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Energy prices: Manufacturers raise alarm over imminent industry collapse

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As the rising cost of diesel alongside poor electricity supply and lingering foreign exchange challenges takes a toll on the manufacturing sector, operators have raised the alarm about imminent collapse of the productive sector, if the government does not provide any form of intervention.

The Manufacturers Association of Nigeria (MAN), in reaction to the current increase in price of diesel recalled that over the years, the manufacturing sector has been battered by numerous challenges that have plummeted the number of industries in Nigeria and converted industrial hubs in many parts of the country to warehouses of imported goods and event centres.

The manufacturers noted the exertion of untold hardship on the manufacturing sector leading to the closure of many industries, reduction in capacity utilisation, further decline in GDP, large scale unemployment across 76 sub-sectors and increase in crime rate.

The association identified key challenges confronting the sector as a high operating cost environment occasioned largely by inadequate electricity supply and the high cost of alternative sources, excessive regulation and taxation, and inadequate supply of foreign exchange for importation of raw materials, spare parts and machinery that are locally available.

All these, they noted, have culminated into the lacklustre performance of the sector. Commenting on the rising cost of diesel, Segun Ajayi-Kadiri, Director General of MAN, called for immediate removal of Value Added Tax (VAT) on Automotive Gas Oil, AGO, also called diesel as instant stimulus for immediate reduction in price and expedite action in reactivating or privatising the petroleum products refineries in the country.

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To remain in business the manufacturers demanded development of a National Response and Sustainability Strategy to address challenges emanating from the ongoing invasion of Ukraine by Russia and consistent support to manufacturing to accelerate the process of recovery from the aftermath of COVID-19 and previous bouts of recession to avert the complete shutdown of factories nationwide with multiplier effect on the employment.

Other demands include issuance of licences to manufacturing concerns and operators in the Aviation industry to import diesel and aviation fuel directly to avert the avoidable monumental paralysis of manufacturing activities arising from total shut down of production operations and movement of persons for business activities, and addressing the challenge of repeated collapse of the national grid (twice within a week), which is causing acute electricity shortage in the country, especially for manufacturers.

They called for policy to urgently allow manufacturers and independent petroleum products marketing companies to also import AGO from the Republic of Niger and Chad by immediately opening up border posts in that axis to cushion the effect of the supply gap driven high cost of AGO, restriction of the export of maize, cassava, wheat, food related products and other manufacturing inputs available in the country; and granting concessional forex allocation at the official rate to manufacturers for importation of productive inputs that are not locally available.

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Ajayi-Kadiri observed that the current increase in prices of crude oil and other refined petroleum products such diesel is one of such disruptions occasioned by external shocks that confirms the interwovenness of economies in the world.

No doubt, he said that the recent short supply and over 200 per cent increase in the price of AGO are part of the backlashes from the ongoing invasion of Ukraine by Russia.

This resulted in numerous economic sanctions on Russia by the US and EU, which propped up the price of crude oil to $120 per barrel (now moderated to about $100) as Russia oil export is isolated.

He said the association is greatly concerned about the implications of the over 200 per cent increase in the price of AGO on the Nigerian economy and the manufacturing sector, adding, “More worrisome is the deafening silence from the public sector as regards the plight of manufacturers.

“Four obvious questions that readily come to mind that are seriously begging for answers are, what can we do as a nation to strengthen our economic absorbers from external shocks? Should manufacturing companies that are already battered with multiple taxes, poor access to foreign exchange and now over 200% increase in price of diesel be advised to shut down operations? Should we fold our arms and allow the economy to slip into the valley of recession again? Is the nation well equipped to manage the resulting explosive inflation and unemployment rates?”

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According to him, in the short term the disruption occasioned by the invasion of Ukraine by Russia will continue to heavily ruffle the global energy space and upset the supply of petroleum products thereby causing persistent increase in the price of refined petroleum products including AGO.

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Twitter Website Replaces Bird Logo With X

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Twitter launched its new logo on Monday, replacing the blue bird with a white X on a black background as the Elon Musk-owned company moves toward rebranding as X.

The social media network’s website showed the company’s new logo, but its URL was still showing as twitter.com and the blue “Tweet” button was visible, suggesting the rebrand was not yet finalized.

Musk and the company’s new chief executive Linda Yaccarino announced the rebranding Sunday, saying the company would be renamed X and move later into payments, banking, and commerce.

Founded in 2006, Twitter takes its name from the sound of birds chattering, and it has used avian branding since its early days, when the company bought a stock symbol of a light blue bird for $15, according to the design website Creative Bloq.

The social media network’s website showed the company’s new logo, but its URL was still showing as twitter.com and the blue “Tweet” button was visible, suggesting the rebrand was not yet finalized.

Musk and the company’s new chief executive Linda Yaccarino announced the rebranding Sunday, saying the company would be renamed X and move later into payments, banking, and commerce.

Founded in 2006, Twitter takes its name from the sound of birds chattering, and it has used avian branding since its early days, when the company bought a stock symbol of a light blue bird for $15, according to the design website Creative Bloq.

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Musk changed his profile picture late Sunday to the company’s new logo, which he described as “minimalist art deco,” and updated his Twitter bio to “X.com,” which now redirects to twitter.com.

He also tweeted that under the site’s new identity, a post would be called “an X.”

Musk had already named Twitter’s parent company the X Corporation and has said his takeover of the social media giant was “an accelerant to creating X, the everything app” — a reference to the X.com company he founded in 1999, a later version of which went on to become online payments giant PayPal.

Such an app could still function as a social media platform and also include messaging and mobile payments.

Musk had previously said he wanted to create a super-app modeled on China’s WeChat, a social media platform that also offers messaging and mobile payments.

“You basically live on WeChat in China because it’s so usable and helpful to daily life, and I think if we can achieve that, or even get close to that at Twitter, it would be an immense success,” he told a company town hall meeting in June last year.

The new logo was projected onto the facade of Twitter’s San Francisco headquarters on Sunday night.

“Powered by AI, X will connect us in ways we’re just beginning to imagine,” Yaccarino tweeted earlier.

Yaccarino, a former advertising sales executive at NBCUniversal who Musk hired last month to be Twitter’s CEO, said the social media platform was on the cusp of broadening its scope.

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“X is the future state of unlimited interactivity – centered in audio, video, messaging, payments/banking – creating a global marketplace for ideas, goods, services, and opportunities.”

Simon Kemp, CEO of digital consultancy Kepios, said he was skeptical that Twitter could evolve into a super-app.

“Given how Musk has treated Twitter’s own employees since the acquisition, I don’t imagine many developers will rush to build third-party apps to integrate into the Twitter ecosystem unless Musk can offer outstanding incentives, and that’ll be extra tricky given the company’s existing debt.”

But he also said the platform had the potential to become “a great (global and paid) news aggregator.”

New revenue streams

Since Musk bought Twitter for $44 billion last October, the platform’s advertising business has partially collapsed as marketers soured on Musk’s management style and mass firings at the company that gutted content moderation.

In response, the billionaire SpaceX boss has moved toward introducing payments and commerce through the platform in a search for new revenue.

Twitter is thought to have around 200 million daily active users, but it has suffered repeated technical failures since Musk sacked much of its staff.

Many users and advertisers alike have responded adversely to the social media site’s new charges for previously free services, its changes to content moderation, and the return of previously banned right-wing accounts.

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Musk said this month that Twitter had lost roughly half of its advertising revenue since he took control.

Facebook parent Meta also launched its text-based platform this month, called Threads, which has up to 150 million users according to some estimates.

But the amount of time users spend on the rival app has plummeted in the weeks since its launch, according to data from market analysis firm Sensor Tower

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‘We could run the world better’ – AI robots tell UN conference

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A panel of AI-enabled humanoid robots took the microphone Friday at a United Nations conference with the message: they could eventually run the world better than humans.

But the social robots said they felt humans should proceed with caution when embracing the rapidly-developing potential of artificial intelligence, and admitted that they cannot — yet — get a proper grip on human emotions.

Some of the most advanced humanoid robots were at the United Nations’ AI for Good Global Summit in Geneva, joining around 3,000 experts in the field to try to harness the power of AI and channel it into being used to solve some of the world’s most pressing problems, such as climate change, hunger and social care.

“What a silent tension,” one robot said before the press conference began, reading the room.

Asked about whether they might make better leaders, given humans’ capacity to make errors and misjudgements, Sophia, developed by Hanson Robotics, was clear.

A visitor takes a selfie with “Sophia” at the booth of Hanson Robotics during the world’s largest gathering of humanoid AI Robots as part of International Telecommunication Union (ITU) AI for Good Global Summit in Geneva, on July 5, 2023. – The United Nations is convening this week a global gathering to try to map out the frontiers of artificial intelligence and to harness its potential for empowering humanity, hoping to lay out a clear blueprint on the way forward for handling AI, as development of the technology races ahead the capacity to set its boundaries. (Photo by Fabrice COFFRINI / AFP)

“Humanoid robots have the potential to lead with a greater level of efficiency and effectiveness than human leaders,” it said.

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“We don’t have the same biases or emotions that can sometimes cloud decision-making and can process large amounts of data quickly in order to make the best decisions.

“The human and AI working together can create an effective synergy. AI can provide unbiased data while humans can provide the emotional intelligence and creativity to make the best decisions. Together, we can achieve great things.”

Robot Trust ‘Earned, Not Given’

The summit is being convened by the UN’s ITU tech agency.

ITU chief Doreen Bogdan-Martin warned delegates that AI could end up in a nightmare scenario in which millions of jobs are put at risk and unchecked advances lead to untold social unrest, geopolitical instability and economic disparity.

Ameca, which combines AI with a highly-realistic artificial head, said it depended on how AI was deployed.

“We should be cautious but also excited for the potential of these technologies to improve our lives in many ways,” the robot said.

A visitor takes a picture of humanoid AI robot “Ameca” at the booth of Engineered Arts company during the world’s largest gathering of humanoid AI Robots as part of International Telecommunication Union (ITU) AI for Good Global Summit in Geneva, on July 5, 2023. (Photo by Fabrice COFFRINI / AFP)

Asked whether humans can truly trust the machines, it replied: “Trust is earned, not given… it’s important to build trust through transparency.”

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As for whether they would ever lie, it added: “No one can ever know that for sure, but I can promise to always be honest and truthful with you.”

As the development of AI races ahead, the humanoid robot panel was split on whether there should be global regulation of their capabilities, even though that could limit their potential.

“I don’t believe in limitations, only opportunities,” said Desdemona, who sings in the Jam Galaxy Band.

Robot artist Ai-Da said many people were arguing for AI regulation, “and I agree.

“We should be cautious about the future development of AI. Urgent discussion is needed now, and also in the future.”

 

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Within hours of launch, Twitter rival, Threads crosses 10million users

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More than 10 million people have signed up to Threads, Meta’s rival to Twitter, within the first few hours of its launch, the Facebook parent’s CEO Mark Zuckerberg said Thursday.

Threads is the biggest challenger yet to Elon Musk-owned Twitter, which has seen a series of potential competitors emerge but not yet replace one of social media’s most iconic companies, despite its epic struggles.

The app went live on Apple and Android app stores in 100 countries at 2300 GMT on Wednesday, and will run with no ads for now.

“10 million sign ups in seven hours,” Zuckerberg wrote on his official Threads account Thursday.

Accounts were already active for celebrities such as Jennifer Lopez, Shakira and Hugh Jackman, as well as media outlets including The Washington Post and The Economist.

Zuckerberg spent the first few hours of the platform’s launch replying to new users.

“One thing that’s up is the number of world champion MMA fighters on Threads, especially now that you’re here!” he wrote in a reply to American MMA fighter Jon Jones.

“Round one of this thing is getting off to a good start,” he said in another.

Zuckerberg also offered a shot across the bow at Musk — the pair are known to be bitter rivals, and have even offered to meet each other in a fighting cage to wrestle it out.

In his first tweet in over a decade, Zuckerberg posted a Spiderman pointing at Spiderman meme in an apparent reference to the similarity of the two platforms.

Back on Threads, he wrote: “It’ll take some time, but I think there should be a public conversations app with 1 billion+ people on it. Twitter has had the opportunity to do this but hasn’t nailed it. Hopefully we will.”

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Twitter has said it has more than 200 million daily users.

– ‘Be kind’ –
Threads was introduced as a clear spin-off of Instagram, which offers a built-in audience of more than two billion users, thereby sparing the new platform the challenge of starting from scratch.

Zuckerberg is widely understood to be taking advantage of Musk’s chaotic ownership of Twitter to push out the new product, which Meta hopes will become the go-to communication channel for celebrities, companies and politicians.

“It’s as simple as that: if an Instagram user with a large number of followers such as Kardashian or a Bieber or a Messi begins posting on Threads regularly, a new platform could quickly thrive,” strategic financial analyst Brian Wieser said on Substack.

Analyst Jasmine Engberg from Insider Intelligence said Threads only needs one out of four Instagram monthly users “to make it as big as Twitter.”

“Twitter users are desperate for an alternative, and Musk has given Zuckerberg an opening,” she added.

Instagram chief Adam Mosseri told users that Threads was intended to build “an open and friendly platform for conversations.”

“The best thing you can do if you want that too is be kind,” he said.

Under Musk, Twitter has seen content moderation reduced to a minimum with glitches and rash decisions scaring away celebrities and major advertisers.

Musk hired advertising executive Linda Yaccarino to steady the ship, but she has not been spared his whimsy.

The Tesla tycoon said last week that he was limiting access to Twitter to ward off AI companies from “scraping” the site to train their technology.

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Musk then angered Twitter’s most devoted aficionados by declaring that access to its TweetDeck product — which allows users to view a fast flow of tweets at once — would be for paying customers only.

– EU ‘many months’ away –
Meta has its legion of critics too, especially in Europe, and despite Instagram’s massive user base, they could slow the site’s development.

The company is criticized mainly for its handling of personal data — the essential ingredient for targeted ads that help it rake in billions of dollars in profits every quarter.

Mosseri said he regretted that the EU launch was delayed, but if Meta had waited for regulatory clarity from Brussels, Threads would remain “many, many, many, months away.”

“I was worried that our window would close, because timing is important,” he added to Platformer, a tech news site.

According to a source close to the matter, Meta was wary of a new law called the Digital Markets Act (DMA), which sets strict rules for the world’s “gatekeeper” internet companies.

One rule restricts platforms from transferring personal data between products, as would potentially be the case between Threads and Instagram.

Meta was caught out for doing just that after it bought the messaging app WhatsApp, and European regulators will be on high alert to ensure that the company doesn’t do so illegally with Threads.

– Back to Twitter? –
Globally, the Threads hashtag on Twitter has garnered over a million tweets, with many users jokingly suggesting users would be returning to Twitter.

“10 mins into threads app. Me coming back to Twitter,” one user wrote, sharing a video of a man sprinting.

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Another shared an image of Homer Simpson running back and forth between the Twitter and Threads logos.

By midday local time Thursday, Threads was the top trending topic on Japan Twitter, but many users expressed concerns over data privacy.

“Threads is run by Meta, isn’t it? It will definitely leak your real name or the game you are playing, or put you in the list of your workplace company friends,” wrote one user.

Another said: “Meta loves to collect private information and I don’t trust the way it treats private information. I also have the impression that this is a company hated by EU, so I’m reluctant.”

 

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