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Hello NECA, et al. EEL is good for Nigeria, By Sufuyan Ojeifo

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In a globalized world, the movement of labour across borders has become commonplace. Nigeria, like many other nations, has experienced an influx of expatriates contributing to its workforce. While foreign expertise can be invaluable for economic growth and development, it is crucial to ensure that the employment landscape remains fair and equitable for all stakeholders. The introduction of the Expatriates Employment Levy (EEL) in Nigeria aims to address this concern while fostering domestic skill development and enhancing national development efforts.

The presence of expatriates in Nigeria’s labour market can sometimes lead to challenges such as unfair competition, potential exploitation of local labour, and a drain on resources. Without proper regulation, there is a risk that local talent may be overshadowed or sidelined, hindering the country’s long-term development goals. The EEL serves as a mechanism to regulate the employment of expatriates, ensure that their presence complements, rather than undermines, the efforts to build a skilled indigenous workforce.

One of the primary objectives of the EEL is to incentivize investments in local capacity building and skill development. By imposing a levy on the employment of expatriates, the government aims to encourage employers to prioritize the training and development of Nigerian talent. This not only creates opportunities for local professionals but also strengthens the overall competitiveness of the workforce, leading to sustainable economic growth.

The revenue generated from the EEL can serve as a significant source of funding for various national development initiatives. These funds can be channeled towards education, healthcare, infrastructure development, and other sectors crucial for Nigeria’s socio-economic progress. By tapping into the resources generated from expatriate employment, the government can alleviate fiscal pressures and invest in programmes that benefit the entire population.

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Equity in the labour market is essential for social cohesion and stability. The imposition of the EEL helps level the play-field by discouraging the over-reliance on foreign labour at the expense of local talent. This not only fosters a sense of inclusivity but also promotes social justice by ensuring that all members of society have access to employment opportunities and fair wages.

In addition to economic considerations, the regulation of expatriate employment also has implications for national security. An unregulated influx of expatriates can pose security risks, as seen in some instances of illegal immigration and associated criminal activities. By implementing the EEL, the government can exercise greater control over the inflow of foreign workers, thereby mitigating potential security threats and safeguarding the nation’s interests.

The introduction of the EEL in Nigeria represents a proactive step towards fostering a balanced and sustainable labour market. By regulating the employment of expatriates, promoting local capacity building, generating revenue for national development, and ensuring fairness and equity, the EEL serves as a vital tool for advancing the country’s socio-economic objectives. While acknowledging the valuable contributions of expatriates, it is imperative to prioritize the empowerment of Nigerian talent and foster an environment conducive to inclusive growth and development.

One of the primary arguments against the EEL is its purported adverse effects on the manufacturing sector. Critics contend that the levy will further burden manufacturers already grappling with numerous challenges, including low-capacity utilization, high interest rates, and a scarcity of foreign exchange. Additionally, the claim that hundreds of manufacturing companies have become distressed or shut down due to these challenges underscores the severity of the situation.

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However, it is important to recognize that the EEL is not the sole cause of the manufacturing sector’s woes. While it may contribute to increased operating costs, it is but one factor among many affecting the industry. Addressing the underlying issues plaguing the manufacturing sector, such as infrastructure deficiencies, regulatory barriers, and inadequate access to finance, requires a comprehensive approach that goes beyond the scope of the EEL.

Moreover, the argument that the EEL violates international trade agreements and could lead to retaliatory measures against Nigerian workers abroad overlooks the rationale behind the levy. The EEL aims to address wage disparities and promote local employment in foreign-owned companies, which align with the broader goal of fostering economic growth and reducing dependence on expatriate labour. While concerns about potential repercussions on Diasporic Nigerians are valid, it is essential to weigh these against the long-term benefits of promoting local employment and economic empowerment.

Furthermore, the assertion that the EEL may prompt foreign companies to relocate to neighbouring countries with more favourable business environments warrants closer examination. While it is true that businesses consider various factors, including operating costs, when making investment decisions, Nigeria’s vast market potential and strategic location within the West African region remain compelling attractions for foreign investors. Rather than view the EEL as a deterrent to foreign investment, it should be seen as a measure aimed at creating a level playfield and incentivizing companies to prioritize local talent and resources.

In conclusion, while the concerns raised about the EEL are legitimate, it is important to approach this issue with nuanced perspectives and /or perceptions. Rather than view the EEL in isolation, it should be seen as part of a broader strategy to address systemic challenges and promote sustainable economic development in Nigeria. By fostering dialogue and collaboration among government, industry stakeholders, and the private sector, Nigeria can navigate the complexities of policy implementation while charting a path towards inclusive growth and prosperity for all.

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While the concerns raised by Nigeria Employers’ Consultative Association (NECA) and other organizations regarding the expatriate employment levy (EEL) are understandable, there are several counterarguments to consider, especially from the standpoint of labour or employees who stand to reap the cornucopian benefits of the policy: The imposition of the expatriate employment levy serves as a means to regulate the employment of expatriates in Nigeria. By implementing this levy, the government aims to ensure that the employment of expatriates is justified and contributes to the development of local talent. Without proper regulation, there is a risk of companies excessively relying on expatriate workers at the expense of local employment opportunities.

Nigeria, like many other countries, faces significant fiscal challenges. The revenue generated from the expatriate employment levy can contribute to addressing these challenges by providing additional funds for essential services and infrastructure development. This revenue can be instrumental to supporting various socio-economic programmes that benefit both expatriates and Nigerian citizens alike. The imposition of the expatriate employment levy ensures that companies employing expatriates bear an appropriate share of the costs associated with hiring foreign workers in spite of the EEL. This helps to level the play field between local and foreign businesses, prevent unfair competition and ensure that Nigerian companies are not disadvantaged in the employment market.

By imposing fees on companies employing expatriates ($15,000 per annum for directorate level worker and $10,000 per annum for other categories), the government incentivizes these companies to invest in training and developing local talent, which is largely party of the economics that could benefit both parties. Employ local talent at a cheaper cost, but if you must bring in your expats to do the job that a Nigerian can do, then pay the levy on that one expat. This can lead to the transfer of skills and knowledge from expatriates to Nigerian workers, and ultimately enhance the country’s human capital and promote economic development in the long run. Sustainable fiscal policies are crucial for the long-term economic stability of any country. While the expatriate employment levy may face initial resistance from businesses and investors, its implementation demonstrates the government’s commitment to fiscal sustainability and prudent economic management. Over time, as the benefits of the policy become apparent, concerns about its impact on foreign investment are likely to diminish.

■ Mr Ojeifo, journalist and publisher of THE CONCLAVE online newspaper, can be reached at ojwonderngr@yahoo.com

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Opinion

5G,IoT and AI to boost global GDP by 2030

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By Sonny Aragba-Akpore

With Mobile technologies and services now generating around 5.8% of global Gross Domestic Product (GDP) a contribution that amounts to about $6.5 trillion of economic value, there are strong projections that by 2030, this figure will rise to almost $11 trillion, or 8.4% of GDP.
Global System of Mobile Communications Association (GSMA) says much of this will be driven by countries around the world increasingly benefiting from the improvements in productivity and efficiency brought about by the increased take-up of mobile services and digital technologies, including 5G, Internet of Things (IoT) and Artificial Intelligence (AI).
The GSMA recently introduced the 5G Connectivity Index to provide insights into 5G performance in 39 markets in order to encourage informed decision-making.
In terms of Economic Impact,
the GSMA emphasizes the economic benefits of mobile technologies and services, including 5G, projecting that they will contribute significantly to GDP growth by 2030.
“The GSMA provides specific reports and analyses on 5G in different regions, such as Sub-Saharan Africa, Asia ,Middle East among others highlighting the progress and challenges of 5G deployment in specific areas.”
In Sub Saharan Africa for instance with particular attention on Nigeria,South Africa,Egypt,Kenya and Botswana among others some measure of progress in deployment has been recorded.
The rollout of 5G has brought immense benefits across multiple industry sectors, particularly those involving internet of things (IoT) and artificial intelligence (AI) applications in which the real-time transfer of data is crucial.
More broadly, the adoption of 5G is expected to accompany increased data use across the globe, with forecasts anticipating mobile data traffic of over 300 exabytes per month by 2030, more than twice the volume consumed in 2024 according to Statista.
And with a third of global population expected to be covered by this fifth generation (5G) networks ,a technology that has defined new ways of communication by 2025 ,GSMA
says the technology has surpassed growth projections of all times.
“5G subscriptions increased by 163 million during the third quarter 2024 to total 2.1 billion. 5G subscriptions reached close to 2.3 billion by the end of 2024 accounting for more than 25 percent of all global mobile subscriptions.
“4G subscriptions continue to decline as subscribers migrate to 5G” according to GSMA.
As of the first quarter of 2024, there were nearly two billion 5G connections worldwide, with 185 million new additions. This is expected to grow to 7.7 billion by 2028.”
Statistics show that 5G is the fastest-growing mobile broadband technology, reaching 1.5 billion connections by the end of 2023.
It only took four years to reach this number, compared to 10 years for 3G and more than five years for 4G.
“5G is more than a new generation of technologies; it denotes a new era in which connectivity will become increasingly fluid and flexible.5G Networks will adapt to applications and performance will be tailored precisely to the needs of the user” GSMA submits.
By covering one-third of the world’s population , impact on the mobile industry and its customers will be profound according to GSMA.
To deepen the spread of 5G ,GSMA is working closely with the mobile operators pioneering 5G, “by engaging with governments, vertical industries including automotive, financial services, healthcare providers, transport operators, utilities and other industry sectors to develop business cases for 5G.”
And In order to accelerate the growth and spread, many operators are said to be deploying
AI technology as part of an integral part of telecoms operators’ strategic and operational plans.
“Operators are making important advancements in the deployment of AI technology, which is serving as a transformative force shaping the telecoms industry. By deploying autonomous AI-based systems, operators can enhance operational efficiency, customer satisfaction and security, while also creating new revenue opportunities”.
China, South Korea, the United Kingdom, Germany, and the United States are the leading countries with robust 5G coverage in the world.
Since the first commercial launches of the fifth generation of mobile networks in late 2018, these five countries have emerged as leaders because multiple companies in these countries have deployed networks and are selling compatible devices. Countries including Switzerland and Finland are up and comers in 5G development, though they have limited deployment.
In China there are three Companies leading in deployment.
The world’s largest 5G network was launched by the three largest Chinese network operators Oct 31, 2019, according to the state-run news agency Xinhua. These are China Mobile, China Unicom, and China Telecom which all activated their networks in less than five months after they were issued 5G licenses.
Each of the network operators offered their 5G services at $18 per month in 50 Chinese cities at the beginning of the launch.
GSMA expects 36% of China’s mobile users to be using 5G by 2025. That’s about 600 million subscribers, who would also make up 40% of the entire global 5G market by this year.
This is all despite efforts made by the United States government to hamper the progress of Chinese vendors, though those efforts may affect how Chinese companies may expand into the global market.
In South Korea,SK Telecom and Korea Telecom run as the main competitors for the South Korean 5G market.
SK Telecom acquired spectrum in the 3.5 GHz and 28 GHz frequencies to prepare for deploying 5G.
In April of 2019, the Enterprise claimed to be the first mobile carrier in the world to launch 5G services to work on 5G smartphones. SK Telecom asserted an edge over rival Verizon, as the former launched 5G services available at the same time as Samsung Galaxy S10 5G smartphone launched in South Korea. Verizon launched mobile 5G services in the U.S. before a 5G enabled smartphone was available to U.S. consumers.
SK Telecom also conducted tests with a 5G Standalone (SA) Core (a core not reliant on the 4G network) for their 5G network in cooperation with Samsung Electronics.
The world’s largest 5G network was launched by the three largest Chinese network operators Oct 31, 2019, according to the state-run news agency Xinhua. These are China Mobile, China Unicom, and China Telecom which all activated their networks in less than five months after they were issued 5G licenses. Each of the network operators offered their 5G services at $18 per month in 50 Chinese cities at the beginning of the launch.
“What we are seeing is a concerted effort by the Chinese — the operators, vendors, and government regulators — to deploy 5G as quickly as possible,” Chris Nicoll, principal analyst at ACG Research, pointed this out in a November 1, 2019 SDxCentral article.
With all of these players working together, the three network operators had collectively deployed nearly 86,000 5G base stations peaked over 130,000 by the end of 2019. The latter number breaks down into China Unicom and China telecom, with each planning to install 40,000 base stations, and the market leader China Mobile to install 50,000.This was the projection by 2019 but they have since overshot this by the beginning of 2024.
The International Telecommunication Union (ITU), says 5G coverage reached 40% of the world’s population in 2023 with an uneven coverage and distribution with developed countries having more coverage than low-income countries:
In Europe ,68% of the population is covered and
Americas had 59% of the population covered while
Asia-Pacific has 42% of the population covered as at 2023.
Arab States have 12% of the population covered.
Commonwealth Independent of States (CIS) had 8% of the population covered.
ITU figures show Africa,s coverage rose to 10 % of the population by 2023 .
The ITU also notes that 90% of the world’s population is covered by 4G, but 55% of people without access to 4G live in low-income countries because In low-income countries, 3G is often the only technology available to connect to the Internet.
The ITU develops and adopts international regulations and global standards to enable the harmonization and implementation of broadband mobile networks.
In Africa, around a dozen nations have launched services including Botswana, Kenya, Mauritius, Madagascar, Nigeria, Seychelles, South Africa, Tanzania, Togo, Zimbabwe, and Zambia but Africa is a patchwork of 54 countries.
And penetration is predicted to be slow.
By 2027, Ericsson predicts that 80 percent of phone users in Europe will have 5G service.
At the same time, 5G subscriptions in Africa, home to 1.4 billion people, May stagnate at a little over 10 percent. Why will so few people in Africa get access to 5G services?
China, South Korea, the United Kingdom, Germany, and the United States remain the leading countries with robust 5G coverage in the world.
While many countries are already providing robust services,Africa remains on the outskirts of 5G services.
The countries in Africa that have launched 5G networks, include South Africa with its roll out
In March 2022, when the Independent Communications Authority of South Africa (ICASA) sold spectrum across several bands.
In Nigeria,MTN rolled out commercial 5G services in Lagos in 2022, with other roll out in Abuja, Port Harcourt, Ibadan, Kano, Owerri, and Maiduguri among others.
MTN Congo announced that it was the first country in Central Africa to deploy 5G.
In Botswana Orange deployed 5G technology to provide new services in the Gaborone and Francistown regions.
Other countries in Africa that have launched 5G Fixed Wireless Access (FWA) services include: Angola, Kenya, Zambia, and Zimbabwe.
Analysts say “5G’s potential is growing due to its ability to deliver fiber-like speeds. However, there are still challenges in the region, such as:
Urban areas are reaching their maximum capacity whereas a large portion of the population lives in rural areas.
This explains why 5G adoption in the sub-Saharan region is currently below six percent “
Analysts report that 5G deployment in Africa faces many challenges, including Spectrum assignment,regulatory issues,infrastructure,security,financial resources among others.
“Spectrum is a limited resource that is already in use by other services, such as TV broadcasters and satellite operators. Governments need to open up frequencies and grant 5G licenses at reasonable prices. “
Infrastructure is another major challenge.
“5G networks require a large initial investment, including expensive devices, antennas, and Radio Access Network (RAN) hardware. The infrastructure needs to be fiberized to support 5G services.
Regulatory conditions also serve as challenges to deployment.
For instance “regulatory authorities may not have started the process for licensing and granting frequencies in the right portion “
“Most of the equipment and devices required for 5G deployment need to be imported.”
There are also security challenges that make
5G technology vulnerable to cyber security threats, such as tracking calls and exposing user locations.

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Opinion

Right of Reply: THE  PUNCH AND BUSYBODY BUSINESS 

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The recent declaration of a State of Emergency in Rivers State has triggered diverse commentaries from a wide range of Nigerians.

 Almost everyone hailed the presidential proclamation because of the visible threat to law and order in the state at the time the action was taken. Of course, there were a few naysayers who read political meanings into an otherwise sincere and prompt intervention.

One such negative interpretation is the position taken by the Editorial Board of The Punch newspaper. In one of its editorials published on the matter, the  national daily  claimed that the entire crisis was caused by  what it described as “the needless meddlesomeness in the governance of the state by its former governor and Tinubu’s Federal Capital Territory Minister, Nyesom Wike….”  It is unfortunate that this narrative and others like it have become commonplace in the media space. 

How did the Editorial Board of a reputable newspaper arrive at such a conclusion?  Their claim that the Sole Administrator, Admiral Ibok Ete Ibas (rtd), has been acting a script purportedly written by the Minister of the Federal Capital Territory, Nyesom Wike, is also faulty and has no iota of truth.

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 They also faulted the sacking of all political appointees who served in Governor Siminalayi Fubara’s administration, insinuating that their replacements were drawn from Wike’s political camp. Again, nothing can be further from the truth.

Since his appointment as the Sole Administrator of Rivers State, Admiral Ibok Ete Ibas has been running the state with the abundant human resources available in the state and has not imported anybody from outside the state. Did the Editors of The Punch really expect him to run the administration with the politicians loyal to the suspended governor?

 Do they not know that the crop of political appointees who served Fubara would have found it difficult to work with the Sole Administrator? 

 Certainly, they know the truth, but they have chosen to stoke the fire to generate more tensions in Rivers State.
Certain interests might have commissioned this editorial to cast aspersions on the Sole Administrator and raise doubts about his capacity to run the state.

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 It may also have been the handiwork of Wike’s political detractors, the man whom many politicians love to hate for no other reason than envy and jealousy. 

We urge the Punch newspapers to seek a better mode of intervention in the political situation and not dwell on innuendos and unsubstantiated allegations against certain political actors in order to blackmail them.

Dr Ike Odogwu

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“Chief. Dr. Ekuogbe Akpodiete; A Philanthropist, Lawyer, and Statesman”

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In a life of achievement, Chief Ekuogbe Akpodiete popularly called the Duke by his contemporaries in the UK was an assessment clerk, post office clerk, a court interpreter, an educationist, a business man, a political party chieftain, a Barrister and Solicitor, a Magistrate, the Otota (the Prime Minister) of Ughelli kingdom which is the highest traditional chieftaincy office that underpin the royal office of the Ovie of Ughelli Kingdom.

He was a trail blazer, a strict disciplinarian, a lover of people, and a philantropist. He saw to it that people lived in peace and happiness.

Born on the 4th of April, 1924, to parents cut from an industrious mould, Chief Ekuogbe Rowland Gregory Akpodiete took zealously to education that neither his mother Ughweriaka who was a trader, nor his father Akpodiete who was a farmer had.

He attended the Native Authority Primary School, Ughelli, and Enitona High School, Port Harcourt, for his secondary school education.

He thereafter had a brief teaching career in primary schools in Ofuoma near Ughelli, he worked as a process clerk in the then Sapele Township Department between 1950 and 1953, serving at the same time as an interpreter in the local courts.

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He proceeded to the United Kingdom to seek the proverbial Golden Fleece where he worked and paid his way through, studying Law. He was admitted into the Honourable society of Gray’s Inn, England, in 1965, and shortly after, he returned home to Nigeria and attended the Nigerian Law School. He was called to the Nigerian Bar in 1966. He immediately started practice in Lagos. However, his practice in Lagos was regrettably abridged by the Nigerian Civil War, which drove him to his hometown Ughelli in 1967, where he continued to practise among his kith and kin as the first Legal Practitioner.

Chief Ekuogbe Akpodiete established himself in Ughelli. After the civil war, he served in the now defunct Mid-western State Judiciary from 1972 to 1975 as a Magistrate.

He was conferred with the chieftaincy title of Urhukperovie of Ughelli kingdom (the light of the King) by the then reigning Ovie of Ughelli, His Royal Highness Oharisi II of blessed memory in 1977.

In the quest for more knowledge, he went back to England for his Master’s degree in law (LL.M) and later a Ph.D. at the University of Warwick.

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He was awarded an honourary doctorate degree (Ph.D) by Tenesse Christian University from the United States of America in 1991.

He became the Otota (the Prime Minister) of Ughelli Kingdom in 1986, an office he occupied until his demise on 9th April 1995.

Chief Ekuogbe Akpodiete was also politically involved. In the heady days of the Awolowo-led Unity Party of Nigeria, he was the party’s legal adviser in Ughelli and was on hand to assist during Chief Obafemi Awolowo’s campaign hosting in Ughelli and its environs.

In view of his love for people and entertainment, he established a popular cinema house, one of the first in Ughelli, known as REGA cinema, coined from his names, alongside an entertainment place called Unutakunu (people talk to people).

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Chief Ekuogbe Akpodiete was blessed with wives and many children, grandchildren, and great grand children.

Mr. Olotu Akpodiete, PhD
Executive Director
Olotu & Ekuogbe Rowland Akpodiete foundation

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