News
Why Recession Will Grow Nigeria’s Travel & Hospitality Industry
The International Monetary Funds (IMF) predicted in 2015 that Nigeria’s economy will slide into a recession in 2016 by 1.8 per cent.
The forecast indicated that our economy will grow at a much slower pace than South Africa’s. Months after the prediction, truly Nigeria slipped into a recession.
Everywhere around the world, recession is one of the most dreaded economic downturns. The reasons – although not far-fetched – include, but not limited to, drop in stock market, hike in unemployment, salary cuts in most private establishments and monumental decline in housing market.
Many economy and non-economy experts have weighed in on the ways to curb the ripple effects of this monster that has clutched its fist on commerce and trade. But like they say, talk is cheap.
Recently, I heard in the news that the Minister of Finance, Mrs. Kemi Adeosun, out of her many ‘un-put-down-able’ rhetorics on how to revive the economy and chase out recession, had said the commencement of rice production in some parts of the country will deal a major positive blow on the recession.
Well, I’d like to think she was quoted out of context because I can’t think of any immediate impact rice production will have on the economy right now.
But then again, what do I know about the economics of a country? Absolutely nothing!
Our fears and worries about the ugly reality of where we’re at this point in time are completely not misplaced.
We have reasons to quake with fear. Prices of items have shot up like never before. And sadly, revenue/income has remained firmly reluctant to grow.
Not too long ago, I saw a meme that was circulated on social media which compared very aptly the rising costs of living to a student who passes his exams and moves from one class to the other, and income to a student who has been repeating same class with no hope of graduating to a new class. While the meme was very amusing, it passed a very serious message in a comical way but the underlining truth could not be missed for those who could read between the lines.
Nonetheless, this doesn’t mean that the things a recession carries around are mere economic vices. A number of macro economy experts have made deliberate efforts to shift our attentions to the equally promising opportunities that a recession promises.
While it may be highly improbable to sell these opportunities to anyone, I think they are surprisingly appealing, depending on what side of the divide you are.
As a travel and tourism enthusiast, I am always on the look-out for bright and ingenious ideas on how to grow our hospitality sector.
I led myself to a lot of mind-boggling and quizzical conversations on how to rewrite a better destiny for this sector. And so, an economy in a recession, as far as I am concerned, is not a threat to this sector. Rather, it will boost its growth and the attendant benefits are the ingredients we need to promote the sector.
Recently, Jumia Travel’s global CEO, Paul Midy was in the country on a week-long working visit.
During his stay, a number of journalists dropped by our office to have a quick chat with him. Although, more than 90% of these distinguished journalists intended to inquire if Jumia Travel will be relocating office from Nigeria due to the recession and also find out what the company was planning to do to stay afloat in business.
They all came prepared, each of them hoping to be the first to break the news of the company’s decision to pack its business from Nigeria and relocate to any of the more economically stable African countries.
Sadly, the CEO’s response was indeed the most shocking comment they had ever received from any top boss they have spoken to since the recession paralyzed the economy.
Paul quickly dismissed their speculations on any plot to relocate. He stated that the recession makes our business more lucrative and profitable. The shock on their faces betrayed their expectations.
“The reason, he continued, is because recession has made the country a cheaper place to do business. The fall in the value of naira makes it cheaper for people who want to trade with Nigeria and for businessmen and women to travel through Nigeria to other destinations both in Africa and beyond.
“We know that many foreign firms are withdrawing from Nigeria but we are instead increasing our investment because Nigeria is our core market and with the depreciating value of the naira, goods from this part of Africa have become very cheap for our customers in other parts of Africa. We see recession as a short term and mid-term situation but in the long term, Nigeria is still the strongest market with almost 200 million people.”
The recession has restricted a number of Nigerians to the shores of the country to spend their vacations.
It is therefore not surprising that hotel booking portals have received an unprecedented requests from well-meaning Nigerians who are planning to spend their vacations in some of the tourist sites in the country.
People are already locking down a lot of hotels in the South South for the Calabar International festival in December.
The recession has awakened our forsaken interests in engaging in intra-country vacations by visiting any of the choice destinations spread all over the country. A lot of airlines, hotels, travel agencies, OTAs etc, will undoubtedly benefit immensely from the patronage which will contribute significantly to our GDP eventually.
More patronage for these service providers will also attract increase in the workforce, meaning employment for more people. Imagine the millions of nairas which will hitherto be spent in other countries now being spent internally. The ripple will run through the whole gamut of our economy.
As one writer put it, “Nigerians are known for their love for luxury goods, foreign products, showing off and taking loans to keep up with the lifestyle.
If people will ever recognize this misbehaviour, these things won’t happen during a recession. As we know from the past, a recession lasts for about 10 months, so good times will be back. Nevertheless, they are necessary and you will experience a few recessions in your life, so better be prepared.”
Olukayode Kolawole is head of PR & Marketing | Jumia Travel NG
Accelerating artificial intelligence (AI) adoption could increase Africa’s GDP by up to 4% over the next decade, according to the International Monetary Fund (IMF).
In a report released on Tuesday, titled Africa Can Grow Faster With AI—If It Moves Now, economists from the IMF’s Africa Department say current levels of AI adoption and utilisation are expected to contribute just 0.2% to the region’s GDP over the next 10 years.
However, the report says stronger adoption, supported by the right infrastructure and policies, could raise the economic impact to about 4% by extending AI beyond today’s digitally connected firms.
Martin Schindler and other IMF economists say: “AI adoption in sub-Saharan Africa currently lags well behind every other region. If richer economies race ahead while African firms and governments lag, the productivity gap between the region and the rest of the world will only widen.”
Early signs of AI adoption are emerging across Africa, with countries including Zimbabwe, Kenya, Egypt and Nigeria developing AI strategies.
Telecommunications operators, including Vodacom, Econet, Africell and MTN, are also integrating AI into their operations and networks.
Other examples include chatbots supporting teaching and learning in Nigeria and the South African Revenue Service’s use of data analytics for targeted tax audits.
However, the IMF says AI adoption must extend beyond these early use cases to deliver meaningful economic benefits.
“For the region, AI’s main promise is not about replacing office workers, but boosting productivity across the economy—helping informal firms manage inventory, enabling farmers to increase yields, and supporting mid-sized firms to transition to formality and export readiness,” the report reads.
The IMF is urging governments to prioritise investment in reliable electricity, affordable broadband, data infrastructure and digital skills to support wider AI adoption.
Many African countries, including Zimbabwe, Kenya, Ghana, Nigeria and Cameroon, continue to face electricity shortages, while broadband services remain costly and coverage is uneven.
The Fund believes stronger investment in power, connectivity, regional data infrastructure and digital skills would help unlock AI’s economic potential.
National Population Commission (NPC) has commenced the nationwide digital registration of births and deaths under the Electronic Civil Registration and Vital Statistics (E-CRVS) system to strengthen legal identity management and improve demographic data.
Speaking at a press briefing in Lokoja on Tuesday, Mr Afolabi Yori, federal commissioner representing Kogi, said the initiative became operational nationwide on July 1, through the VitalReg platform.
Yori described the development as a landmark in Nigeria’s civil registration system, noting that it would modernise birth and death registration through a technology-driven platform that meets international standards.
He said the digital platform would improve service delivery, strengthen data integrity and ensure that every birth and death occurring in Nigeria was accurately documented and securely stored.
According to him, civil registration is more than an administrative process, as it provides reliable statistics that support public policy formulation, resource allocation and national development planning.
“Nigeria records an estimated five million births annually, yet millions of births and deaths remain unregistered.
“Birth registration coverage currently stands at about 57 per cent nationwide, while death registration remains below 20 per cent,” he said.
The commissioner said that the commission had established 4,011 functional registration centres across the country’s 774 local government areas and was working to expand the number to about 8,000.
He added that the commission was strengthening collaboration with stakeholders to improve the capacity of registration personnel and ensure prompt documentation of vital events through the VitalReg platform.
Yori said the platform would provide faster registration services, 24-hour online access, digital certificate issuance where applicable, and reduce paperwork, waiting time and unnecessary travel.
He disclosed that the platform was being operated under a Public-Private Partnership with Barnks-forte Technologies Ltd. as the commission’s technical partner to ensure system availability, cybersecurity and continuous technological improvement.
He called on parents, healthcare institutions, traditional and religious leaders, civil society organisations, development partners and the media to support the initiative by encouraging the prompt registration of births and deaths.
Earlier, Samuel Omonakpeme, director in Kogi, NPC State, described the commencement of the digital registration system as another milestone in efforts to strengthen Nigeria’s Civil Registration and Vital Statistics system.
Omonakpeme stated that the initiative aligns with the Federal Government’s digital transformation agenda and the Sustainable Development Goals, particularly Goal 16.9, which seeks to provide legal identity for all.
He appreciated the Federal Government, the leadership of the commission, UNICEF and other development partners for supporting the implementation of the initiative.
The state director also urged parents, guardians, health institutions, community leaders, religious organisations and the media to mobilise public support for the timely registration of all births and deaths.
The News Agency of Nigeria (NAN) reported that ICT personnel of the commission, led by Ehimoni Kolawole, conducted a live demonstration of the digital birth registration process using the VitalReg platform.
The demonstration showed that the registration process captures the biodata of both parents, while at least one parent must possess a valid National Identification Number (NIN) to complete the registration of a newborn.
Yola Electricity Distribution Company (YEDC) has alerted its customers to a fraudulent message circulating on social media, falsely claiming that electricity consumers can receive an additional 20 per cent bonus units when recharging their prepaid meters through unofficial channels.
In a statement issued by the company’s management on Monday, YEDC described the claim as false and urged customers to disregard the misleading information, stressing that it did not originate from the company.
According to the statement, YEDC does not offer bonus electricity units through individuals, agents, personal bank accounts, phone numbers, or social media contacts.
The company advised customers to purchase electricity tokens only through approved cashless payment platforms, including the YEDC Pay App, OPay, Interswitch, and other authorised vending channels, or to visit the nearest YEDC office for assistance.
YEDC also cautioned customers against sharing their meter details or personal information, or making payments to unauthorised persons claiming to represent the company.
The company further urged customers to rely exclusively on information disseminated through its official communication channels to avoid falling victim to fraud.
The management thanked customers for their continued cooperation and reaffirmed its commitment to serving them.
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