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The Managing Director’s Standing Greeting, And Abuse of Nigerian Workers

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A heart-breaking experience of a job seeker made its way to the social media once again. This time, the story defies the logic beyond human dignity, it says:

“I went to collect employment letter at [name withheld] and something happened. I and some people were not employed because we didn’t stand up to greet the female MD that we barely know. We were asked to come very early, which we did. We sat at the reception, people were passing and we were greeting. When the MD passed and we greeted her “good morning ma” she said that “we are sitting to greet her, and for that reason we can’t work in the company.” That’s how she didn’t sign our employment letter. She employed those that came later than us who didn’t see her enter. We even knelt down to beg her that we didn’t know, but she refused. And I heard that they worship her there.”

Majority of job seekers in Nigeria have one experience or the other that resonates with the above story, and it’s not ending anytime soon because of the level of impunity that it thrives on.

Everyone who has an edge over others in Nigeria tries to exploit it, a tradition that can be traced to Nigeria’s political culture – worship leadership. From the offices to the streets, the question: “do you know who I am”? resounds with exploitative influence and abuse of power.

In the office, it has become so institutionalized due to the fact that there is no umpire and the actors have bossed their way through such liberty to every of their ignoble wish.

A staff recounts how he was suspended for three months because he was carried away on the phone and didn’t notice when the MD got into the office. So he didn’t stand up with others to greet her as her ego demands, and even though he went on his knees begging, his three months suspension was served faithfully.

There has been another case where the MD has ordered her staff to call her mummy, even those way older than her. It’s a choice of calling her mummy or losing your job, a predicament many are not ready to go through right now, so they bend to keep their job.

In the many instances of abuse of power and humiliation by employers, one question many keep asking is: “Where is the umpire”?

In 1978 when the Nigerian Labour Congress (NLC) was founded, it was with the aim to protect the interests of workers. The fundamental aims and objectives of the NLC are to protect, defend, and promote the rights, well-being and the interests of all workers, pensioners, the trade unions and the working class in general.

And part of its mandate is to promote and defend a Nigerian nation that would be just… transparent and prosperous through the attainment of the following objectives:

To promote, defend and advance the economic, political and social rights and wellbeing of Nigerian workers and pensioners.

To work for the industrialization and prosperity of the Nigerian nation and ensure protection of jobs, full employment and a humane working environment.

To continually struggle to influence public and corporate policies and legislation on all issues at all levels, in the interest of workers, disadvantaged social groups and trade unions… among others.

In line with these objectives, the interests of every Nigerian worker should have been upheld, and the excesses of employers put in check. But it has been more of a communiqué than a cause, and the proliferation of bad working conditions in Nigeria is telling the story.

A banker once narrated how their MD introduced the rule of morning worship in the bank. And it doesn’t matter your religion, you must join the devotion every Monday morning or face the consequences.

You find something similar in many other companies, where the bosses make the rules not minding people’s fundamental human rights: From sexual exploitation to extortive deduction from workers’ salaries to forcing religion on them. The semi-god rules are condoned by the workers because they want to keep their jobs, and because NLC has failed in its job to protect workers from humiliation and abuse.

Although in 2017, the NLC led a protest to MTN’s regional headquarters in Abuja over its entrenched practice of casualization. The protest pummeled MTN to make promises to address concerns on the company’s unethical and illegal corporate behavior against Nigerian workers. But MTN refused to keep their promise by addressing the problems until 2019, when Labour once again took a protest action to their offices.

The gesture yielded the needed results and was commended; MTN complied. But the NLC has focused on matters relating to the federal government, and the need to push for the amendment of the Labour Act to protect the right of every Nigerian worker has been pushed aside. That means, the abuse and humiliation is going to continue with much more impunity.

NLC should do more to protect workers from egoistic and all other forms of abuse that have become institutionalized because there is no umpire. There should be a complaint unit where workers can report their ordeal and get help. There should also be a legal accessory to the unit. One case treated as a warning example will serve as a deterrent to others, and gradually, bosses will learn to respect their workers’ rights.

TikTok’s U.S. Investigation and the Challenge Before Chinese Apps

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Just months after the U.S. Government kicked Huawei out its soil for suspicion that it is enabling Chinese spy, another Chinese company has come under investigation. Two years ago, Beijing-based ByteDance Technology acquired Musical.ly, a short-form video sharing platform now rebranded as TikTok. In the latest curiosity move, the Committee on Foreign Investment in the U.S. (CFIUS), which has the responsibility of reviewing deals for national security deals, has launched an investigation into the activities of TikTok.

TikTok has pulled off a surprising growth speed to become one of the fastest growing social media platforms in the world. And it is popular among young people between the ages of 16 and 24. This has, however, stirred a national security inquiry over the concern that U.S. contents are being censored by Chinese authorities, and TikTok could be collecting personal data of its users.

In February, the FTC fined TikTok $5.7 million for illegally collecting children’s information. The agency said the video sharing app did not notify parents it is collecting data of minors. The FTC was also worried that the app’s open system could provide a room for pedophiles to contact children.

But that seems to be the beginning of what is to come. In the same month, the U.K’s Information Commissioner’s Office (ICO) opened inquiry on whether TikTok violated EU’s General Data Protection Regulation (GDPR), a privacy law which requires companies to provide specific protections when it comes to children’s’ data.

The head of ICO, Elizabeth Denham said: “We are looking at the kind of videos that are collected and shared by children online, so we do have an active investigation into TikTok right now.”

The ICO’s investigation in the UK is basically about children’s rights and protection, while in the U.S. it cuts across, the FTC and CFIUS are interested in the activities of TikTok beyond children’s interest. The CFIUS said it was not notified during the Musical.ly acquisition which cost $1billion, and that’s among other issues of security.

There have been a not-so-smooth relationship between CFIUS and Chinese companies recently regarding acquisitions of tech companies of U.S. origin, and TikTok is not exempt. And censorship and national security has been at the center of the squabble.

In the case of TikTok, there were concerns that video materials relating to Hong Kong protest were being censored to suit the Chinese narrative. And there was outrage earlier in October over an ISIS propaganda video allowed on the platform.

Although a Buzzfeed News Investigation found no evidence that TikTok censored or removed videos in support of the pro-democracy protests in Hong Kong, the regulatory bodies are not satisfied. They said they are worried Chinese law could force TikTok to hand over data on U.S. users to the Chinese authorities and that the company may censor videos that criticize China.

TikTok denied any wrongdoing, saying it does not remove content based on its sensitivities related to China. And moreover, it stores its data on U.S. servers with backup servers in Singapore. A TikTok spokesperson said: “TikTok has made clear that we have no higher priority than earning the trust of users and regulators in the U.S. part of that effort includes working with Congress and we are committed to doing so.”

ByteDance has been reported as one of the fastest Chinese growing startups. Owning the country’s leading news aggregator, Jinri Toutiao, and TikTok which has over 500 million users. The growing influence of these apps appears to be creating access for the Chinese government into the U.S. and that makes the U.S. government paranoid.

Last year, CFIUS halted China’s Ant Financial plans to buy MoneyGram International Inc, because of concerns about the safety of data of U.S. citizens. The agency also propelled Oceanwide Holdings and Genworth Financial Inc to go through a U.S. third party data administrator to ensure the Chinese company could not access the insurer’s U.S. customers’ private data.

So the United States is taking more than interest in tech innovations of Chinese origin, especially when the users will involve its military personnel or those who handle sensitive data.

Reuters reported that last month, Musical.ly founder Alex Zhu, who is the head of TikTok team, started to report directly to ByteDance CEO Zhang Yiming. He used to report to Zhang Nan, the head of ByteDance’s Douyin, another Chinese short video app. The change separates TikTok from other ByteDance companies, although it’s not clear if it’s as a result of TikTok’s meeting with CFIUS over mitigation.

However, one thing is sure; the trade war has altered the little elements of trust that used to exist between the two countries. And with the election coming next year, the U.S. is not ready to take chances that could result in another external influence of the elections.

The U.S. Minority Leader, Chuck Schumer, alongside other senators has long called for a probe into the activities of TikTok. And when it finally happened he said it is “validation of our concern that apps like TikTok… may pose serious risks to millions of Americans and deserve greater scrutiny.”

It is not certain when the dust of the political and economic differences between China and the U.S, will settle, what is sure is that more Chinese tech companies will bear the brunt.

Nigerian Restaurants Worldwide: A Research Agenda Part 2

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Following up on my earlier post entitled Nigerian Restaurants Worldwide: A Research Agenda Part 1, my focus this time is on Dubai, the acclaimed preferred travel destination for Nigerians (aka Naija). 

Although there’s never any verifiable evidence of population numbers for this group, even the country’s population relies on estimates of anything between 170-200 million, various sources tend to suggest that there are at least about 5000 Nigerians resident in the United Arab Emirates (UAE) with most of them based in Dubai. This seems to exclude the number of Nigerians studying in the country.

UAE Population Infographics 2018 - FULL

My point now is this. If Nigerians really love their food that much, as I pointed out in my last post, are they really being served? And yes I ask this literally if you are wondering. 

I have posed a similar question many years ago in my 2007 paper on Nigerian Restaurants in London, which I have only recently tried to reconcptualise in a post highlighting  the challenges of African Caribbean restaurants in London 

Returning to the matter at hand, I am wondering just how Nigerian restaurants are faring in Dubai and its environs (e.g. Abu Dhabi, Sharjah and even Ajman)? 

Not very well I dare say. These emirates (or city states with the UAE) seem to be the forte of South Asians (notably India, Pakistan and Bangladesh). Going further down the pecking order and even from those areas geographically defined (the socio-political definition seems to be somewhat different as many of these nationals tend to see themselves as Arab) as African e.g. Comoros, Egypt, Morocco, Sudan and Tunisia. 

As for Nigerian restaurants, they seem to be operating at the lowest rungs of ambience. Sometimes one would wonder whether to tuck in at all after a site visit to places like the Gold Souk, Deira, Al Nahda and Al Sabkha (a small community between Al Rigga, Naif, Al Dhagaya and Al Buteen) in the Deira region of eastern Dubai.  

Is it really surprising that no “African” restaurant comes close in the top-10 listing. Not even the much celebrated KIZA that claims to be Pan-African (with Swahili undertones). Obviously not Nigerian!

Shall we try another one? Tribes?
Is that Nigerian, Kenyan or African? No one really knows, and that’s where the confusion lies:
Tribes is a fun, casual dining restaurant located in Mall of the Emirates and The Dubai Mall. The menu has been inspired by the amazing food and flavours of Africa, an extremely diverse continent, with numerous tribes, who not only speak different languages, they also have very different foods, which they prepare and serve to their family and friends with a lot of pride.
Still on the upmarket offerings, here’s another one, Africana Home, which claims the following history:
Africana Home restaurant is UAE’s first African kitchen.The Restaurant first opened it doors in 1993 to the delight of customers craving for tasty African Cuisine and has continued to provide a home away from home feeling.
Why is it that Nigerian restaurants continue to operate from one bed room apartments? I’m not making this up, I lived in the country for nearly a decade and besides this personal first-hand experience, you may wish to read the message of the Managing Director a notable player, Africana Home, whom I assume to be the founder below:

When I first came to the UAE, I was unused to the taste and flavor of the food, although many tried to be as hospitable as they could but a lot was lacking, I just couldn’t stand it, And so the Vision for Africana Home was birthed.

From a one bed room apartment, cooking for friends, colleges and neighbors , to a small restaurant space with just 3 employees, to a thriving chain of restaurants, we truly have come from humble beginning.

Regrettably, only a few seem to have transitioned from such “humble beginnings”, as numerous other Nigerian “restaurants” (deliberately in quotation marks) are still operating under the radar in the most squalid of conditions.

What’s more? Filipino restaurants have started making inroads in the country with the recent announcement by the Al Ahli Holding Group for a new chain of Filipino restaurants, Little Manila restaurant in September at Al Muraqqabat Street, Deira, offering a variety of Filipino dishes from Fruitas, Mochi Créme, Zagu to the popular dish Binalot, grilled meat and rice on banana leaves.

“The idea behind Little Manila was to give the third largest expat community in the GCC an exposure to experience the flavors of their home country while staying in the Middle East and to give them a chance to come together as a community to call a place their own.”
Ok, I must admit I have recent heard of Gbemi Giwa’s new health-orientated African restaurant, Catfish, which operates out of the Kitchen Nation incubator space in Business Bay, but is this really bespoke? Why are Nigerian restaurants in Dubai still very few and far between?

Wake up Naija! “Carrying last” has never been part of your DNA.

Ndubuisi Ekekwe Will Be Speaking in National Assembly Abuja on Nov 21

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On Nov 21, 2019, I will be speaking in the National Assembly – the Nigerian parliament. You know in my speeches, I have been making a case that Nigeria MUST get to $3 trillion GDP by 2030 (from sub-$500 billion today) if we want to equilibrate on our population growth, and avert pockets of nano-conflicts. Behind the scenes, I have written roadmaps on how we can architect that redesign. This presentation is part of moving to the next phase as the committee I am working is bringing university vice chancellors, business leaders, public sector leaders, etc for a day to examine how to architect growth through industrial reforms.

My optimism in Nigeria is unbounded because we have a solid capability firmware to build an operating system of unconstrained growth which will be felt across industrial sectors! Just think about it: if you put liquidity velocity in all farmlands in Nigeria, you will reduce severe poverty by more than 29% overnight as assets which are dead will suddenly have value to serve the owners! 

Yes, those poor people in villages holding large farmlands will become richer. Doing that requires a new roadmap with technology under a governance system which the National Assembly must design and empower by law.

There needs to be new ways to use legislative policies to unlock latent opportunities and unleash growth in this economy.

Nigerian Banking Market Cap Paradox – Records Profits But Declining Market Caps

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Nigeria stock exchange data (Source; Godbold, LinkedIn)

I wrote about the Nigerian Banking Market Cap Paradox a few days ago. This paradox is thus: banks continue to break revenue and profit records but are yet to see decent bumps in their market caps.

Our largest bank by market cap, GTBank, had fallen from N1.3 trillion to now N741 billion even in a time it has been declaring massive profits and growing revenues. Simply,  there is no reason why that should happen. But it is happening due to market perceptions. Look at those numbers; it is only in Nigeria that a bank will deliver such, and yet nothing great happens on its stock (see the figure). Tell me, if massive profits do not deliver the glory of market cap bumps, what will?

Godbold Promise on LinkedIn has done the real professional work needed on the numbers to understand what is happening here. Read his full thesis below.

After reading a post by Ndubuisi Ekekwe today, I decided to run a 2 year analysis using #powerbi on the Nigerian Stock Exchange index and also on all the banks listed in the Stock Exchange to really understand the stock price performance over a 2 year period.

The result of the Analysis are as follows;
*The NSE index sheds 16.2% in 2019 against 14.0% decline in 2018. The index started flattening from Feb 2018 after then the index hasn’t recovered, it has been flattening till date.

For the Tier 1 banks, almost all the Tier 1 banks lost price momentum YoY save Access Bank.

There performance is as follows:
* Gtb dips by 23.7% in 2019 against 9.2% decline in 2018.
*Access bank increased by 7.4% in 2019 against 23.9% decline in 2018.
*Zenith Bank dips by 26.2% in 2019 against 7.6% decline in 2018.
*UBA dips by 24.0% in 2019 against 22.3% decline in 2018.
* FBNH dips by 33.3% in 2019 against 6.8% increment in 2018.

It happens that all Tier 1 banks relatively performed poorly YoY and 4 of them were worst performers save Access Bank from Jan 2018 to 25th Oct 2019.

This analysis still leaves us with same question by Ndubuisi Ekekwe which is; despite large profit, why are these banks losing price momentum.

The link to the dashboard is in the comment…

On what is happening in the sector, here are some comments from the LinkedIn thread.

  1. One thing you should know is that investors are not only concerned about the huge positive numbers but also look inwards as to what’s contributing to those numbers. In a case where the drivers of the profit are not sustainable, then huge sell-offs will ensue and share price starts declining. Maybe you should check the financials and see if banks huge profits is as a result of an increase in SPREAD in their core business of financial intermediation or as a result of other factors investors feel that are not quite sustainable in the future. That maybe the only reason to justify why there’s a share price decline despite posting huge PBT on their comprehensive income statement.

  2. Very apt! There are so many factors beyond financial performance that should be considered. E.g. Corporate governance framework, including but not limited to, controls around the eported numbers & Risk Management procedures, country risk (political & market)- as investors aren’t only Nigerians etc.

  3. See, why an investor would buy MTN Nig shares and not Airtell or GTB is simply the same reason why an American investor would buy a Fitbit share now that Google has acquired the company and not before the acquisition. Last generation of investors invested based on the present state of the company… that was the generation where banks and other heavy assets companies did good, but this current investors are concerned about potentials, tomorrow’s state.

  4. I had postulated the arrival of MTN. Yet, it is not clear.

 

Nigeria stock exchange data (Source; Godbold, LinkedIn)