Connect with us

Markets

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

Published

on

business
  • 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.

Crude Oil

Oil Posts 2% Gain for the Week Despite India Virus Surge

Published

on

Crude Oil - Investors King

Oil prices steadied on Friday and were set for a weekly gain against the backdrop of optimism over a global economic recovery, though the COVID-19 crisis in India capped prices.

Brent crude futures settled 0.28% higher at $68.28 per barrel and U.S. West Texas Intermediate (WTI) crude advanced 0.29% to $64.90 per barrel.

Both Brent and WTI are on track for second consecutive weekly gains as easing restrictions on movement in the United States and Europe, recovering factory operations and coronavirus vaccinations pave the way for a revival in fuel demand.

In China, data showed export growth accelerated unexpectedly in April while a private survey pointed to strong expansion in service sector activity.

However, crude imports by the world’s biggest buyer fell 0.2% in April from a year earlier to 40.36 million tonnes, or 9.82 million barrels per day (bpd), the lowest since December.

In the United States, the world’s largest oil consumer, jobless claims have dropped, signalling the labour market recovery has entered a new phase as the economy recovers.

The recovery in oil demand, however, has been uneven as surging COVID-19 cases in India reduce fuel consumption in the world’s third-largest oil importer and consumer.

“Brent came within a whisker of breaking past $70 a barrel this week but failed at the final hurdle as demand uncertainty dragged on prices,” said Stephen Brennock at oil brokerage PVM.

The resurgence of COVID-19 in countries such as India, Japan and Thailand is hindering gasoline demand recovery, energy consultancy FGE said in a client note, though some of the lost demand has been offset by countries such as China, where recent Labour Day holiday travel surpassed 2019 levels.

“Gasoline demand in the U.S. and parts of Europe is faring relatively well,” FGE said.

“Further out, we could see demand pick up as lockdowns are eased and pent-up demand is released during the summer driving season.”

Continue Reading

Commodities

Lagos Commodities and Futures Exchange to Commence Gold Trading

Published

on

gold bars

With the admission of Dukia Gold’s diversified financial instruments backed by gold as the underlying asset, Lagos Commodities and Futures Exchange is set to commence gold trading.

According to Dukia Gold, the instruments will be in form of exchange-traded notes, commercial papers and other gold-backed securities, adding that it will enable the company to deepen the commodities market in Nigeria, increase capacity, generate foreign exchange for the Nigerian government to better diversify foreign reserves and create jobs across the metal production value chain.

Tunde Fagbemi, the Chairman, Dukia Gold, disclosed this while addressing journalists at Pre-Listing Media Interactive Session in Lagos on Thursday.

He said, “We are proud to be the first gold company whose products would be listed on the Lagos Futures and Commodities Exchange. The listing shall enable us facilitate our infrastructure development, expand capacity and create fungible products.

“This has potential to shore up Nigeria’s foreign reserve and create an alternative window for preservation of pension funds. A gold-backed security is a hedge against inflation and convenient preservation of capital.”

“As a global player, we comply with the practices and procedures of London Bullion Market Association and many other international bodies. Our refinery will also have multiplier effects on the development of rural areas anywhere it is located,” he added.

Mr Olusegun Akanji, the Divisional Head, Strategy and Business Solutions, Heritage Bank, said the lender had created a buying centre for verification of quality and quantity of gold and reference price to ensure price discovery in line with the global standard.

Continue Reading

Crude Oil

Oil Nears $70 as Easing Western Lockdowns Boost Summer Demand Outlook

Published

on

Crude oil

Oil prices rose for a third day on Wednesday as easing of lockdowns in the United States and parts of Europe heralded a boost in fuel demand in summer season and offset concerns about the rise of COVID-19 infections in India and Japan.

Brent crude rose 93 cents, or 1.4%, to $69.81 a barrel at 1008 GMT. U.S. West Texas Intermediate (WTI) crude rose 85 cents, or 1.3%, to $66.54 a barrel.

Both contracts hit the highest level since mid-March in intra-day trade.

“A return to $70 oil is edging closer to becoming reality,” said Stephen Brennock of oil broker PVM.

“The jump in oil prices came amid expectations of strong demand as western economies reopen. Indeed, anticipation of a pick-up in fuel and energy usage in the United States and Europe over the summer months is running high,” he said.

Crude prices were also supported by a large fall in U.S. inventories.

The American Petroleum Institute (API) industry group reported crude stockpiles fell by 7.7 million barrels in the week ended April 30, according to two market sources. That was more than triple the drawdown expected by analysts polled by Reuters. Gasoline stockpiles fell by 5.3 million barrels.

Traders are awaiting data from the U.S. Energy Information Administration due at 10:30 a.m. EDT (1430 GMT) on Wednesday to see if official data shows such a large fall.

“If confirmed by the EIA, that would mark the largest weekly fall in the official data since late January,” Commonwealth Bank analyst Vivek Dhar said in a note.

The rise in oil prices to nearly two-month highs has been supported by COVID-19 vaccine rollouts in the United States and Europe.

Euro zone business activity accelerated last month as the bloc’s dominant services industry shrugged off renewed lockdowns and returned to growth.

“The partial lifting of mobility restrictions, the expectation that tourism will return in the near future, and the lure of the psychologically important $70 mark are all likely to have contributed to the price rise,” Commerzbank analyst Eugen Weinberg said.

This has offset a drop in fuel demand in India, the world’s third-largest oil consumer, which is battling a surge in COVID-19 infections.

“However, if we were to eventually see a national lockdown imposed, this would likely hit sentiment,” ING Economics analysts said of the situation in India.

Continue Reading

Trending