Telecom

COVID-19: E-commerce companies cry out under weight of restrictions by Govt security operatives

Published

4 years ago

April 27, 2020

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At a time when global players in the e-commerce sector have seen the peculiarities of their operations come to the fore in helping governments and people in other climes observe social distancing and stay in supply of essential items without leaving their homes, the Nigerian e-Commerce sector is instead buckling under the weight of heavy restrictions by state actors and law enforcement officials; leading to no end of frustrations for players in the sector.

E-commerce giants in other climes such as Amazon and Alibaba, for instance, have played important roles in the fight against COVID-19 in other parts of the world, working in concert with the government in helping people ensure social distancing through wholesome adoption of online and contact-less shopping.

However, investigations reveal a sorry tale of huge pains and frustrations among e-Commerce players in Nigeria, in stark contrast to what obtains elsewhere.

The likes of Konga and Jumia, two of the biggest operators in the Nigerian market have endured difficulties at the hands of government enforcement agents, despite being the best means of contact-less shopping that can help in curbing the spread of the virus.

Research shows that in a number of countries and even in Africa, e-Commerce players have been supported and encouraged by the government in the fight against COVID-19.

But here in Nigeria, the situation is different.

The Nigerian government and some state governors have not only failed in openly backing the operations of e-Commerce players as an essential ally in the COVID-19 crisis, but a situation where security operatives are frustrating the operations of e-commerce companies due to the ongoing lockdown and border closures has further worsened matters.

A source at Konga, who spoke on condition of anonymity provided some insights into the dire situation.

‘‘E-Commerce is a cost-intensive venture all over the world, one which relies on a number of very expensive applications which must be constantly paid for.

“Konga, for instance, is burning a lot of cash to keep the business going and employing thousands of Nigerians directly and indirectly.

“Yet, we are taking huge losses in meeting the commitments to our customers, many of whom rely on us for essential deliveries.

“Our merchants, who we also rely on in meeting the numerous online orders, cannot open their shops due to the lockdown.

“These merchants are individuals who have all being trained on essential safety procedures such as wearing masks, gloves and social distancing and, as such, pose little infection risk.

“In addition, we have to endure undue delays in the course of reaching the customers. For instance, a truck making essential intra-state deliveries is often delayed for a minimum of six days, thereby causing huge pains for the company and consumers,’’ he lamented.

‘‘Even when granted exemption letters, the situation on the streets is far from ideal. We have encountered severe delays and huge frustration as a result of the overzealous actions of some security operatives who sometimes refuse to grant access to delivery personnel or in other cases, even turn them back. The government needs to do something about this.’’

Also, feedback from sources at Jumia, who pleaded not to be named, paints a picture of frustrations.

‘‘In virtually every other country, e-Commerce is being deployed as a critical weapon in the fight against COVID-19. Consumers are encouraged to go online and leverage e-Commerce for contact-less shopping by staying at home and receiving their essential deliveries including groceries at their doorsteps.

“Shoppers can also pay via e-channels which obliterates the use of cash or POS. But in Nigeria, we have hardly seen any form of institutional support in this regard.

‘‘In fact, we have seen a situation where delivery is constantly being hampered by the harassment of our riders, vendors and delivery men on a daily basis.

“This happens to both intra-state and inter-state deliveries. As a result, deliveries that should take 24 hours due to the absence of traffic on the roads now stretch for days or don’t even happen at all in some cases.

“Also, our staff, who actually are essential service providers, equally face serious difficulties and in some cases, harassments by security operatives on their way to and from work.

Continuing, the source stated: ‘‘Government has a critical role to play in nipping this worrisome situation in the bud as the operations of most e-commerce companies are suffering.

‘Worse still, when consumers encounter undue delays for an item ordered online, they would naturally turn to offline markets, thereby worsening the risk of community transmission of the virus.’’

Indeed, with the emergence of the COVID-19 pandemic which broke out in Wuhan, China but which has since spread across the globe, virtually every country has had their national life and normal economic activities disrupted.

Subsequently, a number of measures have come into force in helping curb not only the spread of the dreaded virus, but also halt community transmission, which has been identified as one of the most worrisome aspects of the war against COVID-19.

Specifically, there is an emphasis on behavioural changes, with social distancing and improved personal hygiene emerging as essential guides.

Furthermore, restrictions have been placed on areas of high human concentration such as airports, schools, religious gatherings and most importantly, markets.

Consequently, e-Commerce has emerged as a ready-made channel for helping people carry out contact-less shopping, observing social distancing and the important call to stay at home, while also coping seamlessly with the shut-down of offline markets.

As a matter of fact, evidence abounds of how e-commerce has been leveraged to great effect in other climes and even in other African countries in the face of the COVID-19 pandemic.

In Germany and New Zealand, two of the countries that have made the most progress with respect to curbing the COVID-19 pandemic, e-Commerce has been one of the secrets.

Even in other African countries such as Morocco, Ghana, Uganda – where citizens were advised in a government communique to opt for online shopping options as a means of getting essential items delivered to homes – and in Ghana – where e-Commerce was given special status and Ghanaians urged to rely more on digital channels for the delivery of food and other essentials; the situation is different.

In fact, same special deployment of e-Commerce in aiding the citizenry observe the essential regulations of social distancing and reducing unnecessary contact in crowded markets has been identified in China, Spain, France, the United Arab Emirates, among others.

However, in Nigeria, the situation is almost the opposite.

A number of Nigerians, left with little choice due to afore-mentioned challenges encountered by e-Commerce players, are increasingly relying on open-air markets – which manage to escape the subsisting ban – to shop for their essentials.

Perhaps unsurprisingly, the country is currently battling to stop ongoing community transmission of COVID-19 as confirmed cases continue to rise by the day. Going by recent figures released on Saturday by the country’s disease-fighting agency, the Nigeria Centre for Disease Control (NCDC), Nigeria has recorded 1182 cases of COVID-19; with Lagos in particular, accounting for nearly 60 per cent of the cases.

Yet, e-Commerce companies, which have the capability to reach the last mile with essential deliveries, are not given free rein to operate.

Further buttressing the points raised above, the source at Konga called on the government to take action.

‘‘We expect the government and the authorities to act. E-Commerce companies in Nigeria can play a key role in the fight against COVID-19, as can be seen from the examples in other countries.

“The Nigerian government should provide more institutional support and some form of public backing for this budding sector as this would go a long way in not only encouraging more Nigerians to embrace the needed behavioural change central to the COVID-19 fight but would also ensure less hassles from other state actors on the highways,’’ he concluded.

Nigeria is currently battling hard to rein in the rampaging COVID-19 pandemic.

While there has been no formal restriction of e-commerce players, the government has equally stopped short of any form of official public pronouncement or declaration to ensure that the services of e-Commerce companies are protected and not disrupted by security agencies enforcing the lock-down.

In addition, the government has failed in toeing the path of other countries in leveraging e-commerce to great advantage in helping Nigerians stay in supply of essential products while complying with the lockdown.

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Telecom

Nigeria May Re-introduce Telecom Tax to Obtain new $750m World Bank Loan

Published

6 hours ago

May 7, 2024

Comms Week

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Nigeria may reinstate a previously suspended telecom tax and other fiscal measures as it seeks to secure a new $750 million loan from the World Bank, as per Nairametrics report.

This is according to the Stakeholder Engagement Plan for Nigeria – Accelerating Resource Mobilisation Reforms (ARMOR) P-For-R (P177308) program dated March 2024, between Nigeria and the World Bank.

A copy of the plan’s document was obtained and seen by Nairametrics suggest the government reintroduces the excises on telecom services, EMT levy on electronic money transfers through the Nigerian Banking System among other taxes.

President Bola Tinubu in July 2023 ordered the suspension of the 5% excise duty on telecommunications and the Import Tax Adjustment levy on certain vehicles.

However, it appears that this suspension may be lifted to meet the program targets for a new, yet-to-be-approved World Bank loan.

Nairametrics has confirmed that negotiations are ongoing between the Federal Government and the World Bank.

The program’s development objective is to strengthen the government’s financial position by enhancing its capacity to manage and mobilize domestic resources effectively, which includes improving tax and customs compliance and protecting oil revenues.

Affected stakeholders and sectors

The planned tax reforms under the ARMOR program are expected to have significant implications across various economic sectors.

According to the plan, affected stakeholders will include manufacturers of goods such as alcoholic beverages, tobacco products, and sugar-sweetened beverages (SSBs), telecom and banking service providers, as well as the general tax-paying public.

Importers and international traders will also feel the impact of these new fiscal policies.

Key industry groups such as the Association of Licensed Telecom Operators of Nigeria (ALTON) are engaged regarding the excise duties on telecom services.

The banking sector, represented by the Committee of Bankers, are engaged regarding the introduction of an Electronic Money Transfer (EMT) levy on transactions processed through Nigerian banks.

Additionally, the Manufacturers Association of Nigeria (MAN) will play a crucial role, particularly for those involved in producing targeted products such as tobacco and alcoholic beverages.

The plan document read:

“Domestic Revenue Mobilisation drive in the government ARMOR program seeks to increase revenue on some targeted industries and sectors of the economy. Specific groups and agencies within affected sectors include

“1. Association of Licensed Telecom Operators of Nigeria: The introduction of excises on telecom services requires that all telcos are mobilised to fully participate in the collection of such revenue.

“2. Committee of Bankers: Introduction of EMT levy on electronic money transfers through the Nigerian Banking System would need the buy-in all banking institutions

“3. Manufacturer’s Association of Nigeria: Manufacturers of tobacco products, sugar sweetened beverages(SSBs) and alcoholic beverages who would be required to collect excises on their products are critical stakeholders for the introduction of the new excise regime. They are currently organised into various sectoral groups under the Manufacturer’s Association of Nigeria (MAN). Producers of alcoholic beverages organised under the Distillers and Blenders Association of Nigeria also need to key into the reforms

“4. Importers: Strategic partners involved in importation of different items into the country will be mobilised to participate in the ARMOR program. A key stakeholder group is the Association of Nigeria Customs Agents (ANCLA).

“5. Vehicle Importers and Manufacturers: Stakeholders in the automobile trade industry must be engaged on reforms involving the introduction of green taxes on high GHG emission vehicles. Local manufacturing and assembly of vehicles is growing through a phase of growth in Nigeria. The demand for vehicles is mostly met through importation by vehicle importers under the aegis of Association of Motor Dealers of Nigeria (AMDON).”

The document also emphasized the importance of engaging vulnerable groups to ensure they are not disproportionately affected by these changes.

It also said:

“Services that will be subjected to the newly introduced excises are regulated by key public sector agencies. The introduction of the new revenue measures will require the application of existing regulatory mechanisms available within these institutions. The concerned institutions include

“1. Nigerian Communication Commission

“2. Central Bank of Nigeria.

“There are also agencies with the mandate for making policies on some of the issues covered in the ARMOR program with respect to policy framework on matters of public interest in Health and Environmental Protection. The government institutions relevant to ARMOR in this regard are.

“1. Federal Ministry of Environment

“2. National Environmental Standards Regulatory and Enforcement Agency (NESREA)

“3. Federal Ministry of Health”

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Google and African Union Partner to Launch #DiscoverMyAfrica

Published

9 hours ago

May 7, 2024

Ugo Onwuaso

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The Office of the African Union Chairperson’s Youth Envoy and Google today announced the launch of the #DiscoverMyAfrica Shorts Challenge, a month-long initiative to celebrate the rich diversity, heritage, and vibrant spirit of the African continent. Throughout May, YouTube creators across Africa are invited to share short videos capturing their unique perspectives, using the hashtag #DiscoverMyAfrica.

“#DiscoverMyAfrica empowers African youth to share their stories and rich cultural heritage globally,” said Chido Mpemba, African Union Chairperson’s Youth Envoy. “Partnering with Google fosters creative expression and dialogue on content responsibility, digital preservation, and AI’s impact on Africa’s creative industries. This aligns with our vision for a digitally-enabled Africa harnessing cultural wealth for economic growth and social progress.”

The YouTube Shorts Challenge encourages creators to showcase various facets of African life, from music and art to food, fashion, and local landmarks. To further celebrate Africa’s vibrant music scene, YouTube is turning up the energy with YouTube Music Nights in Nigeria and South Africa, showcasing the infectious rhythms of Afrobeats and Amapiano. Two dedicated playlists, “Africa’s Next Wave” and “Africa Superstars,” will highlight both emerging talent and iconic voices that have made the continent a global music powerhouse.

Nollywood superstar and style icon Osas Ighodaro will immerse viewers in the luxurious side of Lagos with her new show “Spa with Osas.” Enioluwa and The Geng will unravel the drama and secrets of high school elites in their highly anticipated series “All of Us.” And comedy superstar Broda Shaggi is guaranteed to bring the laughs with his hilarious new project, “Shaggi’s Palava.” These exciting new shows will premiere exclusively on YouTube.

Aspiring filmmakers and content creators can also take advantage of specialized workshops designed to hone their skills and expand their reach. A dedicated Nollywood workshop in Nigeria, and broader #DiscoverMyAfrica workshops for content creators will offer valuable insights and resources to creators at all levels.

“We are committed to supporting the diverse voices and talents that make up Africa’s creative landscape,” said Addy Awofisayo, Head of Music for Sub-Saharan Africa at YouTube.

“These initiatives provide valuable resources and platforms for African filmmakers, musicians, and content creators to share their stories and connect with global audiences.”

To learn more about #DiscoverMyAfrica and how to get involved, visit www.blog.google/africa or follow #DiscoverMyAfrica on social media.

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QNET Triumphs as it Scoops Three Prestigious Awards @ PR Awards 2024

Published

9 hours ago

May 7, 2024

Ugo Onwuaso

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In a remarkable acknowledgment of its excellence in public relations and communications, QNET, a leading lifestyle and wellness direct selling company, proudly announces its victory in three distinguished categories at the 11th annual PR Awards. Demonstrating its prowess in crisis management, corporate strategy, and technological innovation, QNET is setting new standards for excellence in Direct Selling.

This year, QNET was honoured with the following recognitions:

Silver Award for Best Corporate Strategy – An endorsement for QNET’s Fingreen financial literacy programme that has been rolled out in three countries over the last 18 months and has helped over 7000 people, including college students, home makers, street vendors, and female small traders, with the tools they need to take charge of their financial future.

Silver Award for Best Use of Technology – An important recognition for QNET’s QBuzz Blog, an innovative platform that leverages technology to foster community engagement and provide insightful company and industry content.

Bronze Award for Best Crisis Management Strategy – Celebrating the success of the “Truth About QNET” campaign, which effectively navigated the company through challenging times with transparency and integrity.

The PR Awards, renowned for highlighting the best in the PR and communications sector across South Asia, Southeast Asia, and Oceania, saw entries from the most prominent brands and organisations in the region. An independent panel of senior industry experts from leading brands selected this year’s winners, underscoring the credibility and prestige of the awards.

Trevor Kuna, Chief Transformation & Reputation Officer at QNET, expressed his enthusiasm: “We are profoundly honored by the recognition at the PR Awards 2024, which reflects our unwavering dedication to excellence, innovative strategies, and our commitment to providing outstanding value to our customers.

“These awards are a testament to the hard work and ingenuity of our team, and they motivate us to continue setting new benchmarks in the industry.”

QNET’s success at the PR Awards is not just a celebration of its achievements but also a promise to its stakeholders of its dedication to excellence and innovation. As the company looks forward to future challenges and opportunities, it remains committed to upholding the highest standards of quality and service in the industry.

For more information about QNET and its achievements, please visit QNET’s website.

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