Wednesday, September 4, 2019

Trucking app reshapes haulage business in Nigeria

An Uber-like app for trucks is making it easier and cheaper for firms to move goods in Africa’s most populous nation.

Freight logistics startup Kobo360 is using technology to connect cargo and truck owners with drivers and customers. Logistic managers can now schedule and monitor trips from the comfort of their offices, Kobo360 CEO Obi Ozor said in a Lagos interview.

The ports in the Apapa district of Lagos account for 70% of all imports into the country and is famed for its traffic gridlock caused by long lines of empty trucks waiting to enter or leave the ports. The collapse of rail infrastructure in Nigeria means that more than 90% of cargo has to be transported by road.

“Before, they had to go to Apapa and look for trucks parked on the roadside,” Ozor said. “Now if you place an order for trucks, you can be matched within 24 to 48 hours.”

The country loses an estimated $19 billion annually from traffic jams, illegal charges and insecurity at its ports, according to the Lagos Chamber of Commerce and Industry.

Nigeria ranks 182 out of 189 countries, below South Sudan and Iraq in the World Bank’s Trading Across Borders survey, which measures the time and expense involved with importing and exporting goods.

The 2-year-old firm that has TLcom Capital, Y Combinator and the International Financial Corporation as investors raised $20 million in August in a funding round led by Goldman Sachs and an additional $10 million in local-currency working capital from Nigerian banks.

The Lagos-based logistics firm will use the capital to expand into 10 more countries in addition to Nigeria, Kenya, Togo and Ghana, where it already operates. It will also add 25,000 drivers to its platform in coming months to more than triple the number it currently has.

Kobo360 has moved $2.1 billion worth of goods since 2017 and has a network of 10,800 truck drivers, larger than any fleet in the country, according to Ozor. It charges an average of 385,000 naira ($1,063) for a trip. Transporters who use the platform typically have one to five trucks.

“The market in Nigeria is highly inefficient and the customer is willing to pay for faster delivery, which we offer,” he said. The company takes 15% commission on each trip processed through the Kobo360 app.

Drivers on its platform do an average of 40% more trips in a month compared with other truck drivers. Haulage is 27% cheaper than existing transporters, and have 92% on-time delivery, said the CEO.

“We achieve transparency for cargo owners through the tracker that we put on the trucks on our app. We are able to guide drivers on best routes based on feedback from them.”

The tech firm also plans to track all moving trucks in Nigeria. This will allow cargo owners to follow the movement of their goods in real time on the kobo platform.

Kobo360 has made pricing more transparent for both truck owners and businesses through the two-way quote system on its platform.

Taking out the opacity around pricing will help firms have some certainty around their logistic costs and boost investments in the sector, said Ozor.


Transport Topics

UN envoy says insecurity and violence turning Nigeria into a pressure cooker

“The overall situation that I encountered in Nigeria gives rise to extreme concern”, with issues like poverty and climate change adding to the crisis, said Special Rapporteur Agnes Callamard after presenting a preliminary statement at the end of her 12-day mission.

She pointed out that if ignored, the ripple effects of unaccountability on such a large scale, had the potential to destabilize the sub-region if not the whole continent.

“Nigeria is confronting nationwide, regional and global pressures, such as population explosion, an increased number of people living in absolute poverty, climate change and desertification, and increasing proliferation of weapons”, she elaborated. “These are re-enforcing localized systems and country-wide patterns of violence, many of which are seemingly spinning out of control”.

Ms. Callamard highlighted many areas of concern, including armed conflict against the Boko Haram terrorist group in the northeast; insecurity and violence in the northwest; the conflict in the central area known as the Middle Belt and parts of the northwest and south, between nomadic Fulani herdsmen and indigenous farming communities.

She also noted the prevalence of organized gangs or cults in Nigeria’s south; general repression of minority and indigenous groups; killings during evictions in slum areas; and widespread police brutality.

Some signs of improvement

The UN expert said there were some positive signs, including progress against the extremist Boko Haram group and affiliates, as well as a decline in allegations of arbitrary killings and deaths in custody at the hands of the military over the last two years.

However, she noted little progress in terms of accountability and reparations for grave human rights violations in the past.

“I particularly urge the Nigerian Government, and the international community, to prioritize as a matter of urgency, accountability and access to justice for all victims and addressing the conflicts between nomadic cattle breeding and farming communities, fueled by toxic narratives and the large availability of weapons”, she underscored.

While some high-profile cases of killings by police have resulted in the arrest and prosecution of the officers responsible and others involving clashes between Fulani herdsmen and indigenous farming communities have been investigated in Benue State, she flagged that “such examples of accountability remain the exception”.

“In almost all of the cases that were brought to my attention during the visit none of the perpetrators had been brought to justice”, lamented the Special Rapporteur.

“The loss of trust and confidence in public institutions prompts Nigerians to take matters of protection into their own hands, which is leading to a proliferation of self-protecting armed militia and cases of ‘jungle justice’”, she said.

Ms. Callamard called on the Nigerian authorities “to look carefully into my findings”, saying that she remains “available for further cooperation”.

During her mission, the UN envoy met Government officials, local authorities and civil society as well as family members whose relatives had been brutally killed and people forced from their homes. Among the cities on her itinerary were Abuja, Maiduguri, Makurdi, Jos, Port Harcourt and Lagos.

Special Rapporteurs are appointed by the Geneva-based UN Human Rights Council to examine and report back on the situation, which Ms. Callamard will do in June 2020.

The positions are honorary and receive no pay for their work.


UN News

South African businesses targeted in Nigeria in retaliation

Nigerian protesters have taken to the streets of Lagos after violence against foreign nationals in South Africa.

Protesters targeted South African franchises such as Shoprite but were unable to gain access to the building.

One body was seen lying on the ground during the attack.

The violence comes after five deaths in Johannesburg, where foreign-owned shops were targeted during riots.

South African companies in Nigeria including MTN and Multichoice have expressed concern over the situation.

Nigeria's government is sending a special envoy to meet President Cyril Ramaphosa to discuss the matter.


ENCA

President Buhari sends envoy to South Africa over violence against Nigerians

Nigerian President Muhammadu Buhari sent a special envoy to South African President Cyril Ramaphosa following reported attacks on Nigerian citizens and property in Johannesburg.

Buhari also summoned the South African High Commissioner to seek assurances of the safety of Nigerians, his special adviser, Femi Adesina, said in an emailed statement Tuesday.

South Africa has been hit by an outbreak of attacks on migrants from other African countries as the nation prepared to host a meeting of political and business leaders from across the continent this week. That’s due to be attended by Nigerian Vice President Yemi Osinbajo, who also condemned the violence.

“It is sad and very unfortunate that the lives and livelihoods of Nigerians living in South Africa are once again being destroyed with such wantonness carelessness and recklessness,” he tweeted.

The attacks also come ahead of a planned state visit by Buhari to the country next month.

By Elisha Bala-Gbogbo


Bloomberg

Monday, September 2, 2019

Journalist in Nigeria charged with treason for criticizing governor

Agba Jalingo, the publisher of CrossRiverWatch, an online newspaper, was arrested in his residence in Lagos, Nigeria, at around 2 p.m. local time by the Federal Special Anti Robbery Squad (FSARS) of the Nigerian police on August 22.

CrossRiverWatch reported that FSARS invaded the Lagos bakery of Violet, wife of Jalingo, where they “seized the phones of all staff present and ordered them to show to them Jalingo’s residence”.

On August 23, police transferred Jalingo to Calabar, the capital of Cross River State in Nigeria's Niger Delta region, according to the Committee to Protect Journalists. Jalingo's transfer to Calabar was allegedly on the request of Ben Ayade, governor of Cross River State.

Abuja-based online daily Premium Times stated that Jalingo was, on August 30, charged with treason, terrorism, cultism and public disturbance in a Federal High Court in Abuja, for “working with the #RevolutionNow movement”—founded by detained human rights activist Omoyele Sowore to protest bad governance in Nigeria— to ”undemocratically’ force the government of Ayade to end through violent means.”

If convicted, Jalingo risks life imprisonment, fine or both.

Politics meet journalism

Cross River State Governor Benedict [Ben] Ayade, is an opposition politician with the Peoples Democratic Party (PDP).

Ayade's greatest headache has been from the African Action Congress (AAC), a political party founded by the #RevolutionNow movement protest leader Omoyele Sowore.

Jalingo, who also doubles as the state chairman of the AAC, has regularly criticized Ayade's governance of Cross Rivers State. Ayade had allegedly threatened that Jalingo will “face prosecution for misinformation.”

Ayade was re-elected as for a second term of four years in the February 2019 elections, where he beat his closest rivals from the ruling All Progressives Congress (APC) and Social Democratic Party (SDP).

It is not certain if the AAC fielded a candidate during the governorship elections. The breakdown of the 2019 governorship elections results by the BBC only showed three parties: Ayade's PDP, the APC and SDP.

Corruption allegations

On July 17, Jalingo wrote a critical story about an alleged diversion of 500 million naira (about $1.4 million United States dollars) meant for the establishment of Cross River state Micro-Finance Bank. Jalingo stated that “eight months after the opening of the bank,” Ayade had failed to to release the money meant for the start-up of the state-owned bank:

"Governor Ayade will do Cross Riverians a whole lot of good by coming public to tell the people of Cross River State, where the 500 million [Naira] he released for the Cross River State Micro-Finance bank is, because the money is certainly not in that bank."

Governor Ayade will do Cross Riverians a whole lot of good by coming public to tell the people of Cross River State, where the 500 million [Naira] he released for the Cross River State Micro-Finance bank is, because the money is certainly not in that bank.

On August 14, the Cross River State Command of the Nigerian Police invited Jalingo for questioning on the allegation of “conspiracy to cause unrest and conduct likely to cause a breach of peace”:

"This office is investigating a case of conspiracy to cause a breach of peace, reported by Cross River Microfinance Bank, Calabar, in which your name is mentioned. To facilitate our investigation, you are kindly requested to interview the Deputy Commissioner of Police, State Criminal Investigation Department, Calabar, on Monday, 19 August 2019, at [7:00 p.m.] 1400hrs, to state your side of the case."

However, Jalingo was arrested in Lagos on August 22, four days before the scheduled date to honour the police invitation.

Global Voices