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Kwik Unveils To Solve Nigeria’s Ecommerce Weakest Link

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Another intra-city logistics firm, Kwik, enters the fray in Nigeria  as startups work to fix the marginal cost paralysis associated with ecommerce in Nigeria. Jumia and Konga will rejoice but the crises are brooding for DHL, Fedex and local courier firms. Simply, the market is now hotter for courier companies. Of course, everything is still Lagos and other tier-1 cities with most other cities largely neglected. But it will not take long for those to be in play also.

Kwik connects independent delivery partners, either owners and/or drivers of a vehicle, with customers who need reliable, affordable and flexible delivery solutions. The Kwik app comes with an integrated geolocation system and offers an efficient transportation service for small packages (up to 25kg) or documents, following the same model as Go-Jek, Uber or Taxify.

Intellectual Property Right Infringement In Nigeria: How To Stop Online Piracy

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By Adavize Alao

Copyright infringement which can simply be referred to as piracy is the use of creative works belonging to creatives protected by copyright law without permission for a usage where such permission is required, thereby infringing certain exclusive rights allotted to the Intellectual property (IP) rightsholder, such as the right to reproduce, distribute, display or perform the protected work, or to make derivative works. The Nigerian Copyright Act 2004 makes piracy illegal in Nigeria.

Online piracy in Nigeria has gained momentum with a lot of websites engaging in file sharing for users to download. The Nigerian piracy scene does not frequently feature large file uploads of above 1GB with most users lacking the ability to afford large amounts of data bundles required for large file downloads. The piracy scene features web uploads of files ranging from 2MB – 600 MB. The most commonly pirated files are music files, movies and TV series, with a plethora of websites dedicated to providing two or three of the above-mentioned file services.

According to the Disruptive Creative Economy Meeting (DCEM), digital music consumption in Nigeria overtook physical consumption circa 2013 and market revenues from physical sales, which have been declining steadily year on year, are now dropping to well below $10m. Due to the mass acceptance of social media and its ability to simultaneously reach a broader audience in multiple jurisdictions, it is not uncommon for the sharing of copyrighted content on these internet intermediaries. The ease of acceptance and speed at which social media works have made the sharing of illegitimate copyrighted content swift.

Internet intermediary refers to a company that facilitates the use of the Internet. Such companies include internet service providers (ISPs), search engines and social media platforms.

The Nigerian Copyright Commission has made several attempts at fighting piracy but its efforts are yet to be noticed on the internet space.

A Failure to Stop Online Piracy

The Nigerian copyright space has been left bereft of a watchdog to curtail the activities of online copyright infringers commonly known as pirates. The inaction of several regulatory bodies and private enforcement efforts has also led to the proliferation of copyrighted content. This content is therefore accessed by users who should have paid for these services and product. The effect of the lack of a combative measure to combat piracy as led several persons to believe that all IP content should be free and made available to all Nigerians.

The Nigerian entertainment & media industry according to PWC is currently valued at the sum of 3.7 Billion dollars, while this report focuses on the total value of the industry it does not give a direction on the blockage of these illegal activities.  It is estimated that the Nigerian creative sector loses a large sum of money to pirate groups and the emerging group of online content providers simply referred to as blogs (inclusive of dedicated music blogs and download link sharing websites). ]Nigerians don’t stream they download]

The piracy scene in Nigeria can best be described as an unfettered freeway with little or no rules as a lot of the platform owners do not believe they are breaching the law. They feel it is a privilege to provide Nigerians with premium quality content to gain revenues from ad serving platforms. Such platforms that upload illegal content have, therefore taken advantage of the lack of knowledge on most consumers and the failure of the relevant stakeholders to stop illegal downloads.

A simple search on Google goes on to show that the internet intermediary famed for blocking content use allowed under the fair usage principle has not done much to combat the spread of illegal content over the Nigerian internet space. Web platforms such as netnaija, fztvseries amongst other websites sharing songs and albums belonging to artists continue to operate unhindered. Internet intermediaries such as Google, Bing account for 23% & 21% of visitors to netnaija and fztvseries.

Fair use is an exception to an IP holders exclusive rights. It is an equitable rule of reason, which permits the Court to avoid a rigid application of a holder’s exclusive rights when on occasion, it would undermine the purpose of the Copyright Act.

While Google, Bing and other search engines are not under compulsion to stop access to these platforms, the intermediaries [search engines] may be passively liable under the provisions of Section 14(1)g of the Nigerian Copyright Act 2004 for allowing unrestricted access and acting as a conduit to copyrighted content without taking measures to stop these downloads.

A failure to stop the spread of copyrighted content would continue to lead to the loss of more revenue for IP rights holders and owners. This revenue which ought to be generated to maintain the growing Nigeria entertainment and media industry would, therefore, be lost to persons seeking to profit from adverts/crypto miners which create a lengthy value gap between the service providers and product users. In a time of evolving markets and new businesses. It is essential that the rate of illegal file sharing be reduced as this would improve the protection of IP rights.

A value gap is the mismatch between the value that these intermediaries extract from music, and the value that is returned to rightsholders or in this case pirates

Conclusion

In tackling the scourge of online piracy which is not protective of the rights of IP owners and holders, emphasis should be placed on legal alternatives and educating internet users of the rationale that copyrighted content comes with a price. In policing the internet, the ISPs should not be mandated to become the police of the internet as doing so would be granting the legitimisation of private enforcement. A joint effort between regulatory bodies, copyright holders/owners, right societies, internet intermediaries and telecommunications service providers would be a very effective way of reducing online piracy in Nigeria.

In dealing with persons that seek to gain from IP theft, it is essential for regulatory and rights societies to pursue means of addressing the root causes of IP infringement. The authorities and rights owners may involve the use of the following;

  • End-user blocking and filtering (parental control) with consent, which can be regarded as a very effective mode of dealing with IP infringements.
  • Educate users on legal and illegal alternatives. This is also being propagated by Google in some parts of the world and can be utilised as an alternative to blocking injunctions.

Accordingly, Google in the EU and USA has launched a number of initiatives to present legitimate alternatives to people as part of search results, including providing advertisements on queries for movies and music to link people to legitimate means of purchasing content or finding movie showtimes in local theaters Google Blog – How Google Fights Piracy 2018 Report.

  • Reduce prices or utilise subscription-based services such as Boomplay, IrokoTV for premium content to convert nonpaying customers to regular paying customers.
  • Encourage the use of Freemium services which provide basic content for free and premium content for a price.

A combination of the words “free” and “premium,” freemium is a type of business model that involves offering customers both complementary and extra-cost services.

  • The use of Digital rights management (DRM) technologies have been specifically developed to prevent online IPR infringement. This is the generic term for a set of technologies for the identification and protection of intellectual property in digital form. It should be noted that for every trademark infringement there is a DRM tool addressing the infringement.

The technology enables IPR holders to control access to their protected materials by removing the consumer’s control over their use of the file, and ensuring that only those with valid permission can use it, resulting in IPR holders ensuring that they receive payment for their investment. However, DRM has its limitations. Therefore, IPR holders should be advised to select the most suitable form of DRM for their IPR in order to achieve the protection required without violating valid users’ rights to access the content. Examples include encryption and online monitoring.

  • Voluntary or legal ‘geo-blocking’ e.g. which is the blockading of certain IP Addresses which spread copyrighted content.

What You Need to do to get a Debt Consolidation Loan if you have a Bad Credit History

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According to Comet, almost 80% of baby boomers, Gen-Xers, and millennials have credit card debts. While you could argue that most of it is mortgage or student loan related, the truth is that the bulk of this bad debt is because of credit card, auto, and medical debts, to the point that the latter is the top cause of bankruptcy filings in the United States. It’s no wonder then, that most Americans have a bad credit history. 

However, you should know that there are options available to address your debt issues, so there’s no need to take any drastic steps. But one should not just jump into a debt relief option and some of the signs before considering such a move include falling behind on your bills, using credit cards to pay your bills (and only the minimum payment at that). One of these debt relief options is a debt consolidation loan. While this may not reduce your overall liability, at the very least it makes managing it easier. The concept is that you borrow enough money to clear your existing debts and just make one monthly payment to the lender providing the debt consolidation loan. 

While it may not be too difficult to get debt consolidation loans with bad credit, you should nonetheless properly research different financing options to choose the loan that gives you the relief you need, at a markup and monthly payment which you’re able to meet. The first step to take before considering a loan is to monitor your credit score regularly and then work towards improving it. Factors which could affect your credit score include making your payments on time and limiting the number of accounts you own. This is important as any lender will look at your credit score first and then determine a “safe” amount to lend you along with the interest rate you’ll have to pay. The better your credit score, the more money lenders will give you a lower interest rate. 

Once you have your credit score sorted (as much as you can), it’s time to research debt consolidation companies. These are ideal for those with “substandard” credit ratings, but more often than not a con artist will be ready to take advantage of your desperation, so beware of scams and fraudulent activity. The best way of doing this is to contact your own bank or credit union first. You should be prepared for being turned away though, as these institutions are already wary of you due to your bad credit history with them. Also, banks and credit unions wouldn’t normally offer debt consolidation loans, and even if they do, because of their risk-based pricing model, you’ll end up paying a lot more in interest and fees. If you think working with a name you already know is worth such a cost, then you have your winner! 

In the event you get turned down because of your credit, your next option would be to research different lenders and debt relief companies. These entities operate differently from banks and credit unions as their main focus is to offer debt relief through debt consolidation loans for those who have a bad credit history. Essentially, your arrangement with such a lender includes the said lender paying off all of your existing debts, leaving you obligated towards the lender alone for the full amount. This results in one monthly payment being made to one single entity, allowing easier management. You should expect the interest rates to be high as is the case with banks and credit unions, considering that these lenders prescribe to a similar risk-based pricing model. 

When discussing your options with the lender, ask as many questions as you can so you have a clear picture of the arrangement. Reputable lenders will offer varies depending on the individual and their credit history. These entities understand that a generalized plan will not work for everyone and will, therefore, offer a few options. Make sure you understand all of them and are aware of the risks involved and the liabilities you take on (in addition to just having to repay the loan). Sometimes there are other fees and liens, such as early repayment fee. This is where you would have to pay an additional (and sometimes significant) amount in the event you’re able to pay off the loan before the contract term is up. It may be tedious, but reading through the contract is always a good idea. 

To summarize the above, the process of getting a debt consolidation loan is the same as it would be with other types of loans. Before you go speak to the lender, make sure you have all your information with you. Make a list of all your debts and creditors and, if possible, have the relevant documentation. This will help you and the lender reach an agreement faster. When you’re filling out the form (more than likely there will be one), provide all the information asked and don’t conceal anything. If they come across the hidden information at a later stage, it’ll just make matters worse. Some companies may put you through a pre-approval stage at this point before signing an actual loan agreement. 

Before signing the agreement, make sure you read all the terms and conditions (remember hidden fees!), and that you understand everything beyond just the repayment schedule and fees. The interest rate isn’t the most important part and you need to look at the overall structure. Once the payment is released, pay off your debts RIGHT AWAY. The longer you keep it, the higher the chances are you’ll end up using it for something else as well. Considering that you now will only have one payment to make, the matter should be a lot easier to manage, allowing you to properly plan your finances. Just be sure not to take on any more debt!

Seafarers and the Challenges in Nigeria’s Blue Economy

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By Oko Ebuka

According to a report by Guardian Newspaper, the ports and harbours employ mariners to ensure the safe navigation of ships. Their job is physically demanding, with marine pilots, for instance, required to board moving vessels from small, high-powered launches, often in rough seas. They also have to deal with high-risk cargo, poor maneuverability and communication difficulties.

The report further showed that the global shortage of shipping crew and officers has reached serious proportions, threatening the future of an industry that remains the lifeblood of world trade. According to the latest data from the International Maritime Organization (IMO), there was a supply requirement of 498,000 seafarers in 2008, with an officer shortfall of 34,000 that increased to 83,900 in 2012. (The Guardian, Nov. 19, 2014).

Benefits of blue economy

A statistical data from the 2017 research by Blue Economy Forum showed that the East Asian Seas (EAS) generates almost 3%-28% of the Gross Domestic Products (GDP) of 5 countries in EAS region on income and jobs alone, with 90% trade and transportation shipping. Furthermore, the United States of America produces US$282 billion from the ocean economy with about 3 million people fully employed in the ocean dependent business.

According to the World Bank, the blue economy is the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem.”

In another survey, it portrays that over 80% of global trade by volume and over 70% by value, is carried by sea and handled by ports worldwide as regard to the shipping and Port Facilities. Globally, 350 million jobs are linked to marine fisheries, with 90% of fishers living in developing countries. In 2012, sea tourism increased by 4% despite the global economic crisis and constituted 9% of Global GDP, 9% of global jobs, and generated US$ 1.3 trillion or 6% of the world’s export earnings.

Its necessity

Seafaring profession is very noble and worthy of bringing economic pride to the national treasury of any nation that values the players. The International Maritime Organization (IMO), in the quest to recognize the consistent efforts of the young men and women in this terrain of vocation, set aside 25th day of June every year to honor them. The world uniquely celebrates them just like other global professional bodies because of the sacrificial tendencies surrounding their activities in making the blue economy a viable one irrespective of the dangers ahead.

The Nigerian lens

Nigeria as a multi ethnic country, exceedingly blessed with bountiful economic opportunities both on land and in sea have proved their worth and commitment towards harnessing the natural elements beneath the deep blue seas. This is why maritime agencies such as Nigerian Maritime Administrative and Safety Agency (NIMASA), Nigerian Ports Authority (NPA), Nigeria Shippers’ Council (NSC), among others, where instituted to man the affairs of the industry in their respective roles and jurisdictions.

The Nigerian seafaring profession is rightly under the responsibilities of NIMASA who takes care of seafarer’s academic welfare from the academic cradle to the graduation height by providing adequate facilities and institutions such as the Maritime Academy of Nigeria (MAN), Oron, Maritime University, and others. The agency also sent the seafarers for further studies in foreign schools in countries like Philippines, Egypt, etc., for various professional certifications.

Irony of situation

However, the gloomy face of the Nigerian seafarers can be widely seen in their ceaseless agitations and bravery shown in the sturdy faces of injustice, corruption, bribery, discrimination and other forms of social vices hovering above them, therefore preventing them from attaining the same professional heights like their foreign counterparts.

The recent agitation by the seafarers during the Seafarers day celebration, heaped so many unanswered questions on the lips of guests and other participants within the halls of the celebration. There placards widely shown everything they are fighting for or against in the hands of NIMASA.

Most things written boldly on the raised placards are those things keeping them far from having access to the sea privileges unlike their foreign counterparts who have everything at their disposal and affordable too.

In a recent paper presentation made by Capt. Akanbi Oluwasegun Enitan themed: “Beyond sea-time: A closer look at other prospects and challenges in seafaring profession”, he listed some gross challenges facing Nigerian seafarers which includes;

  1. Criminalization of seafarers: were they are vulnerable as the job exposes them to various charges and might never have a fair hearing.
  2. Seafarers Health: where maritime administration cares about fitness to work, but doesn’t care about fitness after work; health safety systems unavailable even as  allowances and pensions remain unpaid.
  3. Abandonment: where there salaries and welfare are the least of their priorities.

Conclusion

Albeit, the above listed problems has primarily summarized the hidden scars of the seafaring profession in Nigeria which, if not properly tackled, will generate a vicious situation that can destroy the existing success of harnessing the blue economy in subsequent years to come.

Fixing Nigeria’s Overpopulation Paralysis

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By John Beecroft

I have been a bit vocal about Nigeria’s overpopulation for a while now, and recently someone challenged me to proffer solutions. That got me thinking and I plan to share some of the ideas so you all can help clean it up, just in the hope that I might be in a position to do something about it someday. But just so we are on the same page, why do we need to do something about Nigeria’s population?

Population and the Nigerian Economy

Indices and events around Nigeria show that things are not going to be okay anytime soon. This was the subject of an article I wrote earlier in the year – 2019, Which Way Nigeria. I however expected the situation to gradually improve over the coming years, but PwC quickly perished that thought this morning through one of their reports – Bringing Dead Capital to Life.

The IMF’s most recent report on Nigeria concluded that Nigeria is set to experience incremental decline to income per capita over the next 8 years, through 2022. This decline is a result of slow GDP growth exceeded by a population growth rate that is not expected to slow in the near future. Population is expected to reach 263 million by 2030. In contrast, GDP is growing at a slower and less consistent rate, averaging 1.4% since 2016.

In simple English, the number of people in Nigeria is growing faster than the money (goods and services) Nigeria is making; so Nigerians would keep getting poorer until at least 2022. For economic well-being to improve, you need economic growth to be more than population growth. That way, everyone has a little more to share every passing year. When the opposite happens, everyone has a bit less year after year. It’s like you are a bachelor earning say N100,000 monthly and living life. Then let’s say 5 years later, your salary has doubled to N200,000. Are you actually better off? Possibly. But what if during that period, you get married, wifey becomes a career mum to two kids and your hungry brother comes to stay with you? Your per capita income goes from N100k monthly (N100,000 divided by 1 person) to N40k monthly (N200,000 divided by 5 people). In this case, your family population growth (500%) has far exceeded your economic growth (100%) and you’re almost in crisis. If you think it sounds like a terrible situation to be in, you are absolutely right!

With population growth rate of 2.6% almost double our GDP growth of 1.4% on average, Nigeria is in exactly the same situation now. We can eliminate corruption and stop paying our beloved hardworking legislators those fat salaries, but it still wouldn’t be enough.

A large population cane be a great blessing, IF:

  1. That population is highly educated
  2. That population is very productive
  3. The economy is expanding faster than the population

Sadly, Nigeria’s population is none of the above. We have then compounded those problems with corruption and runaway population growth.

Perhaps you don’t understand the import of the figures above? Let me draw it for you.

Using the United State of America (US), the holy grail with GDP per capita of about $56k, as our benchmark, the first chart shows what will happen to Nigeria over the next 60 years if we maintain our current direction (case 1) with GDP growth of 1.4% and population growth of 2.6% per annum. There can only be one outcome: Starvation, unrest… In case 2, assuming we continuously grow the economy at 7.5% annually, but keep giving birth like rabbits (at an average of 5.4 children per woman, Nigeria ranks among the top 10 in the world), by 2080 Trump would still be calling Nigeria a ‘shithole’ country. However, if while growing the economy steadily, we manage to slow down our population growth rate similar to the US (case 3), we will get to where the US is today sometime around 2070! As bad as that sounds, this is a best-case scenario for me.

Lots of people delude themselves that Nigeria’s oil proceeds are enough to solve our problems if corruption is eliminated. Sorry, it’s not nearly enough. Yes, we have massive oil reserves, but when compared to the size of our population, it’s too little. According to OPEC, Nigeria earned $54.5b as total revenue from oil in 2018. (Accurate net income figures are too hard to come by.) This was about the same with Iran ($60.2b), far more than Angola ($36.3b) and more than 10 times that of Gabon ($4.2b). However, when you compare the number of mouths the different countries have to feed like the example above, you find that the share available to Nigerians is practically insignificant. Now you understand why Nigeria is considered poor.

But I’m sure we all know the problem. Question is, what can be done about it?

Typically, there are two ways out of such a situation: You can either find a better paying job or business (minimum of N600k monthly to maintain the original lifestyle) or reduce your family population by chasing away your brother and sending the twins to your rich uncle. Let’s explore the options for our dear country.

Option 1 – Growing the Economy

I am not sure we can expand our oil production fast enough, and even if we do, we don’t have enough of it. However, we have massive amounts of gas so we have a chance with that. Only problem is that it requires terrible amounts of capital, so back to square one. Agriculture? We have lots of arable land, but it’s difficult to build a modern economy on the back of labour-intensive agriculture.

The tax drive is really commendable, with the tax paying population having doubled in the past few years, but more needs to be done. Manufacturing has to be drastically improved, importation curbed to manage the trade deficits and oil subsidies eliminated. The size of government needs to be reduced so that funds can be directed towards infrastructure.

But I’m reluctant to talk about this – growing the economy – in this article as my goal is elsewhere. I’ll let smarter people tell us how to go about it.

Option 2 – The Population Solution

China had a one-child policy, in which having more than one child was discouraged. They made this happen through a combination of permits, fines e.g. deductions of up to 10% of salaries of erring couples, and incentives. These incentives included health care subsidies, housing priority and extra retirement pay according to Matthew Connelly in Fatal Misconception: The Struggle to Control World Population. The child also had preference choosing schools and jobs. Sadly, there were also forced abortions and sterilisations as some provinces tried to meet their quotas. Considering that China prevented about 400 million new babies – two times the size of Nigeria – I say their effort was very successful!

 

India largely followed the Chinese model for a while, but with more extreme measures – more than 8 million men sterilised within a year. Iran made it mandatory for couples to attend contraceptive courses before giving them marriage licenses.

Interesting thing about the examples above are that they are largely homogeneous cultures, which makes it a bit easier to implement policies. Nigeria on the other hand would be a tough nut to crack; any measure must take into account the religious differences and tribes too numerous to count. Any hint of racial or religious targets would end in disaster. Yet, we need to slow down this runaway population, else we will consume our children’s future.

First of all, we all need to know that fertility rate which is sustainable, that birth rate that would give us just the right population growth we want. We must begin with a massive enlightenment drive especially at the grassroots and rural areas. Couples need to have an idea of the financial costs of adequately bringing up a child and must be made to understand why it is important to give birth to only that number they can properly take care of. While I won’t say they should be arrested, there needs to be an understanding that giving birth to six kids when you earn barely enough to send one to school is unfair to those kids and is a crime against the society that has to bear the ultimate cost!

In the rural areas, people must be consciously made to understand the damaging effects of having too many children including reduced opportunities through inheritance, lower quality of education due to scarce resources, high medical costs etc. The government, and non-governmental organisations, need to invest in passing across this message – through our Youth Corpers, at the marriage registries, on TV & radio, in churches & mosques, anywhere and everywhere.

Next, a national policy needs to be put in place supporting fewer children. This could encompass a number of ‘carrot and stick’ measures.

For instance, rather than free Universal Basic Education (UBE), the policy should only cover 2 or 3 kids per family. The same applies to free meals in schools. Government pays for the first 2 or 3 kids and the parents pay substantially for the remaining children.

For those who maintain the ‘sustainable’ family size, they can get incentives such as credits to spend on fertilizer and farm implements in the rural areas. In the towns and cities, these credits could be used for health insurance, public mass housing, government-sponsored pilgrimages and so on.

The credits can also be used for taxes. For example, if you remain within the sustainable family band, you get 1 or 2 points below the standard tax rate. So perhaps, while Mr X with 6 kids pays 22% of his income as tax, Mr Y with only 3 kids pays 20%.

I could go on and on, but I believe the message is already clear – a conscious effort needs to be made to link the negative consequences of unsustainable population growth directly to people’s pockets. Only then will they ‘hear word’.

In Summary

There is no single panacea to our problems; it must be a combination of measures. Yes, education and infrastructure would go a long way, but as shown in the charts above (case 2), it would still take too long. It is inevitable that growing the economy must be combined with a conscious effort to slow down our population growth.

But while growing the Nigerian economy is largely a Buhari problem, you and I on our own can largely influence the population solution. Have you dropped two or three kids? Then please call it quits, ‘e don do’ – for the sake of those children and the sake of Nigeria. My dream from a little boy had been to have four children of my own – two tough boys and two pretty girls. However, in playing my part towards our population dilemma, I have resolved to limit that number to two – if only I can get wifey to approve.