Zoom, like many other tech companies, has seen an increase in earnings during the pandemic that has pushed its valuation to $139 billion, more than Exxon Mobil’s $138.9 billion.

The teleconferencing app witnessed unprecedented surge following COVID-19 induced lockdowns that confined people at home, forcing a shift to virtual life.

Zoom’s market capitalization was $19 billion at the beginning of the year. Forbes compared Zoom to Exxon in the past 12 months and found that a huge revenue gap has been closed by the tech company.

Zoom posted $1.35 billion in revenue in the past 12 months while Exxon posted $213.8 billion in revenue during the same period.

The pandemic offered bitter and sweet experiences to both companies. Zoom saw an overwhelming increase in the use of its services as people started to embrace the new normal by working from home, while Exxon was badly hit as economies shut down, resulting in decline of oil demand, a situation that equally impacted the whole energy industry.

On Thursday, Exxon said in an announcement that it will cut 1,900 jobs in the US, as part of its global review, and its aim to curtail the strains of the pandemic.

“As part of an extensive global review announced earlier this year, the company plans to reduce staffing levels in the United States, primarily at its management offices in Houston, Texas. The company anticipates approximately 1,900 employees will be affected through voluntary and involuntary programs,” a statement from Exxon said.

Oil prices have dwindled since the outbreak of COVID-19, and show no sign of recovery in the near future. Oil companies, including Exxon are planning to divest to cleaner energy as alternate businesses.

As Exxon struggled through the strains of the pandemic, Zoom was basking on its advantages to record high earnings. The company beat earnings expectations in the Q2 that ended August 31, with a record $663.5 million in revenue, $163 million more than the $500.5 million analysts projected.

Zoom has a forecast of $690 million in revenue for the current quarter (through the end of October); the company also raised its financial guidance for the full fiscal year, through January 2021, to almost $2.4 billion in revenue, up from $623 million for the year through January 2020, according to Forbes.

The expectations are based on its current growth potential that is expected to linger for long.

As the teleconference company booms, its founder, Eric Yuan get richer. The past three months have been kind to the Chinese-American, as he has witnessed his fortune doubled. Yuan’s net worth has moved from $11 billion to $21.3 billion within this space of time in tandem with Zoom’s boom.

Zoom’s stock has risen more than 600% this year to rank among best performing stocks in 2020. A mark it earned through the unprecedented demand of its services around the world.

Another person who has benefited immensely from the company’s growth is Kelly Steckelberg, Zoom’s chief financial officer since 2017. She has seen her fortune jump from $255 million, since she debuted on the Forbes Richest Self Made Women list on October 13, to more than $340 million.

While coronavirus induced uncertainties spell doom for Exxon and the rest of the oil industry, it paves the way for Zoom and the rest of the tech industry. Earlier in the year, Apple overtook Saudi Aramco as the most valuable company in the world.

The oil industry continues to struggle amid the coronavirus pandemic. Exxon Mobil announced it is laying off up to 15% of its global workforce over the next year, including around 1,900 employees in the U.S., mainly from its management offices in Houston. The oil giant posted its third consecutive quarterly loss for the first time on record Friday, according to The Wall Street Journal, as gasoline usage has dipped drastically due to pandemic-induced lockdowns and people limiting their travel.

‘The Central Bank of Nigeria in June 2015 excluded importers of 41 goods and services from accessing foreign exchange at the Nigerian foreign exchange markets in order to encourage local production of these items. Subsequently, with the addition of fertilizer and textile products, the list grew to 43.

This action by CBN was taken in its efforts to sustain foreign exchange market stability and ensure the efficient utilization of foreign exchange as well as ensuring that optimum benefit is derived from goods and services imported into the country’ (The Bridge, March 2019)

The objective was logical and obvious.

The CBN Governor, Godwin Emiefele, a former Group MD of Zenith Bank, realized to offset collapsing Forex as a result of reducing oil revenue, something needed to be done to diversify the economy.  The expansion of internal value chains and out-build of home grown production became critical.

Nigeria does not need to keep importing things she can produce.

However, in the wake of the #ENDSARS protests in Nigeria a new economic crisis may be unfolding. Reports of wanton looting and destruction is rife. These are not confined to fashionable shopping areas as are typical of developed countries experiencing civil unrest.

In the agri-sector for instance, hoodlums have been seen to be carting of  fertilizers and crop treatments thinking them to be bags of garri. There are reports of bulk theft of seed maize which has harmful agrichemicals capable of making people at best, very ill,  and in some cases cause death.

There are examples of this at unremarkable locations all over Nigeria. Attempts at justification centred on targeting government or ‘elites’ out of anger has no basis here. This is just opportunist targeting of misunderstood assets by the ill-informed, while there is a temporarily lapse in the effectiveness of the ‘Federal Security Network’.

Many warehouses storing ingredients and production process consumables have been sacked.

We know that fragile internal supply chains have been damaged. When the lifeblood of Nigerian trade and industry, especially that which delivers essential commodities to the masses, has been bled, then loss and damage will be passed on to customers as a cost of sales.

Those that will suffer the most from this will be the masses in Nigeria which are already struggling to even meet the breadline.

Perhaps a relaxation on Forex in some ‘Intermediate Goods’ is necessary to kick start some businesses, especially manufacturing?

I want to hear from big business and manufacturing sites in Nigeria. I want to hear from owners and from managers.

I HAVE FOUR CLEAR QUESTIONS:

1. How has recent vandalism and looting in Nigeria impacted on your business/operations ?
2. Would a CBN relaxation on Forex for specific commodities (please name) help to mitigate the impact?
3. How do you see your company’s contribution to the Nigerian business landscape as important to the average Nigerian?
4. What impact (if any) do you think a a CBN relaxation on Forex for the commodities you specified will have on the average Nigerian?

HOW TO RESPOND:

You can make your comment below.

In confidence:

1. Most of you are probably already a LinkedIn contact. If not, send me an invitation, customising it with ‘CBN FOREX RESPONSE’. If your profile suggests a currently active business leader/decision maker in the context of this article, I will accept. LinkedIn contacts can message me directly on the platform.
2. You can email me directly at linkedin1120@9jafy.com (To email address harvesters: This temporary address will be deleted 30/11/20)