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COO of GIG Logistics Is Coming to Tekedia Mini-MBA To Teach Supply Chain & Logistics

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Nigeria’s leading intra-city logistics leader, GIG Logistics, is coming to Tekedia Mini-MBA.Yes, the Chief Operating Officer, Ayodele Adenaike, will lead a session on Supply Chain Management for the second edition of our program, beginning June 22. An 11-year veteran of DHL before he moved to GIG Logistics, Mr Adenaike understands logistics and supply chain. He joins other prestigious members of our faculty from leading organizations like Massachusetts Institute of Technology, Deloitte, BUA Group, Access Bank, WECO Systems, Queen’s University, Kendor Consulting, INCSR, Flutterwave, American Tower, Sherwin Williams, Polaris Bank, etc.

Tekedia offers an innovation management 4-month program, optimized for business execution and growth, with digital operational overlay. The cost is $140 or N50k and operates entirely online. Installment payment is available.  Register today and join us.

For questions, contact is here.

https://www.tekedia.com/mini-mba-2/

 

Coronavirus and the Plaques of Nations

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2020 has been contested to be the dawn of a new decade or otherwise. The year has started for the rest of the world with so much expectation and projections as usual. Whilst the universe except for WUHAN, the capital of Hubei province, the largest and most populous city in Central China, was basking in the euphoria of a brand-new Gregorian year, this industrial city in China was contending with a deadly pandemic. The rest of the world was sequestered. Who would have thought in weeks to come, that the world will pause and also be in self-isolation?

The internet, social media, television and all channels of human communication is now awash with the pundits, opinion leaders, political leaders, scholars, accidental scientists, conspiracy theorists and religious leaders pushing various propaganda, theories, postulations and hypotheses.

Yes, it happens every century! In 1720, it was the great plague of Marseille(black death) – 100,000 casualties. Sequentially in 1820, it was the Asiatic Cholera pandemic with 100,000 deaths. Of course, 1920 Spanish Influenza that recorded about 100 million deaths has become a sudden referral point. A century after, we now have the vicious CoronaVirus – Covid-19 to contend with. A quick review of the chronology confers perfection to the ordering by these accidental historians whilst forgetting a bouquet of pandemics that have ravaged mankind since the onset of the 15th century and even earlier. These self-acclaimed internet sensationalists and data curators will always produce a rhyme.  It happens every century. From the Black death of 1353 to the Persian plague of 1793 with over 2 million deaths, mankind has always been challenged by these pandemics. The 19th and 20th century also bore witness to an assemblage of epidemics with substantial mortality rate – 1915 Lethargica(Sleeping sickness) pandemic with over a million fatalities, to the ongoing HIV/AIDS pandemic with over 32 million deaths till date.

The dawn of the millennium also has added its own affidavit to the unending list of global health challenges. A quick pick shows that we had SARS(Severe Acute Respiratory Syndrome) outbreak in the early 2000’s, the swine flu of 2009 and “our own Ebola virus” epidemic which claimed over 11,000 lives across the years. Humanity has always contended with various pathogens for existence. The quick fix Historians and internet mavericks may be wrong in placing these events in a centenary chronology.  This myth of, it happens every century may be deceptive as each of these listed pandemics has presented as novel and defied science and research till man conquers or ameliorates its effect. COVID – 19 will not be an exception.

It has also been given a shroud of religiosity. It must be the wrath of God(god) on mankind. This must be the long prophesied ‘mors perpetua’ in reality. Pastors, Prophets, Imams have made prodigious declarations of the cause and effect of this pandemic even the cessation date.  The ‘Basilica Sancti Petri’ and St. Peters square is bereft of the usual sea of heads, the obligatory Umrah pilgrimages to Makkah and Medina is suspended, our locally celebrated largest auditoriums are all empty! Sports is also not isolated from this enigma – Olympics, Euro, leagues across nations have also been suspended. History is being written, Wimbledon, my favourite grand slam has been put off for the first time since the second world war.

The conspiracy continues. Initially the virus was developed by the USA to distort China as part of the ongoing battle of supremacy – trade war. Now that the USA is fast becoming the epicentre of the pandemic, the theorists have somersaulted to attribute it to be biologically developed in labs in China to displace the USA as the world’s leading country and largest economy. Maybe they are correct. China only shut down WUHAN the epicentre of the virus without impact on Beijing and Shanghai, today 206 countries/ territories are on lock down. What a mystery? Today Chinese cities are reopening, and the global supply chain is anxiously waiting for its vital medical supplies – face masks, PPE, test kits to rescue the dying in various ICU’s. Is the world shutting down with China as the only open market now? But these kits are failing with accuracy below 30% as seen in several countries – Spain, Czech Republic etc. Should they be trusted as several activists are preparing litigation against them for hiding this pandemic. Had China won the purported 3rd world war without firing a missile, my pundit friends may have gotten some positives on this one anyway.

The soothsayers continue with their reel of conjectures. Like Nostradamus, the man who saw tomorrow, the Corona virus has been foretold by the American Writer, Dean Koontz in his 1981 thriller – The Eyes of Darkness. According to these online conspiracy theorists, Dean predicted the killer virus “WUHAN – 400” which they uncannily linked to Covid – 19. They also impishly failed to juxtapose the symptoms as foregrounded by Dean in his book. Do they share similarities, or the internet sensationalists oversee the orchestra as usual? What really is their motive, instil fear or share and distribute knowledge? As they say in Africa, the apple doesn’t fall too far from the tree, a 2018 teen Netflix movie ‘My Secret Terrius’(episode 10) predicted the novel CoronaVirus. As expected, these conspiracy theorists have eerily marked a nexus with the rampaging Covid – 19. Maybe these make-shift, junk data scientists are correct. What do I know?

Our dear mongers have also attempted to awoken the spirit of Robert Nesta Marley aka Bob Marley by attributing that this pandemic was foretold in one of his hit tracks of the 1977 album(Exodus) – Natural Mystic. 

Cities, towns and hamlets are on lock down. Our lexicon has new appendages – ‘social distancing, self isolation, flatten the curve’. We have espoused new ways of life – I had to wash my hands to enter my usual local grocery store. We have all been condemned to house arrest. Suddenly, the occupants of this sleepless universe have become eremites, social coenobites. In the legendary Fela Kuti’s voice, ‘confusion everywhere’. 

Apothecaries and Physicians are in disarray. The most standardised and certified laboratories and scientists are helpless. The morgues are fast sating with corpses, the crematorium is overheating! The frailty of humanity is being exposed. The fortune 500 companies whose executives never sleep as all calls/emails must be responded briskly are suddenly suffocating. Those historic meetings and MOU signings with Camera click which must not be missed not even for family event/child graduation are helplessly put off – indefinite. The rounds of sleepless financial markets are brazenly mute. The terrorist is suddenly not bombing.  No missile or rocket launcher is suddenly being fired. The heat of global and local politics as well as the usual threat of war has suddenly been extinguished. Is this a way to achieve a pseudo world peace or is what is stronger than the cricket visiting it in its hole? Who paused the world? This our round the clock global village that we claim cannot stop for anything. What cannot be seen with our naked eyes has exposed the weakness of man. 

Whichever came – CoronaVirus or “Covikk One Nine”, has tested our collective resolve, response and leadership. Whilst the situation has thrown up leaders who have resolved not to be drowned by this unseen guest, it has also exposed the gross inadequacy and neglect of our healthcare system. This pandemic has again reminded humanity of its closely compartmentalised existence. Even though we continue to distance each other through the creation of judicial boundaries, our existence is physiologically entwined. From Wuhan thousands of miles away, to the fissures of the Sahel in Northern Nigeria, how did it get there? While the daily briefings, speeches and response plans has laced our Tv screens, some of them has indeed been insightful. From Andrew Cuomo’s daily response plan to the raging Corona pandemic in New York whose briefings has been described as ‘lessons of leadership’ to the White house and down to our own Babajide, This Virus after all has suddenly created demonstrative and empathetic leadership. Asides from the subnational government of Lagos, it seems we have a lifeless centre locally(Nigeria) here.  The sheer disbelief in their capacity is manifested in the transmission of the influential Abuja patients to the now acclaimed healing land – Lagos. 

My dear friends, whether it is curse from the Almighty(doubt if He punishes his own),deliberate laboratory invention or error, centurion plaque, prophesy, power play, supremacy battle or natural occurrence, humanity is in unison of the  undeniable truth, that the world is currently at war with an unseen enemy. Whether we adopted it as CoronaVirus or plagiarised it locally(Nigeria) as “Covikk One Nine”, the existence of the human ecosystem has been evaded by a Black Swan. Leaders(religious, political, scientific etc) have responded with a dogged fight as the domineering character of creation. In the worlds of Winston Churchill in his historic speech to the House of Commons during the battle of France in the second world war – “we shall never surrender”. Even with other pandemics that till date has defied cure, humanity will never surrender in this conquest. The world has responded and is still responding to this battle.

As Georges Clemenceau noted during the first world war – “war is too important to be left to the Generals”. The response of the organised private sector and public-spirited individuals has been phenomenal. The staggering donations and the terrific erection of infrastructure(within days) has renewed hope of survival whilst underpinning the endemic failure of successive regimes/governments. Should we continue to leave governance in the hands of these charlatans or involve these young dynamic private sector moguls/ captains who have successfully built and managed multi-billion-dollar corporations. Some of the clinics we have budgeted billions over the years cannot even boost an antiquated ventilator. 

Eventually, Coronavirus will be over sooner than expected and life will strive to restart, but the scars will be a festering sore for some years to come. The lessons/impact will overwhelmingly create another round of glitziness – analysis paralysis.  Strategy formulation for post-corona economic survival will dominate the consulting space in the next few years. The top tier consulting firms will sign multi-million-dollar contracts for advisory services on post corona survival strategies for firms. The various stimuli disbursement will of course be managed. Every crisis presents golden opportunities indeed. 

Indeed, Corona has brought tremendous change in our lifestyle. It has indeed taken so much from us. According to the words of the WHO DG, Dr Tedrous Ghebreyesus, it has also given us something special, the opportunity to come together as one humanity, to work together, to learn together, to grow together.

The ineptitude and (in)sincerity of our leadership has been exposed. Unfortunately for them, they cannot take the usual trip to state-of-the-art hospitals in the UK/USA to check their blood pressure. There is nowhere to run to anymore. As said in the local parlance, ‘we die here has come into manifestation. Even those health havens are overwhelmed not to talk of the non-existent medical infrastructure in our dear country. According to Madiba, “real leaders must be ready to sacrifice all for the freedom of their people”. We either build health infrastructure or we perish together. For the first time in this country, if a top government official falls and strains a toe, he/she will have to remain and be treated in this country. The private sector must rethink their CSR strategy and deploy more towards real institutions/infrastructure for humanity. You are as strong as your weakest link.

The concept of work is also being redefined by this Pandemic.  As the Labour leader asked, “who are we least able to do without in a crisis, the refuse collector or the billionaire hedge fund manager”. Who is actually doing more for our society at this very moment? The millionaire sports icon or health officials in the frontline. We need to re-evaluate our classification of work and begin to value and respect the contributions of our ‘supposedly’ low skill labour. These uncelebrated workers have proven to be the most essential for our existence. Employers of labour must also start implementing the age-old rhetoric of work- from-home.  Though not optimal, a lot of organisations have been working from home since this pandemic. Businesses have not collapsed. I experienced temporary glitch with my internet service provider yesterday and the issue was resolved within minutes by a work-from-home mother and IT engineer. Did she really need to increase the traffic density of Lagos with its attendant health stress by travelling daily from Ikeja to Victoria island in Lagos? 

Fame, position, pedigree and wealth are suddenly worthless. Life is indeed vanity upon vanity. Some spouses have argued that this period will heal their strained relationship. That may of course be debatable though the credit of the most important resource, time is of their great advantage. Unfortunately, if your relationship is not fundamentally healthy, this season may or may not help much as you may be quarantined under the same roof, but self-isolated from each other.

Social distancing will only impede the spread of the virus but will not provide the much desired victory of this war. Discovery of the vaccine is the only assurance of a cure to this epidemic.  Presently there are firms in the clinical trial stage of the vaccine with over 40 firms still at the preclinical stage. We can only patiently wait for that Eureka moment.

Businesses and economies will soon reopen. China may reopen the city of WUHAN by April 8th and Donald Trump has alluded to kick starting the economy. Though hard choices, economy vs public health emergencies will be laid analogous to each other. Covid-19 is after all not a death sentence especially in persons with no underlying health conditions and non-geriatrics.  This age bracket constitutes over 80% of the active workforce. Various economies have provided billions and trillions of various economic stimuli, this must be recovered from taxpayers viz an active and productive economy. Labour managers may not continue to pay salaries for staff that work from home in such an isolated and passive economy. Most of these managers are capitalist after all!

While the effort, rhetoric, response and bailout continue across the world, human life is being lost and the challenge and risk factor of the virus is still very high. We can only trust that the high level of hygiene is continuously imbibed post-Corona and the lessons cause a change in our society and humanity in general. It is now obvious that we can live without some things we thought were indispensable.

Stay safe and observe the health guidelines.

Presidential Address: Lockdown in Nigeria Extended but Eased (Full Text)

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In his address on April 27 2020, President Muhammad Buhari announced the new measures the Nigerian Government has adopted in its fight against novel coronavirus. Among them is the ease of movement in the Federal Capital Territory (FCT), Lagos and Ogun States which have been in total lockdown since March. Below is the full address.

  1. Fellow Nigerians

  2. I will start by commending you all for the resilience and patriotism that you have shown in our collective fight against the biggest health challenge of our generation.

  3. As at yesterday, 26th April 2020, some 3 million confirmed cases of COVID-19 have been recorded globally with about 900,000 recoveries. Unfortunately, some 200,000 people have passed away as a result of this pandemic.

  4. The health systems and economies of many nations continue to struggle as a result of the coronavirus pandemic.

  5. Nigeria continues to adapt to these new global realities on a daily basis. Today, I will present the facts as they are and explain our plans for the coming months fully aware that some key variables and assumptions may change in the coming days or weeks.

  6. Exactly two weeks ago, there were 323 confirmed cases in 20 States and the Federal Capital Territory.

  7. As at this morning, Nigeria had recorded 1,273 cases across 32 States and the FCT. Unfortunately, this includes 40 deaths.

  8. I am using this opportunity to express our deepest condolences to the families of all Nigerians that have lost their loved ones as a result of the COVID-19 pandemic. This is our collective loss and we share your grief.

  9. Initial models predicted that Nigeria will record an estimated 2,000 confirmed cases in the first month after the index case.

  10. This means that despite the increase in the number of confirmed cases recorded in the past two weeks, the measures we have put in place thus far have yielded positive outcomes against the projections.

  11. The proportion of cases imported from other countries has reduced to only 19% of new cases, showing that our border closures yielded positive results. These are mostly fellow Nigerians returning through our land borders. We will continue to enforce land border arrival protocols as part of the containment strategy.

  12. Today, the Nigeria Centre for Disease Control (NCDC) has accredited 15 laboratories across the country with an aggregate capacity to undertake 2,500 tests per day across the country.

  13. Based on your feedback, Lagos State Government and the FCT with support from NCDC have established several sample collection centers. They are also reviewing their laboratory testing strategy to further increase the number of tests they can perform including the accreditation of selected private laboratories that meet the accreditation criteria.

  14. Several new fully equipped treatment and isolation centres have been operationalised across the country thereby increasing bed capacity to about three thousand.

  15. I commend the State Governors for the activation of State-level Emergency Operation Centres, establishment of new treatment centres and the delivery of aggressive risk communication strategies.

  16. Over 10,000 healthcare workers have been trained. For their protection, additional personal protective equipment have been distributed to all the states.

  17. Although we have experienced logistical challenges, we remain committed to establishing a solid supply chain process to ensure these heroic professionals can work safely and are properly equipped.

  18. In keeping with our Government’s promise to improve the welfare of healthcare workers, we have signed a memorandum of understanding on the provision of hazard allowances and other incentives with key health sector professional associations.

  19. We have also procured insurance cover for 5,000 frontline health workers. At this point, I must commend the insurance sector for their support in achieving this within a short period of time.

  20. Nigeria has also continued to receive support from the international community, multilateral agencies, the private sector and public-spirited individuals. This support has ensured that critical lifesaving equipment and materials, which have become scarce globally, are available for Nigeria through original equipment manufacturers and government-to-government processes.

  21. The distribution and expansion of palliatives which I directed in my earlier broadcast is still on-going in a transparent manner. I am mindful of the seeming frustration being faced by expectant citizens. I urge all potential beneficiaries to exercise patience as we continue to fine tune our logistical and distribution processes working with the State Governments.

  22. Our Security Agencies continue to rise to the challenge posed by this unusual situation. While we feel deeply concerned about isolated security incidents, I want to assure all Nigerians that your safety and security remain our primary concern especially in these difficult and uncertain times.

  23. As we focus on protecting lives and properties, we will not tolerate any human rights abuse by our security agencies. The few reported incidences are regrettable, and I want to assure you that the culprits will be brought to justice.

  24. I urge all Nigerians to continue to cooperate and show understanding whenever they encounter security agents. Furthermore, for their protection, I have instructed that the personnel of all the security agencies be provided with the necessary personal protective equipment against infection.

  25. As we continue to streamline our response in the centres of Lagos and the FCT, I am gravely concerned about the unfortunate developments in Kano in recent days. Although an in-depth investigation is still on-going, we have decided to deploy additional Federal Government manpower, material and technical resources to strengthen and support the State Government’s efforts, with immediate effect.

  26. In Kano, and indeed many other States that are recording new cases, preliminary findings show that such cases are mostly from interstate travel and emerging community transmission.

  27. Drawing from these, I implore all Nigerians to continue to adhere strictly to the advisories published by the Presidential Task Force and the Nigeria Centre for Disease Control.

  28. These include regular hand washing, physical distancing, wearing of face masks/coverings in public, avoidance of non-essential movement and travels and avoidance of large gatherings.

  29. Fellow Nigerians, for the past four weeks, most parts of our country have been under either Federal Government or State Government lockdown. As I mentioned earlier, these steps were necessary and overall, have contributed to slowing down the spread of COVID-19 in our country.

  30. However, such lockdowns have also come at a very heavy economic cost. Many of our citizens have lost their means of livelihood. Many businesses have shut down. No country can afford the full impact of a sustained lockdown while awaiting the development of vaccines.

  31. In my last address, I mentioned that Federal Government will develop strategies and policies that will protect lives while preserving livelihoods.

  32. In these two weeks, the Federal and State Governments have jointly and collaboratively worked hard on how to balance the need to protect health while also preserving livelihoods, leveraging global best practices while keeping in mind our peculiar circumstances.

  33. We assessed how our factories, markets, traders and transporters can continue to function while at the same time adhering to NCDC guidelines on hygiene and social distancing.

  34. We assessed how our children can continue to learn without compromising their health.

  35. We reviewed how our farmers can safely plant and harvest in this rainy season to ensure our food security is not compromised. Furthermore, we also discussed how to safely transport food items from rural production areas to industrial processing zones and ultimately, to the key consumption centres.

  36. Our goal was to develop implementable policies that will ensure our economy continues to function while still maintaining our aggressive response to the COVID-19 pandemic. These same difficult decisions are being faced by leaders around the world.

  37. Based on the above and in line with the recommendations of the Presidential Task Force on COVID-19, the various Federal Government committees that have reviewed socio-economic matters and the Nigeria Governors Forum, I have approved a phased and gradual easing of lockdown measures in FCT, Lagos and Ogun States effective from Monday, 4th May, 2020.

  38. However, this will be followed strictly with aggressive reinforcement of testing and contact tracing measures while allowing the restoration of some economic and business activities in certain sectors.

  39. Furthermore, new nationwide measures are to be introduced as follows;

a. There will be an overnight curfew from 8pm to 6am. This means all movements will be prohibited during this period except for essential services;

b. There will be a ban on non-essential inter-state passenger travel until further notice;

c.Partial and controlled interstate movement of goods and services will be allowed for the movement of goods and services from producers to consumers; and

d. We will strictly ensure the mandatory use of face masks or coverings in public in addition to maintaining physical distancing and personal hygiene. Furthermore, the restrictions on social and religious gatherings shall remain in place. State Governments, corporate organisations and philanthropists are encouraged to support the production of cloth masks for citizens.

  1. For the avoidance of doubt, the lockdown in the FCT, Lagos and Ogun States shall remain in place until these new ones come into effect on Monday, 4th May 2020.

41.The Presidential Task Force shall provide sector specific details to allow for preparations by Governments, businesses and institutions.

  1. In respect to the above guidelines, State Governors may choose to adapt and expand based on their unique circumstances provided they maintain alignment with the guidelines issued above.

  2. To support our businesses and traders, the monetary and fiscal authorities shall deploy all the necessary provisions needed for production to continue and thus, jobs restored.

44.These revised guidelines will not apply to Kano State.

  1. With regards to Kano, I have directed the enforcement of a total lockdown for a period of two weeks effective immediately. The Federal Government shall deploy all the necessary human, material and technical resources to support the State in controlling and containing the pandemic and preventing the risk of further spread to neighbouring States.

  2. I wish to once again, commend the frontline workers across the country who, on a daily basis, risk everything to ensure we win this fight. For those who got infected in the line of duty, rest assured that Government will do all it takes to support you and your families during this exceedingly difficult period. I will also take this opportunity to assure you all that your safety, wellbeing and welfare remain paramount to our Government.

  3. I will also recognise the support we have received from our traditional rulers, the Christian Association of Nigeria, the Nigerian Supreme Council for Islamic Affairs and other prominent religious and community leaders. Your cooperation and support have significantly contributed to the successes we have recorded to date.

  4. I will urge you all to please continue to create awareness on the seriousness of the coronavirus among your worshippers and communities while appealing that they strictly comply with public health advisories.

  5. I also thank the Nigeria Governors’ Forum and the Presidential Task Force for all their hard work to date. Through this collaboration, I remain confident that success is achievable.

  6. I also wish to thank corporate organisations, philanthropists, the UN system, the European Union, friendly nations, the media and other partners that have taken up the responsibility of supporting our response.

  7. And finally, I will thank all Nigerians again for your patience and cooperation during this difficult and challenging period. I assure you that government shall continue to take all necessary measures to protect the lives and livelihoods of our citizens and residents.

  8. I thank you for listening and may God bless the Federal Republic of Nigeria

COVID-19: Testing of Global Real Estate and Facilities Management Industry Calls for Smart Decisions -Ukeme Peters, Alpha Mead Group’s Head of PEMS

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Editor’s Notes

Amid continuous ravaging of coronavirus across the world, several reports have indicated and some are still suggesting that the health of real estate and facilities management industry is not good based on the fact that lockdown, one of the measures being used by the governments to contain the virus, has significantly shut down most commercial real estate, which constitutes the main component where substantial revenue is being generated by players in the industry. Nigerian real estate and facilities management industry is not an exception in this regard. Ukeme Peters, Head of Planning, Enterprise and Management System (PEMS) at Alpha Mead Group, one of the leading total real estate solution company in Nigeria, speaks with our analyst on what have been the impact of the virus in the industry, coping strategies being implemented to ensure continuous service delivery to the clients and what the future holds for the industry.

Excerpts

Tekedia: No doubt, this period is volatile for businesses, individuals and governments across the world considering Coronavirus Outbreak. As a business that has presence beyond Nigeria, what have been the coping strategies for business continuity?

Ukeme Peters: The COVID -19 outbreak has affected lots of businesses and indeed it has affected Alpha Mead as well. However, our coping strategy is the years of investment in human capacity development and technologies.  Before the pandemic, all around the world, especially in developed economies, the Real Estate and Facilities Management (REFM) industry was seeing an impressive increase in investment and application of technology such as artificial intelligence, robotics, and other intelligent solutions that helps buildings become what is now called smart buildings.

At Alpha Mead, we were also in the vanguard of this global trend – rethinking our processes and systems in line with global best practices. This period is indeed putting those organizational resilience strategies, capacities and scenarios (such as technology adoption and application; risk & quality management systems, and Health & Safety) to the test.  And we are happy that beyond these as the bedrock of our COVID-19 operations, they also present an opportunity to proof the viability of our years of investment and leverage it to continue to provide solutions for our customers in this unusual time.

Tekedia: Apart from devising the strategies, how would you describe your company’s innovative approach this period compare to what it was before the pandemic?

Ukeme Peters: I think my response to that will be this period provides us with the opportunity to test our innovations around processes, systems and technologies in a real-life scenario. So, what we have been focused on is driving increased acceptability, adoption and scaling our systems in line with the demands of the times and those of our customers.

For example, one of the cruxes of this time is, by all means possible, reduce physical contact of people. As an organisation that cares about our people – either employees, customers, vendors, and other stakeholders – even before the government lockdown was announced, we already took a strategic decision to shut physical delivery of most of our services.  We have also reviewed our supply chain strategies and completely eliminated to the barest minimum what we call JIT supplies. Even though supply chain efficiencies are challenged by the highly complex and regulated logistics arrangement of the time, we leveraged on the relationships we have built across the chain before this period and I can tell you, we have been very happy with the results.

The business has also scaled up remote support to handle customer issues especially from our residential operations which is at its peak delivery times this season. We have a 24/7 customer call centre available which can be contacted by telephone, email, WhatsApp and through our social media handles. We have observed an increase in the use of these channels and we are also able to continue to handle inquiries from customers concerning our other real estate products.

We also slightly modified our Health, Safety, Environment and Security protocols to include specific COVID-19 protocols to ensure the risk of infection for our employees and customers are eliminated as much as possible. Definitely, it has affected basic site operations protocols such as cleaning frequency, substance use and PPEs.

Tekedia: Since the virus becomes pandemic, what has been the impacts on Facilities Management Industry, especially the commercial real estate component?

If you follow our webinar on the 15th of April, you can check our website for excerpts. I did mention that the Corporate Real Estate and Commercial Real Estate sectors are amongst the hardest hit in the REFM industry as social distancing and lockdown strategies are enforced for close to four weeks now. As the use of these facilities reduced its operations and foot fall, we have seen a marked decrease in facilities management scope of activities especially as it concerns reactive procedures. Some planned/fixed operational procedures are still on-going in some cases even though largely scaled down.

Let me also state that this has affected the Corporate Real Estate sector in varying ways depending on the classification of such organization into essential or non-essential businesses. So, in some cases, the demands from essential businesses have increased as a result of more stringent requirement in terms of operations, hygiene and HSE requirement which has increased and is now subject to more regulatory influences.

Tekedia: Your company recently held a webinar to educate professionals and other stakeholders in the industry about the impacts of the virus. Based on the insights you shared with them, how do you see the impacts in short, medium and long terms?

In the short term while businesses remain closed, revenues and cashflows of businesses may continue to dwindle and that may also affect critical obligations to stakeholders. This is expected to continue even few months after the restriction to businesses are lifted given the fragile macroeconomic condition at the time especially as a result of oil price instability

Post COVID -19, business operations, processes and demand pattern from customers are expected to be altered. I believe there will be a new normal, which businesses have to quickly study and adapt their operations to fit. At this point, only businesses that are able to inject flexibility into their processes and are dynamic in nature will be able to cope. Therefore, the lockdown period should be used to innovate and create new ideas.

In the medium term, depending also on how long the COVID-19 situation persists worldwide and even in Africa, we may begin to see declining investment into real estate projects especially as remittances into the country deprioritizes projects which most of the times are real estate related.

Some economists are suggesting that we may experience another recession in the coming quarters resulting in high inflation rates and depressed disposable income. If this holds true, we may witness a rise in vacancy factor across the industry and perhaps assets disposal in a bid to sanitize balance sheets or as a result of post COVID-19 strategies where remote working have increased.

Therefore, in the long term, you may see increase in co-location situation for offices, reduced rents, and perhaps interesting real estate deals.

Companies will need to be more cost efficient as inflation rises and challenges margins. Certainly also, investment in technology will spike and the use of technology will become a new norm as clients who had hitherto not embraced the idea will be more opened to such situations.

Tekedia: Now, let’s examine the impacts on employees. FM solutions provision requires a lot of people in a developing market such as Nigeria. One of the impacts of the virus on operational activities is asking employees to work from home. If your company is using this approach, how effective is it?

Ukeme Peters: Working from home situation is working very well for us in Alpha Mead. Interestingly, these are strategies our organization had already considered although on a more conservative scale. Therefore, we have had investments within the last 2years now in preparation for that. However, we see challenges in internet cost, internet quality (although I might say is better than I personally expected) and power situations which is a problem in the country.

So, the experience for our staff have been mixed as some still do have to report on site – amid stringent health, security and safety protocol – to continue to provide essential services especially for residential and Corporate Real Estate clients on essential duties in the banking, telecoms, and tech sectors.

Tekedia: As one of the key players in the industry, what have been your contributions towards the containment of the virus since Nigeria records her first case on February 27, 2020?

Ukeme Peters: As I mentioned earlier, we were one of the few companies that recognized the risk involved in large gatherings around offices and had taken the decision to shut our head office even before the federal government order came in.

We have also issued quite a number of publications and guidelines to our customers, partners and the general public on how they can continue to maintain social distance and handle safety, security and environmental protocols during this period.

In terms of capacity development, as a player in the REFM industry with the goal of improving quality of talents across the industry, we have opened up our online learning channels for practitioners to take a few free training courses that can enhance their skill during this lockdown season so that they can be better equipped when normal business resumes. We are also constantly evaluating ways we can further use our resources to continue to partner with authorities to bring an end to this pandemic.

Tekedia: How would you describe government’s efforts and people’s response to the various measures for the containment of the virus?

Ukeme Peters: I would particularly commend the federal government for its handling of the situation. We must note that this is an unusual time, hence not all decisions will be right. But we have seen how the government has been refining the protocols and policies as new developments arise.

The Lagos and Ogun State governments must also be commended for the pro-activeness they have shown this period of the pandemic. Their prompt actions and infrastructure delivery has helped the country so much.

The NCDC is also doing well and we are hoping that test capacity can be improve in the coming days.  In all, the governments need to do better in terms of profiling and offering support at this time to the people and businesses. If this is not done well, it will be difficult to enforce the lockdown for the necessary period to drive the desired result of containing and bringing the pandemic under control.

 

Discos Losing 60% of Revenue As Estimated Billing Backfires

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electricity companies nigeria

As coronavirus induced lockdown takes effect in many states in Nigeria, Electricity Distribution Companies (DisCos) are reporting 60% loss in revenue due to the economic impact of the lockdown on households.

Everyone is cutting down on expenses, prioritizing survival as people’s means of livelihood have been halted by the lockdown.

The DisCos that used to rake in millions through estimated billing said it has become difficult for many to pay due to the crisis. The situation has resulted in 60% loss of revenue for the distribution companies since the majority of Nigerian households are not metered. Data from the Nigerian Electricity Regulatory Commission (NERC) shows that only 3,895,497, representing 40.26% out of 9,674,729 registered electricity consumers use meters.

NERC attributed the unwillingness of customers to pay to estimated billing, which is believed to be more of extortion.

“Thus, 59.74% of the registered electricity customers are still on estimated billing which has contributed to customer apathy towards payment for electricity,” NERC said.

The Ikeja Electric Distribution Company (IKEDC), had in March, as a gesture of goodwill, promised not to disconnect customers during the first phase of the 14-days lockdown. This has made it difficult for the company to disconnect as usual, households who failed to pay their bills.

The DisCos had earlier got into negotiation with the Federal Government to provide free electricity for Nigerians in the face of the lockdown in order to cushion the effects. But the parties failed to reach a deal as the Discos demanded N200 billion from the FG as payment for the electricity supply during the period of the lockdown, but the government distanced itself from the demand.

Metering has been a bone of contention in the Nigerian electricity sector for long, a situation that has existed to the gain of the DisCos as many households are placed on estimated billing. The MAP initiative was introduced in March 2018, to solve the continuous problem between consumers and DisCos over billing but it has failed to live up to expectation.

In February, the NERC rolled a new regime of billing for the DisCos, putting a cap on estimated billing. In a document titled: Order on the Capping of Estimated Bills in the Nigerian Electricity Supply Industry (NESI), signed by James Momoh the NERC Chairman, and Dafe Akpeneye, its Legal, Licensing and Compliance Commissioner, the Regulator said there is a limit to how much the distributors could charge, especially residential areas.

According to the document: “A consumer of XYZ Disco resident in White Acre under R2 (single phase) tariff class has an energy cap of 78 kilowat/hour per month and a tariff of N42 per kilowatt/hour. The maximum that XYZ Disco can invoice such a customer is 78kW/hr x N24/kWhr =N1,872 per month.”

The document added that customers should not be compelled to pay estimated bills if DisCos do not provide prepaid meters.

“The customer shall remain connected to supply without further payment to the DisCos until a meter is installed on the premises under the framework of MAP Regulations or any other financing arrangement approved by the commission,” it said.

Unfortunately, this new regime failed to take effect as DisCos continued with their old pattern. Consumers were forced through disconnection to pay high rates of estimated bills because the marketers count on them to meet up with outrageous targets.

Recent development has however, turned the table around, and the hunter has become the hunted.

DisCos across Nigeria are lamenting about their losses as the priority of consumers have changed from bills to survival. Moreover, many businesses have been shut down following the lockdown order, and the distribution companies complain that the volume of energy supply remains the same.

It is believed that the metering plan (MAP) that was introduced last year has been sabotaged so that DisCos will continue to issue outrageous bills to unmetered customers.

The MAP programme allows third-party investors to provide meters at costs segmented according to the capacity of the meters, and thereafter, get paid through customers’ retail payment for electricity. The process has been abused so that consumers who applied for the meters hardly get them unless they pay twice the original cost.

One of the reasons for the scarcity and high cost of meters has been attributed to the upward review of import levy on electricity meters from 10% to 45%, by the Ministry of Finance. The implementation went into effect immediately resulting in abandonment of thousands of meters at the ports.

COVID-19 has turned the tide with a huge implication for the electricity distributors, limiting their earnings to 40%. And the DisCos are expected to lose more in revenue generation if the lockdown is extended beyond the two weeks.