He is amazing and a zen-master on crafting winning business strategies. Join us at Tekedia Mini-MBA as our Faculty, Eromosele Omomhenle, educates on Business Strategy $ Execution this afternoon.

Thur, Sept 26 | 7pm-8pm WAT | Business Strategy & Execution – Eromosele Omomhenle, Microsoft

Tekedia Institute congratulates our Faculty again for his amazing elevation at Microsoft global headquarters in Redmond, USA. We admire your brilliance and rejoice on the wins. And we thank you for this community service, helping young people to deepen their managerial capabilities.

Tekedia Institute – our product is Knowledge.

In a determined move to tackle Nigeria’s ongoing cash circulation challenges, the Central Bank of Nigeria (CBN) has announced stringent measures against banks that fail to dispense cash through their automated teller machines (ATMs).

CBN Governor Yemi Cardoso made this declaration at the end of the 297th Monetary Policy Committee (MPC) meeting in Abuja, signaling a crackdown on banks that neglect to ensure sufficient cash availability for withdrawals.

Cardoso highlighted that the central bank had developed a robust monitoring system to ensure that banks comply with the directive. He stressed that banks must ensure their ATMs are fully stocked, warning that non-compliance would attract penalties.

“We ourselves have devised a monitoring system, a spot-checking system, whereby we will go to the banks and just ensure that these things are done in the way and manner in which they are meant to be done,” Cardoso said during the briefing.

The CBN’s monitoring system will involve surprise inspections and audits of banks’ ATM operations. Any bank found to be underperforming in terms of cash availability will face financial penalties and other regulatory actions. This aggressive stance reflects the CBN’s growing concern about the detrimental impact cash shortages have on the economy.

Cardoso expressed confidence that the sanctions would motivate banks to take necessary steps to ensure cash is readily available.

“There is no excuse for not having sufficient cash in the system,” he emphasized. “At all points in time, there should be sufficient cash in their system that nobody should go there without being able to withdraw.”

A PoS Problem?

While the CBN’s efforts appear focused on compelling banks to meet customer demands, experts are skeptical about the effectiveness of this strategy, pointing out that the lack of funds in ATMs is not just a result of poor cash management by banks. A major cause, they argue, is the growing Point of Sale (PoS) market, which has contributed significantly to cash hoarding in recent years.

Over the past few years, PoS services have evolved from a supplementary financial service to an essential cash withdrawal and payment system for many Nigerians, especially in rural and underserved areas. PoS operators now serve as mini-banks, allowing customers to withdraw cash, make transfers, and even pay bills.

According to data from the Nigeria Inter-Bank Settlement System (NIBSS), PoS transactions grew from N3.2 trillion in 2021 to N6.4 trillion by the end of 2022.

However, this convenience has inadvertently created a parallel market for cash, where operators hoard significant amounts of money to meet customer demands, enabling the cash crunch at bank ATMs.

The issue is so pronounced that many PoS operators have become major players in the cash ecosystem, often withdrawing large sums of money directly from banks, only to withhold it to control supply and increase demand.

With daily withdrawal limits imposed on ATMs, customers increasingly turn to PoS operators to meet their cash needs, but these operators charge premiums for their services. As a result, a significant portion of the cash that could otherwise be available in ATMs is circulating within the PoS network, leading to even fewer funds in bank machines.

According to industry observers, the explosive growth of the PoS market has outpaced regulatory oversight, allowing some operators to circumvent banking norms.

N1.4 Trillion to Boost Cash Flow in Three Months

In a bid to mitigate cash shortages, the CBN plans to inject an additional N1.4 trillion into the economy over the next three months. This move is expected to alleviate the cash flow issues that have plagued customers and disrupted financial transactions across the country.

The fresh infusion of cash is part of the CBN’s broader strategy to stabilize the cash supply chain, ensuring that ATMs are consistently stocked and that bank branches can meet customer demands for withdrawals.

Cardoso noted, “Another N1.4 trillion is likely to be delivered in another three months to aid that whole process of cash within the system and cash velocity.” This substantial cash infusion is intended to ensure that ATMs are consistently stocked and that bank branches can meet customer demands for withdrawals.

The CBN’s intervention comes as a response to widespread frustration among Nigerians, who have faced persistent difficulties accessing cash due to ATM downtimes and limited bank branch operations. Cardoso made it clear that the central bank is working closely with deposit money banks to enforce the proper deployment of cash, ensuring that no customer is turned away without being able to withdraw funds.

The CBN has adopted an aggressive stance on cash availability, coinciding with a notable reduction in the amount of currency outside the banking system. As of July 2024, the currency outside banks decreased to N3.66 trillion, reflecting a 3.32% drop from N3.79 trillion in the previous month. This trend underscores the CBN’s ongoing efforts to tighten liquidity and encourage the flow of funds into the formal banking sector.

But despite the reduction in cash outside banks, the overall currency in circulation saw a slight increase, rising from N4.05 trillion in June to a similar figure in July—an increment of just 0.12%. This minimal growth suggests a possible stabilization in cash usage, likely driven by the increased adoption of digital transactions and regulatory efforts to control the flow of physical cash.

The percentage of cash outside banks, which now accounts for 90.39% of the total currency in circulation—down from 93.59% the previous month—signals a gradual shift towards formal banking. This shift suggests that the CBN’s strategies to move more money into the formal sector are beginning to take effect, although challenges remain in ensuring adequate cash availability for daily transactions.

While the CBN’s decision to sanction banks is a step towards addressing Nigeria’s cash circulation problems, the challenge remains. Experts have warned that without addressing the behavior of PoS operators, who hoard and control large sums of cash, the efforts to improve ATM availability may fall short. This means the injection of N1.4 trillion into the economy may provide temporary relief, but structural reforms and better regulation of PoS operations are crucial for long-term stability.

As artificial intelligence (AI) continues to make significant strides, there has been widespread concern about its potential to replace human jobs, particularly in creative and technical fields.

Artists and programmers, in particular, have voiced fears that AI could eventually take over their roles, leaving them redundant. However, Sundar Pichai, CEO of Google and its parent company Alphabet, offers a more optimistic outlook on the future of AI in programming. Rather than replacing programmers, Pichai believes that AI will act as a powerful tool that enhances human capabilities and lowers the barriers to entry for new coders.

During a recent speech at Carnegie Mellon University’s Pittsburgh campus reported by Wccftech, Pichai shared his views on AI’s evolving role in the programming landscape. Addressing concerns about AI taking over jobs, he explained that the technology is more likely to assist programmers rather than replace them. According to Pichai, AI can take over repetitive and time-consuming tasks, allowing developers to focus on more complex and creative aspects of their work.

“…the most likely scenario in all of these things is, it will help people. It’ll both help existing programmers do their jobs, where most of their energy and time is going into, you know, higher aspects of the task. Rather than, you know, fixing a bug over and over again or something like that, right,” Pichai explained.

This perspective suggests that AI will act as an advanced tool that enhances productivity and efficiency, enabling programmers to devote their skills to more innovative work rather than mundane tasks.

One of the most compelling points Pichai raised during his speech is the potential for AI to democratize programming. He highlighted how AI is lowering the barriers to entry for aspiring coders by allowing them to interact with programming languages in more intuitive and accessible ways. With AI tools, programming can become more like a creative endeavor, making it easier for people without a traditional technical background to enter the field.

“It is just lowering the barriers for who can program, right, like how can you, more, in a natural language medium, interact. So, programming becomes more like a creative tool. I think that’s gonna enable and make it accessible to more people,” Pichai added.

This shift could lead to a broader and more diverse community of programmers, as individuals from various disciplines can leverage AI to engage in coding without the steep learning curve traditionally associated with software development.

AI Tools Already Empowering Programmers

The transformative impact of AI on programming is not just theoretical—it’s already happening. Numerous AI-powered coding tools are available, empowering both new and experienced programmers to enhance their skills and productivity.

For instance, Nvidia has recently released a new coding language model (LLM) that can run on personal GPUs, providing real-time coding assistance that can help developers debug, optimize, and write code more efficiently. This tool represents just one of the many AI-driven solutions that are reshaping how coding is done, making it more accessible and less daunting for beginners.

AI-powered coding assistants like GitHub Copilot, powered by OpenAI’s Codex, have also gained popularity among developers. These tools provide real-time code suggestions, help resolve errors, and even generate entire code blocks based on brief descriptions. They are designed to complement human skills rather than replace them, allowing programmers to tackle more sophisticated challenges and streamline their workflow.

The Future of Programming with AI

While fears of job displacement remain prevalent, the consensus among industry leaders like Sundar Pichai is that AI’s role will be fundamentally collaborative. Besides allowing developers to redirect their efforts toward higher-level problem-solving and innovation by automating repetitive coding tasks, AI tools are also becoming more user-friendly, making programming accessible to a wider audience than ever before, as they become more advanced.

As AI continues to evolve, the focus should shift from viewing it as a competitor to recognizing its potential as a partner in the creative and technical process.

Pichai’s optimistic view reflects a growing understanding within the tech industry: AI is not an existential threat to programmers, but rather a powerful tool that can drive innovation and expand opportunities.

In the shadow of the fallen FTX empire, a new chapter unfolded on Tuesday as Caroline Ellison, the former CEO of Alameda Research, was sentenced to 24 months in prison. The court’s decision marked the culmination of her involvement in what has been dubbed one of the largest financial frauds in modern history, spearheaded by her former boss and boyfriend, Sam Bankman-Fried.

Ellison’s journey, from a seemingly unassuming CEO to a key player in the collapse of FTX, offers one of the best interesting twists of the the crypto company’s implosion.

Ellison’s voice trembled as she stood before U.S. District Judge Lewis Kaplan. Addressing the courtroom, she took full responsibility for her role in FTX’s catastrophic collapse.

“I participated in a criminal conspiracy that ultimately stole billions of dollars from people who entrusted their money with us,” she said, her voice barely audible as she fought back tears. “Not a day goes by that I don’t think about all the people I hurt.”

Her words were not just a plea for leniency but a window into a woman who had come to terms with the enormity of her actions.

“The human brain is truly bad at understanding big numbers,” she added as if grappling with the staggering loss that her actions had contributed to.

Despite her emotional display, Judge Kaplan remained measured in his response. While acknowledging her genuine remorse and extensive cooperation with authorities, he made it clear that “no one gets a get-out-of-jail-free card.” For Ellison, that meant two years in prison and the forfeiture of a mind-boggling $11 billion. Yet, compared to the potential 110 years she had faced, it was a lenient sentence, one that reflected her pivotal role in bringing Bankman-Fried to justice.

The Government’s Star Witness

Ellison’s transformation from an accomplice to a whistleblower was crucial to the rapid conviction of Bankman-Fried. As Assistant U.S. Attorney Danielle Sassoon explained, Ellison’s testimony was invaluable.

“It was important for the court to distinguish between the mastermind and the willing accomplice,” Sassoon remarked, noting that while Bankman-Fried was the architect of FTX’s downfall, Ellison was the bridge between the firm’s lies and the government’s pursuit of truth.

Her cooperation was described as nothing short of extraordinary. Prosecutors met with her over 20 times, combing through documents and piecing together the financial labyrinth that Bankman-Fried had created. Without her, understanding the complex and deliberately cryptic records of Alameda Research would have been nearly impossible. It was Ellison who, with a level of detail unmatched by any other witness, laid bare the methods by which Bankman-Fried had siphoned billions from unsuspecting investors.

Judge Kaplan, impressed by her willingness to provide such substantial assistance, remarked, “I’ve seen a lot of cooperators in 30 years. I’ve never seen one quite like Ms. Ellison.”

The Fallout

Though Ellison’s testimony was instrumental in convicting Bankman-Fried, it came at a great personal cost. For months, she lived in a state of near-constant anxiety, wary of public outings due to the relentless harassment from online trolls. Her name had become synonymous with scandal, and the internet did not forgive easily. Her family, too, bore the brunt of the fallout, facing threats and invasions of privacy that further isolated Ellison from the world she once knew.

Professionally, her prospects were equally grim. Barred from the cryptocurrency and finance sectors, banned from running public companies, and financially ruined by the forfeiture of her wealth, Ellison is now a pariah in the very industries where she once thrived.

Yet, despite the steep personal costs, Ellison never wavered in her resolve to make amends. She expressed a profound sense of guilt not just for the financial damage but for the emotional toll on the many employees and investors who had trusted her and FTX.

“I regret my role deeply and will carry shame and remorse to my grave,” she said, her voice heavy with the weight of her actions.

A Distorted Moral Compass

In her testimony, Ellison admitted that her moral judgment had been clouded by her desire for Bankman-Fried’s approval. She knew the risks and consequences of misusing customer funds, yet she followed orders, drawn deeper into the web of deceit. Her sentencing memo described how she had been swept up in Bankman-Fried’s outsize appetite for risk and his insatiable thirst for power, which ultimately eroded her sense of right and wrong.

Despite her regrets, Ellison’s legacy is now irrevocably linked to one of the largest financial frauds in history. However, it’s worth noting that while Bankman-Fried lived lavishly off the stolen funds, Ellison did not. Her most significant purchase was a $10 million stake in the AI company Anthropic, the profits of which will now be used to repay FTX debtors.

A Lesson in Accountability

As the gavel fell on Ellison’s sentencing, it was clear that the case against FTX and its key players was far from over. Other conspirators, including former FTX engineering head Nishad Singh and co-founder Gary Wang, are set to be sentenced soon. Both, like Ellison, have cooperated with the government’s investigation and are expected to serve time.

Bankman-Fried, the mastermind behind the collapse, has begun the process of appealing his conviction, though experts doubt his chances. Ellison’s testimony was damning, repeatedly emphasizing that she had warned Bankman-Fried about the dangers of misusing customer funds. Her testimony, backed by a mountain of evidence, painted a vivid picture of a man who knew exactly what he was doing and had no qualms about the risks he imposed on others.

For Ellison, the sentencing marks the end of one chapter and the beginning of a new, uncertain future. Her once-promising career in finance is over, her wealth gone, and her reputation forever tarnished. But in the courtroom, amid the tears and the weight of remorse, there was a faint glimmer of redemption.

In helping to bring down the very empire she once helped build, Ellison has, in some ways, already begun to atone for her actions. Whether that redemption is enough to heal the wounds left in FTX’s wake is a question that only time can answer.