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Economy, Finance And Business News Headlines: 6th April 2020

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COVID-19 Update:

COVID-19 has now sickened more than 1,200,000 people, a growth of 20% from Friday’s 1 million. As of Monday morning, at least 68,841 people have died, and the virus has been detected in at least 171 countries as China reports 39 new coronavirus cases.

In the U.S., the growth remains double-digit though it’s now in a slowdown mode. The number of infections grew by 38.18% and deaths by 56.64% to 9,655 from 6,164 reported on Friday.

As at 09:30 pm 5th April there are 232 confirmed cases of #COVID19 reported in Nigeria. Thirty-three have been discharged with five deaths.

Oil Market Update:

In anticipation of today’s meeting (before it was postponed to 9th April), prices of different oil grades rose sharply last week, with brent seeing over 30% surge and Nigeria’s bonny light gained over 20%.

The decision of OPEC+ group and major oil producers will determine the faith of oil prices in the coming days and possibly months. Unlike in the past, where supply cut agreement was sufficient to move prices in their favour. This time, they are dealing with unprecedented demand disruption and destruction, close to half of the population of the world is locked down at home.

Their decision may reverse supply but there is very little it can do with demand. It cannot reverse factory shutdowns, restricted commuter travels and grounded flights, and with prolonged weak demand comes gloomy future for oil-producing countries like Nigeria.

JUST IN: A new report by Fitch has downgraded Nigeria’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to a ‘B’ rating. According to Fitch, the rating is reflective of the current pressure on Nigeria’s external reserves due to the Coronavirus pandemic as well as the recent plunge in global oil prices.

Stock Market Update:

Nigeria’s equity market is currently up by 0.26%, FTSE (UK) – up by 2.22%, DAX (Germany) – up by 4.42% and CAC of France up by 3.62%.

Headlines:

Pressures mount on Naira as external reserves heads below $34bn in April

The downward trend in the fortunes of the Naira last month is expected to persist this month even as the nation’s external reserves is expected to trend below $34 billion for the first time since September 2017. Read more

Report Forecasts 20% Drop in Diaspora Remittances
A Pan-African credit rating agency, Agusto & Co, has predicted a 20 per cent drop in Diaspora remittances to Nigeria from $25 billion recorded last year to $20 billion this year. However, the Central Bank of Nigeria (CBN) had said that it did not have any record of remittances exceeding $3 billion, implying that the figures contained in several reports, including the latest by Agusto & Co must be based on other data sources. Read More

Diesel, kerosene prices fail to drop despite oil crash

The pump prices of diesel and kerosene in Nigeria have yet to reflect the collapse of global crude oil prices despite the deregulation of the products by the Federal Government.Following the sharp drop in oil prices, the pump price of petrol, which is still being regulated by the government, was reduced to N125 per litre from N145 per litre on March 18, 2020.Read more

Air Peace delivers FG’s medical supplies from Turkey

The Federal Government has taken delivery of medical supplies from Istanbul, Turkey, to fight the coronavirus pandemic.The supplies were delivered by an Air Peace aircraft, a Boeing 777 with registration number, 5N-BWI, which arrived at the Nnamdi Azikiwe International Airport, Abuja on Saturday night.Read more

China sees rise in asymptomatic coronavirus cases

Mainland China reported 39 new coronavirus cases as of Sunday, up from 30 a day earlier, and the number of asymptomatic cases also surged, as Beijing continued to struggle to extinguish the outbreak despite drastic containment efforts. Read more

Nigeria Confirms Eight New COVID-19 Infections, Total Cases Rise To 232

A total of eight new cases of coronavirus (COVID-19) have been recorded in the country, the Nigeria Centre for Disease Control (NCDC) has confirmed.In a tweet on Sunday evening, the health agency says the new infections bring the total number of confirmed cases in Nigeria to 232.The tweet came hours after the NCDC confirmed 10 cases – Lagos (six), Edo (two), FCT (two).Read more

Sterling falls after PM Johnson enters hospital over coronavirus symptoms

The pound fell against the dollar and euro on Monday after British Prime Minister Boris Johnson was admitted to hospital for tests after showing persistent symptoms of the coronavirus.The yen fell against the dollar and the antipodean currencies after Japanese media reported Prime Minister Shinzo Abe may declare a state of emergency as early as Tuesday to curb an alarming acceleration in coronavirus infections.Read more

European stock index futures jump as coronavirus death toll slows

European stock index futures jumped more than 4% on Monday as a slowdown in coronavirus death toll in France and Italy raised hopes that lockdown measures were starting to show results.Euro Stoxx 50 futures STXEc1 were up 4.1% at 0600 GMT, with German DAX futures FDXc1 and French CAC futures FCEc1 gaining 4.5% and 4%, respectively.Read more

Gold Bugs Finally See Their Predictions of Doom Coming True

As the coronavirus brings economies around the world to a standstill, gold is rivaling Treasuries and the dollar as the best-performing major asset this year. The metal proved its haven status with a 6% rally as almost $16 trillion was wiped off global stock markets and oil plunged.Read more

FG Grants Three-Year Tax Holiday To 25 Companies
The Federal Government has granted a three-year tax incentive to 25 companies under the Industrial Development Income Tax Act. A pioneer status is an incentive from the Federal Government, which exempts companies from basic income tax. Read More

NCC Speaks On 5G, COVID-19 and Security [Full Statement]

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This is the full statement from the Nigerian Communications Commission (NCC) on the above topic.

In view of the recent development in which misleading materials with no proven evidence being circulated to link CORONAVIRUS or COVID-19 with 5G Technology, it has become imperative for the Nigerian Communications Commission (NCC) to provide the following clarifications;

Firstly, there is no correlation between 5G Technology and COVID-19. 5G is an advancement on today’s 4G technology designed to transform the world positively.

Secondly, there is no deployment of 5G in Nigeria at the moment. The NCC back in November 2019 approved trial test for 5G for a period of three (3) months and that the trial has been concluded and installation decommissioned.

The trial among others was to study and observe any health or security challenges the 5G network might present. Relevant stakeholders including members of the security agencies were invited to participate during the trial.

The NCC will continue to maintain its policy of technology neutrality and will continue to encourage Service providers to deploy the best technology that will meet the needs of the society in a secured and friendly manner.

The following are some Frequently Asked Questions :

  1. What is 5G ?

Ans: 5G is a fifth generation of mobile technology which is an improvement of today’s 4G technology with enhanced capabilities. 5G technology provides the platform for new and emerging technologies such as Internet of Things (IoT), Artificial Intelligence (AI) and Big Data to improve the way we live and work.

  1. Do we have 5G network in Nigeria now?

Ans: No there is no 5G network in Nigeria at the moment. What we had was a trial test for 3 months which has since been concluded.

  1. When are we expecting 5G in Nigeria?

Ans. No exact time frame but when conditions are right and all doubts are cleared.

  1. Do we have spectrum for 5G in Nigeria?

Ans. Yes, particularly the millimetre wave spectrum from 24GHz and above are available.

  1. Have we given out 5G spectrum to operators?

Ans. No. It will be auctioned at the appropriate time.

  1. Are there 5G deployment around the world?

Ans. Yes, in countries like South Korea, China, USA, Germany and others since middle 2019.

  1. Is the Radiation from 5G different from those of 2G, 3G and 4G?

Ans. No, they all belong to the same class of Non-ionizing Radiation.

  1. Who is going to Allocate spectrum for 5G in Nigeria?

Ans. The National Frequency Management Council (NFMC) Chaired by the Hon Minister of Communications and Digital Economy has the responsibility for allocating bulk spectrum for various services.

  1. Should I be concerned about 5G technology?

Ans. No, nothing to worry about. Safety and human health are top priority in the design and deployment of 5G.

  1. What are the benefits of 5G ?

Ans. 5G technology will transform the world by connecting everything with everybody. It will create millions of jobs, it will add billions of dollars to the economy (GDP) and can solve some of our problems such as insecurity and improve governance and efficiency in the society.

  1. Is 5G causing CORONAVIRUS or COVID-19?

Ans. No, there is no link what so ever between 5G and CORONAVIRUS or COVID-19.

  1. Should I ignore all the negative narratives I am hearing about 5G ?

Ans. No, but rely on information from world Standards making bodies such as WHO, ITU, IEEE and industry experts for advice when in doubt.

  1. Is there Standard limit set for Radiation from mobile devices?

Ans. Yes, there is Radiation emission limits set by the International Commission for Non-ionizing Radiation Protection (ICNIRP) below which the radiation is considered safe for humans.

  1. Are the mobile network operators in Nigeria conforming to the Radiation emissions limits ?

Ans. Yes, the NCC has been regularly conducting measurements of Radiation emissions from Base stations across the country and they are all well below the set limits.

  1. Is 5G same as Fibre cable?

Ans. No, fibre cable is a terrestrial technology for broadband that existed for decades while 5G is a new mobile technology for enhanced quality of service as explained in Q1 above.

  1. Are there other sources of Radiation apart from mobile Base stations ?

Ans. Yes, there are other sources of Radiation which include television stations, radio broadcasts stations, wifi and so on. They all belong to the class of Radiation considered to be safe for humans when operated below the set limits.

  1. Who owns 5G ?

Ans. 5G is not owned by anybody but collection of technologies, Standards and processes agreed at the international level by Standards making bodies.

  1. Has NCC issued licenses for 5G in Nigeria ?

Ans. No, NCC has not issued any licence for 5G in Nigeria. NCC is technology neutral as such we don’t license technology but assigns spectrum to operators for deployment of any service when allocated by NFMC.

  1. Why are some operators rolling out fibre during the lockdown period?

Ans. As a result of the lockdown, the amount of voice and data usage has increased by huge amounts and there is need to expand the network to provide optimum quality of service to users sitting at home. Telecom is also critical for information decimination during the lockdown.

SIGNED

Dr. Henry Nkemadu
Director, Public Affairs
Nigerian Communications Commission
05 April 2020

Week 9 Session

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Notes We received no extra question, so no webinar today. But we made this video to deepen this weekly session. This video is on restarting business operations after the lockdown due to Covid-19.   – We did this video over the weekend. It was on the full exit of Rocket Internet, the company which originally […]

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Covid-19 Recovery Fund: Nigeria Should Adopt Overdraft-Model

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As Nigeria prepares to help small businesses affected by coronavirus, I have a suggestion to the government: do not use the U.S. or European model.The U.S. intervention strategy is loan-driven which has more latency as loans must be approved first before the money starts working. Of course that is not a problem for the U.S. as its system is certainly advanced to ramp up all in days. But in Nigeria, I do think a loan-driven strategy will be sub-optimal.

I propose for Nigeria to deploy an overdraft-driven model where the government, through local banks, covers the same amount it could have given as loans. This model saves you time, and puts cash only on ACTIVE companies which are already working with banks. Loan-driven models via government institutions will stimulate many fake briefcase-companies, triggering fraud and waste, and eventual defaults on repayment.

Doing this is simple: release cash to banks and tell the banks to ask their customers to apply for overdrafts. Because they already have the customers’ records, the banks can push the funds in days, well faster than government institutions’ if we go through the path of loan.

Of course, everything depends on the government’s capacity to find money for this intervention initiative. I do think the N500 billion intervention fund  (and more) should keep a small part for small business recovery even as we invest in healthcare and other areas.

21.4 – Disaster Recovery & Business Continuity

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Disaster recovery and business continuity planning Preventive measures and disaster recovery planning ensure business continuity. The main question is, “What if a hacker gains access and makes an organization’s operations impracticable?” Whether the break in business continuity is for a short or long time, this is where an organization’s disaster recovery plans play a key […]

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