TECHNOLOGY
How Brain Drain is Likely to Affect Nigerian Economy
How Brain Drain is Likely to Affect Nigerian Economy
In the last few decades, the migratory waves that have taken place have led to dramatic changes in the global economic landscape as countries compete for highly qualified human capital. Evidence suggests that developing countries like Nigeria suffer the most from the brain drain. Brain drain affects the Nigerian economy by depriving the country of its most educated and talented individuals and without these individuals, the country is unable to take advantage of their knowledge and expertise to create a more robust and diversified economy.
What is brain drain?
Brain drain can be defined as the migration of highly skilled and educated individuals from one country to another. In Nigeria, it has been a major issue since the 1990s, as many of the most educated and talented people have left the country to pursue better opportunities elsewhere. This has led to a decrease in the number of qualified professionals such as doctors, engineers, and scientists available in the country, which in turn has created a shortage of skilled workers. This has had a detrimental effect on the country’s ability to develop and has hindered its overall economic growth.
Brain drain in Nigeria occurs as a result of a lack of investment in education, health, and infrastructure, which leads to an exodus of the most educated and talented individuals. This deprives Nigeria of the resources it needs to develop its economy, as well as the potential to create new industries and sectors.
Effect of Brain Drain on the Economy
Brain drain can affect the economy in different ways which include:
- Induce shortages of manpower:
Brain drain induces shortages of manpower in the source countries by taking away the most educated and skilled workers. By taking away educated and skilled workers, the source country is left with a shortage of personnel who are capable of filling the positions left behind. This has an impact on the economy as there are fewer people who are trained and knowledgeable enough to fill the roles created by emigration. Thus, brain drain has a direct effect on the source country’s economy, as the most educated and skilled workers are leaving and there are not enough replacements with the same level of proficiency to replace them.
- Increased labor costs :
With fewer educated and talented individuals, the remaining workforce has to work harder and longer to compensate for the lack of expertise. This leads to an increase in labor costs as there is an increased demand for labor and a shortage of highly skilled workers to meet that demand.
- Decrease in productivity:
In response to the increased demand for a specific skill set in some developed countries, skilled workers in Nigeria migrate overseas. This leads to a decrease in productivity as the remaining workers are not able to cope with the increased workload.
- Loss of tax revenues for the source countries:
Brain drain causes a loss of tax revenues for the source countries, as the most productive workers are leaving and not paying taxes in the source country. This in turn affects the overall economic growth potential of the source country, as the lack of highly trained workers can impede development.
- Loss of socio-economic potential for the source countries:
Brain drain causes a loss of socio-economic potential. This is because the most educated and skilled workers leave, the potential for economic growth is diminished. This can lead to a decrease in the long-term growth potential, as the most productive workers are no longer contributing to the economy. Additionally, a lack of highly trained workers can lead to slower technological progress, further damaging the economic prospects of Nigeria.
Brain drain is a negative social-economic phenomenon. However, Nigeria has been experiencing it for quite a long time. Nevertheless, as the country with the third largest youth population in the world, the effects of this brain drain are not being felt as severely as they should be. Still, if the trend continues, Nigeria might end up in dire need of highly skilled manpower.
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TECHNOLOGY
Europe’s Network and Information Security (NIS2) directive raises the stakes for African businesses to comply with European Union’s (EU) cyber security standards
The European Union’s NIS2 cyber security directive has significant implications for African businesses trading with the continent. This is according to Check Point Software Technologies (www.CheckPoint.com), a leading AI-powered cloud-delivered cyber security provider, which urges African businesses with strong ties to the EU to take steps to comply with this new, stringent cyber security regulation.
The European Union’s NIS2 Directive, came into effect this month and requires member states to amend their national legislation. The NIS2 Directive imposes strict cyber security requirements, including enhanced management liability, reporting to authorities, risk management, and business continuity planning, placing African companies trading with the EU under increased scrutiny.
CheckPoint-NIS2-infographic-EN (1)
The NIS2 Directive builds upon the original NIS1 Directive introduced in 2016, expanding its scope to cover a wider range of sectors including Energy, Banking, Transport, Digital Infrastructure, Healthcare, Food Production, and Research. More than 80% of European enterprises are now within the scope of this legislation, which extends to global supply chain partners—including many businesses in Africa.
Collins Emadau, Check Point Partner and Director at Westcon, explains, “Europe is still Africa’s leading trading partner. African businesses, particularly in leading economies such as South Africa, Kenya, and Nigeria, need to understand the far-reaching impact of NIS2. Compliance is not just about meeting EU standards—it’s about securing their future in a globalised market. Failure to comply will result in not only heavy fines but also the potential loss of critical trade partnerships with EU member states.”
What’s at Stake for African Businesses?
The EU remains the largest trading partner for Africa, with over 18 Economic Partnership Agreements and trade worth billions annually. African businesses, especially in sectors like Energy, Banking, Transport, and Manufacturing, are key partners in the EU’s supply chains. To continue doing business with EU companies, African organisations must comply with NIS2, which mandates strict cyber security measures to protect critical infrastructure and supply chains.
Issam El Haddioui, Head of Security Sales Engineering: Africa, Check Point Software Technologies, says, “NIS2 sets a new standard for cyber security, and African businesses must act now. Many organisations are unaware of the depth of these requirements, which go beyond local regulations. Compliance is essential not only for maintaining business relationships with the EU but also for enhancing the overall resilience of African economies against cyber threats.”
Compliance will exact a cost for African organisations, which according to Interpol’s 2021 Africa Cyberthreat Assessment Report, spends an average of only 0.05% of their revenue on cyber security, far below the global average of 0.3-0.5%. The Report also estimated the financial impact of cyber crime in the region at over $4 billion USD, representing about 10 percent of Africa’s total GDP.
Tougher Penalties and Personal Responsibility
NIS2 introduces personal liability for business leaders in the event of a cyber attack, meaning that executives themselves can be held financially accountable for breaches. Penalties include fines of up to EUR 7 million or 1.4% of a company’s global annual turnover, whichever is higher. This goes beyond the GDPR, placing even more responsibility on corporate leadership to ensure robust cyber security practices are in place.
NIS2 mandates that organisations must report cyber incidents to authorities promptly and inform their stakeholders, suppliers, and customers. Therefore, African businesses must ensure they have a comprehensive incident response plan in place, along with regular cyber security training for both IT and leadership teams.
Steps for African Businesses to Ensure Compliance
To successfully implement NIS2 and avoid devastating penalties, Check Point recommends the following four steps for African businesses:
- Knowledge: Business leaders must gain a basic understanding of cyber security to effectively communicate with their IT teams and ensure sound decision-making.
- People: Establish an agile IT security department, including key roles such as a Data Protection Officer (DPO) and a Chief Information Security Officer (CISO), to manage and distribute responsibilities efficiently.
- Audit: Conduct regular risk assessments and audits to identify and mitigate vulnerabilities. Continuous monitoring is essential to stay compliant with evolving threats.
- Incident Management: Develop clear procedures for responding to cyber incidents, including swift reporting to national authorities, suppliers, and stakeholders.
Long-Term Commitment to Cyber Security
Compliance with NIS2 is not a one-time process; it requires a long-term commitment to cyber security. From 2028, organisations will be required to annually document their NIS2-compliant IT infrastructure and demonstrate that their cyber security measures are aligned with the latest technological advancements.
“African countries, especially economic leaders like South Africa, Kenya, and Nigeria, should also consider using the NIS2 framework as a model for strengthening their own national cyber security regulations. By improving cyber-readiness, African businesses can not only comply with international standards but also protect their data, operations, and reputations from evolving threats,” El Haddioui continues.
El Haddioui, concludes, “The NIS2 Directive marks a significant shift in the cyber security landscape. African business leaders must recognise that cyber security is now a matter of survival, not just compliance. By taking proactive measures, they can safeguard their future, avoid heavy penalties, and ensure their organisations thrive in an increasingly interconnected global economy.”
CheckPoint-NIS2-infographic-EN (1)
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TECHNOLOGY
VFS Global appointed to roll out Australian biometric collection centres in Sub-Saharan Africa
With the recent addition of Sub-Saharan Africa and Europe, VFS Global has become the exclusive biometrics collection service provider to Australian visa applicants across all nine regions globally.
CAPE TOWN, South Africa, October 16, 2024/ —
Services to be rolled out at 12 locations in seven countries in Sub-Saharan Africa by February 2025
VFS Global becomes the exclusive biometric collection service provider for Australian applicants in all the nine regions globally – Americas, Europe, Mekong, Middle East and North Africa, Pacific, South Asia, South East Asia, North Asia, Sub-Saharan Africa
Core services include Biometric Collection and Identity Verification, Digital Assistance with online visa applications submission and Online Payment Assistance.
Additional (as required services) include remote interview hosting, document and claim checking, paper digitisation and local addressing and document delivery.
The Department of Home Affairs, Australia has appointed VFS Global to provide biometric collection services for Sub-Saharan Africa. VFS Global is the world’s leading outsourcing and technology service specialist for governments and diplomatic missions. This is in addition to the seven regions awarded in August 2023 to provide biometric collection services –the Americas, Mekong, Middle East and North Africa, North Asia, Pacific, South Asia and Southeast Asia. With the recent addition of Sub-Saharan Africa and Europe, VFS Global has become the exclusive biometrics collection service provider to Australian visa applicants across all nine regions globally.
The Sub-Saharan Africa region includes seven countries in total with Australian Biometric Collection Centre services to be rolled out at 12 locations in 13 countries by February 2025. This includes setting up Centres in Ethiopia, Ghana, Kenya, Nigeria, South Africa, Uganda and Zimbabwe.
According to the agreement, VFS Global’s core services include Biometric Collection and Identity Verification, Digital Assistance with online visa applications submission and Online Payment Assistance on the Department’s ImmiAccount portal. The company would also provide additional (as required services) such as remote interview hosting, document and claim checking, paper digitisation and local addressing and document delivery.
“We are pleased to extend our Agreement with VFS Global to include Europe and Sub-Saharan Africa. We will continue to work closely with VFS Global to ensure the delivery of high-quality biometric collection and visa support services for our visa applicants worldwide.” said Anthony Phillips, Director Offshore Service Delivery Partners Section, Department of Home Affairs.
“Securing these two regions is a testament to our dedication, expertise, commitment to excellence, and trusted partnership with the Department of Home Affairs, Australia. This decision not only reflects our ability to meet highest standards but also reinforces our resolve to deliver innovative solutions. Under the Department’s guidance, we will continue to elevate the experience of Australian applicants across the world,” said Jiten Vyas, Chief Commercial Officer and Head of Business Development, VFS Global.
Distributed by APO Group on behalf of VFS Global.
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ENVIRONMENT
Nigerian Company MMNL to invest $50 Million to scale up its Tubular Batteries Production to 100,000 with backward integration in Next 5 years
Metal Manufacturing Nigeria Limited (MMNL); also ventures into multiple business verticals in backward & forward integration and into the Mining segment to stay ahead of its competitors
To cater to the rapidly growing demand of Nigeria’s energy sector; Metal Manufacturing Nigeria Limited (MMNL), Nigeria’s largest tubular battery company is aiming to double its expansion capacity to 60,000 pcs per Month in the next financial year. The company is planning to invest around $50 million in capacity expansion, new greenfield projects in the energy backup segment, R&D, Mining & Beneficiation, Plastic container and carton manufacturing units along with brand building and channel partner engagement to accelerate its ambitious growth target.
Being the First Company to produce the Tubular Batteries in Nigeria; MMNL have had its fair share of challenges & hurdles. Over the past 5 years, MMNL has conquered several obstacles including a lack of skilled manpower, a duopoly of supply chain vendors, hurdle of sourcing raw materials, unstable power supply, exorbitant hike in electricity tariff & gasoline price and machinery and scarcity of spare parts in the region. Despite of providing thousands of employments of opportunity; battery manufacturing sector is struggling for survival and desperately in need of government policy support such as raising import duty of foreign importers and export duty for raw materials.
These problems would often demoralize and demotivate any company in tubular battery manufacturing sector and make it unviable for any business to operate in such a situation. Despite their 14 years of manufacturing experience in Nigeria, it found itself in a despondent situation which has led the company to explore other verticals to optimize the supply chain cycle. MMNL has taken several initiatives to address the stated challenges. For example, to address the issue of lack of skilled manpower, the company has conducted hundreds of technical training sessions to locals to enhance & upgrade their skill set and it is continuing to invest in manpower training. Similarly to ensure a steady supply of raw materials, the company has ventured into the mining business, beneficiation plant and other business verticals like plastic container & carton manufacturing. The company has also launched its dedicated service centre to resolve customer issues.
“Despite several challenges; the company has achieved stable production of 30,000 units per Month by 2024. MMNL is proud of the fact that it is the first & only Made-in-Nigeria inverter battery company which dominates over 35% to 40% of market share. It means every 5 batteries sold in Nigeria; 2 batteries are from MMNL”, said Mr. Amit Kumar, CEO of Metal Manufacturing Nigeria Limited. “As an Industry leader; company is continuously striving to delight the customer with quality and innovation in the product and making significant contributions in local employment opportunity as well as saving foreign exchange”
MMNL is bound to focus on completing its end-to-end supply chain cycle with a backward and forward integration expansion to proliferate its growth plan and to survive in the highly volatile environment. MMNL has already invested $25 million in Battery production, lead & Oxide manufacturing plant in Shagamu, Ogun state. MMNL’s current production capacity is 30,000 units of inverter batteries. Company is all set to boost its battery production capacity to 60,000 at the start of the new financial year and over 100,000 production capacity by opening a new battery greenfield production plant by 2027-2028 along with backward integration including lead-zinc ore mining and beneficiation.
To make the brand available and accessible for the end customers across Nigeria, MMNL is also expanding geographically across the country, forging multi-channel partnerships, executing its retail strategy and to make use of eCommerce & digital channels.
Being an Industry leader with 14 years of manufacturing experience in Nigeria; MMNL has certainly created a high entry barrier for both existing and new players which are considering to start their tubular battery manufacturing operation. Metal Manufacturing Nigeria Limited is a shining example of how a true leader can sail through turbulence of political, economical, social & technological hurdles.
About Metal Manufacturing Nigeria Limited (MMNL)
Metal Manufacturing Nigeria Limited (MMNL) is the largest tubular battery manufacturing company. MMNL is the most trusted and ‘Proudly Made in Nigeria’ brand with over 14 years of industry experience. Recently; MMNL won 3 awards in a row 1) ECOWAS Inverter Battery Company of the Year 2) ECOWAS Inverter Battery Manufacturing Company of the year and 3) ECOWAS Renewable Company of the year. MMNL provides over 1000 direct and indirect local employment opportunities.
The Company also got pioneer status accreditation from Nigerian Investment Promotion Commission (NIPC). Currently MMNL is present across 6 major locations along with a strong network of channel partners consisting 3000+ Installers, 1000+ Dealers and 100+ Distributors and over a half million of satisfied & happy customers.
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