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Despite Recession, Business is Good in Nigeria, Says US Firm

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  • Despite Recession, Business is Good in Nigeria, Says US Firm

An emerging high-tech mobile phone manufacturing giant, Akyumen Technologies Corporation has given the Nigerian business environment a clean bill of health inspite of the current economic challenges facing the country.

The United States-based company which is at present exploring ways to establish base in the country, disagreed with the notion that foreign firms are scared of coming to invest in Nigeria due to the economic down-turn.

Rather, the 32-year old Chief Executive described those pulling out or those who are afraid to operate in the country as not being fair or probably may have been in the business of shortchanging Nigerians.

Speaking on the company’s plan to introduce various ranges of telecommunication products into the country’s market, the Chief Executive of the firm, Aasim Saied said some of the devices can be used to improve learning and to empower the young ones with useful skills.

“We want to create jobs in any country that we go and we also want to train personnel in the highest possible customer service expertise so that they can be at home with the technology we offer.”

He said the firm will introduce 50 per cent subsidy for students in selected primary and secondary schools in the country as part of its social responsibility to support education which they benefited from.

He said currently Akyumen Technologies is partnering 25 universities and colleges all over the world in the use of its innovative devices for academic exploits. Akyumen Technologies started up in the state of California, United States of America.

“We are a company with great commitment to our social responsibility. In addition to creation of jobs, we will also want to encourage a lot of start-up businesses. One of the things that we intend to do is to install our computers in educational institutions in the country.”
We are in the process of setting up offices in Nigeria, either Lagos or Abuja.

“In line with our desire to establish base in Africa, we are going to set up our headquarters in either Lagos or Abuja and arrangements to that effect is being perfected,” he said.

On the issue of local content, he said the company is going create a lot of local jobs by allowing more local content in the devices. According to him, although most of the components of the mobile phones and other devices are at the moment going to be imported, but that there will a lot of local inputs in area of content creation for the computer applications and software development.

Speaking on the possibility of partnering various sectors of the economy, he said there are huge opportunities to be tapped in collaborating with Nollywood film industry. He said Akyumen has a lot to offer to the local film industry in the area of application of latest technology to improve the content and knowledge of the professionals in the industry.

Unlike the practice where some foreign companies try to turn Nigeria into a dumping ground for their finished goods, the US firm said they are here to stay in the country to do more business and also to empower more entrepreneurial development.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Markets

Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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