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Central Bank of Nigeria Hints on Recapitalization of Banks

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President and CBN boss

The Central Bank of Nigeria plans to recapitalize banks:“Banks will therefore be required to maintain higher levels of capital, as well as liquid assets in order to reduce the impact of an economic crisis on the financial system,” he said.”  That is the right thing to do especially since the stock market has simply refused to make amends after the ocean-bottom of 2008.

To achieve Financial System Stability, Mr Emefiele said a resilient and stable financial system was imperative for continued growth of the country’s economy given the intermediation role of a financial institutions, to support the needs of individuals and businesses.

“In the next five years, we intend to pursue a programme of recapitalising the banking Industry to position Nigerian banks among the top 500 in the world.

“Banks will therefore be required to maintain higher levels of capital, as well as liquid assets in order to reduce the impact of an economic crisis on the financial system,” he said.

Recapitalization/redesigning happened about ten years ago and we lost some brands. This time around, depending on the amount CBN is pegging the new capital requirement; we may experience the same thing. Unfortunately, most banks will not do the recapitalization at the position of strength since it will be a double-whammy: fintechs are there practically asset-light while government wants me to hold more capital to compete with them. When you hold more capital, you may look good on paper but actually you are carrying cost, and that means inefficient on the utilization of the factors of production. But banks need to do the needful because they hold other people’s money!

I see about 6 banks departing the scene after this CBN exercise. It will be hard for them to get new capital at good terms because the market is ferociously tough. Remove the amalgam of fees on customers, they will pile losses as their interest-incomes [where you expect banks to make money from] are largely insignificant!

 

The State of Tech Jobs in Nigeria

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Cousant Connect has published a report titled “The Nigerian IT Jobs Report, 2019”. It examines where job opportunities are in the Nigerian IT sector: “The demand for IT skills in Nigeria is continually increasing with many more sectors of the economy now embracing technology.   However, there is still a lack of information on where the opportunities lie in the IT Jobs market and average salary ranges. This IT Jobs report gives deep insights into the skills that are in high demand, the average salary for each industry and skill set.”

Looking at the data, mobile app developers seem to be running the market on wages especially within 3-5 years of experience.

Some plots from the report which can be downloaded here.

 

Nigeria’s Distributed Utility Startup, Arnergy, Raises $9 Million

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It is evident that distributed energy will rule this age for Africa. Yes, while heavy-asset distribution companies (DISCOs) are crying for no money, African renewable startups are raising tons of money.  You do not need a seer to understand: remove government subsidy, most African electric utility firms will collapse.

Investors are voting for the startups and those startups are chipping the market from the national grid, taking the best customers along. The implication is that over time, national grid players will enter severe paralysis as they will not have profitable customers to serve at least in residential power.

Nigerian distributed utility company, Arnergy, has announced it has raised $9 Million in a Series A round of funding led by Breakthrough Energy Ventures with participation from the Norwegian Investment Fund for Developing Countries (Norfund), EDFI ElectriFI and All On.

Arnergy is a distributed utility company that provides energy solutions tailored towards energy reliability in emerging markets. Our energy solutions empower businesses and residential customers through the design, sale and installation of affordable and reliable, distributed energy systems. Target business verticals include, but are not limited to healthcare, education, hospitality, agribusiness, financial services and micro businesses that are driving impact and producing positive economic outcomes in their local economies. For more information visit http://www.arnergy.com.

“We are excited to enter this next phase in Arnergy’s development with investors that share our vision of tackling the most pressing energy challenges across emerging market economies, starting with Nigeria. We believe that energy needs in Nigeria have surpassed rudimentary requirements of low power utilization and our product offerings are solving for reliability and not just access,” said Femi Adeyemo, Founder and CEO of Arnergy.

Arnergy’s distributed renewable energy systems harness the combination of solar power, superior storage solutions and proprietary remote management technologies to deliver scalable, reliable and affordable energy solutions that are tailored to tackle issues related to intermittency and grid unreliability. Since launch, Arnergy has delivered over 2MW of installed capacity and over 5MWh of storage capacity to business and residential clients across Nigeria.

Arnergy’s market scaling ambitions, fueled by the influx of new capital, will include new business models and partnership opportunities, as well as consumer financing and channel expansion activities.Targeted verticals for the company’s 5KW modular systems will include small businesses, healthcare, hospitality, financial services, agribusiness and education.

About Arnergy

Tackling Challenges in Nigeria’s Facilities Management Sector to Unlock Growth

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By Mutiu Iyanda

In the last few years, the population increase and the growth in the real estate and construction industries have been the key drivers of FM growth throughout the world. In Nigeria, according to a recent report, the Integrated FM market in the industry is growing by 5%, while the global growth is 8.4%. The Total Facilities Management solutions segment is growing by 6.6% every year. Last year, the report indicated that the total market size of the public and private sectors’ FM needs was $3.3 million and $1.4 million respectively. During the year, the value of the Outsourced FM was $1.5 million, while in-house was $6 million.

Looking at the growth over the years, the sector performance has been more feasible in Lagos, Port-Harcourt and Abuja. These places are the mature markets of the sector in Nigeria. Like other sector in the country, though not really known by many, the sector is making significant contributions to the economy. In 2017, the sector employed 3.9% of 60.8 million workforces. In the same year, 16% of the FM sector workers were within the Outsourced FM segment, while 84% worked in the in-house segment. Despite the growth, the sector is not immune from various challenges and risks. These must be mapped and addressed by the key players.

The Challenges

The yearly growth of the sector is attracting quacks into it. Since the sector is having recognition challenge, some people and businesses cannot differentiate between property managers and facilities management providers. The quacks ply their trade more in the Heating, Ventilation and Air Conditioning maintenance and cleaning segments than in the Integrated FM and Total FM segments. This remains a significant threat to the cost saving approach and offering of value-added solutions.

With the emergence of ISO 41001 FM Standards, a new challenge has been added to the sector’s Challenge Map. While most players in South Africa, Kenya and Egypt have been certified by the International Standardisation for Organisation, few companies have received the body’s certifications. According to the information on the websites of the FM companies, the certification has largely been ISO 9001:2008 and ISO 9001:2015, which emphasise quality management system. Nigerian companies are yet to be certified with ISO 14001 Environmental Management Systems certification (EMS), ISO 50001 Energy Management Systems (EnMS), ISO 26000 Guidance on Social Responsibility, ISO 55001 Asset Management System Standard, ISO 22301 Business Continuity Management systems (BCM), OHSAS 18001 Occupational Health and Safety Management systems (OHSAS), Fire Risk Management System, Competence Management System and the Gas Safety Certification Scheme, available information reveals.

Check equally reveals that of the 223 companies with the Nigerian Industrial Standards 9001:2008, FM companies are not on the list. “Standardization will bring efficiency to FM operations by ensuring customer focus, leader’s commitment, monitoring and continuous improvement. Adhering to standards like ISO 14001 will enhance delivery of best value for clients and users,” Ishola Abass, GTP Global Resources’ Mechanical Engineer, said. Recently, mixed feelings from the professionals in the sector have once again emphasised the need for striking a balance between pricing and getting adequate funds from the clients. The arguments have been that FM providers do not always provide insightful issues on facilities to the clients, lack sustainable budget management, execution plan presentation and supply management knowledge. On the client-side, experts believe that businesses are not ready to provide an upfront budget for the management of their facilities.

New Konga
A warehouse

Apart from addressing these challenges with the right processes and tools, players and professionals need to deploy their resources towards the proper measurement of the sector in the country’s Gross Domestic Product quarterly calculation. Without making the authority see the reason for separating the sector from administrative services in the GDP calculation, the sector will remain undefined and continue to be one of the impeding factors for its full recognition in public and private lives. FM awareness in the private buildings is higher than in the public buildings despite a link in the FM practices in the two buildings. Insufficient educational institutions offering Facilities Management as a course at undergraduate level is another challenge players need to address. FM is being offered only at postgraduate level at the University of Lagos and Ahmadu Bello University, Zaria. This gap is being bridged by few FM companies with their training arms. This remains inadequate considering the huge workforce the sector needs to manage soft and hard facilities across the country.

Unlocking the Growth

To really capture the manifest and latent values in the sector, players must address identified challenges. These challenges must be addressed with specific attention to the processes, people, solutions and technologies. As long as real estate and construction sectors are growing in addition to the water supply, sewage, waste management and remediation, electricity, gas, steam and air conditioning supply, administrative and support services sectors, FM sector will continue to expand.

However, it would be difficult to capture the values absolutely without finding solutions to the challenges. Unlocking the sector growth and capture the needed values require that FM companies imbibe data driven culture. The sector is missing a lot from not appropriating data for solutions delivery. Nigerian FM companies need to take a cue from the United Kingdom, the United States of America and other developed markets where big data are being used to manage soft and hard facilities intelligently. In these markets, big data is being appropriated to stay competitive, reduce business risks, maximise asset and equipment performance and enhance customer-oriented services.

By 2020 and 2021, some places in Lagos State are expected to be transformed into smart cities, forming much publicised Lagos Smart City –an attempt to establish a strong convergence between technology, economic development and governance. In these cities, companies with better data driven culture will survive the data storms from different facilities and people. A workable plan is needed to lure public sector into proper maintenance of public facilities across the country. Lagos, Kwara and Imo states are showing some level of readiness to accept the sector wholeheartedly with their pledge to ensure maintenance culture and set up facilities management agencies. Already, Kwara state has established Harmony Facilities Management Limited. FM providers in the mature markets need to see beyond their locations.

Educating Nigerian Children To Thrive In The World

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By Sani Nahuche

Universally, education has not only been attached to achievements, but it has become a bedrock upon which a lot of advancements have been founded. Be it organised education or self-acquired, education like love, is one of the pillars holding the world together. But to be realistic, it has different approaches to it, from one country to another or on a larger spectrum, from one continent to another.

Defining education in Nigeria would have a very close relationship with the organisation of its education system. The 6-3-3-4 model, which came with the introduction of Universal Basic Education, and since its stability in 1990, stands as a representation of education in Nigeria. However, putting such model under the 21st century microscope, it obviously would take a larger share in the regressive growth of the Nigerian Development.

How does this assertion come in relevance with Nigeria’s growth? Aside from the intrinsic fact that the children and youth (who are subjects of standard education) are the leaders of tomorrow, and are obviously nowhere near taking up the role of leadership with their present conditions with education, the Nigerian education model or system does not seem to be a feasible contributor to growth and development in this age.

A close look at the education and schooling model in a country like Finland and the successes of the United Arab Emirates through education as majorly documented by Mohammad bin Rashid Al Maktoum, in his book “My Vision”, made it clearer that for a country like Nigeria to move ahead and wear the garments of development, there has to be an overhauling in its education system.

Mention any developed country, there is an assurance that there is a symbiotic relationship between the growth and development going on there, and the education system. It is unarguably true and universally acceptable that countries that embrace research are always steps ahead of their peers. Of course, researches are carried out by students and academics, which are usually funded by either governments, business owners, entrepreneurs and innovators, in order to find solutions to bothering human issues or improve existing knowledge.

Take a look at China, United Kingdom, United States, Japan, India, Saudi Arabia and more, they did not come to their successes with a rigid education system that neglects advancement. They all applied all the available advancements to improve education and learning for effective growth and development. And talking of these advancements, technology and internet have a very huge role to play. Basically, these countries acknowledge that they had to move away from the ideas of the industrial age, and embrace all that the information and digital age has brought.

The Nigerian ecosystem in itself is not only unfavourable to the education system, talk of infrastructures, health, transportation, water supply, agriculture and more, they are all suffering from the existing system. While one of the major, yet unproductive focus of government in the improvement of education in Nigeria has been the establishment of more schools, which will allow for more infrastructures that would end up not maintained, it comes disheartening that what should be the main focus this time; the application of technology in education, has been left unattended to.

To give assertions to this claim, a trip in quick history shows that, every of the recent attempts to enhance the general ICT and technological space in the country, have been futile. Goals were set in 2012 concerning the National ICT policy but have been met with abandonment. Not only that, there was another failed 3-year ‘Nigeria ICT roadmap for 2017 -2020’, that was introduced to establish and accelerate the implementation of existing ICT policies and to boost different sectors of the Nigerian economy, but as of now has not seen improvements.

It is unfortunate that in this time that countries and powers are harnessing the possibilities that come with technology in various areas to enhance growth and development, Nigeria as a country is still battling with having ICT policies and implementations that would make things work.

What then is the hope for the Nigerian children? What should be their expectations since their reality is no more to be considered as a way forward? Application of technology in the education system is the answer.

Talking hope for the Nigerian children and education system, it should be known that wherever technology is applied in this time and age, there is possibility there would be, if not always, a way out. Proper examination of developed countries has proven that with the application of various technological advancements in the education system have been productive.

If the Nigerian government can divert a large amount of allocation to building technological infrastructures at strategic regions of the country with proper monitoring, there would be a forward movement in the countries development. Fortunately, land mass and natural resources to build technological materials are in abundance; only the technical know-how and enhanced skill acquisition would be needed to set things in motion.

Likewise, the government should take a closer look into reviewing the curriculums from primary school level to tertiary levels, and construct a new set of curriculums that embrace a form of applied knowledge that would work in hand with technological provisions. This would not only restructure the education system but also make education come in a new light and welcoming to the Nigerian children.

Though, as practiced in Finland, technology is not the only contributing factor to improved education. Factors like lesser home works, absence of standardised tests asides one taken at the end of students’ senior year in high school, lesser school hours, subsidised meals for all full-time students, and most importantly prioritising practical exercises over theoretical ones. Also, the existence of work groups and optimal embrace of creativity through acknowledgement of students’ innate talents and interest, all contributed to their continual successes.

As presented on Pledre website, a Nigerian tech start-up into building technology for education, “more than 60% of Nigerians are currently uneducated and only about 30% of secondary school leavers get admitted into a tertiary institution. This is largely due to the absence of adequate infrastructures to accommodate the populace. But what if schools could leverage technology and digital infrastructures, virtual reality, and augmented reality to substitute for the unavailable and expensive laboratories and lecture rooms? This could create a more dynamic and engaging learning environment for students.”

Without further ado, this article would take a closer look at existing technology that, if applied and maintained in the Nigerian education system with other determining factors like re-adjustment in the curriculums and the school system, there would be a brighter future for the Nigerian children. These are the adoption of:

  1. Virtual and Augmented Reality
  2. Gamification
  • Learning Management System

Application of Virtual and Augmented Reality in Learning

The world is panning towards smart learning, a product of technological applications to enhance learning experience and importantly to make learning an enjoyable experience. Basically, it is bringing learning into a full level of practicality; this is why both augmented and virtual reality are of great importance.

What is Virtual Reality and Augmented Reality?

Virtual Reality (VR), entails the recreation of an experience with the adoption of specialised devices and software. It makes use of devices like VR Gears and 360 Gears to create a simulated environment. While Augmented Reality (AR), involves the combination of digital information with their own environment. It is an enhanced version of reality that is created by adding digital information on an image of something with the use of technology.

How can they be used to enhance learning?

  • To bring in excitement and engagement in learning process: “Creativity is intelligence having fun”, Albert Einstein. One vital benefit of virtual and augmented reality is that they make learning come seamlessly, and with an assurance that learners get to implement all they are taught immediately without any form of repercussion or danger attached. AR and VR aid deep understanding of the subject as they easily prompt questions from participants. In place of being just a spectator in the process of learning, they become active participants because they would easily capture and interact with what they see. To a larger extent, AR and VR eliminates higher level of boredom.
  • AR and VR create seemingly impossible or challenging scenarios: There are stages in learning that there would be need for on-site explanations of real life situations. With this comes dangers and emergencies; with the use of AR and VR, those are eliminated and concentration would be on learning. This do not only reduce risk to the minimal, it also reduces cost, stress, time and energy.
  • They enhance self-guided exploration: Recently, any learning process that do not allow mistakes and resilience is not worth to be categorised as one. And since VR and AR presents an environment for multiple experiments that reduces a huge cost or exposure of learners to risk, it allows learners to confidently learn from their mistakes, correct them and explore multiple options during experiments till desired results are achieved. This is AR and VR’s approach to bring efficiency, involvement and elimination of risk to learning.

The future of smart learning is awesome, and if Nigeria could tap into its opportunities now that it is still in its early years, it is an avenue to rebrand the current Nigeria, even through the hands of tomorrow’s leaders as they are fondly called.

Application of Gamification in Learning

What is Gamification?

This technological approach makes use of game mechanics and designs to enhance non-game contexts like classroom learning, by increasing participation, engagement, competition and loyalty. The whole concept includes direct competitions, leader boards, points and badges or stickers. Due to its efficiency, industries like personal healthcare, and definitely the bone of contention here, education.

Bringing gamification down to education is a great shift in result-oriented moves in harnessing the best of each student. Gamification, originally was known to be attributed to increasing productivity in industries and organisations. For example, an automobile company like Ford adopted it, with its innovative dashboard of the Ford Fusion hybrid. More like Sales, Marketing, Co-working and more have all experienced it. But how would this help Education?

Though gamification comes majorly in two ways, either to do physical rewarding with the use of leader boards, stickers or badges to measure ranks, etc., or to codify learning into actual games with proper designing and mechanism. This article would touch the two slightly to aid further research.

How can Gamification be used to enhance education?

All of these various ways have been tested by educators and have seen positive results around the world:

  • Use of Badges and Stickers as Awards for Students: This is very relevant in building interest in education from the primary school levels. Teachers are to award students with stickers or badges for completing assignments. Schools like Western Oklahoma State College is highly practicalizing this. They added a form of gamification into their technology classes, and make rewards come in badges like “Moodle Noob No More,” or, a personal favourite “Drop It Like It Hot”, this is to indicate levels of mastery of Dropbox. Nevertheless, it should be noted that, some value should be added to badges or stickers, like skill levels, bonus points, etc.
  • Adoption of Video Games designed from Educational Curriculum: As it is in real games context, that individuals fail, restart, overcome, stay focused, and persevere, the same is what happens with games are applied in educational curriculum. Gaming makes students see themselves as agencies in games they play. In games, they control their choices, make innate decisions, and the more agencies students have, the more efforts to put into it. Therefore, rewards like instant feedback (big or small), become external contributing factors and motivators. In addition to this, let there be a touch of competition, tournament or league, this would drive huge interest to partake individually to the success of a team on individual level, and create a sense of teamwork in the larger approach.
  • Gamification of homework to enhance informal learning: It has never been recorded that the confines of classroom education has been able to instil all that is needed to be in students, hence; the need for extension of activities like homework. If gamification can be applied in administering homework to students, it would encourage interesting adventure and allow for curiosity after closing hours.

Adopting Learning Management Systems (LMSs) in Learning

What are Learning Management Systems and how can they be applied?

Learning Management Systems (LMS) serve as a technological bridge provided for students and teachers to both experience education in an advanced setting or environment. When applied in educational environments, they facilitate a synchronised communication between teachers and students, and also raise new challenges.

For clarity, all e-learning platforms are also regarded as Learning Management Systems. They make use of internet and software that allow instructors to prepare and manage course/subject materials distribution, assignments, communications and every other areas of instructions for learning.

In developed countries, LMSs have been developed to become an integral part of their educational systems. Though, this does not mean that traditional classrooms were short down, they only come to complement the learning process, by allowing a hybrid approach that synchronizes exercises that go on in class with other online activities pertaining to learning.

The systems in the LMS, also make use of other technological approaches that have been discussed earlier in this article. Learning Management Systems, serve partly as a convergence for some of the technological approach to learning. For example, there could be an integration of games in the materials shared by teachers and the whole class on the Learning Management System. With that, students would go ahead to engage in adventures, working towards applying all their efforts to get to the top of the leader boards, and also earn badges for outstanding performances.

What is the way forward?

The question is no more about if education will rule the world, it should be about if the Nigerian children would be allowed and trained to actively partake in the leadership education has brought. Any Nigerian child should not be denied neither education nor the benefits application of technology has brought to education in the world. Therefore, it is expected of the Nigerian government to wake for their slumber and begin to fashion a brighter future for its children.

Likewise, there should also be an accelerated rise in the number of private sectors like Pledre, who should be actively involved in enhancing the educational environment in Nigeria. While the government should also be set to implement policies that would allow private investors to find the process easy and interesting. Furthermore, as a country, Nigeria should see partnering with world leading educational tech companies, as a venture to invest in and explore for the country’s rapid growth and development.

Though, bringing such a huge change to the Nigerian educational system does not promise an easy ride, but it should be acknowledged that growth and development would not come, if conscious efforts are not taken to bring them to life. Till then, the hope of the Nigerian children is still hanging in the air.