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Economy

Nigeria Spends $1 Billion on Outsourcing Yearly

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Outsourcing
  • Nigeria Spends $1 Billion on Outsourcing Yearly

About $1billion (N305billion) is estimated to be spent annually on the Nigerian domestic Business Processing Outsourcing (BPO) market, by both the public and the private sector, but less than two percent of this goes to local entities.

Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.

The Director-General of the National Information Technology Development Agency (NITDA), Dr Isa Ibrahim, noted that with such huge spend, BPO activities have the potential to contribute to pulling Nigeria out of the current challenges.

He added that with articulate planning and coordination by government, and effective participation by ITECs, significant progress can be made for Nigeria to share from the billions of dollars in the global outsourcing business.
This comes as the Chairman, Nigerian Association of Information Technology Enabled Outsourcing Companies, (NAITEOC), David Onu, proffered ways to crash data cost in the country.

Speaking at the annual conference of the association in Abuja, Monday, Onu said the cost of bandwidth in the country will crash if users connected to the different networks already in Nigeria in different data centres can localise the contents.

He noted that the cost of data is very high in Nigeria, adding that the reason the use of internet is expensive in the country is because most are using the data for either social media or email.

He said: “The social media accounts for about 60 percent and then email and the rest. Most of the emails are accessed servers outside Nigeria. It is just the same way you are in Abuja, and you want to send a mail to your friend in Abuja, but it has to go through the United States, US, or France first. That means you entered a plane to France and came back.

“But if the content is local, that is if we have tier-four data centres where the Google, Yahoo and the rest can reside their content locally, there is enough fibre already laid in the country.”

He continued: “For you to drive on the road, the road has to be accessible to you and affordable. Other countries of the world have made bandwidth available, affordable and sustainable, and we can do the same in Nigeria. It is just about being more intentional about it. The internet itself is as useful as the applications that run on it. Because we don’t have enough of internet applications running on it, so in a way, I can see what the operators are saying because the traffic that should run on it that will help them aggregate their cost are not there. So we advocate that more content should be put on the internet; we must start the localisation of contents.”

Onu stressed the need to build teir-3, and tier-4 data centres and address issues of security, redundancy and anything that would pose a danger for data to enable foreign content providers localise their contents. “Once they discover that you have these things in place, they will bring their content.”

According to him, “The internet millionaires and billionaires are not those who created the connectivity, it is those who have the applications like the Facebook and the Twitter so the more we can have contents, applications, that is where the value chain resides.”

He also stressed the need for partnership between government and the private sector and creating synergy to encourage the development of ICT infrastructure.

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.

Economy

Nigeria’s Excess Crude Account (ECA) Balance Now $72.4 Million

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Zainab Ahmed Finance Minister

Nigeria’s Excess Crude Account (ECA) Balance Now $72.4 Million

The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Thursday said Nigeria’s Excess Crude Account (ECA) stood at $72,411,197.80 as of January 20th, 2021.

The minister disclosed this at the first National Economic Council (NEC) meeting of the year presided over by Yemi Osinbajo, Vice President and had in attendance State Governors, Federal Capital Territory Minister, Central Bank Governor and other senior government officials.

Ahmed said “Excess Crude Account (ECA), balance as at 20th January, 2021, $72,411,197.80; Stabilization Account, balance as at 19th January, 2021, N28,800,711,295.37; Natural Resources Development Fund Account, balance as at 19th January 2021, N95, 830,729,470.82.”

The minister also said President Muhammadu Buhari has approved N6.45 billion for the setting up of gas plants in 39 locations nationwide in an effort to increase COVID-19 treatment.

What is Excess Crude Account (ECA)

Excess Crude Account (ECA) is an account used to save the disparity in the market price of crude oil and budgeted price of crude oil as stipulated in the Federal Government Appropriation Bill.

Key Takeaways of Excess Crude Account (ECA)

  • Excess Crude Account (ECA) was established in 2004 by the Federal Government to stabilize Nigeria’s economy and smooth out the effect of crude oil fluctuation on Africa’s largest economy.
  • The ECA rose to its highest of $20 billion in November 2008 during the global oil boom when prices were above $100 per barrel.
  • Controversy, allegations of corruption, and uncertain performance have trailed the ECA since creation.
  • The balance plunged from $20 billion in 2008 to $72.4 million in January 2021.

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Economy

AfCFTA: Nigeria Customs Service Requested For Detailed Role In The Free Trade Agreement

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Container Shipping

AfCFTA: Nigeria Customs Service Requested For Detailed Role In The Free Trade Agreement

Nigeria Customs Service (NCS) requested for a proper and detailed role expected to be carried out in the implementation of the African Continental Free Trade Area (AfCFTA) agreement.

The NCS said detailed explanations of roles and responsibilities of all parties involved in the free trade agreement should be spelled out to avoid overlapping of duties and to achieve a seamless implementation of AfCFTA.

Mr. Joseph Attah the Public Relations Officer, on behalf of the Comptroller-General of the NCS, Col Hameed Ali (Rtd.), issued a statement to address the call for a detailed role of the Customs.

“Our functions are highly automated and primarily systems-driven, hence the need to methodically harvest and integrate all data associated with AfCFTA into our system for easy deployment, access, and use by the trading public.

“We, therefore, await the National Action Committee (NAC) on the list of duties and charges waived for liberalised goods under AfCFTA. The list of the 90 percent liberalised national trade offers (NTOs); list of the 70 percent non-liberalised exclusive goods at the regional level; and list of the 3 percent non-liberalised sensitive goods.

“The appointment of a competent authority responsible for issuing and authenticating certificates of origin and registering enterprises and products within the region.” He said.

In the statement, NCS pledges commitment to the success of the trade pact and also identifies the transformational impact the free trade agreement would have on businesses in Nigeria and the Africa continent at large.

“Also, it is pertinent to inform the public about steps which must be taken to enable its smooth and full implementation,” He added

NCS recommended that the member-country of the free trade agreement should have a representative in the continental chamber, this is to ensure transparency and build the confidence of the members in the system.

“This, in our view, should be complementary to the activities of the various chambers of commerce of each country in the region. While awaiting clear directives concerning tariffs for all goods covered by this agreement, we want to assure the public of our preparedness to fully deploy our services at the shortest notice.

“Our desire is to imbue trust in the system while guaranteeing the economic safety and wellbeing of businesses within the country,”  NCS noted.

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Economy

COVID-19: Nigeria Record Highest New Cases on Thursday as Continent Death Nears 83,000

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COVID-19: Nigeria Record Highest New Cases on Thursday as Continent Death Nears 83,000

The largest African economy, Nigeria recorded her highest ever COVID-19 new cases on Thursday, 21st of January.

Nigeria recorded her highest daily count of 1,964 new COVID-19 cases on Thursday, this was 300 higher than the previous high record of 1,664 new COVID cases it recorded on the 7th of January, 2021.

The country has recorded a total of 116,655 cases, 93,646 recoveries and, 1,485 deaths across the states since the outbreak of the Corona Virus.

According to health experts, the daily increase of new cases in the new year could be ascribed to the massive gatherings during the festive season, the relaxation of COVID-19 protocols in the various parts of the country, and in the two major airports, Lagos and Abuja airport.

The adverse effect of the global health pandemic has seen Africa recorded 82,781 COVID-19 death cases across the continents.

Confirmed Cases of COVID-19 from 55 African countries reached 3,364,031, reported deaths were 82,781 and, 2,809,825 were reported to have recovered as of January 22, 2021

The Africa country with the most reported COVID-19 cases in South Africa with a total of 1,380,807 cases of which 39,501 are death cases. Other most-affected countries are Morocco (463,706), Tunisia (190,884), Egypt (159,715), Ethiopia (132,326), and Nigeria (116,655).

The numbers are compiled by the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University (world map) using statistics from the World Health Organization and other international institutions as well as national and regional public health departments.

 

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