FG outlines steps to be taken by businesses to export to AfCFTA countries
Neimeth Pharmaceuticals to raise N5 billion in additional equity
Buhari appoints Abubakar Nuhu Fikpo as Acting DG of National Directorate of Employment
Covid-19: WHO warns the world faces catastrophic moral failure due to vaccine nationalism
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COVID-19 Update in Nigeria
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Business News
China’s 3-5-2 policy to phase out foreign tech will scale-up Zinox, Omatek if FG adopts
China has resolved to remove all foreign software and computer equipment from its government offices and public institutions.
Nigerian tech manufacturers, Zinox and Omatek might become huge beneficiaries if Nigeria adopts China’s recent resolution to remove all foreign software and computer equipment from its government offices and public institutions amidst its trade-war with the United States. The Asian country is planning to replace all foreign technology by 2022 with a “3-5-2” strategy.
China is expected to get rid of 30% of foreign technology starting from next year. This move will affect several countries, most especially technology companies in the United States.
A blow to US companies
United States tech manufacturers have found the Asian country as a lucrative market with enormous market base. Companies like Microsoft, HP and Dell are likely to be negatively affected. US technology companies generate as much as $150 billion in annual revenues from China.
This decision, which was reportedly released by Chinese Communist Party’s Central Office earlier this year, is coming amidst the trade war involving China and the United States. US President, Donald Trump accused China of intellectual property theft, an allegation China has continued to deny.
The accusation has snowballed into a trade war, with both countries hitting each other with tariffs on various products imported from their respective countries. One of the major companies affected has been Huawei, which the US government accused of assisting the Chinese government to spy on its users. Huawei has, however, denied being an agent or tool of the Chinese government, stating that it operates as a private company. But still, the US has largely forced Huawei out of its market attributing its decision to national security.
[READ MORE: Trade conflict between United States, China continues to affect oil prices]
How the 3-5-2 strategy works
According to the News Agency of Nigeria (NAN) report, China is planning to phase out 30% of foreign software and computer equipment by 2020. 50% of these technologies will be removed in 2021 while 20% will be replaced by 2022. This house cleaning will happen in all government offices and public institutions.
What this means if Nigeria follows suit
Nigeria is very much dependent on foreign technology. This is why the indigenous technology companies like Zinox and Omatek are still struggling to compete even in Nigeria’s market. The local companies in China and the United States are market leaders above foreign competitors, but in Nigeria, some of the indigenous tech firms have been struggling to attract government and private patronage.
If the Nigerian government follows the path of China, replacing foreign software and computer equipment in its offices and public institutions with local technology manufacturers, it will boost sales of local firms and encourage new domestic companies to enter the market. It will also attract investors to invest in domestic companies to enable them to compete better.
Also, technology has been the driving force of development globally. It is also a tool that threatens national security. This is what some countries are trying to avoid. That’s why they are supporting their local tech manufacturers in order to reduce their dependence on foreign technology. If Nigeria reduces its dependence on foreign technology, it will not just secure the country’s intellectual property, it will also raise the sales of local tech manufacturers, and better position them in the local market.
Companies
Neimeth Pharmaceuticals to raise N5 billion in additional equity
The Board of Neimeth is set to raise N5 billion additional equity upon the approval by shareholders of the company at the AGM.
Appointments
Buhari appoints Abubakar Nuhu Fikpo as Acting DG of National Directorate of Employment
President Buhari has appointed Abubakar Nuhu Fikpo as the Acting DG of the National Directorate of Employment.
Coronavirus
Covid-19: WHO warns the world faces catastrophic moral failure due to vaccine nationalism
The WHO has said that the prospects of equitable distribution of COVID-19 vaccines were at serious risk.
The World Health Organization (WHO) said the world is on the brink of a catastrophic moral failure due to the fear of Covid-19 vaccine nationalism by the wealthy countries, while the poor countries are left behind.
This is as the UN health agency revealed that the prospects of equitable distribution of the vaccines were at serious risk just as its COVAX vaccine-sharing scheme plans to start distributing inoculations in February.
According to a report from Reuters, this disclosure was made by the Director-General of the WHO, Tedros Adhanom Ghebreyrsus, at the opening of the body’s Annual Executive Board virtual meeting.
He pointed out that 44 bilateral deals were signed last year and at least 12 have already been signed this year.
What the WHO Director-General is saying
Tedros warned against vaccine nationalism to avoid making the same mistake during the HIN1 and HIV pandemic.
The WHO boss in his statement said,
- “This could delay COVAX deliveries and create exactly the scenario COVAX was designed to avoid with hoarding, a chaotic market, an uncoordinated response and continued social and economic disruption. Such a ‘me-first approach’ left the world’s poorest and most vulnerable at risk.
- “Ultimately, these actions will only prolong the pandemic, countries should avoid making the same mistakes made during the H1N1 and HIV pandemics.’’
He expressed his reservations over the ‘me-first’ attitude of the rich countries and the vaccine manufacturers who prioritize going for regulatory approval in wealthy countries rather than submitting their data to WHO for approval of the vaccines for use globally.
The global scramble for shots has intensified, as more infectious virus variants circulate.
Tedros said more than 39 million vaccine doses had been administered in 49 higher-income countries, whereas just 25 doses had been given in one poor country.
Observers say this board meeting, which lasts until next Tuesday, is one of the most important in the U.N. health agency’s more than 70-year history, and could shape its role in global health long after the pandemic ends.
What you should know
- The WHO and health experts had severally warned against nationalism as a serious threat to the fight against the coronavirus pandemic.
- They had called for an equitable distribution of the Covid-19 vaccine amongst all countries globally, as the wealthy nations will still be at risk of the pandemic if the poor countries are still battling with the disease.
