ByteDance Ltd, the parent company of TikTok, is in the process of relocating its headquarters from Beijing to London, following a deal that was approved by UK ministers.
A report by Reuters also noted that the Chinese company’s founders will soon officially announce their intention to set up an office in London.
This move may likely upset President Donald Trump, who had announced plans to ban TikTok in the United States of America. The US considers the UK as a reliable ally.
Nairametrics had reported about 2 weeks ago that the Beijing-based video-sharing social networking firm, had been in discussions with the British Government over the relocation of its headquarters to London. The move has been perceived by analysts/observers seen as part of ByteDance’s strategy to distance itself from its Chinese ownership.
The technology firm has been under heavy scrutiny and criticism from the US Government over suspicions that China could be forcing it to turn over data. Earlier this year, the company was even labeled a potential counterintelligence threat by senior members of the US congress.
ByteDance recently came under intense pressure from the White House and US lawmakers to sell off TikTok’s US operations. It now has a 45-day deadline to negotiate with Microsoft over such a deal.
ByteDance Ltd is looking at all the available options to resolve its dispute with the American Government. In the meantime, Chief Executive Officer, Zhang Yiming, said no decision has been taken regarding the proposed sale of its US operations to Microsoft Corp.
READ ALSO: Microsoft is in talks to buy TikTok
The relocation of its headquarters to London might come as a surprise considering the current tension/dispute between the technology firm and the United States Government, who are close allies of the UK.
It can be recalled that amid tensions between China and some Western Countries and in solidarity with the United States, the British Government recently banned Chinese Telecom firm, Huawei’s 5G networks in the country. According to the UK Government, Huawei’s products posed a threat to the security of the UK’s infrastructure.
FEC approves $1.96 billion for Kano-Niger Republic railway
The Federal Government has approved the sum of $1.96billion for the construction of Kano-Maradi railway.
The Federal Executive Council has approved the disbursement of $1.96 billion, for the railway line from Kano in Nigeria to Maradi in Niger Republic. The President will also commission the Warri-Itakpe standard gauge rail line, running through Kogi, Edo and Delta States.
This was announced by the Minister of Transport, Rotimi Amaechi, on Wednesday evening.
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@NGRPresident @Mbuhari will on Tuesday commission the Warri-Itakpe rail line which runs through Kogi, Edo and Delta States. This will set the stage for commencement of operations on that route.
Also, we've gotten approval for the construction of the Kano-Maradi & Dutse rail line.
— Chibuike.R. Amaechi (@ChibuikeAmaechi) September 23, 2020
Media aide to the President, Ajuri Ngelale, said, “The rail line will connect 3 states: Kano, Katsina & Jigawa. It moves from Kano to Dambatta, Kazaure, Daura, Mashi, Katsina, terminating in Maradi, Niger Republic. This financially empowers Nigeria as the import/export hub for Niger.”
FEC Approves $1.96bn Kano-Maradi Railway:
"The rail line will connect 3 states: Kano, Katsina & Jigawa. It moves from Kano to Dambatta, Kazaure, Daura, Mashi, Katsina, terminating in Maradi, Niger Republic. This financially empowers Nigeria as the import/export hub for Niger." pic.twitter.com/aZVMoab95z
— Ajuri Ngelale (@AjuriNgelale) September 23, 2020
Nairametrics reported in June, that China is set to approve the sum of $5.3 billion for the construction of the Ibadan-Kano rail line.
“The Chinese government and people have been very helpful to Nigeria. They have released $1.6 billion for Lagos-Ibadan standard gauge railway (SGR). They’ve agreed to approve and we hope that by October, they should be able to approve the $5.3 billion for the Federal Government so that we can commence and complete construction of Ibadan-Kano railway,” Rotimi Amaechi said.
UK-based group to invest $245 million in 100 Nigerian businesses
A UK based organization is to partner local investment funds to disburse $245 million to 100 Nigerian businesses.
A UK-based development finance institution, CDC Group, has finalized plans to invest US$425 million as an aid to 100 businesses and 38,000 jobs in Nigeria.
This is sequel to its partnership with 40 investment funds such as Afreximbank, African Capital Alliance and Indoram, NAN reports
In a virtual visit to the country by the board of the organization led by Chief Executive, Nick O’Donohoe and Chairman, Graham Wrigley, the UK Government-funded organization stated that all earnings from its investments are ploughed back to improve the lives of millions of people in Africa and South Asia.
CDC Group noted that it paid a virtual visit to the Vice President of Nigeria, Prof. Yemi Osinbajo, and British High Commissioner to Nigeria, Catriona Laing, to discuss and ascertain the impact of CDC’s aid to its investees through the COVID-19 crisis and understand how to stimulate recovery and growth.
The discussions also focused on CDC’s own response to the pandemic through its preserved, strengthen and rebuild programme, the statement said
Commenting on the rationale of the aid, the Chief Executive of the CDC Group, Nick O’Donohe said that, “Nigeria plays a key part in our strategy of partnership and investment for economic growth in West Africa. “Hosting our 2020 board trip– albeit virtually – in both markets is a testament to our commitment.
“Looking forward, we will continue to prioritise the post-COVID-19 recovery as part of the Build Back Better agenda.
“We are committed to supporting a deeper and more strategic bilateral partnership between the UK and Nigeria that is based on enhancing economic development, job creation, inclusion, trade and investment,” O’Donohoe further remarked.
In a glowing tribute and commendation to the group, British High Commissioner to Nigeria, Catriona Laing CBE said CDC has been pivotal to creating jobs and supporting the growth of businesses by investing in the poorest countries across Africa, including Nigeria.
“CDC’s commitment to the country signals to other UK investors that investing in Nigeria is possible and should be prioritized in order to help Nigeria and indeed, Africa, mitigate the impact of COVID-19,” the envoy said.
Nigeria’s manufacturing sector contracts for 5th consecutive month – CBN
The CBN disclosed in its September PMI report that the manufacturing sector contracted.
The Manufacturing Purchasing Managers’ Index (PMI), in September 2020, has witnessed a contraction for the fifth consecutive month, as it stood at 46.9 index points.
This was disclosed by the Central Bank of Nigeria (CBN), in its September PMI report released on Wednesday.
The report stated that, out of the 14 subsectors surveyed, 4 subsectors reported expansion (above 50% threshold) in the review month in the following order:
- Electrical equipment
- Transportation equipment
- Cement, and
- Nonmetallic mineral products
The paper product subsector was stable.
While the remaining 9 subsectors reported contraction (below 50% threshold) in the review month in the following order:
- Petroleum & coal products
- Primary metal
- Furniture & related products
- Printing & related support activities
- Food, beverage & tobacco products
- Textile, apparel, leather & footwear
- Chemical & pharmaceutical products;
- Fabricated metal products and
- Plastics & rubber products
The Non-manufacturing sector PMI stood at 41.9 points in September 2020, indicating contraction in nonmanufacturing PMI, for the sixth consecutive month.