With a population of about 1.2 billion people, over 900 million of whom are in Sub-Saharan Africa alone, Africa’s human capital has always been her greatest resource. This situation is particularly true for Nigeria, which boasts of a population of nearly 200 million inhabitants.
Unfortunately, Governments across the continent have continually failed to adequately utilise the immense human capital available to them. This nonchalance has made room for Africa’s brain drains, a situation that was previously peculiar to the medical and academic sectors, but now being witnessed in the continent’s burgeoning tech space.
A closer look at the ugly trend
Recent trends are indicative of a growing foreign interest in the African software ecosystem. The most obvious reason for the growing interest is the significantly lower cost of African software developers, as opposed to the higher cost of on-boarding and retaining software talent in Europe and America. Thus, employers and companies in need of low-cost software engineering talents have begun referring to African countries as a means of securing low-cost talents.
Factors encouraging brain drain in the tech sector
Low cost of African tech talent is the driving force – According to Mr Dele Bakare, the CEO of the leading on-demand platform for software products and software talent — FindWorker — the average Nigerian software developer’s salary ranges between, $12,000 and $24,000 per annum. This is a far cry from what the average American tech talent earns, he said. In specific terms, software developers in the United States of America earn an average of $100,000 per annum.
Having established this, it is easier to see why many African tech talents are easily swayed into relocating for greener pasture. It would be anybody’s dream come through to work in Silicon Valley whilst earning $100,000 per annum, as against working in Yaba and earning $12,000 per annum.
Investment in tech talents could help discourage tech brain drain
When asked to suggest a possible solution to the issue of brain drain in the African tech sector, Mr Bakare said investing in tech is the only way. In other words, continued investment in the tech sector is the only solution towards curbing brain drain. This is people investment would help to discourage tech talents from leaving.
Are tech incubator hubs helping?
Recently, we have seen the rise of numerous tech incubation organisations and businesses which specialise in the training and development of local African software tech talents. Some people have even argued that these tech incubation organisations are the reason for the foreign interest in African software engineering talents. Organisations such as Andela, Co-Creation Hub, FindWorka, Forloop, Meltwater Entrepreneurial School of Technology (MEST), Microsoft BizSpark, etc., are but a few of the bodies leading the charge for the training & development of local African tech talent.
What is the way forward?
In 2018, Nigeria’s Vice president, Professor Yemi Osinbajo, announced plans by the Federal Government to re-engineer the curriculum of nursery school pupils in the country by including software development. The announcement was not well received by some Nigerians, mainly because it seemed far-fetched. Moreover, it sounded like one of those policies that could easily be forgotten. Needless to say it has been forgotten, seeing as nothing has become of the plan ever since the announcement.
It is pertinent that African Governments supplement the efforts already being made by private companies, to train/develop local tech talents. Also, more private organisations need to get involved in the effort to harness these African tech talents. The reason for this can never be over-stressed. In this present day and age, everything is digital. Therefore, Nigeria cannot afford not to develop its tech talents. The country definitely cannot afford to allow its talents be lured away, thereby leaving its tech space undeveloped.
The fear of systematic brain drain of African software talents is real. This has been evidenced by the current “Canada immigration boom,” which has seen hundreds of thousands of Nigerians relocate from the country. If not checked, Africa will continue to lose its brightest tech talents.
Consumers overall confidence index dipped by 25.0% Y-o-Y- CBN
According to the latest Consumer Expectations Survey Report for Q3, 2020, consumers’ overall confidence index dipped to -21.2 points.
The consumers’ overall confidence index dipped to -21.2 points as at the third quarters of 2020(Q3,2020), down by 25.0%, from 3.8 points it recorded in the corresponding period last year. This is according to the latest Consumer Expectations Survey Report for Q3, 2020
What this means: The slip in outlook indicates that consumers were pessimistic in their outlook for Q3 2020. Respondents attributed this unfavourable outlook to declining economic conditions, family financial situation and declining family income.
The consumers were however optimistic in their outlook for the next quarter and next 12 months with indices of 10.1 and 30.5 points, respectively. This positive outlook could be attributed to the expected increase in net household income, an anticipated improvement in Nigeria’s economic conditions and expectations to save a bit and/or have plenty over savings in the next quarter and the next 12 months
Why this matter: The pandemic negatively impacted consumers’ income and businesses. Hence, the CBN wanted to gauge the impact of this pandemic on their confidence and outlook, both in the past and going forward, through their quarterly survey.
Other Key Highlights:
- The unemployment index for the next 12 months remained positive at 35.4 points in Q3 2020, indicating that consumers generally expect the unemployment rate to rise in the next one year.
- With indices of 20.8 and 5.3 points, consumers expect the borrowing rate to rise and anticipate the naira to appreciate in the next 12 months.
- Overall buying intention index in the next twelve months stood at 29.7 index points, indicating that most consumers do not intend to buy big-ticket items in the next 12 months. The buying intention indices for consumer durables, motor vehicles and house & lot were below 50 points, which shows that respondents have no plans to make these purchases in the next twelve months.
What you should know
The Overall consumer confidence index is computed as the average of the three indices, namely: Economic Condition, Family Financial Situation and Family Income.
a. Economic Condition refers to the perception of the respondent regarding the general economic condition of the country.
b. Family Financial Situation refers to the level of savings, investments, other assets including cash at hand and outstanding debts.
c. Family Income includes primary income and receipts from other sources received by all family members as participants in any economic activity or as recipients of transfers, pensions, grants, and the like
Power: Nigeria records transmission peak of 5,459.50MW – TCN
TCN has announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.
The Transmission Company of Nigeria (TCN) announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.
This was disclosed on Thursday in a statement by Ms Ndidi Mbah, General Manager, Public Affairs, TCN.
Good Job from the Men and Women of the Transmission Company of Nigeria and everyone within the Power Sector.
— Engr. Sale Mamman (@EngrSMamman) October 29, 2020
She said Nigeria hit the milestone on October 28th and surpassed the earlier record of 5,420.30MW achieved on August 18.
What you should know
Nairametrics reported that the Minister of Power, Engineer Sale Mamman, disclosed that Nigeria’s installed grid power generation capacity has grown from 8,000MW to 13,000MW under the leadership of President Muhammadu Buhari.
“The new peak surpasses the 5,420.30MW achieved on Aug. 18 by 39.20MW,” Ms Mbah said.
The Acting Managing Director, Mr Sule Ahmed Abdulaziz, commended all the players in the power sector value chain for the feat.
He attributed the gradual but steady improvement in the quantum of power delivery to collaboration by the sector players, as well as, the unbridled effort by the Federal Government – through the Ministry of Power – in setting the right environment for seamless operations.
The Acting Managing Director said the company will continue workings towards improved power transmission across the nation.
Nairametrics reported in August that the Federal Government of Nigeria revealed that the Siemens $2 billion power deal, under the Presidential Power Initiative (PPI) will save the nation over $1 billion annually.
Structure of the PPI funding:
- 85% from a consortium of banks guaranteed by the German government through credit insurance firm, Euler Hermes.
- 15% of the FG’s counterpart funding.
- 2–3 years moratorium.
- 10–12 years repayment at concessionary interest rates.
CBN grants Mortgage Refinancing Companies approval to refinance Non-member banks
The CBN has expanded access to mortgage financing by removing restrictions on refinancing mortgages earlier imposed.
The Central Bank of Nigeria (CBN), has granted approval to Mortgage Refinancing Companies (MRC), to re-finance non-member banks.
This is contained in a circular referenced FPR/DIR/GEN/CIR/07/056 and signed by Ibrahim Tukur, the Director of Financial Policy and Regulation Department, CBN.
The circular improved on the earlier provisions contained in section 22.214.171.124 which states that “A mortgage refinance company (MRC) shall not, without the prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than twenty times the value of the borrower’s shares with the MRC or 25 percent of its shareholders’ funds unimpaired by losses.”
What this means
Based on the provisions contained in the latest circular, MRCs are now free and legally permitted to refinance the qualifying mortgages of banks and all other non-members ( that do not hold equity), subject to meeting all other relevant requirements specified in the framework.
In a nutshell, the restriction on non-member mortgage lenders from refinancing their mortgages with MRCs has been removed.
Why this matters
Prior to the provisions contained in the latest circular, CBN had expressed fears that provisions of section 126.96.36.199 negatively impacts the mortgages sub-sector, as it constrains the MRCS from refinancing the mortgages of non-shareholder banks. Therefore, the new order will help to remove the restrictions already highlighted.
In lieu of this, the latest circular stated that the provision of section 7.3.1 5 is hereby revised to “the MRC shall not, without prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than 25 percent of its shareholders’ funds unimpaired by losses,” the circular reads.