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Buhari Signs N11 Trillion ($31 Billion) 2020 Nigeria Budget

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Buhari New Appointments
Mr. Buhari, President of Nigeria

In the evening of Tuesday, December 17, 2019, President Muhammadu Buhari appended his signature to the 2020 Appropriation Bill of N10.59 trillion (about $31 billion at black market rate or $35 billion at official exchange rate)

The budget was sent to the President last week by the national assembly for signing. Buhari who used the occasion of his 77th birthday to endorse the Appropriation Bill was surrounded by some members of his party administration.

Vice President Yemi Osibanjo; Senate President, Ahmed Lawan; House of Representatives Speaker, Femi Gbajabiamila; Secretary to the Government of the Federation, Boss Mustapha; Minister of Finance, Budget and National Planning, Zainab Ahmed and the Minister of State for Budget and National Planning, Clement Agba, all graced the occasion.

The 2020 Appropriation Bill was sent to the National Assembly on the 8th of October 2019, by Buhari. The 9th Senate led by Ahmed Lawal promised to pass the budget before the January 2020, to reset the nation’s fiscal year from January to December. Delay in passage of previous budgets has resulted in disruption of the fiscal year that it depends on whenever the budget was passed. The House of Representatives had on Thursday passed harmonized version of the Bill to ensure that it runs from January to December.

The budget proposal was N10.33 trillion but the national Assembly increased it to N10.59 trillion, a N263 billion addition, out of which N5 billion was added to the National Assembly budget, making it a total of N128 billion.

In the new budget, N110 billion was appropriated for the Judiciary while Niger-Delta Development Commission was given N80.8 billion. The National Assembly also increased oil benchmark price to $57 per barrel, from the $55 that was set by Buhari. But the daily crude oil production rate was maintained at the rate of 2.18 million per barrel, GDP Growth Rate at 2.93%. Inflation rate 10.81% and Exchange Rate N305/$1 as proposed by the president.

Other breakdown of the budget is as follows: Defence got the highest vote for recurrent expenditure with N784.589 billion. It also got the highest vote for capital expenditure with N116.181 billion. Education came second with recurrent expenditure of N490.303 billion and capital expenditure of N84.728.

Works and housing got the highest capital expenditure vote of N315. 563 billion and recurrent expenditure of N27.983 billion. Universal Basic Education (UBE) got N111.7 billion, Public complaints Commission got N4.7 billion, Independent National Electoral Commission got (INEC) N40 billion, National Human Rights Commission was given N38. 49 billion and Basic HealthCare Fund, N44.49 billion.

Meanwhile, inflation is on its highest in 2019 at the rate of 11.85%, a result of its consistency for the third consecutive month. According data released from National Bureau of Statistics (NBS), the rise in inflation remains consistent due to the rising cost of food items, a development attributed to the closed border.

On month on month basis, the headline index is 1.02% slightly lower than the rate reported in October at 1.07%. Core inflation moved upwards on a monthly basis at 0.79%.

The cost of staples indicated a continuous rise, pushing food index upward by 14.48% compared to 14.09% in October. The increase was instigated by rising cost of bread, cereals, oils and fats, meat, yam and fish.

The uptick inflation will weigh on the upcoming Treasury Bills and Bonds primary market auctions this week as investors are likely to demand higher yields to match rising inflation.

The 2020 budget’s inflation rate is 10.81% while inflation is currently at 11.85%, (over 1% higher), and it may likely go higher in the coming months due to the rising cost of staples as a result of the closed borders. This means the budget is already failing since the government appears not to have the intention to reopen the borders soon.

Other local businesses are being impacted too. The government is counting heavily on the recently increased 7.5% VAT to generate revenue to fund part of the budget. But with many businesses struggling to cope due to border-made inflation, the Inland Revenue Service will find it hard meeting its revenue target. Therefore, the only hope lies on the stability of oil prices. If it hovers around $57, or a miracle happens, and it goes far above; that means the naira will remain stable at around $1/N305 to keep inflation in check.

The Three Types of Job Seekers That We Have – An Interview with Adora Ikwuemesi

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When you fail job interviews, don’t blame recruiters. Look into the mirror. Often times, job seekers are always blaming recruiters for their own nemesis. They blame recruiters for being mean. But the truth is, are recruiters responsible for the job seekers’ woes?

I had the pleasure of interviewing a recruiter, Adora. She shared her insight on this matter. Every job seeker should read this:

Can we get to know you better, Adora?

I am Adora Ikwuemesi, I speak, I write and I advise on Human Resources and Careers. I am also a serial problem solver, a wife to the world’s best husband and a mum to 2 angels.

It’s really good to have you in this edition as you are one of the most respected professionals that I always learn from on LinkedIn. With your experience in the hiring department, what can you say about the job seekers you’ve come across?

I will categorise job seekers into 3 groups. We have those who know and know that they know, I will call them Group A.

Then we have those who don’t know but don’t know that they don’t know, let’s call them Group B.

Then lastly, we have those who don’t know and know that they don’t know, let’s call them Group C.

Group A are not in the job market for long, in no time they have several offers, they are skilled and experienced, even as fresh graduates they stand out amongst their peers.

The majority however, are in Group B and C. Group B represents many experienced people who have a skills gap that they are not fully aware of and is making their job search difficult and their market value low.

Group C represents the many fresh and inexperienced graduates, who are hoping to get their foot  in the door, they are willing, they are not yet able, they seek an opportunity but they also have skills and experience gap which they are not able to close at the rate at which the market demands.

Group B and C have a hard time finding a job and earning well.

Do you think the recruiting system is the problem or the graduates are just unemployable? 

I believe both because if you have determined a problem in a system which in this case is the inability to find the kind of people with the type of skills we need them, the onus is on those recruiting to seek or develop solutions that alleviate the concerns.

The problem won’t go away so we need to devise more effective ways of recruiting.  The educational system also has a big role to play. The skill sets taught at secondary and university levels should better prepare graduates for the world of work.

Being someone who has worked in the recruitment and selection department, what are the qualities you look for in candidates?

Even though I am still learning recruitment every day, there is no one secret sauce.

We just have options that may improve our outcomes. More and more it’s obvious that attitude and soft skills beat technical skills any day. This is particularly the case in a market where there’s a huge skills gap and we need to therefore seek aptitude when we can’t find skills.

I would say, seek people who can learn quickly, people with passion, compassion and a problem solving mindset. Passion will always strive and put in the hard work, compassion will mean you hire people with a good heart that can have genuine empathy and care and I would choose problem-solving  skills as this would mean that you have a person who is constantly creating solutions and innovating to get better and better.

You are the author of the book – ”Change Your Career”, what actually inspired you to write that book?

Two things inspired me to write the book, Change Your Career:

The first is I get a lot of requests online and offline from people asking me how to make a career change or how to even start their career.

Secondly, I have changed careers 5 times, I feel I am in a good position to help others do the same. I saw the book as a solution to a problem a lot of people have at one point or the other in their career life and I love helping people so I felt this was a more effective way of sharing that knowledge to the people who needed it.

There are so many employees out there who are only working for the paycheck, meaning, most of them are in the wrong career. In a country like Nigeria where the standard of living is tough, what would you advise such people to do?

Honestly, there is a time in most people’s career where they will find themselves in this situation and it’s a valid decision to work for a paycheck.

The only concern is for how long?

True happiness is found in working with purpose, working for something bigger than ourselves. At some point, we all have to sit down with ourselves and decide to live a life that matters and truly fulfills us.

That meaningful life is gotten from having a meaningful career that serves a higher purpose while also paying the bills.

I stumbled on your post about the ”7th HR Bootcamp Conference”, can you share more information about the conference and means of registration? 

The HR Bootcamp Conference was a platform I founded in 2009, it’s purpose is to foster innovative and positive shifts for people management practices. It was my very first impactful entrepreneurial attempt. Funny enough I started it when I was unemployed and today 10 years later it is a renowned gathering of HR Professionals.

All registration is online , the 8th one is scheduled December 2020.

What advice do you have for fresh graduates and employees, and what would you say to anyone looking to transition into another role?

Focus on skills required for the desired role. Remember that these skills aren’t all technical, some are behavioural e.g. problem solving, planning, leadership skills.

Your goal is to close the skills gap between where you are now and where you want to go. Determine the best way to close those skills gaps, the exact training or learning methods required.

Once you know that, set a timeline to execute and follow through.

To the audience reading this interview, where can you be contacted?

My website or via my Facebook Group – HR Nigeria.

What should we expect from you in the next five years?

  • Expect me to change my career!
  • Expect to see me do more purposeful work, enhancing workplace and career lives.
  • Expect me to speak more.
  • Expect me to have written some new books.
  • Expect me to be delivering happiness in my own way.

Thank you, Adora, for your time. I wish you a successful conference.

Thank you, Chinedu, for the opportunity to share my thoughts. It’s been a refreshing interview with great questions.

The BeepTool Innovations [video]

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It is live in Nigeria and I invite all villages, communities, churches, mosques, offices and stakeholders to the party. BeepTool, through satellites, now makes it possible that anyone even in rural areas can speak to doctors in cities. It also uses the same connectivity to support farmers. With companies like BeepTool, the villages get more exciting as digital economy and opportunities are arriving at scale! Yes, BeepTool is a satellite connectivity company that offers services in agriculture, healthcare, finance, etc by making affordable internet possible in rural Africa, beginning with Nigeria.

Our vision in BeepTool is to connect every village in Nigeria to the world wide web. From rural health clinic to farming communities, we have the BeepTool satellite to make that connectivity happen. And our most affordable smartphones and tablets will empower people to go digital. These tablets and phones are engineered to turn GSM devices into satellite nodes so that you can go online, affordably, via satellites even when GSM operators like MTN and Glo are not present. Yes, we turn GSM phones through proprietary apps to work on our satellite systems.

The BeepTool solution is an innovative rural satellite connectivity network that enables robust, low-cost satellite services for a large number of users throughout Africa. The BeepTool custom and proprietary satellite Wi-Fi hotspots terminals loaded with the BeepTool Satellite firmware and the  BeepTool Satellite app beaming data connectivity wifi to more than 100 devices at the same time within the radius

Lafiya Telehealth Is Changing the Way Healthcare Is Delivered in Africa

Beyond Efficiency in Nigeria’s Public Sector

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If a man has 10 kids and earns $200  monthly, he will struggle compared to one that has 2 kids and earns $10,000 irrespective of his prudence or fund efficiency. Harvard University’s budget is 3x the WHOLE of Nigeria’s education budget, yet people are arguing that Nigeria’s problem is wholly mismanagement of funds. While we need to get better at managing the little we have, I want you to understand that there is a limit on efficiency. Unless Nigeria has more tax revenues, via growing private sector, the education ministry even at highest efficiency will continue to struggle. Yes, the private sector will rise before that education ministry would have a chance! 

Nigeria needs business pioneers to rise before political ones can emerge because markets will fund better ecosystems of improved public sector and public governance.

The Mirage of “Enabling Environment” for Business in Nigeria

Nigeria’s Rensource Raises $20 million for Off-grid Solutions for SMEs

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Rensource, a company that provides energy and tech-enabled value services today announced the completion of a $20 million equity financing round. The round was co-led by existing investors CRE Venture Capital and the Omidyar Network, with participation from Inspired Evolution, Proparco,  EDPR, I&P, Sin Capital, and Yuzura Honda. The funds will be used to expand the company’s footprint of microutilities across Nigeria, as well as invest in additional technology infrastructure, as it rolls out new tech-enabled products and services for its merchants.

Nigeria, Africa’s most populous country, only has 12 gigawatts of installed grid capacity, with just one-in-four Nigerians connected to the national power grid. In contrast, South Africa has  50 gigawatts. Rensource launched commercially in 2016 to address this problem. Founded by Ademola Adesina and Jussi Savukoski, it is bridging Nigeria’s power deficit through the delivery of renewable based decentralized energy, focusing primarily on SMEs.

Operating in seven clusters across six states in Nigeria (Lagos, Kano, Ogun, Ondo, Oyo and Edo), the company builds and operates solar hybrid microutilities – a type of energy services provider that localizes energy generation, distribution, and customer service to each community it serves. The company is active in marketplaces that serve over thirty-thousand SMEs. It expects to expand into 100 markets in the country over the next three years.

With the financing secured, Rensource is now expanding its offering beyond energy and entering Nigeria’s nascent offline to online (O2O) space, by offering technology enabled value added services to SMEs in the marketplaces it provides power for. With the launch of this new B2B platform, “Spaces O2O”, merchants will be able to access services that accelerate their productivity growth.

Speaking on the news Ademola Adesina, Founder and CEO of Rensource said, “We believe that simultaneously greening and decentralizing its power infrastructure is the only way to navigate Nigeria out of its current state of energy poverty. Pursuing this with a focus on the millions of small-businesses that drive our economy creates a massive multiplier effect whose benefit accrues to all.

He goes on to add, “Our push into O2O is a natural step that leverages our existing infrastructure to further empower the merchants we serve. We aim to bring connect over one-million merchants in the next 5 years.

As Rensource has grown a leading foothold in the Nigerian market, it has identified gaps in the distribution value chain regarding lack of access to credit, expensive transportation and warehousing, inaccurate data and limited product availability, underpinned by a highly fragmented and multi-layered value chain.

Rensource has historically worked with a variety of stakeholders including community associations, government, regulatory agencies, contractors, and private investors, to build renewable energy projects across Nigeria. In 2018, the company, through a collaboration with the federal government’s Rural Electrification Agency, developed a project in Sabon Gari Market in Kano which resulted in thousands of merchants connecting to Nigeria’s first solar microutility. This first project was followed up by several other as part of the Energizing Economies Initiative (EEI).

Co-founder and Managing Partner of CRE Venture Capital, Pardon Makumbe said, “Rensource’s goal is to offer solutions to the many challenges faced by SMEs in Nigeria, starting with power and expanding to other value-added services. It is a bold and worthwhile undertaking that is creating value for all stakeholders. We are excited to continue this journey with the hyper-competent team at the helm”

Jonathan Kirschner of Omidyar Network said, “Ademola is a true renewable energy revolutionary. We are thrilled to be working with Rensource to deploy affordable and innovative energy solutions to traditional retailers across Nigeria who desperately need it.”

Source: press release