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Lagos Admitted Into World’s 100 Resilient Cities

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  • Lagos Admitted Into World’s 100 Resilient Cities

Lagos State Governor, Mr. Akinwunmi Ambode, Tuesday received the Certificate of Admission of the state as one of the 100 Resilient Cities (100RC) in the world pioneered by the Rockefeller Foundation, saying that it was a starting point and a positive partnership that would help the state address the challenges of urban planning, transport gridlock, environment and modern infrastructure.

Governor Ambode, who spoke at the presentation of the certificate held at the Renaissance Hotel, Ikeja, Lagos, said the development was not only historic in the annals of the State but a confirmation that the efforts to build a globally competitive state had received international recognition.

The governor said it was gratifying to note that despite the challenges faced by the state in many areas including transportation, security, ocean surge, flooding, high unemployment rate, pressure on physical and social infrastructure, growth of slums and a huge housing deficit, Lagos remained resilient and ever progressive.

While alluding to the objective of his administration to make every community in Lagos economically liveable and stem rural-urban flight, the governor said deliberate initiatives have been put in place to address the housing deficit, transport challenges and economic development, among others.

He said: “We acknowledge these challenges and needs; and now as a member of the 100 resilient cities of the world, we have a platform to compare notes with cities who have similar experiences and create innovative and mitigating strategies.

“Lagos is currently home to about 23 million inhabitants with an estimated 86 people moving into Lagos every hour. This creates challenges of managing a daily increase in human and vehicular movement,” he said.

The governor, who said that resilience had always been part of the Lagos story, said despite the fact that the State remained the smallest state in Nigeria by geographical size, it is the largest by population and economic power.
He particularly recalled the manner with which Lagos contained the outbreak of the Ebola virus in 2015 and secured residents from a terrible epidemic.

While speaking on the plans for the state, Governor Ambode said his administration was currently in partnership with the Agence Francaise de Development (AFD) to upgrade 2 blighted settlements in Bariga and Amukoko.

“We have initiated many interventions all over the State to shorten road travel time and we are in talks with the Japanese International Corporation Agency (JICA) to introduce rail transportation in the Ikoyi-Lekki corridor.

We have also engaged in massive road construction and opening-up of our rural communities, continuous clearance of drainages and the upgrade and construction of Primary Health Care Centers (PHCs). Our objective is to make every community in Lags economically liveable and stem rural-urban flight.

“In response to the high unemployment figures, we created the Lagos State Employment Trust Fund to provide cheap source of funding to our young entrepreneurs and SME’s. The Fund started disbursement to beneficiaries in December 2016 and more funds will be made available to in the coming months to stimulate economic activity and get more of our young people employed.

“The ocean surge is a huge challenge and the Lagos State Government in partnership with notable investors have invested in the development of Eko Atlantic City to not only contain the ocean surge but to deliver a new city which will be a future financial, commercial and tourism centre,” he said.

In his opening remarks, Lagos State Commissioner for Finance, Economic Planning and Budget, Mr. Akinyemi Ashade said the selection of Lagos among the 100 Resilient Cities was sign post of a new dawn for the State in terms of ability to adapt to some of the risks and shocks it may be exposed to and how to effectively treat and overcome them.

He recalled how Governor Ambode issued a directive in August 2016 for commencement of process for Lagos to be selected, adding that the feat, apart from taking the delivery of electoral promises a notch higher in terms of concrete and measurable deliverables to the citizenry, would also compliment the vision of the present administration to make Lagos Africa’s model mega city of choice.

Earlier, President of 100 Resilient Cities, Mr. Michael Berkowitz said out of the over 1,000 applications received and three rounds of selection process, Lagos was chosen for its innovative leadership, infrastructural strides and influential status not just in Africa but in the world.

He said the organisation, by the initiative, was hoping to help cities change the way they think about their resilient opportunities and to see an integration between challenges.

“Sometimes cities think about transport, just about moving people; housi
ng, just about housing people; economic development, just about creating jobs but cities get better when they think about those things in an inter-related way.

“We are trying to inspire a movement across the world to change the way cities approach their risks and opportunities and so Lagos is not just the most influential city in West Africa or the continent but around the world and that was very appealing to us,” Berkowitz said.

The Governor later signed a Memorandum of Understanding (MoU) with the Mayor of Paynesville, Liberia, Mrs Cyvette Gibson, which would facilitate information sharing around resilience in the two cities with the view to bring about economic development.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigeria Advances Plans for Regional Maritime Development Bank

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Nigeria is making significant strides in bolstering its maritime sector with the advancement of plans for the establishment of a Regional Maritime Development Bank (RMDB).

This initiative, spearheaded by the Federal Government, is poised to inject vitality into the region’s maritime industry and stimulate economic growth across West and Central Africa.

The Director of the Maritime Safety and Security Department in the Ministry of Marine and Blue Economy, Babatunde Bombata, revealed the latest developments during a stakeholders meeting in Lagos organized by the ministry.

He said the RMDB would play a pivotal role in fostering robust maritime infrastructure, facilitating vessel acquisition, and promoting human capacity development, among other strategic objectives.

With an envisaged capital base of $1 billion, RMDB is set to become a pivotal financial institution in the region.

Nigeria, which will host the bank’s headquarters, is slated to have the highest share of 12 percent among the member states of the Maritime Organization of West and Central Africa (MOWCA).

This underscores Nigeria’s commitment to driving maritime excellence and fostering regional cooperation.

The bank’s establishment reflects a collaborative effort between the public and private sectors, with MOWCA states holding a 51 percent shareholding and institutional investors owning the remaining 49 percent.

This hybrid model ensures a balanced governance structure that prioritizes the interests of all stakeholders while fostering transparency and accountability.

In addition to providing vital funding for port infrastructure, vessel acquisition, and human capacity development, the RMDB will serve as a catalyst for indigenous shipowners, enabling them to access financing at favorable terms.

By empowering local stakeholders, the bank aims to stimulate economic activity, create employment opportunities, and enhance the competitiveness of the region’s maritime sector on the global stage.

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Economic Downturn Triggers Drop in Nigerian Air Cargo Activities

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Activity in Nigeria’s air cargo sector declined with cargo volumes dwindling across airports in the country.

The decline fueled by a myriad of factors including rising production costs, diminished purchasing power, and elevated exchange rates, has underscored the broader economic strain facing the nation.

Throughout 2023, key players in the sector, such as the Nigerian Aviation Handling Company (NAHCO) and the Skyway Aviation Handling Company (SAHCO), reported notable decreases in their total tonnage figures compared to the previous year.

NAHCO recorded a six percent decline in total tonnage to 61.09 million kg, while SAHCO’s total tonnage decreased to 63.56 million kg. These declines were observed across various services, including import, export, and courier.

According to industry experts, the downturn in cargo volumes can be attributed to the escalating costs of production, which have soared due to various factors such as higher diesel prices, increased supply chain costs, and fuel surcharges.

Also, the adverse impact of elevated exchange rates, influenced by Central Bank of Nigeria’s policies on Customs Currency Exchange Platform, has further exacerbated the situation.

Seyi Adewale, CEO of Mainstream Cargo Limited, highlighted the challenges facing the industry, pointing to higher local transport and distribution costs, as well as the closure of production/manufacturing companies.

Adewale also noted government policies aimed at promoting local sourcing of raw materials, which have added to the complexities faced by cargo operators.

The broader economic downturn has led to a contraction in Nigeria’s economy, with imports declining as a response to the prevailing economic conditions.

Ikechi Uko, organizer of the Aviation and Cargo Conference (CHINET), emphasized the shrinking economy and reduced import activities, which have had a ripple effect on air cargo volumes.

Furthermore, the scarcity of foreign exchange and trapped funds experienced by carriers have contributed to the decline in cargo operations.

Major cargo airlines, including Cargolux, Saudi Cargo, and Emirates Cargo, have ceased operations in Nigeria, leaving Turkish Airlines as one of the few carriers still operating, albeit on a limited scale.

The absence of freighter cargo airlines has forced importers and exporters to resort to chartering cargo planes at exorbitant rates, further straining the air cargo sector.

 

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Point of Sale Operators to Challenge CAC Directive in Court

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Point of Sale (PoS) operators in Nigeria are gearing up for a legal battle against the Corporate Affairs Commission (CAC) as they contest the legality of a directive mandating registration with the commission.

The move comes amidst a growing dispute over regulatory oversight and the interpretation of existing laws governing business operations in the country.

Led by the National President of the Association of Mobile Money and Bank Agents in Nigeria, Fasasi Sarafadeen, PoS operators have expressed staunch opposition to the CAC directive, arguing that it oversteps its jurisdiction and violates established legal provisions.

Sarafadeen, in a statement addressing the matter, emphasized that the directive from the CAC contradicts the Companies and Allied Matters Act (CAMA) of 2004, which explicitly states that the commission does not have jurisdiction over individuals operating as sole proprietors.

“The order to enforce CAC directive on individual PoS agents operating under their name is wrong and will be challenged,” Sarafadeen asserted, citing section 863(1) of CAMA, which delineates the commission’s scope of authority.

According to Sarafadeen, the PoS operators are prepared to take their case to court to seek legal redress, highlighting their commitment to upholding their rights and challenging what they perceive as regulatory overreach.

“We shall challenge it legally. The court will have to intervene in the interpretation of the quoted section of the CAMA if individuals operating as a sub-agent must register with CAC,” Sarafadeen stated, emphasizing the association’s determination to pursue a legal resolution.

The crux of the dispute lies in the distinction between individual and non-individual PoS agents. Sarafadeen clarified that while non-individual agents, operating under registered or unregistered business names, are subject to CAC registration requirements, individual agents conducting business under their names fall outside the commission’s purview.

“Individual agents operate under their names and are typically profiled with financial institutions under their names,” Sarafadeen explained.

“It is this second category of agents that the Corporate Affairs Commission can enforce the law on.”

Moreover, Sarafadeen highlighted the integral role of sub-agents within the PoS ecosystem, noting that they function as independent branches of registered companies and should not be subjected to the same regulatory scrutiny as non-individual agents.

“Sub-agents are not carrying out as an independent company but branches of a company,” Sarafadeen clarified, urging for a nuanced understanding of the operational dynamics within the fintech and agent banking industry.

In addition to challenging the CAC directive, Sarafadeen emphasized the need for regulatory bodies to prioritize addressing broader issues affecting businesses in Nigeria, such as the high failure rate of registered enterprises.

“The Corporate Affairs Commission should prioritize addressing the alarming failure rate of registered businesses in Nigeria, rather than targeting sub-agents,” Sarafadeen asserted, calling for a shift in regulatory focus towards fostering a conducive business environment.

As PoS operators prepare to navigate the complex legal terrain ahead, their decision to challenge the CAC directive underscores a broader struggle for regulatory clarity and accountability within Nigeria’s burgeoning fintech sector.

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