Major International Business Headlines Brief::: 02 August 2024

Fri Aug 2 11:33:24 CAT 2024

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Major International Business Headlines Brief:::  02 August 2024 

 <mailto:info at bulls.co.zw> 

ü  Nigeria: As Unsettled Forex Forwards Threaten Companies, Industrialisation, Pressure Mounts On CBN to Act

ü  Nigeria: Food Security - Sanwo-Olu Urges Agro, Food Processing Companies to Crash Prices

ü  Uganda: Parliament Summons Gen Odongo Over Casino At Embassy Scandal

ü  Nigeria: British Airways Honours SAHCO With Punctuality Award

ü  Mastering Stock Trading with RSI: A Guide for African Investors

ü  Nigeria: AfDB Okays N750bn Loan for Nigeria's Energy Transition Programme

ü  Nigeria: African Financial Institutions Moves Against Subjective Credit Ratings

ü  Nigeria: Keyamo - Maintenance Culture Will Generate Over $2bn, Reduce Capital Flight in Aviation Sector

ü  Nigeria: Demonstrators March in Nigerian Cities, Protesting Cost of Living, Corruption

ü  How Would Trump 2.0 Impact African Economies?

ü  Apple sales rebound as AI bets scramble markets

ü  Salon owner 'exhausted' by legal battle with L'Oréal

ü  Government shelves £1.3bn UK tech and AI plans

 <mailto:info at bulls.co.zw> 

Nigeria: As Unsettled Forex Forwards Threaten Companies, Industrialisation, Pressure Mounts On CBN to Act

In this piece, James Emejo and Dike Onwuamaeze, write on the increasing campaign by the Organized Private Sector for the CBN to settle valid FX forward transactions to save jobs and the economy in general.

The delay by the Central Bank of Nigeria (CBN) to settle valid and mature Foreign Exchange (FX) forward transactions has continued to attract due attention from stakeholders in the real sector of the economy including manufacturers and corporates.

Analysts said apart from its potential to negatively impact companies' ability to remain in operation, the non-resolution of pending genuine forwards could further defeat efforts by President Bola Tinubu's administration to industrialise the country.

It was learnt that the forward transactions which took place between 2022 and 2023 are yet to be settled at maturity, prompting anxiety by analysts, especially as the development puts the affected companies in difficult situations and threatens economic sustainability.

Notably, companies that used bank confirmed lines to open Letters of Credit (LCs), paid import duties, and received the goods, while suppliers were mostly settled by their banks' correspondent banks are increasingly concerned over the continued delay by the apex bank to clear its forward liabilities.

The stakeholders therefore, called on the central bank to settle the forwards and get EFCC to prosecute companies involved in any act of round-tripping or abuse in the utilisation of the liquidity.

The Organized Private Sector (OPS) has warned that the continued delay in settling the outstanding liabilities of companies could see them lose about N2.4 trillion, coupled with the far-reaching implications for the companies and the economy in general.

This could expectedly impact companies' profits for the next two to three years as well as harm federal government's income, and potentially subject the Naira to undue pressure.

Moreover, these could also trigger bank losses as confirmation lines used may not be serviced by the SMEs and corporates as well as put over one million jobs at risk.

As one of the fallouts of the non-settlement of forwards, and its impact on their operations, members of the OPS have tied the implementation of the new minimum wage of N70,000 in the private sector to the settlement of FX liabilities.

The OPS, including the Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Nigeria Employers' Consultative Association (NECA), Nigeria Association of Small and Medium Enterprises (NASME), and the Nigerian Association of Small Scale Industrialists (NASSI), have particularly demanded that the CBN redeemed "all validly transacted outstanding forex forwards for companies in the productive sector."

A source told THISDAY that unsettled forward transactions had been maturing and piling up since the current leadership of CBN stopped honouring the obligations.

Earlier in March, the CBN announced that all valid FX backlogs owed to various sectors of the economy had been settled, fulfilling a key pledge of the CBN Governor, Mr. Olayemi Cardoso, to process an inherited backlog of $7 billion in outstanding liabilities.

In a recent interview with Arise Television, a sister broadcast arm of THISDAY, Cardoso revealed that about $2.4 billion out of the acclaimed $7 billion outstanding foreign exchange liabilities of the federal government were not valid for settlement.

He said while the bank had settled verified FX requests which amounted to $2.3 billion at the time, the total outstanding FX obligations remained at $2.2 billion.

The central bank governor further indicated that part of the headline $7 billion outstanding FX claims were not valid, citing the outcome of a forensic audit by Deloitte Management Consultant which the apex bank commissioned.

He maintained that the CBN would not pay for FX requests that are not validly constituted, adding that the bank had written to authorised dealers to explain the disparities identified.

Furthermore, Cardoso said the bank had contracted the Economic and Financial Crimes Commission (EFCC) to investigate suspicious transactions to prosecute individuals and entities with fraudulent entries.

However, the OPS stressed that while CBN/EFCC investigation continued almost endlessly, the corporates that believed their transactions were not fraudulent are bleeding and under intense pressure from their banks and their suppliers.

The manufacturers therefore, called on the central bank to settle the forwards and get EFCC to prosecute companies involved in any act of round-tripping or abuse in the utilisation of the liquidity.

Moreover, these transactions involved largely manufacturers that have already imported inputs on the ground that the CBN would honour its obligations but are presently indebted to their foreign suppliers, a development that would threaten their future business relationships.

According to the source, all the FX forward transactions were signed off by the CBN before they were consummated. So, for the CBN to turnaround and declare them as fraudulent beats ones imagination.

According to him, the apex bank is merely creating panic in the system that would affect many private enterprises.

He said that many members of the Manufacturers Association are affected and now they could not go back to their suppliers for further importation of machineries and raw materials because of the current unfaithfulness in meeting their obligations due to the stance of the CBN.

He said that the manufacturers who are trapped in this impasse had already paid their Naira equivalent of these transactions with interests through their banks.

The issue now is that manufacturers are being punished unnecessarily because the apex bank had presumed all forward transactions that matured after Mr. Godwin Emefiele left office as governor of the CBN as fraudulent.

"Even if the current leadership of the CBN do not trust their predecessor, it should look at the whole transactions holistically to be able to determine how best to resolve the issue," sources further confided in THISDAY.

Meanwhile, financial experts believed that the current unfaithfulness to settle contractual obligation would make it difficult for affected Nigerian business to access credits from abroad.

Commenting on the development, Chief Executive Officer, De-SME Facilitators Limited, Mr. Tony Chinwe, said, "The implications of not honouring the matured FX forwards obligations are numerous.

He said, "First, it will trigger loss of confidence in Nigerian financial instruments by foreign investors and suppliers.

"Secondly, it will leave in its trail sticky debts and worsen the level of toxic assets in the banks' balance sheets.

Chinwe, who was the former Group Head of SME Banking of the Fidelity Bank Plc, also stressed that this would erode the goodwill of these companies and wipe out the trade credits they enjoyed from their suppliers.

He said many of the companies may not survive it thereby plunging thousands of their employees into the already saturated labour market.

Among other things, recommended that the CBN should settle the obligations to maintain confidence and stability in the system.

He said the federal government should "focus on stopping crude oil theft and recovering money stolen by these thieves. This is a low hanging fruit if the political will is there."

He said, "In 2022, the Chairman of the United Bank for Africa (UBA), Mr. Tony Elumelu stated that '95 per cent of crude oil is lost to theft.'

"Even if we put it conservatively at 69 per cent, it is a lot of money that can conveniently cover foreign exchange gaps in the short to medium term, while the government focuses on diversifying the economic base, and developing the petrochemical industry in particular."

Also, Director General, NASME, Mr. Eke Ubiji, said businessmen and women that approach the FX market do so with definite purposes in mind, adding that any delay would affect their businesses and lower their productivity, thus putting many workers out of job.

Also, in a recent interview with THISDAY, Managing Director/Chief Executive, Dignity Finance and Investment Limited, Dr. Chijioke Ekechukwu, urged the CBN to separate the genuine claims from suspected fraudulent transactions in the interest of the economy.

He said, "There are two sides to these claims: Firstly, CBN said they are still investigating these claims, and there may be some suspicious claims being investigated. Amongst the claims may also be very genuine claims.

"Whatever the case may be, investigation cannot be forever. The outcome of the investigation should be out by now after a reasonable time."

Ekechukwu, a former Director General, Abuja Chamber of Commerce and Industry (ACCI), also said, "I agree that business and counter-party confidence may be affected adversely.

"We do expect that the apex bank will assess the claims in their entirety and sieve the chaff from the substance in order not to affect genuine corporates from pursuing their business goals."

This Day.

Nigeria: Food Security - Sanwo-Olu Urges Agro, Food Processing Companies to Crash Prices

Lagos State Governor, Mr. Babajide Sanwo-Olu, Thursday, urged agro and food processing companies to work towards reducing their prices during this time of economic hardship as a way of giving back to the society and ensuring food security in Nigeria.

Sanwo-Olu said Nigerians were currently going through tough times, and private organisations, particularly, agro and food processing companies, should think people's survival and sustainability above profitability at this crucial period in Nigeria.

The governor spoke during a courtesy visit by the senior management team of Olam Agric Nigeria, led by its Managing Director/CEO, Mr. Anil Nasir, at Lagos House, Marina.

Sanwo-Olu stressed the need for food security and support from every well-meaning individual and organisation. He said his administration had done a lot through several intervention programmes to cushion the economic hardship on residents of Lagos State, adding that he would do more to continue to provide succour for the people.

He said, "Agro and food processing is a critical industry because food security and food systems are as critical as people trying to safeguard either medical security or even sovereign security in times of war. There is no better security these days than food.

"Today, being the first day of August, you can see agitation in some streets in Nigeria as a result of hunger. You (Olam Agric) are in a strategic position, and you have that structure and that capacity.

"At a difficult time like this, it shouldn't be only the government reducing costs and providing avenues for people to buy things at a reduced price.

"You must be able to tell your shareholders that you have been in this environment for such a long time, and today it should not be about profit-making. Let us go into this market and just cover our costs and let us pass on. Let the people feel the critical support.

"I want you to take this message back. The private sector needs to know that there are times when it does not have to be about value to the shareholders because of food security and the logistics nightmare that is happening everywhere due to the economic challenge.

"We are all joint stakeholders, and we need to slow down on shareholder returns. We need to be alive today to be able to make a profit tomorrow."

Speaking earlier, Nair commended Sanwo-Olu for his leadership in Lagos State in the last five years, especially in the areas of security and making the state safe for foreign and local investments.

He sought more partnerships with the Lagos State government in the agriculture and food sectors, saying his company is ready to invest more in the state.

Sanwo-Olu, on Thursday, also received District Governor of Lions Club International, District 404B2 Nigeria, Lion Tolulope Ayodeji Senbanjo, as well as District Governor of Rotary International, District 9112, Rotarian Olufemi Adenekan, and District Governor of Rotary International, District 9111, Rotarian Oluwole Kukoyi, who paid him courtesy visits at Lagos House, Marina.

Speaking during the two courtesy visits, Sanwo-Olu commended Lions Club International and Rotary International for their humanitarian services in key sectors of the state, particularly, in the provision of infrastructure in the areas of health, education, and transportation, among others.

He said his administration will continue to partner with Rotary International and Lions Club International for humanitarian services to make life comfortable for Lagos residents, in line with the THEMES+ developmental agenda, which aligns with the core values of the humanitarian groups.

This Day.

Uganda: Parliament Summons Gen Odongo Over Casino At Embassy Scandal

Deputy Speaker of Parliament Thomas Tayebwa has summoned the Minister for Foreign Affairs, General Jeje Odongo, to explain allegations that his docket is conducting a casino business at the embassy in United Arab Emirates.

The summons follows Prime Minister Robinah Nabbanja' directive tasking the minister to defend his docket against the allegations.

What started as social media allegations on foreign ministers involvement in casino business in Uganda's consulate in UAE may come to light after parliaments intervention in the matter.

The red flag was raised by shadow minister for foreign affairs Muwada Nkunyingi.

"In the past few weeks, reports have emerged that Ugandan consulate in Dubai which is rented at the expense of Uganda' taxpayer is now housing a casino and gambling equipment and the reports suggests that they were imported into UAE by line minister Jeje Odongo," Nkunyingi said.

He told the House that the minister had turned the embassy into casino and embarrassed the country.

"Surprisingly, turning our consulate into a casino contravenes the laws of UAE, our laws and international laws governing government premises and the minister should be summoned to appear and make a statement before this house," Nkunyingi said.

Deputy Speaker Tayebwa and PM Nabbanja directed Gen Odongo to appear in Parliament and respond to the allegations next week.

"The minister mentioned here is also a member of Parliament now that you have requested for a statement, I will make sure that he comes here to make a statement," PM Nabbanja said.

"On Tuesday next week, we shall have Minister Odongo respond to the issues raised," Tayebwa said.

Nile Post.

Nigeria: British Airways Honours SAHCO With Punctuality Award

Skyway Aviation Handling Company Plc (SAHCO) has been awarded the prestigious Punctuality Award by British Airways for its outstanding regularity and safety performance in the first and second quarters of 2024 at the Murtala Muhammed International Airport Lagos Station.

SAHCO has also won British Airway's bronze award for achieving its punctuality target of 96 per cent for the second quarter of 2024 at the Nnamdi Azikiwe International Airport, Abuja station.

The company said this showed SAHCO's consistent excellence at service delivery for winning the awards in the two stations where British Airways fly into.

British Airways (BA) is a global airline that is the United Kingdom's flag carrier headquartered at Harmondsworth, England, UK near its main hub at London Heathrow Airport.

BA being a renownedairline with over 100 years' experience in the skies, is wholly dedicated to ensuring punctuality, safety and security are of utmost priority and the airline is committed to excellent partnership with their clients thereby promoting an enabling environment for making SAHCO's excellent service delivery seamless.

In a congratulatory letter addressed to Managing Director/CEO of SAHCO, Mrs. Adenike Aboderin, British Airways commended the Lagos and Abuja team for their exceptional performance due to the stations' ability to meet or exceed the Adjusted Door Closure (ADC) target of 96 per cent each month during the quarter, with no significant safety events or repeat audit findings. This feat has been achieved for two quarters in a row for the Lagos station.

In the same letter, BA congratulated the entire SAHCO team for the remarkable performance and reiterated that the achievement reflected the team's dedication and hard work.

This Day.

Mastering Stock Trading with RSI: A Guide for African Investors

The most powerful tool that can turn out to be a game changer for a stock trader is the RSI (Relative Strength Index)—this very oscillator of momentum, which measures velocity and change in price movements. Essentially, it was introduced by J. Welles Wilder but was Judaically incorporated into technical analysis as a major tool in deciding trends by stock traders not only in Africa but globally. In this article, we will explore the importance of RSI in stock trading. You can learn more about trading stocks  here .

Understanding RSI: The Basics

The Relative Strength Index is a type of momentum indicator used in technical analysis to get a feel for a security's recent price activity in an attempt to determine the magnitude of a change. It would assess the overbought and oversold conditions in the price of a stock.

RSI is depicted as an oscillator, which is essentially a line graph that oscillates between two extremes, so it will always have a reading of between 0 and 100. In general, when the RSI trends above 70, it is considered an indication of overbought conditions, while readings below 30 show an oversold state.

How RSI is Calculated

The  RSI  calculation involves the average of upward price changes divided by the average of downward price changes over a specified period, usually 14 days. The formula is: RSI=100−(1001+RS)\text{RSI} = 100 - \left( \frac{100}{1 + RS} \right)RSI=100−(1+RS100) where RS (Relative Strength) is the average of x days' up closes divided by the average of x days' down closes.

The understanding of this has become a principal factor for the traders to perceive and further force or weakness in price movement hidden behind a stock. A high RSI must show high-upward momentum and a low RSI will stipulate definite downward impetus.

Applying RSI in Stock Trading

Identifying Overbought and Oversold Conditions: An RSI is used primarily to identify the overbought and oversold conditions of the stock market. When the RSI rises above 70, this could indicate that the stock may be overbought and that a price correction may be in the offing. On the contrary, if it drops below 30, the indication might be one of an oversold situation, signaling a probable rebound.

Divergence Analysis: The Rp can use RSI to also establish possible reversal points through divergence. A bullish divergence is when the price makes a new low and the RSI forms a higher low, thus pointing to a probable upward reversal. On the other hand, bearish divergence occurs when the price makes a new high but the RSI forms a lower high, suggesting the possibility of a downward reversal.

Support and Resistance Levels: RSI can be used to identify possible levels of support and resistance. If the RSI has bounced off its 30 level several times, it could mean that the security enjoys sound support. In a similar way, repeated rejection near 70 may also point out significant resistance.

RSI Strategies for African Stock Traders

RSI Swing Rejections: This strategy involves waiting for the RSI to move into overbought or oversold territory and then watching for it to move back out. For a bullish trade, traders look for the RSI to drop below 30 (indicating an oversold condition), rise above 30, dip back again without hitting the previous low and then break its most recent high. The opposite applies to a bearish trade.

Centerline Crossover: This strategy focuses on the RSI crossing its centerline (50). When RSI moves above 50, it can be seen as a confirmation of a rising trend and when it moves below 50, it may signal a falling trend. This simple strategy can help traders confirm the direction of the market trend.

RSI with Trend Lines: Combining RSI with trend lines can be highly effective. By drawing trend lines on the RSI chart and waiting for breakouts, traders can identify strong potential entry and exit points. This method adds another layer of confirmation to RSI signals.

Benefits and Limitations of RSI

Benefits:

Simple to Use: RSI is straightforward to calculate and interpret, making it accessible for traders of all levels.

Effective for Multiple Timeframes: Whether you are a day trader or a long-term investor, RSI can be adapted to suit different trading styles.

Versatile Tool: RSI can be used to confirm trends, identify potential reversal points and spot overbought/oversold conditions.

Limitations:

False Signals: Like any technical indicator, RSI can sometimes produce false signals, leading to potential losses.

Lagging Indicator: RSI is based on historical data and might lag, potentially missing out on early reversal signals.

Less Effective in Strong Trends: In strong trending markets, RSI can remain overbought or oversold for extended periods, reducing its effectiveness.

RSI and the African Market

During stronger trends, the RSI often becomes overbought or oversold; it is thus less effective. RSI and the African Market RSI offers  African investors  valuable insights into local and international stocks. With improved access to online trade platforms, such tools as the RSI are a must for informed decision-making. A better understanding of the market conditions and learning how to apply the RSI succinctly will no doubt enhance their strategies and chances of success in trading.

Conclusion: Mastering RSI for Successful Trading

As a strong momentum oscillator, the RSI spots overbought and oversold conditions, thus forecasting possible reversals and confirming market trends. Combining RSI with other technical tools of analysis and considering general market conditions gives almost an integral vision of trading. The RSI is the tool that can unlock new opportunities within this dynamic world of  stock trading  for all African investors. By mastering this special tool, one will be better placed to make informed decisions on how to trade their way through the complexities that characterize financial markets.

Nigeria: AfDB Okays N750bn Loan for Nigeria's Energy Transition Programme

The African Development Bank (AfDB) Group has approved a loan of N750 billion ($500) million to Nigeria to support the first phase of the economic governance and energy transition support programme (EGET-SP).

EGET-SP is an initiative aimed at accelerating the transformation of the country's electricity infrastructure and improving access to cleaner sources of energy.

The plan will, among other things, lift 100 million people out of poverty, reduce Nigeria's carbon footprint, drive economic growth, and create jobs, according to the government.

In a statement on Thursday, AfDB said the loan will help close the financing gap of the government's budget in the 2024/2025 fiscal year, particularly supporting the implementation of the country's new Electricity Act and the Nigeria energy transition plan..

"The Nigerian government launched the energy transition plan in August 2022, and in June 2023, passed a new Electricity Act decentralising the electricity supply industry and setting the stage for increased investments by subnational governments and the private sector," AfDB said.

"The energy transition plan envisions the development, by 2050, of 250 GW of installed electricity capacity, 90 per cent of which will be renewable.

"It will provide clean cooking access to the bulk of the population by 2030, using liquefied petroleum gas (LPG), biogas, biofuels like ethanol, and electric cookstoves," the statement said

It added that "The AfDB $500m support to the Federal Government of Nigeria is the latest in a series of initiatives aimed at supporting the country's economic growth, poverty reduction, and climate action efforts."

Daily Trust.

Nigeria: African Financial Institutions Moves Against Subjective Credit Ratings

The Alliance of African Multilateral Financial Institutions (AAMFI) held the third meeting of its Governing Council on the margins of the African Union Mid-Year Coordination Meeting, held in Accra, Ghana, during which it welcomed the endorsement of the Alliance by the African Union (AU) Ministers of Finance and Central Bank Governors at their 7th Ordinary Session of the African Union Specialized Technical Committee (STC) on Finance, Monetary Affairs, Economic Planning, and Integration, in Tunis, Tunisia.

The STC Ministerial declaration and decisions reflected the pivotal role of African Multilateral Financial Institutions (AMFIs) in the continent's financial architecture.

AAMFI received strong support from the meeting and was recognised by the Specialised Technical Committee as crucial for strengthening the continental financial framework and advancing the African Union's Agenda 2063.

The Ministers and Central Bank Governors reaffirmed the vital role of African Multilateral Financial Institutions in continental development and committed to enhancing the capital and credit ratings of AMFIs to mobilize essential funding for Africa's growth.

The Ministers and Central Bank Governors expressed concerns over recent reports questioning the Preferred Creditor Status (PCS) of AMFIs, emphasizing its importance in engaging with Credit Rating Agencies and securing development financing.

The Ministerial declaration affirms the importance of the rights conferred on AMFIs by African Governments, including Preferred Creditor Status (PCS), crucial for reducing borrowing costs and deepening capital markets.

The Ministers and Central Bank Governors urged the AU Member States to uphold their commitments to AMFIs and respect their treaty obligations and further recommended that the AU Assembly mandate the African Union Commission (AUC) to work with AAMFI in engaging key stakeholders, including the G20. The Ministers reaffirmed their commitment to swiftly establish the African Union Financial Institutions, including the African Monetary Institute (AMI) and the African Financial Stability Mechanism (AFSM).

The AAMFI Governing Council noted that the Alliance exemplifies Africa's innovative approach to addressing financing gaps and ensuring sustainable development.

The AMFIs, established by African States under a treaty, have proven to be responsive to Member States in times of crisis, and are commercially sustainable, generating profits and investment returns for shareholders while fulfilling their important development mandates.

The African Union's rejection of recent attempts to weaken the preferred creditor status of African-owned and controlled multilateral financial institutions, and the AU's commitment to strengthen AMFIs underscores these institutions' pivotal role in Africa's financial architecture. This ensures that AMFIs can continue supporting African sovereigns' development and drive economic growth.

Daily Trust.

Nigeria: Keyamo - Maintenance Culture Will Generate Over $2bn, Reduce Capital Flight in Aviation Sector

The Minister of Aviation and Aerospace Development, Festus Keyamo has projected that Nigeria will generate over $2 billion annually if it is able to establish major Maintenance, Repair and Overhaul (MRO) facility.

Doing so, he stated, will also save Nigerian airlines about the same amount of money that are repatriated annually to pay for aircraft checks overseas.

Keyamo who disclosed this at the League of Airport and Aviation Correspondents (LAAC) conference in Lagos said it became critical for Nigeria to build such facility as quickly as practically possible.

Keyamo also disclosed that he had started speaking to investors who may become interested in partnering with the federal government to realise the project, "as government has concluded that such project could only be realised through Public, Private Partnership (PPP) because of the financial outlay and technical depth needed in the project."

Keyamo had disclosed recently that he has made firm push to establish the maintenance facility, "and some investors from overseas are showing interest." Some have spoken about the MROs. I think it is at the heart of the improvement of our local aviation industry. We need to bring in the MROs.People are already talking with us. I don't want to let the cat out of the bag. Very soon, we are going to advertise and call for partnership. That is the only way to go. And I think we need to call in people with money. So, for our local businessmen, our banks, financial institutions, financiers, don't say that foreigners are coming to take your business away."

Keyamo reiterated the importance of having major MRO, saying that it would save Nigeria a lot of money because Nigerian airlines would no more ferry their aircraft overseas for maintenance, an action that will reduce forex demand of Nigerian carriers, which require dollars to pay for aircraft maintenance overseas.

"It is big business. Anybody that establishes a world-class MRO now will make money.Such MRO facility that can attend to large-body aircraft like Boeing 777 will really attract a lot of customers from the whole of West Africa, Central Africa and even Southern Africa. There is none so far in the whole of West Africa and Central Africa for the real big body aircraft, which are the wide bodies.

"The Arabs are talking to us. The Chinese are talking to us. The Europeans are talking to us.The Americans are talking to us because they want to invest. And you know why it has to be PPPs. It is difficult to establish an MRO at an independent venue, different from an existing airport.You can't build it, because you need a runway to get to an MRO. So, it is pretty difficult.So, you have to talk with us for us to give you one within one of our international airports. We are in the process of doing a master plan. We are going to mark out clear areas for MROs within the international airports. So, we are calling. I won't say we are begging.We are telling you to come and make money. So, we are not begging for investment. Come and make money," Keyamo said.

He reiterated that an MRO would generate a lot of money for the aviation sector and for the Nigerian government.

"There is money to be made here. If you bring an MRO, and of course somebody just made the point that it is going to save us a lot of foreign exchange, sourcing for foreign exchange. Like somebody said, everything is dollar within the aviation industry. It is only perhaps catering and salaries, local salaries that is in naira. So, please, we are going to watch the world to come and invest in Nigeria in our MROs. We are pushing for it. It is going to be one of our major objectives to bring in the MROs into Nigeria. In so doing, the capacities of our local operators will be enhanced. They can do their A, B, C checks, their D checks here without going out," the Minister said.

THISDAY also spoke to the Head of Aero Contractors' MRO, James Ominyi, who said the promise of establishing MRO by the federal government has become a sing-song that has been repeated by many past ministers, but expressed the hope that it would come to fruition this time.

"The story of establishing an MRO has been there in every regime (administration), but we have not seen anything. The fact is that if it will be established, then let it be located in Lagos. This is because Lagos has Cargo terminal, it services international operations; although the airport is chocked but government can provide land for it. Why it is important the MRO is located in Lagos is because if you want to change engine or landing gear you will import it to an airport that operates cargo services; so, that you will not deliver it in Lagos and then use vehicle to convey it to another place where the MRO is. It will not be good for the engine," Ominyi said.

He said that by adopting PPP model, the federal government took a good decision, but wondered why government would not partner Aero Contractors, which already has MRO.

Aero MRO, he added, is the biggest in West and Central Africa, where airlines from Democratic Republic of Congo, Congo Brazzaville and airlines in Ghana bring their aircraft for checks.

"Why can't government partner with Aero MRO. Currently we are the biggest MRO in Central and West Africa. We receive aircraft from Congo DRC, Brazzaville and Ghana and even Dakar, Senegal is auditing us. Aero is receiving patronage from these countries because it is not easy to fly six, seven hours to take your aircraft to those MRO facilities in faraway places for maintenance, "he said.

He said that in order to meet the demand of airlines bringing in their aircraft for maintenance, Aero is expanding its hangar so that it could accommodate two aircraft at the same time.

Ominyi said that work goes on steady; but there could be no slot, which means that at that point in time, the facility cannot take more aircraft.

This Day.

Nigeria: Demonstrators March in Nigerian Cities, Protesting Cost of Living, Corruption

Thousands have taken to the streets in Nigerian cities in anti-government protests against the high cost of living in the country, driven by crippling inflation and a devalued currency.

Police used tear gas Thursday to disperse crowds in the capital, Abuja, and in the nation's second largest city, Kano, where demonstrators attempted to start bonfires outside government buildings.

There was also a heavy security presence in the commercial capital, Lagos, where protesters marched toward government buildings, ringing bells, chanting, and carrying placards denouncing corruption and Nigeria's green and white flag. They were led down the street by armed security personnel.

Many Nigerians blame the cost-of-living crisis on reforms introduced last year by President Bola Tinubu, who canceled a popular fuel subsidy and took steps that devalued the naira.

Activists online had been calling for the protests for weeks, inspired by the recent protests in Kenya that forced that country's president to withdraw proposed tax increases.

Organizers in Nigeria had said their protests are aimed at addressing both economic hardships and longstanding systemic issues, such as corruption and press freedom.

Ahead of the protests, lawmakers in the national assembly last week voted to more than double the monthly minimum wage of federal workers from 30,000 naira to 70,000 naira, about $43. The president signed the bill into law earlier this week, but it appeared to do little to dampen calls for a nationwide demonstration.

Religious leaders and other social groups tried to discourage the protests out of fear that, like the Kenya protests, they could turn violent. International rights group Human Rights Watch warned that Nigerian government rhetoric ahead of the protests raised fears of a violent crackdown.

Last week, Nigeria's inspector general of police, Kayode Egbetokun, warned, "Some groups of people, self-appointed crusaders and influencers, have been strategizing and mobilizing potential protesters to unleash terror in the land under the guise of replicating the recent Kenya protests. ... We must ensure that these protests do not snowball into violence or disorder."

VOA.

How Would Trump 2.0 Impact African Economies?

African winners will be those countries that pragmatically play to Trump's ego and self-proclaimed dealmaker status.

As America's election race enters the home stretch, investors and African policymakers are assessing what the November outcome might mean for the continent. Amid an assassination attempt, President Joe Biden's decision not to run, and a politically polarised environment, Donald Trump is still leading - although polls show Kamala Harris is closing the gap.

What would a second Trump presidency look like, and how could it affect African countries in terms of economics and trade?

Economically, 'Trumponomics' has three clear but contradictory tenets. First, aligned with the 'America First' mantra, protectionist and nationalistic impulses will dominate. This has significant implications for global trade. Trump has floated the idea of a 10% tax on all imports from all countries, and a tax of up to 60% on everything from China. Another trade war is almost inevitable if he wins.

Friendshoring (relocating supply chains to countries with shared values or strategic alliances with the US), reshoring (bringing production back to the US), and nearshoring (moving production closer to the US) will become key strategies. They will drive up export costs to America and potentially disrupt global supply chains.

Second, laissez-faire economics. With tax cuts and deregulation being key features of his first presidency, markets cheered robustly from 2017-19. Trump launched a fiscal bazooka during this period, which stimulated growth. However, the country's debt position now is fundamentally different, making a repeat of this strategy contentious (see chart).

Third, monetary policy independence will come under scrutiny. Trump has called Federal Reserve Chair Jerome Powell a bigger enemy to Americans than China's President Xi Jinping for continuing to raise interest rates. This level of political interference would undermine the Federal Reserve's credibility and its fight against inflation.

Global conditions have changed dramatically since Trump first assumed office in 2017. As global consultancy Roland Berger notes, the world is still dealing with the after-effects of COVID-19 and the wars in Ukraine and Gaza, significant debt overhangs, and the lingering effects of high interest rates and inflationary pressures. Adopting these policies without considering current conditions could damage an already fragile global economy.

It's unclear what the impact on growth, inflation and financial markets would be. Goldman Sachs says US trade policy under a second Trump presidency would be so unorthodox that it cannot be effectively modelled. UBS projects a 2.5-percentage-point hit to Chinese growth, while Wells Fargo says US GDP could decline. Much will depend on the House and Senate composition, which will dictate the speed, scope and intensity with which Trump and his party can further this agenda.

Geopolitically, Trump's ideas remain broadly consistent with his first term - isolationism, authoritarianism and nativism. The 'America First' mantra - railing against multilateralism - will see Washington adopt an insular approach, antagonising historical allies.

Foreign Policy notes this adversarial trade policy will make it harder for Washington to rally allies in Europe and Asia to help contain and roll back coercive behaviour from China and Russia. European policymakers are already anxious, given Trump's criticism of the North Atlantic Treaty Organization and lack of concern for Ukraine.

Then there's climate change. Like in his first term, Trump could withdraw from the Paris Agreement (a decision the Biden administration had reversed). And advocating for increased fossil fuel production contrasts with global efforts to reduce carbon emissions. Reduced US support for climate initiatives and rolling back progressive 'green' policies could undermine global climate goals and worsen environmental degradation in vulnerable regions.

Global governance could suffer too. Trump has scant regard for the international rules-based order or its institutions, which are already suffering from a crisis of legitimacy. Having boasted about his closeness to autocrats such as Russia's President Vladimir Putin and North Korea's Kim Jong Un, Trump's approach could embolden authoritarians worldwide and further reduce Washington's moral legitimacy.

So, what does all this mean for Africa? Economically, a major concern is the contagion from high inflation, dollar strength, trade friction and a more insular outlook. For example, both tariff hikes and tax cuts in the US would likely have pronounced inflationary effects on its economy, prompting the Federal Reserve to raise rates.

African policymakers, having dealt with 'dollar smile' effects in recent years (the disproportionate impact of dollar strength during times of extreme strength and weakness in the US economy), will be wary of the negative effect this could unleash on the global economy. This would again raise their debt servicing costs. With fiscal buffers eroded since COVID-19 and two wars, policymakers will have an uneasy sense of déjà vu. Bond yields, currency weakness and rising cost pressures can be expected in this scenario.

Trade-wise, African states will probably be caught in the crossfire of an escalating trade war involving their major trading partners. Sustained tensions would have a growth-dampening effect and disrupt supply chains. A more hawkish US administration could review trade arrangements such as the African Growth and Opportunity Act and pursue more bilateral trade deals, potentially undermining the African Continental Free Trade Area.

Given the narrower policy focus, investment pullbacks and cuts to donor aid are again possible. Such cuts would be devastating, particularly for climate change and healthcare, where Africa lacks resources. In this context, Africa should reduce dependency and diversify strategic alliances and trade and investment relationships.

In his first term, Trump's approach to Africa ranged from contempt to neglect, and was generally negative for the continent. But despite the obvious headwinds, there may still be opportunities. A dispassionate assessment shows that some elements of Trump's first term were constructive towards Africa.

Prosper Africa is a 2019 initiative aimed at increasing two-way trade and investment. The programme, albeit belated, was shaped more by an anti-China and anti-Russia agenda than by genuine benevolence towards Africa. But it laid the groundwork for potentially lucrative partnerships, if African states can navigate the geopolitical realignment. Moreover, Washington's staunch anti-China stance might open doors for African markets to fill the void in global supply chains, provided they can act swiftly and strategically.

Countries with a commercial mindset, such as Kenya, that can offer the US a return on investment, and whose offerings align with the US' economic and security priorities, like the Democratic Republic of the Congo, will succeed.

African states can only control what they can, and the winners will be those that pragmatically play to Trump's ego and self-proclaimed dealmaker status to navigate an increasingly complex geostrategic landscape.

Ronak Gopaldas, ISS Consultant and Signal Risk Director

ISS.

Apple sales rebound as AI bets scramble markets

Sales at Apple rebounded this spring, overcoming weakness in China and a dip in iPhone sales, delivering some good news to jittery financial markets.

The tech giant said it took in $85.8bn (£67.3bn) in revenue over the three months to June, up 5% year-on-year - a return to growth after a slump at the start of 2024.

The report came as the three major share indexes in the US closed lower, and investors sold off big names, including Amazon, in after-hours trade.

Shares in Intel plunged by more than 19%, as the chip-maker responded to a sales slump with a cost-cutting plan that includes more than 15,000 job cuts.

Amazon shares were also down more than 4% after the e-commerce giant reported sales grew 10% to $148bn.

That marked a slowdown from the prior quarter and it forecast further weakening in the months ahead, putting pressure on margins, even as the firm ramps up investments in areas such as artificial intelligence (AI).

Overall, the Dow Jones Industrial Average dropped 1.2%, the S&P 500 slipped almost 1.4% and the Nasdaq dropped 2.3%.

On Friday, stocks in Asia also dropped. Japan's Nikkei was the hardest hit major index, as it ended the day down by 5.8%.

Bets on AI have scrambled markets in recent weeks, as investors grow weary of the heavy cost of such investments and firms seen as losing pace in the AI race are hit hard.

Intel is among the firms that has fallen out of favour, as businesses turn to rival Nvidia, known for its powerful AI chips.

The company said sales fell 1% year-on-year in the three months to June and warned that the second half of the year would be worse than expected.

"Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI," chief executive Pat Gelsinger wrote in a memo to staff.

He said the situation required "bolder actions" and the firm had to "fundamentally change the way we operate".

Apple, by contrast, said it was well positioned to benefit from the changes, as AI-powered improvements to the company's software convince customers to upgrade their devices.

The company recently released some of the new features, branded as "Apple Intelligence", to developers in the US.

The new system makes it easier for iPhone users to record and transcribe phone conversations, generate personalised emojis while messaging and interact more conversationally with the company's voice assistant, Siri, among other changes.

Apple has said it will be released more widely later this year, but only on its newer devices.

Apple boss Tim Cook said the new features would provide "another compelling reason for an upgrade". The firm said it expected growth to continue in the months ahead.

"We remain incredibly optimistic about the possibilities of AI and we will continue to make significant investments in this technology," he said.

Over the April to June period, sales of iPhones slipped 1%, a drop outweighed by increased sales of Macs and iPads.

Apple also reported an all-time record in revenue from its services division, which includes offerings such as Apple Pay and Apple News.-BBC

Salon owner 'exhausted' by legal battle with L'Oréal

A salon owner says she has been left exhausted by a long-running legal battle with global cosmetics giant L'Oréal.

The French firm is opposing Rebecca Dowdeswell's attempt to renew the trademark on the name of her business - nkd - in Leicester city centre.

L'Oréal has its own trademark on a series of beauty products called NAKED and has told the 48-year-old her use of the name nkd would cause "consumer confusion".

Ms Dowdeswell said she had spent more than £30,000 contesting L'Oréal's opposition to her trademark application.

nkd product and NAKED product, side by side

Ms Dowdeswell said her nkd product range, on the left, could not be confused with L'Oréal's NAKED brand, on the right

The mother of two, from Radcliffe-on-Trent in Nottinghamshire, said the pressure caused by the dispute had been a factor in her downsizing her business and closing a salon she previously ran in Nottingham.

L'Oréal told the BBC it had made Ms Dowdeswell an offer "that supports her business aspirations".

However she disputed that, claiming the firm had continued to oppose her trademark application to register nkd as a trademark for toiletries.

Mrs Dowdeswell registered nkd as a trademark when she launched her business in 2009, but said her problems began when that expired 10 years later.

She said she had a six-month window to renew it but forgot to.

"I should have renewed it straight away. I didn't. That was a big mistake," she said.

"That six-month window ran into the start of Covid and chaos ensued for all businesses – including beauty salons -and I missed the expiry.

"When I came to re-register the trademark, I was essentially starting from scratch, not renewing an existing one.

"L'Oréal objected on the basis they owned the Urban Decay make-up brand which has a range of eye shadow palettes called Naked.

"I was very surprised because we have never been Naked. We're spelled NKD, we are pronounced N, K, D."

'David v Goliath'

Ms Dowdeswell added: "There has never been any evidence of consumer confusion. In 15 years of trading, no-one has ever said 'are you the same brand as Naked by Urban Decay?'

"I've spent two years negotiating with them trying to come to a co-existence agreement where they can carry on trading as Naked with their make-up and we can carry on as nkd in our very tight sphere of waxing and hair removal.

"This is David versus Goliath and frankly it has been horrible, exhausting and really stressful.

"I've now racked up over £30,000 plus VAT in legal costs defending myself. I don't know whether it was the right thing to do.

"What I do know is that I could not just have walked away from my brand when L'Oréal disputed it. I'd spent 13 years of my life pouring everything building up this brand."

Rebecca Dowdeswell 

Ms Dowdeswell said the matter could go to the government's Intellectual Property Office

A spokesperson for L'Oréal said: "We are wholly committed to resolving any misunderstanding there might have been with Rebecca Dowdeswell.

"From the beginning of our exchanges with her lawyers in 2022, we have communicated an offer that supports her business aspirations whilst respecting our longstanding trademark rights.

"We look forward to resolving this matter in a mutually agreeable way."

If the matter is not resolved, Ms Dowdeswell said it would be decided by a judgement from the government's Intellectual Property Office.

Ms Dowdeswell said she believed that would happen in 2025.-BBC

Government shelves £1.3bn UK tech and AI plans

Data centres power AI - which the government has previously said it wants to promote

The new Labour government has shelved £1.3bn of funding promised by the Conservatives for tech and Artificial Intelligence (AI) projects, the BBC has learned.

It includes £800m for the creation of an exascale supercomputer at Edinburgh University and a further £500m for AI Research Resource, which funds computing power for AI.

Both funds were unveiled less than 12 months ago.

The Department for Science, Innovation and Technology (DSIT) said the money was promised by the previous administration but was never allocated in its budget.

Trade body techUK said the government now needed to make "new proposals quickly" or the UK risked "losing out" to other countries in what are crucial industries of the future.

"The government is taking difficult and necessary spending decisions across all departments in the face of billions of pounds of unfunded commitments," said DSIT in a statement.

"This is essential to restore economic stability and deliver our national mission for growth."

It added that it remained "absolutely committed" to building technology infrastructure in the UK.

Those affected have been notified by Secretary of State Peter Kyle.

The Conservatives, though, say that under its leadership, DSIT had underspent.

"As a point of fact, at the time the election was called, ministers had been advised by officials that the department was likely to underspend its budget for the current financial year," said shadow secretary Andrew Griffith.

"Our commitment in government to science, research and innovation including UK leadership on AI was outstanding."

Immense computing power

The future of the Edinburgh exascale supercomputer is currently unclear.

There are only a small number of such immensely powerful machines in the world, with an earlier version housed in Bristol.

The new funding was announced in October last year and Edinburgh University had already spent £31m building housing for it.

It was considered to be a priority project by the previous government.

The machine would have been 50 times faster than any current computers in the UK, the university said at the time.

“Exascale will help researchers model all aspects of the world, test scientific theories and improve products and services in areas such as artificial intelligence, drug discovery, climate change, astrophysics and advanced engineering,” it says on its website.

A spokesperson for the university told the BBC that it "has led the way in supercomputing within the UK for decades".

"[It] is ready to work with the government to support the next phase of this technology in the UK, in order to unlock its benefits for industry, public services and society," they added.

Sue Daly, the director of technology and innovation at techUK, said ministers now needed to plot a new way forward.

She told BBC News: “Investment in large scale computers is vital for the scientific breakthroughs that will grow our economy and improve our lives.

“The UK had sent clear signals about its ambitions to host a new generation of computers to enable cutting edge research, including in AI.

“In an extremely competitive global environment, the government needs to come forward with new proposals quickly. Otherwise, we will lose out against our peers.”

Last week, DSIT announced that Matt Clifford, who was one of the organisers of the inaugural AI Safety Summit held at Bletchley Park in November 2023, had been asked to draw up an action plan for identifying new "AI opportunities".

The tech sector is considered to be a valuable part of the UK economy, and therefore important for the economic growth Labour has pledged to prioritise.

In a recent report, the tech network Tech Nation gave it a market value of $1.1 trillion (£863bn) in the first quarter of 2024.-BBC

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