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The Big Redesign: How Covid-19 Is Restructuring the World

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Presently, the world is revolving around the sun, and COVID-19. Nothing interests anyone now except the current status of the disease. Every news and information today centres on it. No matter how hard one tries to ignore it, it finds its way into one’s reality. COVID-19, the traveller without a visa, has turned the whole world into one small sick village.

In Nigeria, the concentration of people’s attention on coronavirus is so great that about 40 soldiers perished in the hands of Boko Haram insurgents within the week and people didn’t bother to find out more about it. It was as if the operations of the bandits, insurgents and herdsmen no longer exist nor matter. Today, every Nigerian has one enemy and they have united to fight off this enemy. They no longer remember their political allegiances, religious bigotry and tribal prejudice. Nigeria is now one unified country, where the citizens focused on keeping everyone within it alive. This is because they know that if one part of the country gets affected by this traveller without a visa, the whole country will be in danger.

But the essence of this article is a look into how COVID-19 is restructuring the world socially. This ailment affects everyone – rich and poor, old and young, religious and atheists, black and white, male and female, and so on. It knows no boundary; it cares not about status; cultural and religious beliefs do not stop it; in fact, the sickness has thrown all the scientists in the world into confusion because, for once, they have seen what surpasses them.

Prior to this COVID-19 era, Nigerians have deep respect and exceeding admiration for anyone that returns from abroad; where the person returned from doesn’t matter so long as it is from outside the country. But now, people are weary of them. Nigerians now treat every returnee as a suspected case of COVID-19. It has gotten to the level that Nigerians are shouting on people to stop travelling outside the country; that they should learn to “sit down in one place”. What an irony considering that a few weeks ago, these same people were praying for a visa to run out of the country. But here they are, all of a sudden loving Nigeria and trying to protect it.

This restructuring is not only happening in Nigeria. The other day I was so proud to read an article in Forbes that is titled, “What the US could Learn from Nigeria’s Response to the COVID-19 Coronavirus Outbreak”. I felt so proud of the country because, for once, the world is recognising us for something good; unlike how they brand us negatively with poverty and fraud. I was equally elated because it is now acknowledged that Nigerian medical sector is not filled with unqualified and ill-trained doctors as the developed nations assumed. The post shows that despite how unequipped our hospitals are, Nigeria could contain what the developed nations couldn’t.

As the virus is eating deep into nations that boast of high longevity, such as Italy, they realised that they should seek help from the rest of the world because what had entered the cricket’s hole is greater than the cricket – they were overwhelmed by the magnitude of the damages the virus is causing them. Even the United States has opened her border to medical practitioners to come and “help them”. This act must have taught these nations that they are not the greatest after all and that they can’t do without their neighbours.

As one looks at what is happening in the world today, one can’t help but wonder what the world will be like when COVID-19 has been contained. Economically, people can predict harsh conditions. But socially, one can hardly say because deeper changes will emerge only if this disease lasts longer than we hoped. But from what is going on right now, the following are can be predicted in Post-Covid19 Era:

  • Humility and Respect for all Socio-Economic Classes.

This ‘war’ affected everyone. It seemed to affect the rich more than the poor. From what I gathered on Twitter posts of COVID-19 victims, who are battling for their lives, these people have been humbled by their near death experience. They no longer care about whom they are or what they have. All they wanted was to pull out of the illness in one piece. For this, it will be hard for people that have passed through this to look down on people of the lower class. This epidemic may also reduce the problem of racism (to some extent) because sick racists will be grateful if the people they hold in disdain come to their rescue in the time of need.

  • Increase in Saving Culture

People were not prepared for the invasion of this sickness. This is to say that many people (both the high and the low income earners) did not have enough money to stock their house with provisions before the lockdown. Trust me, a lot of people will learn to start putting away greater percentages of their incomes by the time this is over.

  • Increase in Humanitarian Outreach

A lot of people that wouldn’t have given anything to battle this disease are doing so because it will affect them one way or the other. This is a sign that in time of crisis, after this disease has passed away, a lot of people may be willing to donate towards quelling the effects of the crisis before it escalates.

  • Humility of the Global North

If countries like Nigeria could contain COVID-19, at least to the extent they are doing so, I think those in the Global North that have all facilities should have done better. But from the look of things, they are not. This, I believe (and hope) should teach these nations that look down on some countries not to do so, because you never can tell. So it is believed that countries like the United States and Britain will be humbled after this epidemic.

  • Lesser Hold of Religious Leaders

I can’t say about other countries but I am sure that Nigerians have already started questioning the authenticity and motives of some religious leaders. This came as some of the religious leaders disobeyed the lockdown order in Lagos and Abuja. Some of them went as far as encouraging their members to ignore government warnings about the virus, claiming that they have anointing oil and other sacred materials that will protect them (the members). Those that prophesied about when the sickness will stop or that they knew about it were also called out. The way things are, these religious leaders will have to do a lot to win back their parishioners by the time this is over.

I would have said that Nigerians will be cautious about leaving the country, but I doubt if that will ever happen. You can never predict what Nigerians will do when it comes to seeking for greener pastures.

As stated earlier, no one can actually predict how this sickness will change the world. But one thing is certain – nothing will remain the same again.

China Restarting Its Economy as Companies Return to Work

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The journey to economic recovery has begun in China, with companies reopening according to measures of freedom accorded each state, town and province. The resumption of businesses was paramount in the wake of the fight against coronavirus that has ravaged the second largest economy in the world.

In early February, the Chinese authorities’ plans for companies to return to work were jeopardized by an increase in the number of new coronavirus cases, forcing the government to concentrate on the fight against the virus. However, March has proved different, with Wuhan, the most hit state in China being cleared for movement to an extent that allows for business interaction, the economy appears set on the path of recovery.

On March 10, the Chinese government asked workers in Wuhan to go back to work as a number of cases started to recede and there were no more new records. The city of 11 million people has been on lockdown since January following the outbreak of COVID-19 that has brought not only China, but the whole world on its knee.

The Chinese government has been making efforts to save its economy from totally crumbling by rolling out financial measures to keep companies in business, but the most important step to economic recovery is getting the industries working again.

However, the little move to return to work shows hope that in time the humming and bubbling in the factories will return in full capacity.

French automaker Peugeot has resumed car production at its plant in Wuhan city. The company has been in partnership with Chinese DongFeng Motor Group, and they have other plants in Chengdu and Xiangyang where they produce vehicles. Their resumption signals the city’s return to business life.

Though some precautionary rules are still in place to put health concerns first: Workers enter in shifts staggered to minimize exposure, there are infrared cameras and security staff check temperatures as they arrive, and the workplaces are disinfected three times a day. Not more than six people are allowed in the elevators, there are tapes on the floor to show where to stand. Face to face meetings are discouraged and people eat alone in the cafeteria using cardboard to shield their faces as protection when masks are removed.

These measures have encouraged workers to return to work. According to data released by Baidu, anonymous movement of some users suggests that more than 90% of restaurants and 85% of malls in Beijing have now reopened. The TAC Index, a Hong Kong company that tracks cargo industry, also shows that there has been an increase in factory activities in the month of March.

Foxconn, the manufacturing company that makes iphones among other products, with the help of migrant workers said on Tuesday that the company is resuming at 50% capacity. Ren Zhengfei, the chairman of Huawei said on Wednesday that more than 90% of his 150,000 employees have returned to work. Companies appear to be returning to work with economic and medical considerations in mind.

The chief marketing officer at AI-focused companies, Anita Huang said companies in Shenzhen and Guangzhou are mainly back to normal while those in Beijing are still working in split shifts.

“Even now, we all wear masks everywhere we go and in the office, and we wash our hands religiously,” she said

A host of companies are going back to work as the Chinese government relaxes its rules to allow life return to normal. But as the cases reduce and the governments grant people freedom to move around and do business, other unforeseen realities are coming with it.

As expected, businesses will struggle to get back to bubbling again and many companies will lay off workers as a result. One thing the Chinese industries didn’t see on the ‘aftermath of coronavirus’ menu is the stigmatization that has suddenly sprung up against products of Asian origin, especially China.

While local businesses need the patronage of locals to stay in business, major companies in China have depended on international patronage. But the rest of the world appears wary of Asian made goods, major reason being the conspiracy theories that have followed the coronavirus outbreak.

Moreover, the rest of the world is still battling with the pandemic as China is taking recovery steps. And that means little interest in business for now as the focus is on survival. Every country is shutting down borders and restricting flights from other countries in a bid to limit the virus, and China being the origin appears to spell doom for goods and services from the South Asian country.

Though there is hope. As supply chains from in the West begins to run dry, air freight rates from china moved up last week, a sign that the West may be forced to patronize China if the countries run out of supply, which is likely going to happen as the pandemic seems to be starting in the US, UK and Europe.

The major economic activities in these countries have been shut down and their measures of containment appear not to be yielding the needed results, which gives the West a little choice but to depend on Asian made products for supply.

Sequoia Insights: How Do You Preserve Your Business After Covid-19 Black Swan? [Video]

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In this video, Dr. Ndubuisi Ekekwe explains what companies can do in this time of  economic paralysis, arising from coronavirus. Insights were drawn from a brief he received from the legendary Sequoia Capital. Sequoia is one of the most preeminent venture capital firms in the world with billions of dollars of assets under management. Watch […]

This post is only available to members.

Coronomics: Dangote, devaluation, stimulus …

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Aliko Dangote, billionaire and chief executive officer of Dangote Group, pauses during a panel session at the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 17, 2017. World leaders, influential executives, bankers and policy makers attend the 47th annual meeting of the World Economic Forum in Davos from Jan. 17 - 20. Photographer: Jason Alden/Bloomberg

According to Bloomberg Billionaire’s Index, Dangote’s wealth fell from $15.9bn as of February 25, 2020, to $13.4bn on March 26. As at 27th January 2020, he was worth $16.5bn. He lost about 15.7% of his wealth in 30 days, an equivalent of $2.5 billion. If you calculate from January, it’s about 18% loss in 60 days, an equivalent of $3.1 billion.

Why? What has changed in Nigeria in 30 days?

  • On 17th March 2020, inflation hit 12.20% from 12.13%
  • On 20th March 2020, we received news of the adjustment of the official exchange rate from N306 to N360. Put simply, a 15% devaluation.

You know what? The two terms, inflation and devaluation are harbingers of wealth/capital erosion, if they both visit you in a month, no matter how rich you are you will become poorer.

How does this concern you and your business?

Your wealth, same Dangote rule applies.

Your company’s working capital, say it’s N5 million:

  • At 306, it’s worth 16.3k in dollar terms.
  • At 360, it’s now worth 13.8k in dollar terms.

In context, imagine you placed a bid on 1st March for a project that demands a minimum $16.3k working capital, what this devaluation means to you is that you will need to recapitalise. Devaluation downgrades your capital and compels you to get more.

In more context, on 27th March 2020, Fitch Ratings downgraded the three-highest rated banks in Nigeria, Zenith, GTB and UBA, to Long-Term Issuer Default Rating (IDR) ‘B’ and Viability Rating (VR) ‘b’.

Expect more downgrades as another round of devaluation hangs over our head like an avalanche and COVID-19 infections surge on to force a total lockdown of the economy after crashing oil prices. An economy already infected with rising inflation, depleting reserves, weak infrastructure and rising unemployment.

Government is aware of all this right? Yes, they are, and that’s why they have put the following measures in place to ameliorate your loss at this critical time. It won’t solve many things but it will do something, please pay attention, take advantage; you and your company need every tonic during this crisis.

18th March 2020 – reduction in the pump price of petrol, from N145 to N125

This reduction will save 14% of your running/operating expenses depending on how deep petrol is in your operations or daily life.

16th – 24th March 2020: CBN announced policy measures worth N3.5 trillion

On 18th March 2020, CBN announced N1 trillion intervention in all critical sectors of the economy. The CBN Governor said the stimulus package is in addition to the regime of incentives contained in a six-point palliative announced on 16th March 2020.

The stimulus and measures were further confirmed in the Bank’s MPC communique on 24th March 2020 as measures to ameliorate the impact of the coronavirus on the Nigerian economy. They include:

  1. Additional moratorium of 1 year on CBN intervention facilities
  2. Interest rate reduction on intervention facilities from 9% to 5%
  3. Creation of N50 billion target credit facility for affected households and small and medium enterprises
  4. Granting regulatory forbearance to banks to restructure terms of facilities in affected sectors
  5. Additional N100 billion intervention fund in healthcare loans to pharmaceutical companies and healthcare practitioners intending to expand/build capacity
  6. Identification of few key local pharmaceutical companies that will be granted funding facilities to support the procurement of raw materials and equipment required to boost local drug production
  7. N1 trillion in loans to boost local manufacturing and production across critical sectors.

23 March 2020: FIRS announced the following measures to mitigate the impact of coronavirus on taxpayers:

  1. Extension of timeline for filing of value-added tax and withholding tax from the 21st day to the last working day of the month, following the month of deduction
  2. Extension of the due date for filing of companies’ income tax (CIT) returns by one month
  3. Use of electronic platforms for payment of taxes and processing of tax clearance certificates
  4. Filing of tax returns by taxpayers without audited financial statements which must be submitted within two months of the revised due date of filing
  5. Creation of a portal where documents required for desk reviews and tax audits will be uploaded by taxpayers for online access by the tax authority (Proposed)
  6. Submission of tax returns online by taxpayers via efiling.firs.gov.ng or by designated e-mail accounts published by the FIRS.

24th March 2020: Economic Stimulus Bill by the House of Representatives

The House of Repre­sentatives led by Speaker, Femi Gbajabiamila passed an Eco­nomic Stimulus Bill to help cushion the effect of corona­virus on corporate bodies and individuals as follows:

  1. Protect employees from loss of jobs as a result of COVID-19 by granting a 50% income tax rebate on the total actual amount due or paid as pay-as-you-earn (PAYE) tax under the Personal Income Tax Act, 2004 (as amended), to Nigerian companies who retain all their employees from 1 March 2020 to 31 December 2020
  2. Suspend import duties on medical equipment, medicines and personal protective gears required for the treatment and management of COVID-19 for three months, effective 1 March 2020.
  3. Introduce a new moratorium on mortgage obligations of Nigerians under the National Housing Fund. The Bill was sponsored by all principal officers of the House and is awaiting the Senate’s review and passage before presentation to the President for his assent.

29th March 2020: FG grants 3 months moratorium for repayment of all govt funded loans

President Muhammadu Buhari in his nationwide presidential broadcast on Sunday, 29th March 2020 disclosed the following as part of its efforts to cushion the economic effects of the Coronavirus pandemic.

  1. Three months repayment moratorium for all TraderMoni, MarketMoni and FarmerMoni loans with immediate effect.
  2. Similar moratorium be given to all Federal Government funded loans issued by the Bank of Industry, Bank of Agriculture and the Nigeria Export-Import Bank.

Please stay informed, stay safe, stay at home and let your money work for you.

Sit at Home and Don’t feel Bored

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IT IS A HOLIDAY, AND NOT A WORRY-DAY

Pandemic do happen, just focus on being grateful that you will survive it, and the ideas to survive will come your way. This is how the law of attraction works and the universe is a support system to it.

Corona Virus is yet another type of the history unfortunate occurrences, and this one will be history one day, and very soon. So do not panic.

The government across various nations who cares for her citizen and desire the survival of everyone, and have advised that all, both the local man and the foreigners, young and the old, stay at home for a while, so that the work to contain the corona virus outbreak can be effective. The more people gather in large numbers is the more, the virus finds new hosts; hence it becomes uncontrollable.. which nobody wants.

There are ways to stay lively and enjoy this period without getting/feeling bored and the list follows below:

  1. First understand that this is a holiday, and not a worry-day

Although it is themed, “Stay-At-Home,” or “Lock-down,” it is also a type of holiday, but of which we do not want this sort of holiday to re-occur. You still have the option to make this period a resourceful and positive moment, by first changing your mindset to think of it as that holiday that the school management declares and everyone goes home smiling, and it is a privilege to be alive while this holiday passes by. It will help your mind to become very creative and sure suggest you more ways to enjoy your time.

  1. Stay Organized, make sure your environment is breathing fresh air

Even in a normal day to day living in your home, if you stay organized, plan your day, nothing will overwhelm you. And once nothing overwhelms you, then you can be sure of a clear mind to be in control. A man in control does not feel bored, rather he or she feels energized every time.

Look at it this way:

If you notice that, the organized man, have everything under control, and he can easily feel the fresh breathe in and around him. His environment is clean and well arranged, hence no need to look up and down each time. He sees this lock down as a normal day in the office with a few familiar colleagues to work with, this time his family.

Unlike the unorganized party, he tends to complain a lot, everything is dirty, his mind is clumsy, nobody and everything is welcomed. He just want to escape this period and run away, but it is still the same home or office that he will run back to. So no time is the best to stay organized and no place to run to, just arrange your home, get things under control and the lockdown will feel as a new town holiday.

  1. Get Enough Sleep

You remember those days you wished you could get enough sleep, but the long day at office never allowed you the opportunity.. yesss! Now you have the time. Do not be like the man, who wished for rest in busy day, but feel sad when the opportunity come, only wishing to go back to the party hall.

Be grateful that you are alive, go back to bed, help your brain to get enough rest, relax your cells, allow your skin to experience new fresh air. It is very ok to be lazy during this period, just wake up, make a cup of tea, and go back to sleep, no alarms, no mama pats to prepare for college, its just a free time to enjoy the cloud under your blanket. Do not loose this opportunity, it may only come again, just at the time you become as rich as Bill Gates, although Mr. Gates does not sleep a lot as you think.

  1. Family Time, No fights, be the peace maker

Have you ever thought of becoming a lawyer, ok now is the time to be a good one. Be the peace maker in your home, do not allow anybody to fight. The more you fight, the more the stress. A stressed brain is a depressed man, hence a boring day all through.

Did you notice that your last born baby could draw, may he or she is a great artist, and you never had time for her.. ok that’s fine, no judgments, just make peace with everyone and help out as a the tutor you should have been in a long time.  Avoid any form of fights and you will scale this period with sound mind.

Hey married man, it is time to enjoy your wife’s delicious meals, and ye wife, make the best of all yummy. And you will also notice that dancing is not too hard to learn, so give it a try this time and entertain the house.

  1. Love your work, find a way to convert it to work from home

Have you noticed that almost every type or category of work have a home version of it, except that some of the special equipment may not be at home, just at the factories. That is fine, you can start to do the paper work planning now, within the next few days, you will round up with a lot of market plans and be having multiple alternatives to achieve greater goals.

This is the time to have enough time to discover new ways to beat the reshaping industry, innovatively. For example; what if after the pandemic, and your employees refuse to return to the office, would you close down your company? Obviously no! so it’s a good time to hand out that work manual, duties for your staffs to also continue working from home, while you still remain the boss from the comfort of your dining table. Try it now, and if doesn’t work, at least you tried, no harm and it is in the free time, so you can get back to work soon as you always do. Enjoy!

  1. Discover a new Art, everybody have some artistic part of them but may not have paid enough attention to it

Bill Gates have always been a lover of books, but it is during his long-supposed boring holidays, that he started putting down his thoughts into; Gates Notes.

Well, you can confirm within yourself, there is an expert artist, a superb Vlog producer, an audible podcast creator and even a great content writer. These all have been sitting right there, within you, but you have not had the time to work it out, and not that you can’t, it’s just that, you never had the time.

So here lays the time in quantum, and a lot of fans with you (the family) to cheer you up even when you make the clumsiest of art work. They will still say, wow! So you could draw as good as this… do some more. Opportunity comes but once, and here is one, don’t wait to create another one.. time waits for no man. Thank you.

  1. Read something new, which is not very serious and not really related to your work books, just some casual children stories

This is not the time to get too serious with work. This is the time to be very flexible, allow that humorous part of you to emerge, read something that is way jokingly, so different, so playful, tell those old stories to your kids before he or she sleeps at night.

Except you are a nerd, who must soak head in your school work book, you can also, pay simple attention to other editorial contents that doesn’t relate to your work, just to give your brain a different kind of vibe. Who knows if this unusual knowledge may be the new wave of the industry after this period.

You may also try to learn a new language, this will take your time, so before you realize it, the whole lockdown period is over. Listen to new genre of music. Watch different type of movies. Turn on those TV channels you always skipped. Just learn something new. If it is new, it will always be worth your time and effort.

  1. Spend more time with God than you ever did

It is time to pray extra 30 minutes. It is time to allow the world of science to breathe and ask your God what is the next step, the solution, your other callings and pay attention, he speaks and will surely talk to your heart with a mild voice.

God deserves praises, so give him extra hours in this time.

God is the greatest and will always be the greatest.

Do not worry about your religion, your God lives in your heart, so listen to him and ask those questions you have always had, and he will answer you now. We will all make it out strong, and God will be praised at last.