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Volkswagen: address Uyghur forced labor, supply chain, Xinjiang Plant risk links to labor abuses—ECCHR

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Human Rights Watch and the European Center for Constitutional and Human Rights (ECCHR) has said that Volkswagen should inform shareholders at its May 29, 2024 annual general meeting how the company plans to eliminate Uyghur forced labor in its operations and supply chains saying that since 2017, the Chinese government has perpetrated crimes against humanity in the northwestern Xinjiang region and subjected Uyghurs and other Turkic communities to forced labor inside and outside the region. Aluminium and other key materials used in car manufacturing are produced in Xinjiang by companies with links to government forced labor programs. “Volkswagen’s ‘In China, for China’ strategy shouldn’t mean complicity in forced labor,” said Jim Workington, senior researcher and advocate for corporate accountability at Human Rights Watch. “Shareholders should call upon Volkswagen to ensure that it will apply robust measures to tackle Uyghur forced labor in its supply chains.”
Volkswagen, which manufactures cars in China through joint ventures with Chinese carmakers, is failing to adequately investigate potential links between its supply chains in China and forced labor. The company in 2023 also commissioned a deeply flawed audit at a plant in Xinjiang operated by a subsidiary of Volkswagen’s joint venture with SAIC, a Chinese state-owned carmaker. The Chinese government’s pervasive surveillance and repression in Xinjiang means audits cannot credibly verify whether the facilities in the region are free from forced labor. Volkswagen sells one in three of its cars in China. Volkswagen’s chief executive, Oliver Blume, on April 24 described China as the company’s “second home market.” Blume also announced the company’s updated “In China, for China” strategy, which includes expanded partnerships with Chinese car manufacturers, reduced manufacturing costs, and ambitious sales targets.
Volkswagen said in December 2023 that an audit overseen by Markus Löning, Germany’s former commissioner for human rights, found “no indications” of forced labor at the Xinjiang joint venture plant, which is used to road test cars assembled elsewhere in China. Löning conceded, however, that the basis for the audit had been a review of documentation rather than interviews with workers, which he said could be “dangerous.” He also said that “even if they [workers] would be aware of something, they cannot say that in an interview.” Following the release of the audit, the German newspaper Handelsblatt on February 14 alleged that a contractor of a SAIC-Volkswagen Xinjiang subsidiary had used Uyghur forced labor during the construction of a Xinjiang test track, which was completed in 2019. In response, Volkswagen said that the 2023 audit of the Xinjiang plant did not include the test track, but that “to date, we have had no indications of human rights violations in connection with the test site.”
Volkswagen also said in February that it is “currently in talks with the non-controlled joint venture SAIC-Volkswagen regarding the future direction of the JVs [joint ventures] business activities in Xinjiang Province. Various scenarios are currently being examined intensively.” Shareholders should ask Volkswagen about the outcome of those discussions and push for the company to end its joint venture operations in Xinjiang. The production of key materials for car manufacturing in Xinjiang also creates a risk that Volkswagen is sourcing products or materials linked to forced labor, both in factories across China and globally. Nearly 10 percent of the world’s aluminum, for example, is produced in Xinjiang before being shipped out, melted down, and made into products and parts used by car manufacturers and other industries. Aluminum producers in Xinjiang, and in the coal mines and coal plants that supply them, have participated in coercive labour transfer, a form of state-imposed forced labor. In June 2023, ECCHR filed a complaint with the Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle, BAFA), the German government authority overseeing the country’s Supply Chain Act. The complaint contends that Volkswagen, BMW, and Mercedes-Benz are violating their obligations under the law by failing to adopt appropriate measures to identify and prevent the risks of state-imposed forced labor in their supply chains. The BAFA has not yet responded publicly to the complaint.
Volkswagen in January told United States customs officials that a small electronic part was produced by a sub-supplier listed by US authorities in December 2023 as linked to Uyghur forced labor. US customs officials impounded vehicles containing the part while Volkswagen replaced it. Human Rights Watch asked Volkswagen on May 22 whether it has removed the part in vehicles sold outside the US but did not receive a response. A US Senate Finance Committee report in May found that Volkswagen had previously investigated the sub-supplier in 2020 and 2022 but found no connections to its supply chain. Volkswagen is applying inadequate oversight to the supply chains of its Chinese joint ventures, such as SAIC-VW, which primarily manufacture cars for sale in China, the organizations said. Volkswagen contends that, under Germany’s supply chain law, it is not legally required to address human rights impacts in SAIC-VW’s supply chain because its joint venture agreement cedes operational control to SAIC.

Volkswagen in November 2023 told Human Rights Watch that the company “assumes responsibility … to use its leverage over its Chinese joint ventures to address the risk of human rights abuses.” But when asked about potential links between SAIC-Volkswagen and an aluminum producer in Xinjiang, Volkswagen responded: “We have no transparency about the supplier relationships of the non-controlled shareholding SAIC-Volkswagen.” Volkswagen’s updated China strategy continues to rely on joint ventures and includes partnerships with SAIC and Chinese electric carmaker XPENG. ECCHR’s complaint said that cars manufactured by joint ventures should be considered as being part of Volkswagen’s supply chain, and therefore fall within the scope of its due diligence obligation under the German Supply Chain Act. Human Rights Watch asked Volkswagen on May 22 what steps it will take to ensure that strong human rights and responsible-sourcing standards apply to all current and future joint venture operations in China, but did not receive a reply. “Volkswagen can’t simply wash its hands of responsibility for its Chinese joint ventures in full knowledge of the risks of forced labor,” said Chloé Bailey, senior legal advisor at ECCHR. “Shareholders should ask Volkswagen how it is responding to increased scrutiny over its operations in China and what steps it is taking to comply with its obligations under the German Supply Chain Act.”

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FG earned N2.78trn from Company Income Tax in second quarter 2025—NBS

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1 week ago

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November 28, 2025

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National Bureau of Statistics has said that Nigeria’s Company Income Tax rose sharply in the second quarter of 2025, hitting N2.78 trillion.

The figure represents a significant 40.27 per cent increase compared to the N1.98 trillion recorded in the first quarter of the year, reflecting both improved tax compliance and stronger corporate performance across key economic sectors.

The NBS report said that domestic company income tax payments accounted for the bulk of the revenue, contributing N2.31 trillion, while offshore collections stood at N469.36 billion during the period under review.

According to the NBS, the financial and insurance sector recorded the highest quarter-on-quarter growth, rising by an astonishing 772.29 per cent, driven by improved profitability among banks, fintechs, and insurance firms following robust half-year earnings.

This, according to NBS, was followed by wholesale and retail trade, as well as motor vehicle repair activities, which grew by 538.38%.

Activities of households as employers also surged by 526.79%, although their overall contribution to total company income tax remained negligible.

On the flip side, some sectors experienced sharp declines in company income tax remittances.

Activities of extraterritorial organizations and bodies dropped by –45.01%, while education, public administration, defence, and compulsory social security recorded declines of –26.61% and –18.17% respectively.

The contraction in these sectors, particularly education and public administration, highlights persistent structural and fiscal challenges confronting government-funded institutions.

In terms of contribution to total tax revenue, financial and insurance activities led with a dominant 44.13%, reflecting the sector’s continuing expansion and strong capital flows.

Manufacturing followed with 15.57%, bolstered by increased production output and improved supply chain activity.

Mining and quarrying ranked third, contributing 9.18%, supported by higher commodity prices and renewed interest in solid mineral development.

At the bottom of the contribution chart were activities of households as employers, which accounted for just 0.01%, as well as activities of extraterritorial organizations and bodies, and water supply, sewerage, waste management, and remediation services, each contributing 0.04%. Despite economic headwinds, year-on-year company income tax collection still rose by 12.66% when compared to Q2 2024, underscoring moderate but steady improvement in government revenue mobilisation.

Company income tax collection in the same period of 2024 rose by 150.83 per cent N2.47 trillion. In the first three months of the year, company income tax collection stood at N984.61 billion. According to the report, local payments in the period under review amounted to N1.35 trillion, while foreign CIT payments contributed N1.12 trillion. On a quarter-on-quarter basis, the agriculture, forestry, and fishing sectors exhibited the highest growth rate at 474.50%, followed by financial and insurance activities at 429.76%, and manufacturing at 414.15%.

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Lagos govt promises MSMEs continued visibility, market access

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3 weeks ago

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November 16, 2025

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Lagos State government has reaffirmed its unwavering commitment to supporting micro, small, and medium enterprises (MSMEs) across the state through visibility, capacity building, and market access. Commissioner for Commerce, Cooperatives, Trade, and Investment, Folashade Ambrose-Medebem, made the pledge on Sunday at the closing ceremony of the 2025 Lagos International Trade Fair (LITF). The 38th edition of the event, organised by the Lagos Chamber of Commerce and Industry (LCCI), had its theme as “Connecting Business, Creating Value.”

Ms Ambrose-Medebem said every entrepreneur, regardless of scale, deserves an enabling environment to thrive and contribute meaningfully to the state’s economic prosperity. She said the state, through strategic investments in infrastructure, institutional reforms, and continuous engagement with the private sector, was building a Lagos that worked for business. The commissioner added that the state would continue to foster innovation, competitiveness, and sustainability.

“As a government, we remain steadfast in our commitment to making Lagos the preferred destination for commerce and enterprise. This fair has once again demonstrated the power of connection: connection between producers and consumers, investors and innovators, the government and the private sector, and local entrepreneurs and global brands. Every handshake, every conversation, every business card exchanged here is a building block toward the future we are creating, a future of prosperity that leaves no one behind,” she said.

The commissioner urged businesses to continue to connect, collaborate, and create value, saying, “In Lagos, we do not just trade goods; we trade ideas, build futures, and transform lives. “Together, let us continue to make Lagos not just a place of commerce, but a symbol of progress, innovation, and endless opportunity.” Gabriel Idahosa, president of LCCI, urged governments at all levels to continue addressing the issues of creating an enabling environment in the country.Mr Idahosa said focus should be on infrastructure, security, and implementing the right policies to address the key drivers of high inflation.

This, he said, was needed to fully harness the vast enterprising resources of domestic and foreign investors for the diversification of our economy and the welfare of our people. He pledged the commitment of the organised private sector to stand solidly behind the state in its quest to actualise its innovative initiatives on all fronts. NAN

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Jumia posts $17.7m pre-tax loss in Q3, down 1% in 12 Months

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3 weeks ago

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November 12, 2025

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Jumia Technologies AG posts a $17.7 million loss before income tax in the third quarter of 2025, down 1% year-on-year from $17.8 million in the third quarter of 2024. The road to profitability has remained long as ecommerce continues to face uncertainties, including widening competition with rivals in the same industry. The e-commerce company revenue came in at $45.6 million compared to $36.4 million in the third quarter of 2024, representing a 25% year-over-year surge in the period. The company reported gross merchandise value of $197.2 million compared to $162.9 million in the third quarter of 2024, up 21% year-over-year. Excluding South Africa and Tunisia, physical goods GMV grew 26% year-over-year, Jumia revealed in the unaudited financials.

Jumia said in its report that the GMV growth was driven by supply and strong marketing execution, partially offset by lower corporate sales in Egypt. Excluding corporate sales, GMV in reported currency grew 37% year-over-year. Nigeria’s momentum accelerated, with order growth up 30% and GMV up 43% year-over-year, Jumia said. The e-commerce giant’s operating loss reduced by 13% year-over-year to $17.4 million compared to $20.1 million in the third quarter of 2024. The company’s adjusted earnings before interest tax depreciation and amortisation loss dropped by 17% to $14.0 million compared to $17.0 million in the third quarter of 2024.

Jumia reported a loss before income tax of $17.7 million, a slight reduction of 1% compared to $17.8 million in the third quarter of 2024. Liquidity printed at $82.5 million, a decrease of $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included the net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.

Its net cash flow used in operating activities settled at $12.4 million compared to net cash flow used in operating activities of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million.

Jumia reported that customers’ orders grew 34% year-over-year, driven by strong execution, enhanced product assortment, and healthy consumer demand across key categories. It said quarterly active customers ordering physical goods grew by 23% year-over-year, highlighting continued engagement and customer loyalty. As of September 30, 2025, the Company’s liquidity position was $82.5 million, comprised of $81.5 million in cash and cash equivalents and $1.0 million in term deposits and other financial assets, it said in the report Jumia’s liquidity position decreased by $15.8 million in the third quarter of 2025, compared to an increase of $71.8 million in the third quarter of 2024, which included net proceeds from the August 2024 At-the-Market (ATM) offering, and a decrease of $12.4 million in the second quarter of 2025.

Net cash used in operating activities was $12.4 million in the third quarter of 2025, compared to a net cash used of $26.8 million in the third quarter of 2024 and $12.7 million used in the second quarter of 2025. The result includes a positive working capital contribution of $0.4 million in the third quarter of 2025, compared to a negative working capital contribution of $9.1 million in the third quarter of 2024, primarily reflecting improvements in operating performance.

 In addition, the Company reported $1.4 million in capital expenditures in the third quarter of 2025, compared to $0.9 million in the third quarter of 2024, primarily reflecting investments in infrastructure and facility enhancements to support business growth. “This quarter marks a significant acceleration in customer demand and order growth, driven by strong execution across our markets and growing consumer trust in the Jumia brand. We believe Jumia has reached an inflection point as our compelling value proposition, and improved operational discipline position us for sustainable, profitable growth.

“We continue to strengthen our cost structure and sharpen operational discipline, reinforcing our path toward profitability. Our focus remains on execution and customer engagement as we build a more efficient business.
“We believe that we are on track to reach breakeven on a Loss before Income tax basis in Q4 2026 and achieve full-year profitability in 2027, positioning Jumia for long-term growth and value creation.”

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