Business

By Ahmad Deedat Zakari

The social media app, Twitter, plans to start charging $20 dollars per month for users whose Twitter accounts are verified.

According to reports by The Verge, verified users would have 90 days to subscribe or lose their blue tick badge.

This is coming after Elon Musk completed the acquisition of Twitter. It is believed to be amongst the many policies expected from Twitter’s new owner.

Musk has been critical of Twitter’s verification process before acquisition. He announced in a tweet on Sunday, October 30, 2022, that the the entire verification process is currently being revamped.

“The whole verification process is being revamped right now ” He tweeted

Employees working on the new features were reportedly given a deadline of November 7 to complete their task or get fired by Musk.

By Uzair Adam Imam

There have been up and downs concerning the re-design of the Naira note in Nigeria as the Central Bank of Nigeria (CBN) and Ministry of Finance, Budget and National Planning continue to trade words over the development. 

The minister of Finance, Budget, and National Planning, Zainab Ahmed argued that the CBN’s proposal to redesign the Naira might not yield any good result. Ahmed stated that the redesign would have serious negative effects on the country’s crippling economic growth. 

However, the Spokesman of the CBN, Osita Nwanisobi, challenged Ahmed, who said her ministry was not carried along.

Nwanisobi reiterated that CBN duly sought for the approval of President Muhammadu Buhari which he granted immediately. 

The Daily Reality recalls that the CBN Governor, Godwin Emefiele announced the intention of the CBN to redesign, produce, release and circulate new series of N200, N500, and N1,000 banknotes.

Re-designation of Naira portends serious consequences – Ahmed

“Distinguished senators, we were not consulted at the Ministry of Finance by CBN on the planned Naira redesigning and cannot comment on it as regards merits or otherwise.

“However as a Nigerian privileged to be at the top of Nigeria’s fiscal management, the policy as rolled out at this time portends serious consequences on [the] value of Naira to other foreign currencies.

“I will however appeal to this committee to invite the CBN governor for required explanations as regards merits of the planned policy and rightness or otherwise of its implementation now,” she stated. 

CBN was surprised by what Ahmed said 

However, the CBN spokesperson,  Nwanisobi expressed surprise at the minister’s claim, stressing that the CBN remains a very thorough institution.

He said the decision of the CBN management is in line with provisions of section 2(b), section 18(a), and section 19(a)(b) of the CBN Act 2007.

He also urged Nigerians to support the currency redesign project.

By Salisu Uba, FCIPS

I spoke on unlocking Nigeria’s innovation potential for economic growth and prosperity at the Digital Nigeria International Conference #DigitalNigeria2022 Innovation and Ecosystem Day in Abuja, held on the 28th of October, 2022. 

I focused on what innovation is in Tech and examined the top ten innovative countries; the difference is that they prioritise human capital development, infrastructure, and knowledge-based approaches to innovation. 

I emphasised Nigeria’s competitive landscape, which includes a youthful population, ICT-savvy people, low labour costs, the recent Startup Act, digital economy leadership, and internet access, as key drivers that can transform Nigeria into an innovative nation. 

I also stressed the importance of understanding how to diffuse innovation using the well-known Roger’s diffusion of innovation model. Surprisingly, despite technological advancements, the model remains applicable. 

I also discussed what young people could do to get to the point of developing and commercialising their ideas, emphasising the importance of equipping themselves with skills, networking, and openness. I consider these as factors that will propel one to success. 

More than 1000 people from all over the world attended the conference, which featured speakers from Europe, Asia, America, and the Middle East.

The full presentation and panel session can be found on the websites of Digital Nigeria and NITDA.

Salisu Uba, FCIPS, is a blockchain expert and supply chain and commercial leader from Glasgow, United Kingdom. He can be reached via salisuuba@ymail.com.

By Muhammadu Sabiu

A new core investor, Strategic Capital Investment Limited (SCIL), has finished the processes involved in purchasing or acquiring Polaris Bank from the Central Bank of Nigeria (CBN).

In a statement, Osita Nwanisobi, the CBN’s director of corporate communications, said that the investment business received 100% stock holdings in Polaris Bank.

SCIL reportedly paid N50 billion upfront to purchase the shares, according to the statement released on Thursday. 

Since the apex bank intervened to suspend the former Skye Bank Plc’s licence in 2018 and established a bridge bank to take over its assets and some of its liabilities, the bank has been operating as a bridge bank.

CBN Governor Mr Godwin Emefiele was quoted as saying, “This sale marks the completion of a landmark intervention in a strategic institution in the Nigerian banking sector by the CBN and AMCON. We commend the outgoing board and management for their vital role since the bridge bank was established; in stabilising the Bank’s operations and its balance sheet and implementing strong governance structures to address the issues that led to the intervention.

“This process has provided the CBN with an unprecedented opportunity to recover its intervention funds in full and promote financial stability and inclusive growth. We wish SCIL well as they implement growth plans to build the bank from the strong foundations that have been established.”

Meanwhile, it can be recalled that Polaris Bank was recently enmeshed in a controversial drama characterised by a viral screenshot of an email allegedly from a supervisor of the bank, in which some Muslim employees were queried for attending a Juma’at service.

The email provoked an uproar from the Muslim faithful and forced a number of them to withdraw their money from the bank.

By Sumayyah Auwal Ishaq

The popular shopping center in Kaduna metropolis, Ramat Shopping Mall is currently on fire.

For now the cause of the fire outbreak is yet to be ascertained.

More details later.

By Uzair Adam Imam

The Ministry of Power on Wednesday disclosed that there is no plan on the ground to sell the Transmission Company of Nigeria (TCN).

The ministry disclosed this in a statement signed and issued to journalists today, October 12, 2022.

The statement urged the general public to dismiss the statement making the round regarding a non-existing plan to privatize the TCN. 

The Daily Reality gathered that the ministry stated this a response to media reports and statements claiming that there is a plan to privatize TCN next month. 

The statement read: “These reports are untrue and are only mere misinformation aimed at spreading panic in the power sector, which is making progress towards ensuring that Nigerians enjoy uninterrupted power supply.”

“The Federal Government of Nigeria has no intent to sell or privatize the Transmission Company of Nigeria, and no one in the FGN has made a statement of an intent to sell TCN.

“The Transmission Company of Nigeria (TCN) is a centrepiece in the Federal Government of Nigeria’s efforts to rejuvenate the power sector. Therefore, the Ministry of Power working with key stakeholders is continuing to evaluate, assesses and upgrade TCN to make it more efficient and transparent.

“As part of the repositioning of TCN, job opportunities are being created, as with the recently concluded ramp up of employment, contrary to claims that there is a plan for a mass disengagement of staff at TCN. The organization has also been carrying out sustained capacity building by training and retraining of staff across all cadre for efficiency and service delivery.

“Transmission is a vital segment of the electricity value chain that constantly needs significant investment. As is the best practice across the world, the government of Nigeria maintains the transmission segment of the power value chain even when other segments have been privatized. Currently, the federal government is investing and supporting efforts to make TCN a world-class transmission service provider.

“The federal government under the leadership of President Muhammadu Buhari focuses on upgrading, stabilizing and modernizing Nigeria’s power industry through various interventions, including the Nigeria-Siemens partnership under the Presidential Power Initiative (PPI),” the statement added. 

By Tordue Simon Targema

At a time like this, Public-Private Partnership is undoubtedly the surest blueprint for economic prosperity in Nigeria. This explains why Prince Abubakar Audu, the visionary Executive Governor of Kogi State in 2002 invited the Dangote Industries Ltd. to the State to partner on cement production, a venture that has been so far productive and economically rewarding to both the State and Dangote Industries Ltd., and indeed, Nigerians at large.

It thus smacks of apparent permittivity for the State Government to wake up today, over 20years after the deal was struck with Dangote Industries Ltd. and shut down the Company on the grounds of alleged illegal acquisition.

Apart from the physical damage that this dastardly act will incur the Company, it is also important to consider the bad signal it sends to prospective investors preparing to go into public-private partnerships with governments at all levels.

At the moment, calls are rife for governments in Nigeria to privatize moribund ventures and hands-off their operations in the interest of productivity. NNPC has just been privatised with the registration of the NNPCL, so also are calls for privatization of other assets that gulp billions in annual budgets without tangible results.

Yet, it is at a time like this that Governor Yahaya Bello and the Kogi State House of Assembly consider it most appropriate to wield their sledge hammer on Obajana Cement Company and shut it down in the most primitive manner possible.

A statement by the company’s management indicates that the invasion by armed vigilante groups has caused enormous damage on the plant ranging from physical destruction of the Company’s assets to wounding about 26 staff among other scores of incurred damages.

The report of death of a staff that was shot during the invasion cannot be substantiated at the moment, and appears as an exaggeration to attract public sympathy to the Company. It must be noted at this point that Dangote Industries Ltd. cannot be absolved completely of sharp practices in the course of its operations.

Just recently, the Benue State Internal Revenue Service shut down Dangote Cement Plant in Gboko due to the unwillingness of the Company to remit due taxes to Benue State. Like the current saga at Obajana, a war of words trended between State officials and the Company’s management over claims and counter claims regarding remittance of taxes.

Prior to the incident and until recently, the road around the plant was a terrible nightmare to commuters plying the busy Katsina Ala – Makurdi federal highway which leaves many wondering how serious Dangote Industries Ltd. is with its corporate social responsibility.

The road around Savannah Sugar Company in Numan, Adamawa State is equally a nightmare, so much such that commuters would always ask whether it is customary to Dangote companies to live roads around their plants terribly devastated.

A visit to Obajana where the cement factory is situated leaves one wondering if at all it hosts a company of that magnitude, as no meaningful development project commensurate to the company’s prestige can be spotted around.

One would have expected critical interventions of the Company in basic infrastructures of the town such as educational institutions, healthcare facilities, road networks, water and other critical infrastructure as part of the company’s compensation to the host community for the concomitant environmental effects occasioned by its operations.

This is not the case at Obajana which is but a glorified village remitting billions into Dangote’s coffers, even as Dangote Industries Ltd. is among the most renowned donors doing what one would regard as “Father Christmas” to places that it has no investments!

Another critical question worthy to ask pertains to who owns the remaining 10% of the Company’s shares due to Kogi State as provided in the agreement transferring ownership of the Company to Dangote Industries Ltd.

This question is crucial as the Company in its reaction to the invasion claimed 100% ownership of the plant, even as existing laws stipulate that a State is entitled to 10% equity shares of such investments within its domain, 5% of which belong to the indigenes while the remaining 5% to the State Government.

One must also be curious to ask if all taxes rightfully due to the Kogi State Government are being remitted as at when du. Recall the incident at the Gboko cement factory! These are critical questions that must be carefully interrogated as one wraps his head around the current crisis at Obajana.

Notwithstanding all these, however, given the strategic position of the Obajana cement factory in Nigeria’s economic sphere especially with regards to cement production, distribution and consumption, the consequences of shutting it down at the moment can best be imagined.

Consequently, it behoves on the State Government and management of the Company to shelve their swords and immediately return to the discussion table to resolve the crisis within the shortest possible time in the interest of all and sundry. It is worthy to note that Public-Private Partnership benefits all parties wherever it exists.

Kogi State Government and the Dangote Industries Ltd. should have known this better. In this regard, efforts must be made to strengthen existing partnerships and encourage new ones to emerge exponentially.

Individuals and groups going into such agreements with governments must, as a matter of necessity, exhibit the highest sense of responsibility by constantly dialoguing with government agents towards addressing all grey areas that might arise on a regular basis to ensure peace and tranquillity in the course of their operations.

In doing this, impunity and arrogance must be avoided and business operations must thrive purely based on mutual understanding and corporate best practices in line with existing legal frameworks.

In a similar way, governments going into agreements with private investors must be prepared to respect their fundamental rights and privileges, and must desist from all primitive and draconian acts that are capable of causing untold damage to such investments.

This is necessary if industrial harmony must be attained in jointly owned ventures for greater economic prosperity of Nigeria and her component states.

Tordue Simon Targema writes from the department of Journalism and Media Studies, Taraba State University, Jalingo. Email: torduesimon@gmail.com

By Tordue Simon Targema

Last week, the Obajana Cement Plant came under siege by armed vigilante groups from the Kogi State Government, acting on the orders of the State House of Assembly who stormed the Company to seal it and ground its operations.

This was followed by war of words between the Kogi State Government and Dangote Industries Ltd. on the establishment, acquisition, ownership and legal rights of operations of the company.

The House of Assembly premised its decision to seal the Company over its management’s refusal to appear before a public hearing on petitions bothering on the acquisition of the Company by Dangote Industries Ltd. This, the House considered arrogant and hence, had to wield its sledge hammer on the Company to serve as deterrent to it, and indeed, other investors in the State.

Reports also indicate that the Company’s management had earlier shunned a Commission of Inquiry set up by the State Government to investigate petitions bothering on its acquisition and operations by Dangote Industries Ltd.

This scenario is unfortunate and regrettable, especially as Nigeria grapples with untold economic hardships and paucity of vibrant private companies that will provide adequate buffers to the nose-diving economy, create job opportunities and mop up the teaming jobless youth that have littered her streets today.

But the fundamental questions lingering on several minds since this crisis erupts, however, are: why did Dangote Industries Ltd. snub the Kogi State Government and House of Assembly, giving rise to this preventable misfortune? If Dangote Industries Ltd. is innocent of the allegations, why evade a Commission of Inquiry and a House of Assembly public hearing that would have provided the best platforms for the Company to exonerate itself?

Again, Why allow the crisis to degenerate to this level, despite the numerous warning signals? Does it mean that the Company operates without a proactive conflict management strategy to arrest this sort of obvious conflict prompters and nib them in the bud?

These questions continue to beg for answers, and have caused many to accuse the operators of Dangote Industries Ltd. of arrogance and blatant disregard to constituted authorities within their operational domains.

Beyond these, however, the behaviour of the Kogi State Government and its operatives suggest that someone somewhere wants to “cash out” from the Company, and has decided to use this brute invasion as the best means of actualising the selfish ambition. Yes, available records have provided sufficient proofs to this effect.

To start with, most of the claims contained in the report of the Commission of Inquiry chaired by the Head of Service to the State Government, Mrs. Folashade Ayoade are utterly mischievous and amusing.

The Committee, for instance, could neither interact with any of the four government representatives that interfaced with Dangote Industries Ltd. to transfer ownership of the Company from the State Government to Dangote in 2002, nor interact with the Company’s management team; yet, concluded its report and made damning recommendations based on selective documentary evidence!

Curiously, the agreement that facilitated transfer of the Company which was duly signed by the then Executive Governor of Kogi State, late Prince Abubakar Audu has been “invalidated” by the Committee on the grounds that it lacks “consideration” 20 years later!

To claim in 2022 that an agreement signed and implemented since 2002 lack consideration is funny, given that the same agreement has been guiding operations of the Company all this while.

Notably, this agreement which the Committee invalidates is explicit in its terms regarding ownership of the Company when it states that: “the State, being the sole owner of the Company hereby offers, and DIL (Dangote Industries Limited), accepts the transfer of 90% of the total shareholding in the Company.”

This transfer was made in the light of the State Government’s apparent inability to adequately exploit the huge mineral deposits.

The agreement notes categorically in this regard that: “in order to actualise the aspiration of the State and its people to exploit and utilize the abundant minerals for establishment in the State of cement manufacturing plant, the State has invited DIL to consider equity participation in the project.”

Clearly, Dangote Industries Ltd. was not an intruder in Kogi State on cement exploration tour ab-initio, but was duly invited by the State Government to help actualize the goal of adequately exploring and mining mineral deposits in the State under a well-articulated equity regime.

So far, the Company has done well on several fronts such as its enormous contribution to the country’s GDP and provision of employment opportunities. The huge financial investment of Dangote Industries Ltd. into the Company gave it life in 2008 when it finally commenced operations after about 20years of its conception in 1992.

At the moment, Obajana Cement Company is the biggest cement plant in Sub-Saharan Africa, with a nameplate production capacity of about 16.5 million metric tonnes per annum across its five production lines.

With sufficient fuel- gas, coal and diesel- the five cement mills are expected to produce 7000, 000kg of cement each per day. When one considers maintenance and circumstantial stoppage of five days per month, the loss of even a day of production is such a huge pain that management of the Company could not afford to risk.

Presently, due to gas and coal shortage that is being experienced across the country occasioned by flooding, only two to three out of the five production lines can run simultaneously. In this circumstances, a shutdown of the Company by the State Government is least envisaged, and is capable of wrecking untold hardships on the Company’s investments.

It is worthy to note that Obajana Cement Plant provides gainful employment to over 3,000 staff. This is apart from casual workers, cleaners and other private individuals who have business dealings with the Company.

With this manpower capacity, the rippling effect that the Company portends to the economies of both Kogi State and Nigeria at large can be best imagined. Yet, even with this production capacity, the cost of cement in Nigeria is excessively high and continues to rise at an alarming rate given the economic uncertainties of the time.

At the moment, a 50kg bag of cement costs around 3,500 to 4,200. One wonders what the implications of shutting down the largest production plant would be on the supply and price of the product within the shortest possible time, not to mention the thousands of people that are most likely to lose their decent means of livelihoods should the unfortunate crisis linger on.

To be continued

Tordue Simon Targema writes from the department of Journalism and Media Studies, Taraba State University, Jalingo. Email: torduesimon@gmail.com

By Bilyamin Abdulmumin

314,159 dollars a Pi

One of the grand sagas that have been taking public attention is the issue of the Pi network. This project is said to be launched early in 2019. All potential subscribers need to come on board is a smartphone and data.

It depends on when one starts and how often they mine. But some pioneers (those who register for the crypto) have mined as much as 10000 Pis. However, the contentious saga that has been drawing attention was the Pi (cryptocurrency) relative value.

The value floating across as said to be the Global Consensus Value agreed by the world pioneers was a staggering 314,159 dollars. And already, many pioneers have as many as 10000 Pis. So, at this consensus, an average pioneer with 1000 Pis, the equivalent of 314,159,000 dollars, will need the services of similar camels that transported Alhaji Alhassan Dantata’s coins as the first person in 1929 to open an account with the First Bank. While a regular pioneer with as much as 10000 Pis, the equivalent of 3,141,590,000 dollars, will need the services of the Mansa Musa’s entourage like that accompanied him in 1324 for his first mecca pilgrimage.

The pioneers are determined and looking forward to this gargantuan windfall. Whether jokingly or not, some have already begun to imagine how to spend such jackpots. Many have embarked on the dream of climbing up the top social ladder by building exotic houses, expensive cars, or circumnavigating the globe for those who fancy the adventure.

Like many jackpot winners, these potential overnight billionaires continue to promise family and friends some bounties, including marrying them off, buying them houses in Asokoro, the latest iPhone, or sponsoring their pilgrimages.

While these pioneers continue to sail in their realm, their critics consider their aspirations at best as a mirage and, at worst, question their mental well being

When the President of the Association of Psychiatrists in Nigeria (APN), Taiwo Obindo, says that more than 60 million Nigerians are suffering from mental illnesses, the Pi critics say no wonder.

But one posing point the Pi critics raised is that instead of the pioneers assuming mining, it is actually them who are being mined. In other words, they are the cash cows, referring to the advert pool fee that the Pi initiators are generating from about 40 million users. Very plausible because in this era of social media, subscribers are gold.

On the other hand, the pioneers’ reason, too, is not a pushover. Instead, they point to the traction the Pi is getting, the global state of transition from the fiat currency, and the success of some previous cryptocurrencies such as Bitcoin. According to them, history is repeating itself. When Bitcoin started in 2008, everything was against its subscribers. They were seen as shadow chasers and laughed at. But when success stories began to come in, the doubting Thomas was nowhere to be found.

For those who don’t know how the current Pi value of 314159 came about, Pi is a useful mathematical constant with infinite values ranging from 3.14, 3.14, 3.141, 3.1415, 3.14159… to infinity. But, disregarding the point behind the decimal and in the ascending order, the pioneers arrived at 314159. In addition, to commemorate this mathematical constant, the official Pi lunch was on March 14, which is 3.14, the Pi first value mentioned.

In my opinion (everything considered), the expectations of the pioneers on the Pi network have reached a fever pitch, but the cryptocurrency hitting the market is on the horizon.

Bilyamin Abdulmumin is a PhD candidate in Chemical Engineering at ABU Zaria. He is also an activist for a better, informed society. He can be reached via bilal4riid13@gmail.com.

By Uzair Adam Imam

The Emir of Kano, His Royal Highness Alhaji Aminu Ado Bayero has called on women to follow in the footsteps of Prof. Umma Ahmad Jalingo, the president of the Nigerian Economic Society (NES).

He made the call Thursday at the closing ceremony of a 3-day conference on Fiscal Sustainability and Policy Response for Economic Recovery in Nigeria held in Maryam Abacha American University of Nigeria (MAAUN), Kano.

The Emir commended her efforts and tasked her to work to the best of her ability to ensure success and to also be the subject of example in the history of NES and Nigeria as a whole.

He added that the conference and the papers presented were very relevant to current Nigeria’s economic situation.