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Home Blog Page 6817

The Necessity of Afrexim Bank’s Pan-African Payment and Settlement Platform in ACFTA

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By Nnamdi Odumody

In order to  solve the paralysis in intra African trade, the African Export Import Bank (AFREXIM) has launched a Pan African Payment and Settlement Platform (PAPSP) at the African Union Extraordinary Summit in Niamey, Niger.

This initiative is part of the African Continental Free Trade Area (ACFTA) which is designed to bring 1.3 billion Africans and create a $3.4 trillion single economic market. The initiative has the following operational instruments: Rules Of Origin Portal, Tariff Concession Portals, Portal On Monitoring and Elimination of Non Tariff Barriers, Digital Payments and Clearing System, and African Trade Observatory Dashboard.

This is why the African Development Bank has supported similar initiatives across the continent, including the East African Payment System and the West African Monetary Zone’s project to link payment systems. Likewise, in support of the CFTA, Afreximbank is working on establishing a Pan-African Payment and Settlement Platform (PAPSP), which will not only lower transaction costs but also facilitate informal cross-border trade, currently estimated at $93 billion.

Another interesting trend is the rise of African multinationals investing into other African countries. At the forefront are African financial institutions. Today, Ecobank has a footprint in 24 countries while Moroccan banks are now present in 16 countries, up from just three in 2005. This is welcome news. Indeed, banks support about one-third of total intra- African trade.

According to Dr Benedict Oramah, President of Afreximbank, the PAPSP which will be available on mobile devices will facilitate the clearing and settlement of intra African trade transactions in African currencies and significantly reduce dependence on global currencies in settlements for regional trade.

The African Export Import Bank has partnered with the West African Monetary Institute to launch a pilot in six West African countries before the end of the year as the West African Monetary Zone is Africa’s only economic community which doesn’t have a settlement platform, hence the decision to pilot the initiative in the region.

PAPSP is one of the initiatives implemented by AFREXIMBank to facilitate greater volume of intra-African trade and formalize the continent’s volume of informal trade estimated at $40 billion.

Considering the fact that Africa has multiple local currencies, cross border payments has traditionally involved the use of a third currency like the US dollar, Euro, British Pound or Chinese Renminbi resulting in high cost  of intra-African payments which, PAPSP is a timely intervention to fix the friction.

Amazon Is Unveiling Broadband Satellite Operation

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This is a big deal: Amazon is unveiling a satellite broadband venture. Watch out, very soon, Amazon Prime members may be getting internet services at home from Amazon.

Amazon is asking the Federal Communications Commission for approval of its Project Kuiper satellite broadband venture, and referring to potential synergies with Amazon Web Services as a strong selling point. …

That revelation was contained in documents that were filed with the International Telecommunication Union. On Thursday, Amazon’s wholly owned Kuiper Systems subsidiary followed up with a fresh set of FCC filings.

This is a massive one, from the FCC filing: “Amazon sells products and services to hundreds of millions of customers today via physical and online stores, entertainment content streaming, design and manufacturing of consumer electronics devices, and leading public cloud computing web services. Amazon also has global terrestrial networking and compute infrastructure required for the Kuiper System, including intercontinental fiber links, data centers, compute/edge compute capabilities and the tools, techniques, and know-how to securely and efficiently transport data.”

My prediction remains: we will have massive internet connectivity by 2022 even in Africa. These satellites will end up helping African customers.

2022 Will Usher The Era Of Wireless Nigeria, Africa

Beyond Websites And Apps: Creating Jobs In Nigeria

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The idea looks great on paper with the massive unemployment rate where the youth unemployment rate is recording excess of 55%. Yes, I can start a website and help young people find jobs. But remember: the biggest challenge is finding jobs for people in a place with no jobs. Nigeria’s unemployment problems will not be solved with recruitment-focused apps or websites but by creating growing companies of the future. Tell those governors that having dedicated websites for employers to post jobs for the youth will not fix any issue. They just need to provide enabling environment to help companies do their things: put factors of production to work, and create jobs!

Nigeria is yet to recover FULLY from the Great Recession of 2008. While many continue to look at the stock market for signs, the sign that matters is evident – we are losing a generation of young people on acute sustained unemployment. Yes, ‘Youth unemployment and underemployment was 55.4% in third quarter of 2018, leaving more than half of the country’s largely youthful population idle most of the time.’ Look at the trajectory of the proportion of full-time youth employment – not a good pattern!

This Plot Explains Nigeria Since 2010 â?? Yet To Recover FULLY From 2008 Great Recession

Apapa Customs Increases H1’19 Revenue by 14.9%, Hits N203bn in 6 months

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By Oko Ebuka

The Apapa Area Command of Nigerian Customs Service, NCS, has collected a total of N203 billion, representing 14.9 percent in the first six months of 2019 against N176.7 billion collected in the corresponding period of 2018.

In a statement signed by the Customs Area Comptroller, CAC, Mohammed Abba Kura said that the collection represents 54.5 percent of the Command’s annual revenue target.

Disclosing this to Vanguard Maritime Report during a media briefing, the Customs Area Comptroller, CAC, of the Apapa Area Command, Muhammed Abba-Kura, said that within the period under review, the Command made a total seizure of 29 containers of various items that contradicted import procedures.

According to him, “all the listed items have breached the federal government fiscal policy measures for 2018/2019”, he said.

He went further to reveal that the success was achievable due to the diligence of the officers in patrol and assured the public that the command will keep on focusing on trade facilitation and capacity building.

“The command will facilitate speedily legitimate, compliant and all trade that have satisfied the necessary procedures concerning the transaction. All such consignments will get accelerated clearance out of the customs system.

“The command will continue to build on the capacity programmes for both officers and stakeholders operating within the command to acquaint them with modern trends, government fiscal policies as well as Nigerian Customs Information System, NICIS II, operative systems”, he added.

The Command also recorded a total of 95,229.15 metric tons of exported goods with Free On Board, FOB, value of N14.2billion of which most of them were agricultural and mineral products.

The seized items with a Duty Paid Value, DPV, of N418 million, include; tramadol, tomato paste, vegetable oil, ladies and girls’ fashion footwear, among others.

Tank Farm Menace: Lagos Town Residents Stage Protest

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By Oko Ebuka

In continuous agitation to direct the attention of the Federal, State and Local Governments towards their suffering, the residents of satellite town and Ijegun Egba took to the streets in a peaceful protest against the citing of over 50 tank farms in the area by 12 companies.

The community is appealing to the appropriate government authorities to come to their rescue by relocating the tank farms which started operating in the community since 2012, to another place as well as revoking the licenses fraudulently procured by some of the marketing companies operating in the said area.

In an exclusive interview with Sunday Vanguard, the chairman of satellite town forum, Governor Michael Imitini, said that the protest is the only avenue in which they can express their awful feelings towards the hardship they are facing as all the tiers of government have totally abandoned them.

According to him, “the essence of this peaceful march is to call the attention of the federal government, state government, all relevant agencies that have given approval for tank farms to be cited in a residential area to come and listen to our demands which are as follows: that satellite town is a residential area which is not meant to be defaced by any kind of investment whatsoever.

“What we need is that there should be no tank farm, we ha have 12 companies operating over 50 tank farms, and there are incidents of fire outbreak in this community severally which obstructs the normal daily activities.

“We have written position papers and letters to various tiers of government and its agencies; Federal, State and Local governments. But it has appeared that the more we suffer and complain, the more our hardship increases.

“Our people are losing patience, the youths of the community are asking serious questions and we the elders are moping back at them because we are dumbfounded beyond expression”, he said

Also in her own expression, a septuagenarian, who has lived in the community for more than 35 years, Mabel Ehirim, stressed that the community has completely deteriorated and have changed from the serene environment it used to be to a dangerous contraption waiting for explosion.

“In 1980 when we moved in here, it was a serene area where people look forward to live in. in fact, the big me doesn’t want to live in this area at all because they thought it was bush but the vegetation made us to live around here.

“Suddenly, the tank farms started coming from one to two, and when it came, there was a move initially to stage this type of protest but they went and told former governor of Lagos State, Babatunde Fashola, and he kicked against it, so within this period it has escalated because the number has so much increased and is now threatening our lives.

“At every point, you find out these boys who are siphoning naked fuels all over the place in NNPC headquarters where I am currently residing. It is very unhealthy because the gutters have been flooded by fuels, making it greenish in color therefore blocking the free flow of water.

“We have been crying, I personally went to the police station to cry out for help but they didn’t do anything, I went to Festac police, they also didn’t do anything. We have also written to Department of Petroleum Resources, DPR many times, even when we had fire incidence on the high tension pole they didn’t respond to us.

“Many people have lost their precious lives on this road. The records are there. There was an incident of a boy who was crushed to death by a tanker while returning from school, and also a woman who was knocked down too”, she said.

Another prominent member and also the media committee chairman, satellite forum, Mr. Ndubisi Okafor, said that the situation has caused unimaginable environmental hazards by bringing total psychological, material, emotional and social loss in the entire community.

“The environmental loss has been very impactful and unquantifiable because whenever there is a gridlock there will be no movement. People are trapped. To go out is a problem to come in is also a problem. Some people usually sleep there on the street because of the gridlock. We cannot quantify the material loss because the situation is affecting the life expectancy of everybody residing in this community. The pressure is much. There is a total collapse in the system and as well as infrastructural decay.

“The environmental impact is equally much because a lot of houses are going down due to stagnation of waters in the environment, pollution and all kinds of diseases are affecting the community which is very unfortunate that you will start imagining who gave these people licenses to come and even operate such hazardous business in a residential area”, he concluded.

Furthermore, Rev. Nwakaego Jessica also told Sunday Vanguard that the situation has caused unnecessary accidents which have led to the death of many people including children, as well as affecting their various businesses within the area. She also hopes that the new Lagos State governor, His Excellency, Babajide Sanwo-Olu, will come to their rescue.

Another concerned member of the forum, Omoh Gabriel, disclosed that the influx of tankers in the area is hugely caused by the bribery and corruptible practices exchanging hands from the Nigerian Union of Petroleum and Natural Gas Workers, NUPENG, and the truck drivers because of lack of call-up system.

According to him, “Over the last 10 years we have up to 50 tank farms coming up here now. The NUPENG there collects about N1, 000 naira per truck, so the more truck they allow in, the more money they get. This place supposed to be a complete residential area but along the line, these people came and bought these lands. They bought it from individuals; it wasn’t allocated to them by any government or agency and they claimed to build housing estate but all of a sudden they started building tank farms”, he affirmed.