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Covid-19: A Crisis That Should Not Go To Waste

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In a world increasingly complex and interconnected, changes in the future will occur faster than ever before. These changes will be accompanied by drastic adjustments to the lifestyle of so many people and how life is organised. The unprecedented event of the Covid-19 has brought with it a combination of incidences as it ravages the world. The synchronous asphyxiation of the economy and the associated decline of carbon dioxide and other greenhouse gas emissions is a testament to the ambivalence of our time.

The Covid-19 which is believed to have started in a seafood market of Wuhan city, Hubei province of China (Yadav, Maheshwari, & Chandra, 2020), entrenched itself as the biggest problem of the year 2020 and foisted a truce on the environment and climate action fight while opening up a conversation around local and global health systems, wildlife and associated trade of endangered species. Economically, this is accompanied by a decline in the global tourism ecosystem, global economic downturns such as a drop in oil consumption, and oil price that culminated to below zero dollars. Environmentally, the pandemic has sparked off a rise in medical waste, waste of farm produce and socially, has imposed changes in people’s habits such as working from home, closing schools and prohibiting public gatherings to isolating sick people in hospitals or encouraging them to stay home.

In the recent past, our ability to prepare for the future has been dependent on our capacity to model and predict how the future might turn out, based on past and present occurrences. This is further complicated today by oversimplified understanding and linear thinking asserted from either simplistic causal relationships or forward planning offering deceptive certainty and predictability – quick-fix solutions.

In another context, the pandemic has exposed the present broken systems which have consequently taken a toll on international relations which are rapidly changing with nationalistic views pitted against globalist views that are thought of as mutually exclusive. This leads to failure in global cooperation, coordination, and fragmented policies that move problems in time and space, rather than solve them. While some governments in Rwanda and New Zealand have implemented high precision policies to contain the pandemic, others have struggled due to policy incoherence, phlegmatic and presumably laissez-faire disposition. It is also important to mention that this is an unprecedented problem, therefore there it is unlikely there are tested and proven policies to manage such circumstantial crises.

Source: Unsplash- kouji-tsuru

“The Carbon Holiday”: According to the International Energy Agency (IEA) forecast, the world’s CO2 emissions are now expected to fall by 8%.  There has been a significant reduction in road traffic CO2 which is the principal driver of global temperature rise due to travel restrictions in many parts of the world. In China the world’s largest emitter, carbon emissions were down an estimated 25% over four weeks (of lockdown) which is equivalent to around 200m tonnes of CO2 (MtCO2). Carbon Brief states that the Covid-19 pandemic has reduced CO2 from Europe’s electricity system by 39% and projected to cause the largest ever annual fall in CO2 emissions at least in the last decade. It is clear that the decline of CO2 and other global warming gases is temporary due to a decline in manufacturing and transportation, however, atmospheric carbon levels are expected to increase again when normalcy returns.

In the area of climate action, one thing we can learn from the ‘carbon holiday’ created by the COVID-19 pandemic is that the Paris Agreement is achievable, but the struggle is to be achieved through radical reforms and actions and not through natural disasters. In the words of the UN Secretary-General Anthonio Guterres on March 13. “We will not fight climate change with a virus.”

Source: Pexel-Pixaboy

Oil economy and industry

The tide turned for the oil and gas industry and shattered it posing a significant risk for those involved in oil and gas extraction. China accounts for an estimated 80 percent of global oil demand. With the outbreak in China and precedent lockdown policy, oil consumption in China contracted which created a collapse in global oil demand of 1.1 million bpd compared to 2019 records. Although the industry is phenomenally described by the boom and bursts syndrome, however, the year 2020 has been unusually historic with prices plummeting below the zero-dollar mark. This occasioned economic disequilibrium on major oil producers and or dependent economies. Iraq is struggling to pay millions of workers; Mexico’s development plans are blighted, Ecuador is pruning government salaries, Venezuela is on a ventilator while Nigeria is desperately seeking billions of dollars of an emergency loan of which it recently secured a sum of $3.4 billion from the International Monetary Fund. Although the fallen oil prices are biting hard on oil economies, the big players – Saudi Arabia, Russia, and the United States have the resources to buffer its effect on their economies. The bottom line – the actions taken are an excellent barometer of our priorities. The idea of oil economy is becoming anachronistic, that however, does not negate its need as it would be with us at least for the next decade or two.

Source: Haley Black (Pexel)

Tourism industry

The global tourism industry as at the year 2010 was responsible for about  1.12 Gt CO2 (Gössling & Peeters, 2015). Although the carbon and general environmental footprint of global tourism would have reduced in the period of the Covid-19 pandemic and most likely would leave trails, the bulldozing effect on the economic sector has been severe. The industry accounts for 7% of global exports and contributing substantially to global gross domestic product (Lenzen et al., 2018). The tourism industry is a potent contributor to climate change through transport, accommodation, shopping, and others. The decline in international travel due to travel restrictions would have a negative economic impact on airline and tourism revenues. For example, the tourism industry directly or indirectly employs about 27 million people in the European Union (EU) and is worth a loss of €1 billion in revenue per month. What this means is that while thousands of people are battling with Covid-19 associated health problems, millions of people are at risk of losing their means of livelihoods. Also, another question to cogitate is, how might Covid-19 change or affect medical tourism?

Source: Hobi industri: Unsplash

Waste production

The dynamics of waste generation has been significantly impacted. While we are likely to see increased waste generation at the household level, it has reduced at the small and medium-scale business levels. Aside from these, massive agricultural waste has ensued. Medical waste produced by hospitals including face masks, disposable personal protective equipment and single-use tissues has increased. Waste facilities in China and the US has seen a record increase. For example, in the city of Wuhan, the volume of medical waste is reported to have quadrupled to more than 240 tons a day. The UK government through the Environment Agency has updated regulation on Covid-19 related waste and its management and this is currently reflected in the NHS guideline for waste management protocols. With the changing circumstances, the UN Environment Programme issued a guideline on the management of Covid-19 associated waste to avoid secondary impacts upon health and the environment. The guideline should be within the purview of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes. One thing we must acknowledge is that for countries with poor waste management capacity, the avalanche of waste produced within this period presents a serious risk to human and ecosystem health and therefore calls for technical support.

Wendy Wei (Pexel)

Health Care

The Covid-19 pandemic overwhelmed many healthcare systems. While countries like Italy and Spain were hard hit (Tanne et al., 2020); South Korea, Germany and New Zealand have been commended for their agility and management approach. To deal with the crises the UK issued an appeal for retired health workers to come back and join the NHS workforce.

The Italian health system is a test case of the consequences of underfunding and how devolution might have constrained effective national coordination (Armocida, Formenti, Ussai, Palestra, & Missoni, 2020). Although there has been a victory in many places, we hope it is not a short-lived victory. There has been a contrasting experience for different societies both developed and developing. Broadly speaking many developing countries although has yet to record alarming death rates, lack the resilience required for a good health system. India has not had many fatalities but it has been reported that people have been escaping from isolation centres (Chetterje, 2020). It is noteworthy that there is a lack of faith in many public health systems. According to Chetterje, the public health-care system in India is underfunded, inopportunely, they are the approved Covid-19 treatment centres. A similar situation is found in Nigeria, a country with an estimated population of 200 million people with a deficient health system and budgetary allocation of less than 5% on the health sector whilst medical tourism is commonplace. Some countries like South Korea and Singapore employed technology-based approaches underpinned by contact tracing and extensive testing. Germany has excelled at this too, employing testing at large scale to identify and isolate infected persons. It is expedient that the Covid-19 crises do not go to waste but catalyse a reform of national ailing health systems. There are no doubts that post Covid-19 would see a rise in innovation in areas like telemedicine, health informatics, artificial intelligence (AI) in medical diagnosis, and alternative medical therapies.

Finally, a question to ask: Are we ready for the future we are preparing for? As the models used to forecast the future get increasingly viewed with scepticism because of its opacity coupled with unanticipated events such as the Covid-19, we must learn to prepare for a world we cannot predict. Now, there is an overarching need for retrospective understanding, scenario analyses, and futures thinking to understand what has been done, what is being done and what should be done to craft the future we desire. I foresee, a call to challenge the implicit acceptance and lack of criticality in testing many of the assumptions surrounding ideas like globalisation and supply chain underpinned by outsourcing critical materials needed for national/domestic security. It is an error for any serious nation to outsource the manufacture of its armouries in the hands of another nation. It does not make sense to sacrifice essential medical supplies such as test kits, personal protective equipment (PPE) and others at the altar of cheap labour and cost differentials.

In conclusion, many environmental impacts of the coronavirus pandemic will be temporary retrogression and short-term gains. Prima-facia, there is an assumption that the climate issues are on the decline but it is only on ‘holiday’. Although climate-friendly trends such as business travel could decline with the increasing uptake in video conferences, however, with many people avoiding public transport for private transportation, the environmental gains achieved in the past months could be lost quickly.

In a dynamic, intricate, immensely complex and continuously evolving world, solving complex national and global problems should base on holistic approaches. This is the time to think differently and to operationalise the constructs of sustainability into tools for management that will enable us cope with some of the known restraints of our future. In the end, we shall either look at the Covid-19 as the emissary of a coming apocalypse or a clarion call to challenge and change the ingrained economic and socio-political paradigms which have historically dominated our policies and business models.

“Those who have the privilege to know, have the duty to act” – Albert Einstein

Corresponding Author: Alaoma Alozie, PhD, Researcher Associate, Stockholm Environment Institute Department of Environment and Geography, University of York, United Kingdom. (aloziealaoma@gmail.com).

References:

  • Armocida, B., Formenti, B., Ussai, S., Palestra, F., & Missoni, E. (2020). The Italian health system and the COVID-19 challenge. The Lancet Public Health, 5(5), e253. https://doi.org/10.1016/S2468-2667(20)30074-8
  • Chetterje, P. (2020). Gaps in India’s preparedness for COVID-19 control. The Lancet Infectious Diseases, 20(5), 544. https://doi.org/10.1016/s1473-3099(20)30300-5
  • Gössling, S., & Peeters, P. (2015). Assessing tourism’s global environmental impact 1900–2050. Journal of Sustainable Tourism, 23(5), 639–659. https://doi.org/10.1080/09669582.2015.1008500
  • Lenzen, M., Sun, Y. Y., Faturay, F., Ting, Y. P., Geschke, A., & Malik, A. (2018). The carbon footprint of global tourism. Nature Climate Change, 8(6), 522–528. https://doi.org/10.1038/s41558-018-0141-x
  • Tanne, J. H., Hayasaki, E., Zastrow, M., Pulla, P., Smith, P., & Rada, A. G. (2020). Covid-19: How doctors and healthcare systems are tackling coronavirus worldwide. The BMJ, 368(March), 1–5. https://doi.org/10.1136/bmj.m1090
  • Yadav, D., Maheshwari, H., & Chandra, U. (2020). Outbreak prediction of covid-19 in most susceptible countries. Global Journal of Environmental Science and Management, 6(May). https://doi.org/10.22034/gjesm.2020.04.0

The GMD’s Statement

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GMD Kyari mele nnpc

Hope is back in the beautiful nation. The Chief High Priest of Nigeria’s economy (yes, the GMD of NNPC), has spoken: the message from the alpha of our economy, crude oil, is normalization is around the corner. 

“At this point, we have seen a gradual easing of the situation. Those numbers of the uncommitted cargoes have gone down drastically and that’s why we see a gradual rise in prices in the last three to four days. It means that those uncleared transactions are now easing off.” Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr Mele Kyari, 17th May 2020

“Today, I can share with you that there are over 12 stranded LNG cargoes in the market globally. It has never happened before. LNG cargoes that are stranded with no hope of being purchased because there is abrupt collapse in demand associated with the outbreak of coronavirus,” Mallam Kyari, 12th March 2020

“After ‘Black April’, the heaviest demand destruction may be behind us…” IEA Executive Director Fatih Birol tweeted. “We see early signs markets have begun the rebalancing process.”

Nigeria’s Bonny Light traded as low as $14.75 on 21st April, it has gained over 100% since then. At the weekend it gained over 10% to close at $29.84. The uptick in oil prices has fuelled the growth in the country’s Fx reserves.

Oh ye Nigerians, very soon, it would be party moments again with all the recent “reforms” magically unreformed. The alpha is returning back to the throne, and crude oil we all pay economic allegiance.  Farmers, leave your seats; techies, vacate here; manufacturers, you are uninvited; etc. What matters now is this: oil is feeling healthier and the iroko has sounded. I can feel it – the village square is awash with the energy of politicians, briefcase contractors, and we will spend again like there is no tomorrow.

This Time Is Different: Prepare Now (Updated: Quote of GMD, NNPC)

 

Nigeria Grounds UK’s Flair Aviation

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The normalization is coming. Lufthansa will fly into Abuja and Port Harcourt from June 7, 2020. But the biggest news is the grounding of Flair Aviation, a foreign carrier, by the Nigerian aviation regulator for flouting the “no flight” rules when not on humanitarian services: “COVID-19: Flair Aviation, a UK company, was given approval for humanitarian operations but regrettably, we caught them conducting commercial flights. This is callous! The craft is impounded, the crew being interrogated. There shall be maximum penalty. Wrong time to try our resolve,” Minister of Aviation, Hadi Sirika,  wrote on Twitter.

The Federal Government of Nigeria announced on Sunday that a British airline company, Flair Aviation, has been grounded for flouting the “no flight” rule. The Minister of Aviation, Hadi Sirika, disclosed this on Twitter, explaining that the company was only authorized to operate humanitarian services but went on a commercial business.

“COVID-19 Flair Aviation, a UK company, was given approval for humanitarian operations but regrettably, we caught them conducting commercial flights. This is callous! The craft is impounded, the crew being interrogated. There shall be maximum penalty. Wrong time to try our resolve,” Sirika wrote on Twitter.

It could be recalled that the Federal Government had earlier this month, extended the “no flight” to four weeks, limiting flights to essential services only. The Aviation Minister said the Flair Aviation company would be penalized. However, the development tells of the struggle of the aviation industry to survive the COVID-19 pandemic that has brought it to its knees.

It is extremely surprising that some Nigerians are taking unusual risks to leave the UK, Canada and U.S. to return back to Nigeria. Typically, you would expect the reverse. But Covid-19 is not normal in any dimension. As they always say, there is no place like home!

Meanwhile, CBN and NNPC have promised to support Nigerians returning back to the nation as a result of the pandemic.

“The governor of CBN, very generously and very kindly, agreed; he said the amount I was talking about, over N1 billion because we have over 4,000 Nigerians out there… he said he was ready to explore and share the cost with NNPC. ..And I spoke to the GMD of NNPC and he said he was going to consult. And thanks be to God, today, he got back to me to say he was ready, he was going to meet up with the CBN governor and together, they will fund this portion; a very important portion, the accommodation and feeding of evacuees.”

Comments on LinkedIn Feeds

User: The opportunities are drying up. Nobody wants to stay aboard without pay.

My Response: I think you are 100% correct. It is very surprising that the hope is back home, as least the bills freeze unlike UK and US when they continue to come, job or no job. We may see a repeat of 2009 again where many professionals returned to Africa. I just hope the governments can take advantage and use their skills to help the continent. With this paralysis projected to run for quarters, economically, Africa may be a safer place for many before things normalize again.

The Aviation Industry is Getting Desperate to Survive

The Aviation Industry is Getting Desperate to Survive

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The Federal Government of Nigeria announced on Sunday that a British airline company, Flair Aviation, has been grounded for flouting the “no flight” rule. The Minister of Aviation, Hadi Sirika, disclosed this on Twitter, explaining that the company was only authorized to operate humanitarian services but went on a commercial business.

“COVID-19 Flair Aviation, a UK company, was given approval for humanitarian operations but regrettably, we caught them conducting commercial flights. This is callous! The craft is impounded, the crew being interrogated. There shall be maximum penalty. Wrong time to try our resolve,” Sirika wrote on Twitter.

It could be recalled that the Federal Government had earlier this month, extended the “no flight” to four weeks, limiting flights to essential services only. The Aviation Minister said the Flair Aviation company would be penalized. However, the development tells of the struggle of the aviation industry to survive the COVID-19 pandemic that has brought it to its knees.

Punch has reported on Sunday that some foreign airlines are planning to resume flight activities to Lagos, Abuja and Port Harcourt airports. The Ministry of Aviation has however vowed to penalize any airline that flies into Nigeria in defiance of the ban. The Transport Service Senior Staff Association of Nigeria (TSSSAN) said no foreign or local airline is allowed to fly until the ban is lifted.

Despite the stance of aviation authorities of Nigeria on the matter, some foreign airlines are reportedly making plans to resume flight operations in June. Lufthansa Airlines has reportedly added Abuja and Port Harcourt among its 20 long-haul routes that is scheduled to kick off in June. Lufthansa has made its first batch of flight reservations available in its booking system according to people familiar with the matter.

On the other hand, Virgin Atlantic is reportedly lining up flight schedules for London Heathrow to Murtala Muhammed Airport Lagos. And beginning from May 16, services for its March 28, 2021 summer schedule flights. Though some other cities around the world are part of their flight plan, Nigerian Aviation authorities are not seeing the possibility in the nearest future unless the ban is lifted.

“They (foreign airlines) can’t operate scheduled passenger flights as long as the ban remains. The PTF on COVID-19 has the final remains. The PTF on COVID-19 has the final say on when flights can resume, based on the level of control of the pandemic.

“Of course, we in the sector can’t wait for activities to resume at the airports to forestall further loss of jobs and revenue. Aviation has been one of the hardest hit by the pandemic and it will be a great relief to have flights resume,” said James Odaudu, Director, Public Affairs, FMA.

The president of ATSSSAN, Ilitrus Ahmadu, said the decision to fly is not for foreign airlines to make. He said the Federal Government reserves the right to open and close its air space when it deems fit.

“It is not the foreign carriers that will decide for our country. So it is not their business and they cannot say they can fly into the country without government opening the airspace,” he said.

The aviation industry’s revenue has plunged massively since early in the year when countries started to halt flight activities. The plague has plummeted many companies into dire financial strains and near bankruptcy status despite governments’ bailout measures.

German national carrier Lufthansa, last month demanded a $11 billion bailout from the German government, on the agreement that it will take 25.1% stake in the company. Lufthansa has been losing $1.1 million per hour as a result of the global health crisis.

Virgin Atlantic also appealed to the UK government for a 500 million pounds bailout to save the airline from going out of business. In an open letter to the British Parliament in April, Virgin Atlantic founder, Richard Branson, who has already staked his private island for fund, said the coronavirus pandemic has forced the company to seek external funding.

“Because of significant costs to our business caused by unprecedented market conditions which the COVID-19 crisis has brought with it, we are exploring all available options to obtain additional external funding,” he said.

Around the world, every aviation company is on life support that requires sustainable intervention that many governments appear unable to offer right now. It seems that the desperation to survive is pushing airlines into sharp practices, and many of them are getting ready even to dare the “no flights” rules.

Uber About To Eat GrubHub, Air Peace Refreshing Its Aircrafts, Emirates to Cut 30k

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As Emirates plans to cut 30,000 jobs to manage the paralysis resulting from Covid-19, the conclusion is that cuts are not just due to low current demand but rather projected dislocation in global aviation. Now that firms know that doing business on Zoom is legitimate over flying across cities, Chief Financial Officers in companies will work their models to accommodate this redesign. Simply, aviation will recover but not immediate to carry and hold unnecessary liabilities and expenses.

Dubai-based Emirates Airlines is reviewing its costs, which could lead to 30,000 job cuts and the fast-tracked retirement of its superjumbo A380 fleet. Sources tell Bloomberg that Emirates, the fourth-largest airline in terms of passengers, may slash 30% of its workforce. Emirates has not made an official announcement, but carriers worldwide have cut jobs after the near-total shutdown of travel during the pandemic.

Arik Air has spoken: 90% of staff are going on compulsory leave without pay while those remaining will see 80% pay cut. We are yet to read from Air Peace, the industry leader in Nigeria. But we do know that it is using this downtime to scale “up technical maintenance and cabin refresh of our aircraft to keep them safe for the skies again” Nigeria must not allow its aviation sector to collapse.

Arik Air, one of Nigeria’s major airline companies has ordered 90% of its staff to go on leave until further notice. This is as a result of lockdown that has paralyzed commercial activities in many states in Nigeria, and put aviation transportation to a halt.

The aviation company has also implemented an 80% pay cut for its personnel while the rest of its workforce has been sent on leave without pay.

Meanwhile, Uber plans to eat GrubHub, a meal delivery service competitor to Uber Eats, breaking apart the construct of antitrust.  I expect the regulators to bless it as this time is not normal.

Uber and GrubHub are continuing their takeover discussions, with GrubHub signaling over the weekend that the ride-share giant’s offer “is too low,” reports The Wall Street Journal, citing anonymous sources. Uber, which operates Uber Eats, approached its rival after the pandemic started, according to The New York Times. Uber has relied on its meal-delivery service to make up for severe losses in its main business amid the current crisis — the company reported losses of nearly $3 billion in the first quarter. A merged Uber Eats and Grubhub would account for 55% of the U.S. food delivery market, says the Times. DoorDash, which accounts for 35% of the market, would be its largest rival.