we are seeking to have a 20 per cent minority stake in Dangote Refinery as part of our collaboration and you know that there’s a huge quantity of crude for that refinery.”’ Now, other entities around the world are coming.

Four oil firms including Nigeria’s state-oil company have approached Dangote Industries to acquire a stake in Africa’s largest oil refinery, a senior executive told Reuters on Friday.

Devakumar Edwin, group executive director, said the firms from Western and Middle East countries and involved in trading and crude production were looking to secure crude supply agreements, a similar objective to that pursued by the Nigerian National Petroleum Corporation (NNPC).

“They are seeking to have 20% minority stake in Dangote refinery as part of collaboration … so that they can sell their crude,” Edwin told Reuters by telephone.

He said Dangote refinery is not looking for equity and the company wants to be able to secure crude from the market.

Nigeria, Africa’s biggest crude oil exporter, imports virtually all of its fuel due to moribund state refineries, which has prompted the state oil company’s interest in the 650,000 barrel per day (bpd) Dangote refinery.

NNPC’s spokesman, speaking to Reuters in a phone interview, said the corporation had considered the idea of acquiring a stake in the $19.5 billion oil refinery project owned by Africa’s richest man, Aliko Dangote.

Edwin said the refinery is scheduled for mechanical completion this year with commissioning by January 2022.

When you solve major challenges in markets, most times, opportunities come. As many oil refiners close shops, entities like Dangote Refinery will have transient opportunities before the world moves into the post-petroleum era.

The Big Bailout – Nigeria To Buy 20% of Dangote Refinery Via NNPC

The saying that nothing good comes easy is true. But it is uneasy to wait for that good to occur. The pains, stress, and tribulations you pass through as you work and wait for things to turn out well can make you the essence of the efforts. However, in the end, like the patient dog that eats the fattest bone, you will smile home, bearing your bountiful harvest. This is exactly what is unfolding in Nigeria, regarding the rice importation restriction.

In August 2019, the Nigerian Government stopped granting foreign exchange requests by rice importers. As far as we were concerned, foreign rice was banned in the country. This did not go down well with many of us because we saw a gloomy future with that single policy. Many believed the federal government was out to cause more hardships for the citizens because rice, one of Nigerians’ staple foods, besides cassava and maize, will be placed out of the reach of a poor man. Did we call the President and the CBN Governor names? Oh yes, we insulted life out of them. But, from what is happening now, it is obvious that the decision to restrict the importation of rice will favour us in the long run.

The major reason Nigerians were uncomfortable with the ban on rice importation was that local rice production could not sustain the country’s heavy demands for the food grain. Many of us believed that rice scarcity was imminent because local rice farmers cannot feed the more than 200 million Nigerians. But from what we can see, rice has never been scarce in our markets even though the increase in demand for our local rice has led to its price increase.

Judging from what is happening right now, it is obvious that our local farmers can feed the nation if they are given a little push in the right direction. The truth is that, initially, many Nigerians preferred imported rice to the local ones, thereby discouraging farmers from cultivating more rice. Add this to the high level of insecurities and destruction of crops through open grazing, you will understand why local rice was scarce before. Apart from these, local farmers lost most of their grains to improper storage and wrong processing. Rice mills were not much so that a lot of paddies got spoiled before they were milled. Since their rice farming was not considered profitable then, people did not bother investing much in it. But all these are gradually changing.

The quantity of rice consumed in Nigeria is estimated at 7million tonnes in 2019 but only 4.3 million tonnes were produced by local farmers that year. This may sound like a failure but when compared to the 3.7 million tonnes produced in 2017, you will notice that the efforts are paying off. This year alone, the FG has launched three rice pyramids in Gombe State (North-East), Kebbi State (North-West), and Ekiti State (South-West). It has also promised more intervention programmes for rice farmers, which will improve yields and encourage more individuals and organisations to invest in rice farming. National and international organizations, including USAID, have partnered with rice farmers because they saw prospects in the business. More grants, soft loans, and other forms of funding and incentives have also been made available for rice farmers. Considering how things are going now, Nigeria may produce more than enough rice for its citizens in no distant time. However, a lot more has to be done to encourage that.

One of the challenges Nigerian farmers face today is non-mechanized farming. The land may be there for cultivation but it will be too expensive for farmers to do so without machines. As a result, machines should be made available and kept in good conditions for farmers to rent. Government and private individuals can partner to make this possible.

The high rate of insecurities in the rural areas is also affecting farming. Though the government is doing its best to battle this, more efforts should be made, especially by state governments, to provide security for citizens. When farms become safe for farmers, food will be available to all. But all in all, there is hope for Nigeria because we can produce the foods we eat. However, more people should endeavour to invest in agriculture because that is the next major source of revenue and foreign exchange for the country.

For the first time in its ride-hailing history, Uber is recognizing a trade union. Following a landmark ruling in London in February, classifying its drivers as employees, the California-based taxi app has been forced to grant employment status to its drivers.

This means about 70,000 of its ride-hailing drivers will for the first time, be accorded minimum wage earnings, pensions, other work benefits and their health and wellbeing.

UK’s workers union, GMB is negotiating on behalf of the drivers and Uber said the development shows it is committed to the workers’ welfare.

“While Uber and GMB may not seem like obvious allies, we’ve always agreed that drivers must come first, and today we have struck this important deal to improve workers’ protections,” said Jamie Heywood, regional general manager for Northern and Eastern Europe.

Uber faced the heated challenge to declassify its drivers as private contractors for years. With lawsuits spanning across London and California, its biggest markets. The ride-hailing giant eventually lost the fight in the UK.

Now the development leaves it open to further court rulings and changes that may go in favor of the drivers who want out of the “independent contractor” status.

In the United States, Massachusetts is the second state to sue Uber and Lyft over the misclassification of drivers. In May 2020, California Attorney General Xavier Becerra, along with city attorneys of Los Angeles, San Francisco, and San Diego, sued the companies, arguing that their drivers were misclassified as independent contractors when they should be employees under the state’s AB5 law that went into effect on January 1st.

While Uber has maintained that the gig economy business model grants drivers the flexibility they need, and it’s their wish to keep it that way, labor unions and governments are seeing the practice as unfair treatment of workers.

“The bottom line is Uber and Lyft have gotten a free ride for far too long,” Maura Healey, Massachusetts’ Attorney General said last year. “For years these companies have systematically denied their drivers basic workplace protections and benefits, and profited greatly from it. This business is unfair and it’s also illegal under Massachusetts law.”

Uber survived the California legal battle by invoking the prop. 22 ballot provision that allows the people to decide what they want through votes. The company had argued that classifying drivers as employees would mean a hike in ride-hailing fares, inciting the people to vote yes to the gig business model. However, the war seems far from over.

In the wake of the lawsuits in California and London, Uber drivers in unexpected places in Africa, like Johannesburg and Lagos, caught wind and moved to seek improved welfare and workers’ benefits.

The trajectory set by the development in London will likely spur further action in more cities especially in the US. Uber had frowned at unionism, but by recognizing GMB, the ride-hailing giant has opened doors for it, giving a union the right to negotiate on behalf of drivers for the first time.

The UK is the only country in which Uber has recognized a union, but it seems to be the beginning.

GMB has urged other operators to fight to be recognized as employees, saying the deal offered a golden opportunity to improve workers’ rights.

“This agreement shows gig economy companies don’t have to be a Wild West on the untamed frontier of employment rights,” said Mr. Rix.

Uber and GMB will have to negotiate work benefits on behalf of the drivers. Under the agreement, GMB and Uber will discuss topics such as Uber’s National Living Wage guarantee, pensions and holiday pay. Drivers won’t automatically become members, and to be represented by the union, they will have to sign up.