DD
MM
YYYY

PAGES

DD
MM
YYYY

spot_img

PAGES

Home Blog Page 6151

US Lawmakers Initiate Bill to Address Chinese President As “General Secretary”

0

The United States congress is pushing a bill that will strip Chinese president Xi Jingping of the title ‘president.’ The bill called “Name the Enemy Act,” is expected to, when passed, prohibit the federal government from using the title ‘president’ to address Xi Jingping. The bill said Xi will alternatively be referred to as “General Secretary.”

“The Federal Government may not obligate or expend any funds for the creation and dissemination of United States Government documents and communications that refer to the head of state of the People’s Republic of China as anything other than “General Secretary of the Communist Party”, or alternatively, as “General Secretary.””

The bill was introduced by Republican Rep. Scott Perry of Pennsylvania on August 7, as a way of showing the US’ disapproval of China’s human rights violations including the abuse of Uighurs and Kazaks.

“The leadership of the People’s Republic of China has gone unchallenged in its perverse pursuits of human rights abuses across decades. Addressing the head of state of the People’s Republic of China as a ‘president’ grants the incorrect assumption that the people of the state, via democratic means, have readily legitimized the leader who rules them,” the bill reads.

The bill mentioned the use of Chinese armed forces to constantly infringe upon the sovereignty of surrounding countries, citing the April 2020 incident, where the Chinese maritime surveillance sank a Vietnamese fishing boat off the paracel Islands.

However, the move appears unlikely to take anything from Xi, who has acquired titles for himself since he came into power in 2012, though it bears authoritarian remarks.

The title ‘president’ has a democratic bearing that the Chinese government has failed to manifest, and the morality in referring to Xi, who has been at the top of authoritarian rule for years, as president has been called into question. Critics argue that addressing Xi as president allows him to project an image of openness and representative leadership to the international community which stands in stark opposition to who he truly is.

“China is not a democracy, and its citizens have no right to vote, assemble, or speak freely. Giving General Secretary Xi the unearned title of ‘president’ lends a veneer of democratic legitimacy to the CCP and Xi’s authoritarian rule,” said the US-China Economic and Security Review Commission, in a 2019 report to Congress.

But in China, Xi’s titles do not include the word ‘President’ while past Chinese leaders bore the official English title since 1980 when the South Asian country began opening up its economy, the head of the Chinese Communist Party has been differently addressed.

CNN did a history recap on the titles held by Xi in Chinese, and none represents exactly the English word ‘president.’ For instance, the three main titles Xi is known by are guojia zhuxi, meaning State Chairman; Zhongyang junwei zhuxi, commander-in-chief of the people’s Liberation Army (PLA); and zong shuji, the head of China’s ruling political party.

These titles are used to address Xi according to each occasion. But for English speakers and the state-run media, the title of number one man in China is president.

While the bill is going to make a strong statement about the United States’ view of Chinese authoritarian rule headed by Xi, addressing him as ‘General Secretary’ has a little weight to change the status quo.

Logistics Aggregation: A Cost-Effective Model For Moving Goods Across Africa’s Borders

0

If you’re a small-scale importer in Africa, you may have wondered why after placing an order for a product from China, you wait weeks to receive it, even when flights come to Africa from China regularly. This is not to mention the steep cost of freighting goods by air from China, which has been on the rise recently.

Your importation agent has more to do with these costs and shipping times than you might realize.

The Cost Of Fragmented Logistics

Many of the freight agents used by small-scale importers and retail consumers have small client bases. This means those agents have to wait to accumulate the required volume of orders needed to negotiate a reasonable price with airline operators or flight carriers. Even when they do get the required volume, they are often at the mercy of the flight carriers and might not get the best deal both in the speed of delivery and the price. In turn, the buyer must pay more and wait longer to receive their products.

This might just seem like a problem for the buyer until you take a holistic view of what the absence of a defined logistics system could be costing Africa, and particularly Nigeria, where my digital freight platform and logistics aggregation company is based. Besides importation, there are locally made products that could be in hot demand outside Nigeria but never get there because the hassles of freighting goods outside the country are even higher than those of bringing them in. There also is the possibility of global e-commerce brands doing more business in Africa, but the absence of a defined logistics system frustrates the process. For instance, long wait times and sometimes poor service delivery currently discourage Nigerians from using global retailers.

The Aggregation Model

This is where logistics aggregators come in. These providers allow agents and small-scale importers to simply plug in and play. How does this help the situation? Generally, large aggregators are internationally accredited and have offices in major business cities. Being accredited is the first step to getting better deals with carriers and airlines.

An aggregator, which has the capacity to make complete payment to carriers upfront, is then able to decide the timing of shipments. This cuts shipping time because the aggregator could choose to have the products shipped weekly, while local delivery businesses are left to take the goods to customers’ doorsteps.

Although this model is not yet common in this part of the world, it has the potential to significantly improve logistics for Africa. Aggregator companies could further unify charges and fees for all. A unified system would not only help retailers import with speed and at a lower cost, but they could also get credit facilities from aggregators.

Airlines and carriers could bypass negotiating with unaccredited agents who cannot meet them on their terms and instead carry out such negotiations with the larger aggregators. Small-scale importers could simply attach themselves to the system already in place. Even big brands could have increased penetration into Africa, and customers would be more encouraged to buy with the knowledge they would not have to wait as long or pay more for logistics than the products cost.

This model works both ways and could also encourage exportation out of the country at guaranteed speed and safety, in a cost-effective manner.

What To Look For When Choosing An Aggregator

The aggregator model is still emerging, so it can be difficult to find an aggregator to suit your needs. But generally, there are several key things to look for when choosing an aggregator partner. First, because the aggregation model is complicated, you want to be sure the company you choose has the technological capacity required to effectively execute the aggregation. Research the technology it uses to see how efficient its process is. You also want to find out whether it has the proper insurance, safety regulations and financial framework in place to ensure goods smoothly get to where they need to go.

Although this model is in its early stages on the continent, aggregation shows strong potential for improving and unifying logistics for Africa’s importers and exporters. By cutting down on delivery time and price, consumers and businesses both stand to benefit.

Samuel Ajiboyede
CEO, Zido Logistics

Stemming the Impunity of Security Agencies on Civilians

0

Through out history, it has been the inaction of those who could have acted, the indifference of those who should have known better, the silence of the voice of justice when it mattered most, that has made it possible for evil to triumph.—Haile Selassie

The Latest Victim

This piece is dedicated to the memory of Collins Osagie and those before him, victims of military and police brutality on defenceless civilians. According to the Punch you paid the supreme price for having the audacity to mediate in a disagreement between a soldier and a trader.

Recollection

While reading this bad news, my mind raced back to my childhood days growing up in the barracks. I have witnessed not a few agonizing torture of civilians. A particular one stands out because my Dad had to intervene to prevent it from turning ugly.

It was a cold Sunday morning with the rain pouring throughout the night and ceasing at the break of dawn. As we stepped out for church behold, our next door neighbours, two of them in full military fatigue, were torturing a civilian. They first emptied the containers of water my Mom had collected from the rain on the poor victim, put him in the gutter, stamped and kicked him with their boots and whipped him with their belts that had metals. It was a terrible sight for my siblings and I.

My Dad ordered them to stop and demanded to know his offence. They said he was their friend that stole their properties when they were in Kaduna. They had looked for him for two years until they got an Intel that he was in town.. They mobilized and picked him up before the cock crow. As their superior, my Dad said the torture was enough they should let him go. So imagine, if soldiers could treat a friend in such a manner, then your bet is as good as mine: we are all “bloody civilians!”

The Purpose of the Military

The role of the armed forces, that’s, the Army, Navy, and Airforce, as contained in the Constitution of the Federal Republic of Nigeria as amended, Section 217-220 does not include the abuse of the rights of the citizens. Such abuse isn’t exclusive to the military but all uniformed security institutions in the country. This impunity must be stemmed completely.

The Need for the Reorientation of the Rank and File

The abuse of power is a clear misconception of its purpose. In the military hierarchy, we have the officer corps and the other ranks, the former are more professional and refined than the latter. It’s the rank and file we see on the street everyday and are susceptible to abuse by civilians, this is so because the officer corps is prohibited from using public transportation. The civil populace have highly esteemed the military compared to the Nigeria Police Force. The atrocities of the police against the citizens have made them public enemy number one. However, it’s worrisome that the Nigerian military, judged to be the most disciplined and professional institution in the country should allow its good reputation to be dragged in the mud by its rank and file. This group of soldiers need the refinement that is exclusive for the officers.

Conclusion

As the nation grapples with insurgency and security in the entire north of the country with resources stretched to its limits in the face of the Covid-19 pandemic, the appeal by the military authority for the citizens to help it with Intel will only fall on deaf ears if a more serious approach is not taken to end the abuse of our fundamental human rights and build a cordial relationship with us. I do not insinuate that the military authority is doing nothing about this. I am aware of the existence of the Civil Military Relations Department of the Nigerian Army, more need to be done for the entire armed forces.

“He who’s slow to anger is better than a warrior, and he who controls his temper is greater than one who’s captures a city. —Proverbs 16:32

The superior training a soldier gets should make him conform to the quote above.

Nigeria’s N31 Trillion Debt Burden

0
Naira

Nigeria’s total public debt stock stood at N31 trillion as of June 30, 2020, according to a report released by the Debt Management Office (DMO) on Tuesday.

The report thus indicates an increase of N2.38 trillion compared to the first quarter of the year. The debt stock which includes the total debt of the federal and state governments saw such a massive rise due to COVID-19 induced borrowing.

The DMO’s report includes Nigeria’s Actual External Debt Service Payments for Q1 2020 as well as Nigeria’s External Debt Stock for the period ending June 30, 2020.

“The data shows that in naira terms, the total public debt stock which comprises the debt stock of the Federal Government, the 36 state governments and the FCT stood at N31, 009trn or $85.897bn. The corresponding figures for March 31, 2020, were N28.62trn or $79.303bn,” the DMO said.

The additional N2.381 trillion or $6.593 billion was as a result of the borrowed $3.36 billion from the International Monetary Fund (IMF) and domestic borrowing used to finance the revised 2020 budget, the DMO explained. It added that the figures include the issuance of the N162.557 billion Sukuk, and promissory notes issued to settle claims of exporters. And it expects the debt stock to grow.

“The DMO expects the public debt stock to grow as the balance of the new domestic borrowing is raised and expected disbursements are made by the World Bank, African Development Bank and the Islamic Development Bank which were arranged to finance the 2020 Budget.

“Recall that the 2020 Appropriation Act had to be revised in the face of the adverse and severe impact of COVID-19 on government’s revenues and increased expenditure needs on health and economic stimulus, among others,” it said.

The debt profile significantly rose by 155.86% to stay at N18.9 trillion in five years, starting from July 2015.

While the federal government holds the larger part (81.52%) of the total debt sum, State governments have notably increased their share to 18.48%. It is therefore N25.28 trillion for the federal government and N5.73 trillion for the states and Federal Capital Territory.

On domestic debt, Lagos State has the highest debt stock as of June 30, 2020, with N493.3 billion in its profile followed by Rivers and Akwa Ibom States, with N266.9 billion and N239.2 billion respectively.

The five-year debt increase has resulted in debt servicing gulping a large sum of capital from the Appropriation Act. Nigeria spent N921.93 billion on domestic debt servicing in the first half of the year. The government said the combined expenditure in both domestic and external debt servicing amounts to N1.57 trillion for the first six months of the year.

Punch reported the Minister of State for Budget and National Planning, Mr. Clem Agba, acknowledging that the government has spent N1.57 trillion on debt servicing for the first six months of 2020. He added that the government’s retained revenue was N1.81 trillion or 68% of prorated target.

The development has triggered backlash from Nigerians as high cost of governance takes most of the borrowed fund, and a little has been invested in infrastructure projects.

“The borrowing is getting too much,” said Prof. Akpan Ekpo, an economist and Chairman of the Foundation for Economic Research and Training. “If you really need to borrow, you must justify it, and there should be transparency about what you are borrowing for.”

Government’s attempt to justify the recent spending has been centered on COVID-19 pandemic. Social Economic Rights and Accountability Projects (SERAP), in August 10, made Freedom of Information requests on how the government has handled coronavirus dedicated funds. In response to the request, the federal government said it spent N31 billion in four months (April-July 2020), but did not give a breakdown of the spending. However, the response means that 84% of the N36.3 billion of both donated and dedicated funds for COVID-19 response has been spent, leaving a balance of N5.9 billion in the special account.

Accountability and reducing the cost of governance in Nigeria is a subject of discussion that the government appears not ready to have, and it is baring venomous fangs on the economic development of the country.

The DMO said the states and federal government are expected to borrow more money in the future. With the oil economy still staggering, it means this trend of increasing domestic and external debt will continue, and recurrent expenditure will be sustained at the expense of infrastructural development.

SPECIAL REPORT: The Place of Nigeria on 2021 Ease of Doing Business Ranking Induced by CAMA Act 2020’s New Provisions

2

On March 10, 2020, the Senate passed the Companies and Allied Matters Act (Repeal and Re-enactment) Bill. The Bill became Act on the 7th August, 2020, when President Muhammadu Buhari signed it into law. From the public analysts to economists and business managers, the passage into law is a welcome development.

Despite seeing it as a good omen for the economic development and growth, especially industries with a large number of small and medium businesses, some analysts still believe that some of the new provisions against effective and efficient operations of non-governmental organisations. However, this piece is not about x-raying the views of the supporters of the new provisions and those who against the provisions. It aims at interrogating the moderating roles of the provisions in the country’s possible place on 2021 Ease of Doing Business.

Provisions that Aid Ease of Doing Business

  1. Provision of single-member/shareholder companies
  2. Restriction on multiple directorships in public companies
  3. Appointment of Company Secretary now optional
  4. A Director can’t hold the office of a Chairman, CEO
  5. Procurement of Common seal not mandatory
  6. Concept of Limited Liability Partnership and Limited Partnership
  7. Virtual AGMs
  8. SMEs exempted from appointing auditors
  9. Enhancement of Minority Shareholder Protection and Engagement
  10. Business Rescue provisions for Insolvent Companies
  11. Disclosure of persons with significant control in companies
  12. Merger of Incorporated Trustees
  13. Reduction of Filing Fees for Registration of Charges
  14. Provision for electronic filing, electronic share transfer and e-meetings for private companies

Our Data and Measures

The CAMA Act 2020 and Nigeria’s position on Ease of Doing Business in 2019 and 2020 were our data sources. The first CAMA Act was enacted in 1990. Then, it was believed that the provisions and sections were enough for the country to have a better business environment and making businesses thrive without significant frictions. In spite of this, public analysts and business owners intensified campaigns against some of the provisions, most importantly provisions that contradicted sections and provisions stated in the Nigerian Code of Corporate Governance.

In 2020, Nigeria was ranked 131 on the World Bank’s Doing Business 2020 Index. According to the Index, the country moved up 15 places from its 2019 spot [see Exhibit 1]. Based on the rank, the agency concluded that the country is one of the most improved economies in the world for running a business. The improvement, according to the agency, happened after reforms carried out by the Federal Government.

The total number of words and most frequently used words were the specific data extracted from the CAMA Act 2020. Exploratory analysis of the data shows that 207,386 words were used for stating sections and provisions in the new Act. Analysis also reveals that company (3696), shall (2863), section (1228), act (1183), court (1085), person (816), shares (767), liquidator (731), meeting (712) and winding (653) were the most frequently used words. Relatively, analysis shows that the new Act was structured towards making companies/businesses strong legally [see Exhibit 2].

Exhibit 1: Movement in Nigeria’s rankings

Source: Deloitte, 2020

Exhibit 2: Trends in CAMA Act 2020

Source: CAMA Act 2020; Infoprations Analysis, 2020

Moderating Roles of New Provisions on Ease of Doing Business

Since public affairs analysts and business managers believe that the new provisions will enhance the business environment. In this regard, our analyst examines the influence of the provisions on the country’s positions in 2019 and 2020 using extrapolation analysis [using previous data to advance future knowledge and insights].

Analysis indicates that if Nigeria has added the new provisions before the World Bank released its 2019 and 2020 Ease of Doing Business ranks, the provisions could have ensured 31.6% connection with moving up on the ranking ladder [first connection scenario]. From the second connection scenario, analysis shows that the provisions should have brought the country down by 10%.

These results indicate there are positive and negative consequences of the provisions on the rankings. With these results, our analyst notes the negative consequence could have emerged due to lack of political will and enabling legal and corporate framework to implement the new provisions effectively.

To understand the possible place of the country on 2021 Ease of Doing Business Ranking, our analyst constructed two scenarios using a polarity approach [since connections have established positive and negative impacts of the provisions] [see Exhibit 5]. In the first scenario within the positive consequence [S1-PC], analysis indicates that the ranking would increase by 57.9%, while it would be reduced by 18.3% [S1-PN]. In the second scenario within the positive consequence, mixed insights emerged as the expected positive consequence turned negative. Our analysis shows that the new provisions would reduce the ranking by 3%, while the expected negative consequence would be 27.9%.

Exhibit 3: Word Adequacy Ratio Trends

Source: CAMA Act 2020; Infoprations Analysis, 2020
Source: World Bank Ease of Doing Business 2019-2020; CAMA Act 2020; Infoprations Analysis, 2020

Exhibit 5: Possible Effects of New Provisions on Nigeria’s 2021 Ease of Doing Business

Source: World Bank Ease of Doing Business 2019-2020; CAMA Act 2020; Infoprations Analysis, 2020