The Nation Newspaper

Tag: Innovation

  • ‘We’ re raising the bar in tax administration with innovation’

    Lagos Internal Revenue Service (LIRS) Executive Chairman Mr. Ayodele Subair says the agency’s efforts to leverage technology to reform tax administration and deliver services to the people are yielding results. He speaks with TOBA AGBOOLA on how the initiative will benefit various stakeholders.

    What has been your experience since you assumed office at  LIRS?

    It has been a good experience so far. We have tried to improve our services and give a good delivery.

    What we have done is trying to improve the collection and assessment processes. We have been trying to simplify the filing of reports and tax payment. We have also been retraining our members of staff to ensure that they acquire the best skills for the job, in line with international best practices. We have also initiated a lot of checks and balances and internal controls to ensure that loopholes and leakages are blocked, particularly with the introduction of treasury single account. We have tried to strengthen that aspect with strong internal controls and checks and balances, so that whatever that is meant for the government is remitted accordingly.

    What is the state’s e-payment on consumption tax all about?

    Yes, it is called the Electronic Revenue Assurance System (ERA). It’s an electronic recording of transactions. It has to do with the efficient way of recording transactions in the hospitality sector, which comprises hotels, restaurants, event centres, bars, night clubs and others.

    Basically, we are saying that when people go to any of these places for goods and services, leasing or renting of space, they are charged five per cent on their invoice. This five per cent, in most cases, is not reflected in their books. But with ERA, their will be transparency and accountability because everything will be done electronically.

    This hospitality group serves as agent of the government for the remittance of five per cent consumption tax collected from customers through the LIRS new technology, ERA.

    We have stated that the commencement of the new system and the LIRS officers will be visiting hospitality places to install the software and train their staff on the use of the new device.

    This Electronic Revenue Assurance System is a software application/device that issues invoices and receipts to consumers bearing a unique code. The receipt will also contain detailing of the items and/or services ordered and an embedded automation of Consumption Tax remittance in real time.

    What is the level of compliance so far?

    Basically, most organisations in some foreign countries have adopted the system and Lagos is no exemption. It is ongoing in developed and developing countries. Even here in Africa, many countries are using it. Lagos State, being a leader, we want to improve on the efficiency of collecting taxes. So, we have decided to leverage the technology approach. We have not been efficient in tax collection, and remittances due to sharp practices by hotel owners and operators.

    So, to increase efficiency, and reduce leakages, we have decided to apply technology, and that’s why we are bringing in this initiatives.

    As for the level of compliances, we have gotten a good response. As you know that we just launched it, and we have also met and still meeting with the stakeholders. We are still educating them, giving them training , most especially the collecting agents , because dome of these operators still serve as the collecting agents.

    So, we first have to engage them. Although it was a little bit strange at the initial stage for most of them. At the moment, we are installing this software into their system and nobody has resisted this.

    How much revenue did you generate from consumption tax last year and how much arte you targeting with this new technology?

    On monthly basis, before the introduction of the technology, we generate between N200 million and N300 million.

    With the introduction of ERA, Lagos State is expected to generate, internally, between N800million and N1billion every month from Consumption Tax. And we still hope to increase it in the future.

    As you know, taxation is one of the ways in which the government finances its activities. Funds are required to enable the government to actualise its objective of provision of adequate infrastructure and services for the residents of the state at levels expected within a mega city. Our objective is to rely less on federal funding and more on self-funded. That is why we are leveraging on technology to drive economic growth and development.

    That means the state was losing about N800 million from consumption tax monthly?

    Definitely, the state has been losing a lot of revenue due to the lack of efficiency and this is mostly coming from insincerity of the hotels and other operators.

    For instance, you, as an hotel operator, keeps two books. One is for the management and the other is for the tax agents. So, when we come to you, you show us just one book. Also, you are operating four bank accounts, but you show us only one. Your consumption tax is N10 million and when we come you only declare N2 million and you even swear by it. These are some of the things that have been happening. But, I assure you , these will stop now. A lot of things are going to change now. The governor issue an executive order recently, that as from April 1ST, tax payments must be made electronically. This will help tracking financial transactions. It will ensure transparency. Even, if an operator has other bank accounts, we will know it. There might be other things like collusion with our officers. This will stop.

    Do you envisage a situation where  jobs will be lost as a result of this innovation?

    You see , we have to sacrifice one for another. If it is something that is going to increase efficiency, manage our time, increase revenue and ensure transparency, we have to go get it. For example, look at the issue of reconciliation and many other things, we have a lot of inefficiency , challenges that has to do with human factor. All these will be addressed. And I want to also tell you that more hands will be needed to come in. For instance, we will need people to operate, man and ensure the smooth running of the system. We will need people to monitor the environment. So, lots of people will be involved.

    Is there any benefit or incentive for  consumers and operators ?

    Of course, there are lots of benefits on the side of consumers, administrators, property owners, collecting agents.

    On the part of the collecting agents, it will ensure accountability, transparency and efficiency. For instance as a CEO, you can monitor the transactions anywhere you are. No matter where you are, all you need to do is to open your system and view the transactions.

    On the side of the consumers, there is going to be a raffle draw every week, month and yearly. LIRS is determined to give back to loyal consumption taxpayers who request for their receipts generated from the ERA System for an opportunity to participate in a draw and win attractive prizes. Consumers and customers of hospitality places in the state to demand for the ERA system receipts in the overall interest and benefit of all.

    Your entry ticket is the invoice that you are going use. Every receipt has a unique ID number. That ticket will get you an automatic entry for the raffle draw and Lagos state lottery board is the supervising agent. Also, lot of prices, such as motor car, travelling ticket both inside and outside the country will be won.

    As for the tax authority, of course it help us to block the leakages. It will increase our revenue. The amount of time we spend in reconciliation will be reduce. In order words, everything will be more efficient. So, we can view every transaction through our system. For instance, if there is drop in the revenue, we will know instantly and we will be able to track it down immediately. So, it’s a win win situation.

    Can you shed light on the Voluntary Assets and Income Declaration Scheme (VAIDS)?

    VSAIDS is a time-limited opportunity and a tax amnesty programme for tax defaulters, introduced by the Federal Government. That is people in the past who have not declared their tax or under declaration. It has a period of nine years. This window is open for those defaulters to make amendment by approaching tax authority and voluntarily declare their tax. When they do so within the stipulate time, they will not be penalised or persecuted, but failure to do so within the time frame will attract sanctions. Under it, the Federal Inland Revenue System administer that corporate tax while, state internal revenue agency administer that of the individual.

    Now, a nine-month tax amnesty programme of the Federal Government, in conjunction with state tax authorities, ends on March 31. All the defaulters are expected to voluntarily work to the agencies and their tax.

    VAIDS cuts across companies income tax, petroleum profit tax, personal income taxes, stamp duties, withholding tax, education tax, and any form of taxation that is previously under declared or not declared at all come within the body of it.

    There is what we call Project Lighthouse and it has to do with data mining. We are looking at several sources of information and trying to develop and bring out certain data on all taxpayers. For instance, the Nigerian Financial Intelligence Unit (NFIU) has information on payments above N10 million. This means all the people that have had transactions in multitudes of N10 million are known.

    For Nigerians with assets and money abroad, the Automatic Exchange of Information (AEoI), to which Nigeria is a signatory, will make information on wealth available even without a formal request. Countries like UK, UAE, USA, France and Germany are signatories. They are going to compile registers of Nigerians, who own properties and have big bank accounts in their jurisdictions. These will be handed over to the Federal Government for access to information on spending patterns and lifestlyes.

    It is confidential information and part of agreement is that it is kept confidential and restricted to certain level of persons. But primarily, we are going to have access to information.

    Now, the access to information will enable us to ask questions. What was the source of income through which you acquired these assets? Were those sources taxed? If those sources were taxed, they will not be subjected to further taxes. If you are able to establish that you made all the money in Nigeria and transferred it abroad to buy assets, then, we are going to subject those amounts to taxation in Nigeria.

     

  • Civil society and innovation society

    Before we discuss about an innovation society we need to understand what is innovation and why is it important to have an innovation society. Human society exists to help human beings flourish. Our ideas of human flourishing may differ but every one of us can agree that society exist to enable human being live fulfilling lives. Modern right theorists would argue that human flourishing in this context means enabling human beings fulfill their individual projects. The benchmarks of a good society would be one that provides support for citizens to live a life of dignity, freedom and justice. In the classical natural law philosophy dating from Aristotle, the idea of the community is committed to fostering a virtuous life for its members. Aristotle believed that the purpose of a community is to promote a virtuous life, which is a life of excellence.

    Solving problems that militate against human happiness and dignity is the defining task of human communities, be they cities or countries. The social contract theorists, approaching the issue from divergent definitions of the state of nature, agree that the purpose of government is the promotion of prosperity, freedom and dignity of human beings who live in communities. Government exists to make sure the pursuit of happiness and dignity is not undermined by problems. In the hunter and gatherer society, when humans were still in the state of nature, threats to prosperity can easily be overcome by exercise of physical strength.

    Innovation is not merely a matter of academic pastime. Innovation is the secret of survival on planet earth. The fruit of innovation range from the many products that enable us to contain the scourge of disease and prolong the longevity and quality of life, to the breakthrough in physical sciences that enable us to counter the threat of climate change. Innovation is also evident in the social and political sectors. Many of the less corrupt countries in the Nordic region are less corrupt because they have developed social and political institutions that better manage the reality of human nature and pathologies of social relationship. Their accountability mechanisms reflect higher intelligence and creative application of economic and social insights. Whilst other resources rich countries in Africa are suffering from resources curse, these countries are investing oil resources in building better human capital and stronger society.

    So, innovation matters because it is the secret of sustainable development. Sooner or later all resources will run out. Sooner or later societies that cannot innovate will run out solution and they would be left helpless in the face of daunting challenges. Today, we are witnessing a major divide between the axis of poverty and the axis of wealth. The society of the future may be divided between those can innovate and those that cannot.

    What makes a society an innovation society? What features accounts for the ability of some societies to innovate and others cannot? I identify what I call the hardware and software of innovation- technological and social. Things like the political regimes and economic systems we can call hardware. Innovation will be more likely in societies that promote entrepreneurship by reward private initiatives. Such a society will recognize trade and private property. It will be difficult to have sustainable innovation in societies where people are not rewarded for efforts. The great political economist, Joseph Schumpeter thought that it is a free market society that can promote entrepreneurship which he believed was the sources of innovation. He called it ‘creative destruction’. He associated monopolies with the capacity to undertake long term research that will lead to innovation. Although the latter point is contestable as monopolies can manipulate price and block competition; thereby destroying incentive to innovate, his view that entrepreneurship is key to innovation is unassailable. But the general idea of such society must also protect in some degrees intellectual property.We can all debate whether the present regime of intellectual property protection does not value profit over life. The fight over generic drugs suggests that perhaps the regime of intellectual property protection may have gone too far in protecting enterprise at the detriment of human life and community sustainable development. But what is never debatable is that protection for intellectual work is fundamental to sustaining investment of human capital in solving social problems.

    What is the software of innovation? The American sociologist, Robert Putnam viewed civil society from the point of view of social capital and social trust. These are part of the software of innovation. Innovation is a collaborative enterprise. Innovators build on the work of other researchers and thinkers. They solve problems in a community defined by mutual trust and respect. If the social capital or the trust quotient in a society is low, it may be difficult to have the degree of social cooperation required for sustainable innovation. Robert Putnam considered the deficiencies of a low trust society in his classic, Bowling Alone. These social capitals include volunteerism, membership in association and unions and religious beliefs and practices. Drawing from Alexis Tocqueville’s magisterial Democracy in America, Putnam argued for more civic engagement.

    Another important software for innovation is ethical universalism, the notion that human beings share common moral qualities that mandate non-discriminatory treatment. As a matter of fact, innovative societies are characterized by ethical universalism and, to a large extent, the principle of individualism. Such societies treat people without regard to their particularities of birth or status. Such societies contrast from honorific societies that treat people differently according to their social or cultural status. Max Weber, the theorist of modernity argued that modern development is only possible in a ‘bureaucratic’ society, a society where rules and laws replace traditional norms and privileges. This is the underlying structure of liberal and human rights-oriented societies.

    An innovation obviously thrives in knowledge. The Nobel Laureate in Economics, Kenneth Arrow argues the importance of learning and doing. People learn by doing. Therefore, innovation society also has innovative industries. This is also why innovative societies are usually post-industrial societies. Innovation comes from doing and big corporation provide the learning environment for innovation. Two important points arise from this insight. First, without good education it is difficult to have innovation. Quality education is software for innovation. When Japan began its transition from agrarian to industrial society it had more 80-90% literacy level. It also has public norms that valued quality education. This means that it must be a meritocracy which encourages learning and doing. If you measure in terms of the quality of higher institute of learning and the number of patents posted by schools and institutes in these innovative societies, you will appreciate the high quality of education in these societies. This contrasts with our society that despises knowledge and has no social reward for excellence. A society that is not merit-based, that introduce privilege and prerogatives to undercut merit is no where close to an innovative society

    It is difficult to remember when there were no civil societies. That will tell you how old and venerable civil societies have been. Legend has it that the oldest civil society was the Birch Society dedicated to the preservation of some bird species. Today, civil society straddles different segments of social life. Some civil society organizations are located in the business sector while others are in the social sector. The concept of civil society is so problematic that some persons hold their breath when the National Rifle Association (NRA) in the USA or the Organized Petroleum Trade Section (OPTS) of the Lagos Chamber of Commerce are listed as civil society organizations. Just as we have civil societies that promote positive changes in the world there are those that promote negative results. So, even as the concept of civil society is controversial, the realities of civil society are also controversial.

    Nigerian civil society has had a respectable profile in the struggle for a democratic and progressive society in Nigeria. It has been a champion of human rights and accountable governance in Nigeria. Although civil society in Nigeria has played key role to usher Nigeria into sustainable democracy and development, it still has a lot of work to do to promote the ideals of the public good. The knowledge and skill gap in the civil society movement in Nigeria is too huge that it does not encourage social innovation. Again, the Nigerian civil society needs to reinvent itself to reinvent society. The stagnating norm of ethical particularism and its consequent regime of prerogative foster a corrupt and uncompetitive society. Such a society cannot be innovating. Civil society groups in Nigeria should recognize that they have responsibility to foster the cultural reform necessary to build a sustainable foundation for social innovation.

     

    • Dr. Amadi, former chairman and chief executive of the Nigerian Electricity Regulatory Commission (NERC) delivered this at the Reverend David Ugolor Inaugural Public Lecture Series.
  • Leadership through innovation

    Leadership through innovation

    Some undergraduates have been trained on how to use their innovation and free enterprise skills to change communities. It was at a leadership seminar organised by Enactus Nigeria at the Covenant University in Otta, Ogun State. JENNIFER UMEH (HND II Mass Communication, Federal Polytechnic, Offa) reports.

    Students from various tertiary institutions converged on Covenant University (CU) in Otta, Ogun State to learn leadership skills at a five-day leadership training organised by Enactus – an international non-profit organisation promoting free enterprise among students.

    The event with the theme: Achieving personal success through self leadership, was held from February 19 to 23, drawing participants from 32 tertiary institutions.

    The goal of the training was to equip the participants with skills that would boost their abilities in project and financial management ahead of the 2018 Enactus national challenge where students from the participating institutions are expected to showcase their entrepreneurial projects.

    According to the organiser, the training would enhance the students’ leadership ability and help them create strategic partnerships on common project.

    In his opening remark, Enactus Country Director, Michael Ajayi, described Enactus as a platform for breeding future business leaders, adding that the organisation was established to mentor students and train them to be problem solvers. He said the trainees are taught how to leverage modern technology and innovation to impact lives in their immediate communities.

    He said: “Enactus has become a veritable platform for transformation of lives. We equip students with all necessary business and leadership skills through a learning process. This exposes them to mentoring and creates opportunities for them to practically experience what the corporate world looks like, even as students.”

    Facilitators and selected resource persons from diverse sectors engaged the participants on Sustainable Development Goals (SDGs), mentoring, financial management, research, monitoring and evaluation, innovation and technology and project ideation.

    Some of the facilitators included LEAP Africa founder, Ndidi Nwuneli, a social entrepreneur and Mandela Washington Fellow, Grace Ihejiamaizu and pioneer Deputy Vice-Chancellor for Academic of the Covenant University, Prof A.A. Atayero, among others.

    A session facilitated by Act Foundation, the event’s sponsor, had participants grouped into various teams with the aim of coming up with innovative ways of solving a SDG challenge of particular community in an entrepreneurial and environmentally-friendly manner.

    The Enactus judging criteria were used in evaluating the presentations made by each team. Ajayi said each student-team could now focus on their projects based on the skills and guidance they got from the leadership training.

    Some of the participants, who spoke with CAMPUSLIFE, described the event as worthwhile, saying it made positive impacts on them.

    A student from the Federal Polytechnic, Offa (OFFA POLY) in Kwara State, appreciated Enactus for giving her the opportunity to attend the leadership training.

    She said: “I learned skills that will help me to improve in managing projects and evaluating progress I undertake. Every session of the event was productive. I have learnt that the size of the project we may be working does not matter, what we need is to give our best to make lasting impacts on the lives of others.”

    Babatunde Odekunle, leader of Ekiti State University (EKSU) Enactus team, said: “The training has given us skills to become great leaders to connect with people around the world and also exposed us to ways we can empower communities and people through different projects. If anyone is looking for opportunities for self-growth and making meaningful impacts on the lives of others, Enactus is a great platform to explore.”

    Segun Ogunlana, a student of University of Ibadan (UI), said he found a session facilitated by the founder of LEAP Africa, Ndidi Nwuneli, impactful. “I am proud to be part of this training, which took me out of my comfort zone,” Segun said.

    The leadership training set the foundation for the Enactus project year. The event was chiefly sponsored by Act Foundation with the support of Enactus Alumni and Covenant University.

  • ‘Promote innovation in livelihoods’ growth in Ogoni’

    Indigenes of Ogoni and development partners have agreed to promote innovation in livelihoods’ development in Ogoniland as the clean-up of the polluted sites is on.

    At a workshop yesterday in Port Harcourt, Rivers State on livelihoods’ innovation in Ogoniland, organisers of the event, Stakeholders Democracy Network (SDN), said that approaches towards prompting improved livelihoods had not changed in the last decade.

    SDN’s Programmes Advisor Chris Newson, in his remarks, said: “There are some moves on skills-based training and agricultural extension in Ogoni, but they have generally not taken advantage of new technology or lesson from elsewhere.

    “Our perspective is that there are a range of innovatives that could be applicable to Ogoni. They should be considered carefully on whether and how they can be transplanted.”

    Some intervention partners, such as International Institute for Tropical Agriculture (IITA), Market Development in the Niger Delta (MADE) and Partners for Peace in the Niger Delta (PIND) provided options for livelihoods’ development in Ogoniland to include agriculture and non-agric businesses, such as tourism.

    The representative of IITA, Richardson Okechukwu, called for a review in the agric process to reap maximum benefits.

    President of the Movement for Survival of the Ogoni People (MOSOP) Chief Legborsi Saro Pyagbara said negatives about Ogoni had been over-flogged.

    Pyagbara said that it was time to talk about livelihoods in Ogoni, while working on minds of the people.

  • FG urges African nations to scale up innovation, industrialisation

    Foreign Affairs Minister Geoffrey Onyeama has called on African countries to scale up employment generation, infrastructure development, innovation and industrialisation.

    Onyeama spoke in a statement by his spokesman, Dr Tope Elias-Fatile, in Abuja yesterday.

    The minister spoke at the ongoing 32nd Ordinary Session of the Executive Council of the African Union at the AU Headquarters in Addis Ababa, Ethiopia.

    He was reacting to the Report of the AU Ministerial Follow up Committee on the implementation of Agenda 2063.

    Onyeama underscored the need for Africa to scale up employment generation for the youth, Social Investment Programmes, Youth and Women empowerment, Good governance, Infrastructure development, Science, Technology, Innovation and industrialisation.

    He said Nigeria strongly believes that through the accelerated implementation of Agenda 2063- “The Africa We Want,” the African development landscape will change for the better.

    “To this end, Nigeria is committed to four strategic vehicles of implementing Agenda 2063, which are: orientation, ensuring efficiency, financing, and accountability.”

    He intimated the Council that in its effort to align and deliver on Agenda 2063 and its first 10-year implementation, Nigeria had mainstreamed the Agenda along with the United Nations Sustainable Development Goals (SGDs) into its national planning process.

    He explained that this was reflected in the Nigerian Economic Recovery and Growth Plan launched in 2016 by President Muhammadu Buhari.

    The minister assured that Nigeria would continue to play an active role in the implementation of the flagship projects under the First 10-Year Implementation Plan (2014-2023).

    He stressed that this in particular included the establishment of the Continental Free Trade Area, free movement of persons, silencing the guns in Africa by year 2020, and establishment of the single African Air Transport Market.

    “Altogether, these are meant to enhance intra-Africa trade and integration of the entire continent,” he said

     

  • Minister: implementation of innovation roadmap’ll save over N3tr

    The execution of the National Science, Technology and Innovation Roadmap (NSTIR) will save Nigeria over $11 billion (about N4 trillion) within five years, the Minister of Science and Technology, Dr. Ogbonaya Onu, has said.

    He spoke at the unveiling of the NSTIR 2030 document and interactive session of the Southwest sensitisation on the document.

    “NSTIR 2030 is a roadmap of all roadmaps. Other roadmaps have a life span of three to five years, but this roadmap of 13 years would outlive this  government and would also outlive my stay as minister,” Onu stressed.

    According to him, NSTIR is a development plan for the country, which will help the nation move away from over dependence on oil, and also from a commodity dependent economy to an intellectual based economy.

    “If China with over one billion population could do it, Nigeria will. Our problem is not the population, but to harness the intellectual potentials and the talents of the populace. Our generation must do better than the previous generations,” Onu said.

    The Minister said it was the priority of the administration to harness the raw materials and products that are abundant in the country so as to stop their importation and the huge foreign exchange spent on them.

    He added that governors, commissioners of science and technology, universities and polytechnics, the organised private sector and research institutes as well as Nigerians in Diaspora contributed to the development of the science road map.

    The minister commended the Federal Institute for Industrial Research Oshodi (FIIRO) for its contributions towards the development of the NSTIR.

    FIIRO Director-General, Prof. Gloria Elemo, promised that the institute would continue to support the ministry’s programmes in pursuit of government’s vision on the diversification and growth of the economy using the tools of science, technology and innovation.

    Elemo assured the minister of the Institute’s unalloyed support of his campaign of using the instrument of science, technology and innovation to drive the national economy as seen in the ‘Change Agenda’ through economic diversification programme of the present administration.

    “But this cannot happen without a roadmap, which is what the Federal Ministry of Science and Technology under the leadership of the Minister of Science and Technology has put together.

    “The event is a Sensitisation Programme on the National Science, Technology and Innovation Roadmap at the Southwest geo-political zone’, she stated.

    Science and Technology Promotion Director, Mr. Ekanem Udoh, said the road map is for the private sector to see what the government has put in place, acquire it and build industries to generate jobs for the teeming unemployed youths.

    “This provides framework to promote science and technology and provide catalyst to move science and technology forward in Nigeria. It is also to create platform for Nigerians to key into science, technology and innovation in every sector of the economy,” he explained.

  • British Airways introduces airliner innovation

    Innovation in aircraft technology will improve every aspect of air travel, including whether movies make you weepy, how your Bloody Mary tastes, and even whether you feel jet-lagged after a long flight.

    British Airways’ Regional Commercial Manager for Nigeria, Kola Olayinka, says, “For many of us, air travel has become such a routine event that it is hard to believe the first flight was less than 115 years ago. But advances in design and materials mean that air travel will in the next few years change radically, easing many of the factors that some flyers especially frequent ones  may find irksome.’’

    Illustrating, he said the new Boeing 787 Dreamliner is the first airliner to be made mostly from carbon-fibre reinforced plastic, rather than aluminium. That is changing one of the main factors affecting one’s experience of air-travel, pressurisation of airliner cabins.

    Olayinka explains that for many years, cabins have been pressurised to the equivalent of 8 000 feet (2400 metres), the maximum pressurisation that aircraft airframes have been able to handle.

    But the carbon-composite composition of advanced airframes like that of the Dreamliner allow cabins to be pressurised more highly than conventional aluminium airframes.

    The air inside an airliner cabin is also much drier than we are used to. It has to be dry to prevent corrosion of the aircraft. As the aircraft ascends, humidity levels fall and air-pressure drops.

    Another factor is noise. New-generation airliners like the Dreamliner are much quieter than their predecessors and, says Olayinka, that effects air-travel in some surprising ways.

    Around 80% of what we taste is influenced by smell, which in turn is affected by humidity, that is because our nasal passages need to be moist to do any smelling, and as the air aboard most airliners is drier than desert air, food can taste pretty bland.

    The combination of dry air and low air-pressure aboard airliners also makes food and drink taste around a third less salty and sweet, while sour, spicy and bitter flavours do not seem to be affected. The fifth taste, ‘umami’, the savoury flavour of tomatoes, soy sauce, mushrooms, is not affected by altitude. That may be why some passengers who seldom drink tomato juice and Bloody Marys on the ground do so when flying.

    “Air travel has come a long way from the days of pioneers like Wilbur and Orville Wright and Louis Blériot, but the next few years are likely to be exciting for those of us involved in the airline sector and the customers we serve,” concludes Olayinka.

  • ‘Innovation key to Africa’s oil industry’s competitiveness’

    Sustained lower price of oil has been accepted as normal in the global oil & gas industry, with companies putting measures in place to enable a more agile response to commodity price fluctuations in the future.

    Instead of playing catch up with the rest of the world, Africa’s oil & gas industry should be learning to leapfrog and harness innovation and technology to stay ahead of the competition.

    These were the highlights of PwC’s Africa Oil & Gas Review 2017, which analysed what has happened in the last 12 months in the oil & gas industry within the major and emerging markets.

    The review, which was accessed by The Nation, said Africa’s oil & gas industry continues to face market challenges arising from the low oil price, competition for revenue growth and local talent together with new expectations from investors and regulators.

    “Africa’s oil & gas industry is experiencing significant change and upheaval. There are fundamental shifts in companies’ strategies, business models and ways of working,” PwC Africa Oil & Gas Advisory Leader, Chris Bredenhann, said.

    Bredenhann said for some, this means a diversification of portfolio, with many considering moves to an energy mix that includes some form of renewables. He said despite the challenges, there are a number of opportunities on the African continent.

    For instance, as at the end of 2016, Africa was reported to have had proven natural gas reserves of 503.3 trillion cubic feet (TcF), up one per cent in total gas reserves on the continent.

    Bredenhann added that about 90 per cent of African gas production continues to come from Algeria, Nigeria, Egypt and Libya though the overall quantity produced in 2016 reduced by 1.1 per cent down to 208.3bcm.

    He said Africa’s share of global oil production has continued its downward trend in the past four years, dropping sharply, moving down from 9.1 per cent last year to 8.6 per cent.

    According to the PwC review, the challenges in Africa’s oil & gas industry remained similar to those in previous years with uncertain regulatory frameworks, corruption, and tax requirements remaining in the top six for the past four years.

    “It is notable that financing costs and foreign currency volatility have both become more critical challenges since 2015 when they were ranked 11th and 10th respectively. It is disheartening that governments are not catching up with demands and calls from oil & gas companies to ensure regulatory certainty to players who are looking to invest in hydrocarbon plays in various African countries,” Bredenhann said.

    According to him, upstream regulation in South Africa remains uncertain, with the separation of oil & gas from mining still not achieved in the Mineral and Petroleum Resources Development Act (MPRDA).

    Other key markets in Africa, such as Nigeria and Tanzania, are also experiencing significant regulatory issues.

    The review also said corruption remained among the top three challenges over the last four years, with numerous instances occuring across the continent. It noted that despite the existence of anti-corruption programmes at government and corporate levels, the effectiveness of such programmes was questionable.

    “In the context of corruption issues, it is not surprising that the costs of finance have risen to third among major challenges for African players. It is likely that the regional issues and uncertainties combined with a constrained wider industry, have led banks and other institutions to be wary of offering favourable financing terms,” the review said.

    It further noted that the lack of skills development continues to be a problem in Africa, and it is becoming a global challenge in the oil & gas industry overall.

    The review said aside from the challenges highlighted by companies, adjusting to the new  lower oil prices remained a concern for companies.

    The oil price has been relatively ‘stable’ through 2017. Having recovered since the January 2016 low, it has typically been trading in the $50-60/bbl range.

    As the Brent oil price reached close to $60/bbl in September 2017, the market began asking whether ‘lower for longer’ may be over. The demand for oil is picking up, and supply is easing off, suggesting a market rebalancing is underway.

    The review, however, stated that as often seen with global oil prices, nothing is ever certain, adding that in response to many of these challenges, oil & gas companies are looking to alter their strategies and operating models, which has changed the competitive landscape.

  • Entries invited for 2018 Innovation Prize for Africa awards

    The African Innovation Foundation (AIF) has announced the seventh edition of the Innovation Prize for Africa (IPA) themed “investing in inclusive innovation ecosystems.”

    According to a statement, AIF is therefore inviting submissions to reward the best home-grown innovations on the continent. The annual Award seeks to celebrate outstanding breakthroughs that deliver practical, and commercially viable African solutions that are innovative and sustainable.

    Affirming AIF’s purpose to catalyse the innovation spirit in Africa, Pauline Mujawamariya Koelbl, the IPA Director commented, said the this edition will prove bigger and better in terms of participation and quality of submissions.

    “With each edition, IPA has gone from strength to strength attracting innovators across disciplines and with outstanding solutions to African challenges. For this seventh edition, we also look forward to expanding our ever-growing network of innovators, enablers and partners in order to join hands and build stronger, more sustainable innovation ecosystems that will propel the continent forward.”

     IPA Awards timeline and eligibility

    The call for entries will run for three months starting from 10 October 2017 with a submission deadline of 10 January 2018 at 23:59pm GMT. IPA’s goal is to strengthen African innovation ecosystems by supporting a culture of innovation and competitiveness, whilst spurring growth of innovative, market-driven African solutions to African challenges.

    Specifically, IPA honours and encourages pioneering achievements that contribute towards developing new products, increasing efficiency and/or saving cost in Africa. Applications will be accepted from all Africans including those living in the diaspora.

    This edition encourages greater participation from women innovators who are increasingly playing a key role in driving African economies forward through business and entrepreneurship.

    The submissions will be judged on the backdrop of IPA’s themes supporting social and economic innovation in the following five categories: manufacturing and service industry; health and well-being; agriculture and agri-business; environment, energy and water; and ICT showcasing ground-breaking innovations.

    IPA 2018 winners will be announced at an annual ceremony in July 2018 (exact dates and country to be confirmed).

    The Award is the leading innovation event on the African calendar, bringing together some of Africa’s most inspiring innovators and entrepreneurs, leaders of hubs and accelerators, angel and venture capital investors, development institutions, government leaders, media practitioners and  other game changers.

     

     

     

  • TSTV’s Pay-Per-View offer: Emotional marketing or sustainable innovation?

    TSTV’s Pay-Per-View offer: Emotional marketing or sustainable innovation?

    Is Pay TV revolution here or is it a mere emotional marketing? TSTV, a multi-channel TV platform, will be launched on Sunday, October 1, Nigeria’s 57th Independence Day.

    The Direct-To-Home (DTH) TV operation will offer Nigerians “comple-mentary internet capacity, smart home, ability to pause subscriptions for a record of seven days every month, video calls and in-built 500GB hard drive… for content storage, video on demand services as well as the regular uninterrupted clean world-class contents available 24 hours every day”.

    According to a statement by the company on its’ website, Nigerians went agog at the news of these offerings and they have been expressing optimism on the new entrant. However, some are skeptical about the exciting offers of TSTV.

     

    Are there threats?

    An Investment Consultant and Public Affairs analyst, Sola Fanawopo,  is not seeing TSTV as a revolution. “TSTV will operate in the low-earner consumer market, and contend with the likes of GOTV and Startimes; TSTV cannot compete with DSTV,” he said.

    His argument was that TSTV does not have premium family content that can compete at the level of DSTV, and that TSTV is modelled to service those who cannot afford premium services.

    He, however, cautioned that the product-promise of the new entrant may turn out to be unrealistic as the company is offering too many for little.

    “If the business model is wrong, and the business could not break-even, it will end up being unsustainable and subscribers would be the losers,” he added.

    Fanawopo submitted that TSTV offering looks more like emotional marketing as the cost of internet data, which TSTV wants to use to its’ advantage, is as expensive as the cheapest Pay TV subscription in Nigeria.

    Consumer Advocacy Foundation of Nigeria Executive Director Sola Salako also shared her concerns on the sustainability of TSTV’s offers.

    She said: “The need for caution arose from the need to be sure that the company can provide the service sustainably, that they have a sustainable business model to run it and that they are protected by regulation.” The consumer right advocate said the new entrant is vulnerable to anti-competition practices as the completion bill is yet to be signed into law by the President.

    Her organisation has been at the forefront of educating Nigerians on the need for the competition bill, particularly via an online medium, Yell Consumers Radio.

    “Nigerians should rise up and speak up for the Competition Bill to signed into law. It will strengthen new entrants and ensure they have sustainable business models,” she said.

    She, however, said more entrants and innovations in the Pay TV sector would translate to more choices for the subscribers.

     

    Who holds the stakes?

    A TV content producer, Tope Alake, observed that TSTV would survive and thrive because the brand is targeting a volume-driven market. According to him, opportunities for content providers as new players come into the Pay TV sector. He complained that the existing multi-channel operators are under-paying content providers and have never given the creative professionals the opportunity to negotiate for better deals.

    “I am very open to TSTV. I also heard that Kwese TV is about to launch. Africans are story tellers and this will give alternatives for storytellers,” said Alake.

    Alake, who directs the movie, “Picture Perfect,” added: “Nigerian producers churn out 70 per cent of contents in Africa, but they are the worst sellers. If we have like six multi-channel platforms, then we can negotiate better deals. This is the revolution we have been waiting for.”

    He concluded that he planned switching to Netflix inext month, but will consider getting a TSTV decoder as well.

    Former President, Independent Television Producers Association of Nigeria (ITPAN), Femi Odugbemi, agreed that the growth of the Pay TV sector will translate to growth for the content providers, flaying the lack of structure in the purchase of contents by Pay TVs.

    “Competition will offer perhaps opportunities to evolve current practices,”he said.

    Odugbemi, who is the producer of the latest Multichoice’s drama series, Battleground however, expressed concern on the sustainability of the Pay TV company, advising that new players must also invest in the human capacity of the creative industry and initiate “more projects not only in drama, but in every genre of contents – sports, general entertainment, game shows, reality shows and musical shows”.

    While it is good for content providers to embrace new opportunities from new players, the veteran producer advised his colleagues to appreciate the long-time investors in the contents industry, who have helped them to build capacity.

     

    Need to celebrate?

    A research and training company based in the United States (US), 602 Communications, defined emotional marketing as messages that build ego, “makes you feel smarter, bolder, and more sophisticated”.

    The pre-launch marketing of TSTV has been in consonance with the yearnings of Nigerians for a pay-per-view multi-channel platform. However, those offerings from TSTV are products of consumer-centric approach to marketing and a good example of design thinking. The erratic power supply in Nigeria has never made Pay TV interesting, as most customers complain that they do not get value from the monthly subscriptions.

    With TSTV, Nigerians would not need to worry about losing out on subscriptions due to power failure, working hours and weather disruptions. Families can even pause the subscription while going on holidays.

    Presently, the brand has got a lot of traction both online and offline, and it remains the latest Pay TV innovation as long as it delivers on the promises. If marketing is about identifying unmet needs, and providing offers to meet such needs, then TSTV has got it right. The revolution goes on television on Independence Day, giving equality in terms of contents, and freedom in terms of payment! Nigerians are celebrating!