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Nigeria Makes A U-Turn, Reverses Policy Prohibiting Under 18 from Taking SSCE

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The Nigerian government found itself caught in a storm of controversy following a statement made by the Minister of Education, Tahir Mamman, concerning age restrictions for students sitting the Senior School Certificate Examination (SSCE). What started as an attempt to streamline educational standards quickly snowballed into public outrage, prompting the government to backtrack on its earlier position.

It all began when Mamman, during a television interview, announced that students below a certain age—specifically those younger than 18—would no longer be permitted to take crucial secondary school exit exams like WAEC and NECO. He argued that the 6:3:3:4 system of education, which mandates specific years in primary, junior, and senior secondary school, should culminate in students reaching at least 17 and a half years before they take the exams. According to him, this alignment was necessary to ensure that students followed the education system as designed.

However, this seemingly well-intentioned move immediately triggered a wave of backlash. Parents, educators, and even policymakers expressed discontent, accusing the government of imposing arbitrary restrictions on students’ academic progress. For many, the suggestion that underage students would be barred from taking SSCE exams felt like a blanket punishment that did not account for exceptional cases of gifted students or even for regional disparities in access to quality education.

Social media was ablaze with criticism. Parents of young, high-achieving students voiced their frustrations, worried that their children’s academic trajectories would be stunted. Educators also chimed in, pointing out that age was never a valid metric for gauging academic preparedness. Some critics went so far as to call the policy regressive, arguing that it would harm students more than help them.

In the midst of mounting opposition, many questioned how practical such a rule could be, especially, given a horde of challenges that Nigeria’s education sector is mired in. Nigeria’s education system is already plagued with challenges, including inconsistent access to quality education, overcrowded classrooms, and underfunded schools.

The Government’s U-Turn

Faced with widespread condemnation, the government was forced to take a step back. In a sharp reversal, the Minister of State for Education, Yusuf Sununu, addressed the growing concerns and clarified the government’s stance. He assured the public that no official age restriction had been placed on students taking the SSCE, directly contradicting the earlier comments made by Mamman.

Speaking at an event for International Literacy Day in Abuja, Sununu said that the earlier statement had been misinterpreted.

“Nobody said no child will write WAEC, NECO or any other examination unless at age 18. This is a misconception and misrepresentation of what we have said,” he declared.

He further explained that Mamman’s comments were meant to address the entry age for university admissions, not secondary school exit exams. The 18-year age limit, he clarified, referred to when students should be entering tertiary institutions, not when they should be taking their SSCE.

Despite the government’s reversal, the controversy left many wondering how such a drastic statement could have been made without considering the repercussions.

In an effort to calm the situation, Sununu also revealed that the Ministry of Education was working on creating a guideline to identify and accommodate exceptionally talented children who might be ready for university before the age of 18. This was an acknowledgment of the public’s concern that gifted students could be unfairly blocked from advancing due to rigid policies.

Sununu highlighted that while exceptions could be made for students with extraordinary intellectual capabilities, such cases would be rare and handled on a case-by-case basis.

“We have agreed that we are going to consider it as a work-in-progress. The National Assembly is working and we are also working.

“It was shocking to say that a university in this country gave admission to children at ages 10, 11, and 12 years. This is totally wrong.

“We are not saying there are no exceptions,” he noted, “but there must be a rule.”

Although the government’s reversal was quick, the entire episode has raised deeper questions about the state of Nigeria’s education policy. The backlash itself illustrated just how sensitive the topic of education is in a country where millions of young people are eager to excel but are often held back by systemic challenges. The hasty retraction of the age limit also signaled that education policies in Nigeria are still subject to public sentiment, especially when they appear not aligned with global best practices.

Changpeng Zhao faces a Lifetime Ban from Managing Binance

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Changpeng Zhao, commonly known as “CZ,” the founder and former CEO of Binance, has been given a lifetime ban from managing the cryptocurrency exchange. This development follows a series of legal challenges and regulatory scrutiny faced by Binance, one of the world’s largest cryptocurrency exchanges.

The ban comes as a result of a plea deal with US authorities, where Zhao pleaded guilty to one felony charge related to violations of the Bank Secrecy Act. As part of the settlement, Zhao agreed to step down as CEO and was replaced by Richard Teng. The plea deals also included Zhao paying $50 million to US regulators, although Binance’s case with the US Securities and Exchange Commission remains ongoing as of September 2024.

Changpeng Zhao has been a prominent figure in the cryptocurrency industry, leading Binance to the pinnacle of success. However, his journey took an unexpected turn when U.S. authorities charged him with multiple violations tied to the exchange’s operations. These included allegations of offering unregistered securities, market manipulation, and deficiencies in the platform’s anti-money laundering protocols.

Zhao’s ban is a significant event in the cryptocurrency world, as it underscores the increasing regulatory pressures on crypto exchanges and the importance of compliance with financial regulations. The lifetime ban prevents Zhao from resuming any leadership role at Binance, marking the end of an era for the exchange that he built into a crypto powerhouse.

Despite the ban, Zhao retains his status as the majority shareholder of Binance, which allows him to retain some influence over the company’s direction. He can propose changes to management or appoint new board members, although he is barred from running the organization as a CEO. In November 2023, Zhao stepped down as CEO of Binance as part of a plea deal with the U.S. Department of Justice. The agreement required his permanent removal from the “management or operations” of the company, effectively ending his role in the day-to-day running of Binance.

One of the most notable legal challenges for Binance was the guilty plea to federal charges, which resulted in a resolution of over $4 billion. This settlement addressed violations related to the Bank Secrecy Act, failure to register as a money transmitting business, and the International Emergency Economic Powers Act.

Furthermore, Binance agreed to a complete exit from the U.S. market, paying billions in fines to the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC). This decision was part of a settlement that also included the appointment of a monitor to oversee the exchange’s compliance with sanctions for a period of five years.

The Securities and Exchange Commission (SEC) has also brought forth allegations against Binance, accusing the platform of artificially inflating trading volumes and engaging in deceptive practices. Additionally, the Commodity Futures Trading Commission (CFTC) sought to ban Binance for operating illegally in the U.S. and failing to register properly with authorities.

These legal challenges highlight the importance of compliance with international financial laws and regulations, especially for companies operating within the rapidly evolving cryptocurrency market. As the industry continues to mature, it is likely that regulatory scrutiny will increase, necessitating a greater focus on legal and operational structures within crypto enterprises.

As Poverty Scales, Our Leaders Must Lead To Inspire Nigerians To Overcome

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My best wishes to small businesses affected: “Nigeria’s economic headwinds have taken a severe toll on small businesses, with the Association of Small Business Owners of Nigeria (ASBON) sounding the alarm on the dire situation faced by entrepreneurs in the country. In an exclusive interview with SaharaReporters, ASBON’s National President, Mr. Femi Egbesola, painted a grim picture of the devastating effects of the economic policies implemented under former President Muhammadu Buhari and President Bola Tinubu’s administrations”

In the last 12 months, Nigeria has distorted all dimensions of market equilibrium, and in the process scaled poverty at an unprecedented level. I am waiting for the economists to document what has happened, making sure we can learn as a nation. We lost N1.7 trillion manufacturing revenue in 6 months, and took down thousands of companies.

Yet, Nigerians have shown resilience and can always rise to the challenges. I call the government to redouble its efforts to motivate and inspire the nation for greatness. There is a case study we can all learn from, and that goes back to the end of the Biafran war.

Ovim Community League (OCL) was conceived as a community development organization, to drive the development of Ovim after the war. They drew a roadmap to rebuild all schools, health centers, and the market.  Many communities replicated that model, and rebuilt one by one.

We are at a peace time and that means these current setbacks can be easily overcome. Indeed, our leaders must do the needful urgently. I wish the nation Good luck.

Eight Million Small Businesses Have Closed in Nigeria From Jan 2023 to June 2024 – ASBON

Bank of Canada cuts Policy Rate by 25 Basis Points

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The Bank of Canada’s recent move to cut the policy rate by 25 basis points marks a significant step in the country’s monetary policy amidst global economic shifts. This decision, the third consecutive cut this year, brings the policy rate down to 4.25%, reflecting the central bank’s response to the current economic landscape. This is particularly pertinent given the slight increase in economic growth in Canada during the second quarter, led by government spending and business investment, which was slightly stronger than forecasted in July.

The rationale behind the rate cut is multifaceted. Primarily, it aims to stimulate economic growth by making borrowing more affordable for consumers and businesses. Lower interest rates typically encourage spending and investment, which can help boost economic activity. On the other hand, it acknowledges the need to adapt to the softening labor market and the slower pace of economic activity observed in recent months.

Moreover, the global economy’s expansion by about 2.5% in the second quarter, consistent with projections in the Bank’s July Monetary Policy Report (MPR), has been a contributing factor. However, the labor market continues to show signs of slowing, with little change in employment in recent months, despite wage growth remaining elevated relative to productivity.

The implications of this rate cut are significant for both the financial sector and the average consumer. Following the Bank’s announcement, major financial institutions such as RBC Royal Bank have adjusted their prime rates accordingly, which is expected to influence the rates applied to mortgages and other loans.

Economists had widely anticipated this move, and it aligns with the Bank’s strategy to ensure price stability and support the Canadian economy. The Bank of Canada has indicated that future monetary policy decisions will be guided by incoming data and its implications for the inflation outlook. This suggests a cautious approach, with the Bank poised to respond proactively to both domestic and international economic developments.

For homeowners with existing variable-rate mortgages, this rate cut could translate into lower monthly payments. For example, on a $100,000 mortgage, a 25-basis-point reduction could mean about $15 less in monthly payments. Therefore, on a larger scale, a $600,000 mortgage could see monthly savings of approximately $90.

Prospective homebuyers may also find more favorable borrowing conditions as a result of the rate cut. Lower mortgage rates can increase affordability, allowing buyers to qualify for larger loans or reduce the cost of borrowing.

However, it’s important to note that fixed-rate mortgages, which are more influenced by the bond market, may not see immediate changes as a result of the policy rate cut. Fixed rates tend to respond more slowly to changes in the policy rate, and their movement is also dependent on other economic factors such as inflation and growth expectations.

As the Bank of Canada continues its policy of balance sheet normalization, it remains vigilant in its assessment of the global economy’s performance. Economic growth in the United States has exceeded expectations, primarily driven by consumer spending, while the Euro-area has benefited from a surge in tourism and services, despite a downturn in manufacturing. Meanwhile, China faces challenges with weak domestic demand impacting its economic growth.

In Canada, the economy exhibited a growth of 2.1% in the second quarter, spurred by government spending and business investment. However, preliminary indicators suggest a softening of economic activity, which has been a contributing factor to the Bank’s decision to lower the policy rate. The Bank of Canada’s next scheduled interest rate announcement is set for October 23, 2024, when it will also publish its full outlook for the economy and inflation in its Monetary Policy Report.

Eight Million Small Businesses Have Closed in Nigeria From Jan 2023 to June 2024 – ASBON

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Nigeria’s economic headwinds have taken a severe toll on small businesses, with the Association of Small Business Owners of Nigeria (ASBON) sounding the alarm on the dire situation faced by entrepreneurs in the country.

In an exclusive interview with SaharaReporters, ASBON’s National President, Mr. Femi Egbesola, painted a grim picture of the devastating effects of the economic policies implemented under former President Muhammadu Buhari and President Bola Tinubu’s administrations.

Egbesola revealed that from January 2023 to June 2024, a staggering 20% of businesses in Nigeria were forced to shut down, a development he attributes to the harsh economic policies that have compounded challenges for small businesses. With Nigeria having an estimated 40 million small businesses, the closure of 20% amounts to approximately 8 million businesses ceasing operations during this period.

The human cost of these shutdowns is even more alarming, as Egbesola explained that many business owners have succumbed to the pressure of failing enterprises and unmet loan obligations.

“Many persons have died from shutting their businesses,” Egbesola stated. “Some could not fulfil their loan obligations, so they died from the pressure. Others are in the hospital as of now.”

The economic crisis gripping Nigeria has not only forced businesses to close but also led to mass downsizing in those still operational. Egbesola’s personal experience underscores the scale of the problem.

“I used to have 52 workers but now I have only 14,” he shared, highlighting how widespread downsizing has become due to the economic hardship. This contraction of the workforce adds to the unemployment crisis, further destabilizing the country’s economic fabric.

Egbesola emphasized the role that small businesses play in Nigeria’s economy, stating that they account for 86% of the country’s workforce. With small-scale businesses being the highest employers of labor, the ongoing closures present a significant threat to the livelihoods of millions of Nigerians. He urged the government to declare a state of emergency on the economy to prevent further damage.

“A state of economy should be declared as we are the highest employer of labour,” Egbesola urged. “You can imagine what happens when small businesses cannot survive.”

The broader economic climate in Nigeria has been deteriorating, with inflation continuing to rise and further straining the financial health of both businesses and consumers. The hike in petrol prices, which have reached as high as N1,200 per liter in some parts of the country, has compounded the cost of living and doing business, particularly affecting sectors reliant on transportation and energy.

Small business owners in Nigeria have long been at the mercy of economic instability, and the situation has only worsened in recent years. Under the Buhari administration, the country faced two recessions and a continuous rise in inflation, which eroded the purchasing power of consumers and increased operational costs for businesses. Policies that failed to address the fundamental challenges faced by small enterprises, such as access to credit and affordable energy, left many struggling to stay afloat.

The current administration of President Bola Tinubu has yet to provide relief to small businesses, as policies aimed at stabilizing the economy have yet to bear fruit. While Tinubu’s government inherited a host of economic problems, compounded by his own policies, such as the removal of fuel subsidies and ongoing currency devaluation, the lack of immediate and targeted interventions has exacerbated the situation for small business owners. The consequences are evident in the widespread business closures and downsizing reported across the country.

Big Businesses Too

The economic turbulence in Nigeria has not only crippled small businesses but has also significantly impacted large corporations, including multinationals. The mass exodus of multinationals from the country has been a glaring consequence of these economic challenges since 2015, underscoring the broader implications of Nigeria’s economic policies on its business environment.

Nigeria’s escalating inflation, foreign exchange volatility, insecurity, and policy unpredictability have contributed to making the business climate increasingly hostile for many global companies. Multinational corporations, once thriving in Africa’s largest economy, have found it difficult to navigate the harsh economic landscape and began to pull out of the country en masse.

One of the most notable examples is the departure of Shoprite, the South African retail giant, which announced its exit from Nigeria in 2020 after 15 years of operations. Shoprite’s decision to leave was largely due to difficulties repatriating profits caused by dollar shortages, heightened inflation, and the overall tough economic climate.

Similarly, Mr Price, another South African retailer, exited Nigeria in 2020, citing the country’s volatile economic conditions, forex liquidity issues, and increasing costs as key factors behind its exit. The retailer struggled with reduced consumer spending and supply chain disruptions that were further worsened by the recession and inflationary pressures.

PZ Cussons, the British multinational known for its personal care and home care products, drastically scaled down its operations in Nigeria in 2019 due to persistent foreign exchange issues, rising operating costs, and slow consumer demand. Although the company retained a footprint in Nigeria, it significantly reduced its presence, citing economic headwinds and security concerns as major obstacles.

Other big names, like Etisalat (now 9mobile) and HSBC, also made the decision to exit or drastically downsize their operations. Etisalat faced financial distress in 2017, eventually transferring its ownership to 9mobile after defaulting on a $1.2 billion loan due to the weak economy. HSBC, one of the world’s largest banking groups, closed its representative office in Nigeria in 2018, citing adverse economic conditions as the primary reason.

The oil and gas sector, too, has seen a significant pullback from multinational oil companies such as ExxonMobil and Shell. Both companies have scaled down their operations in Nigeria due to regulatory uncertainties, oil theft, pipeline sabotage, and rising production costs.

These exits have sent shockwaves through the Nigerian economy, leading to increased unemployment and reduced foreign direct investment. The situation has further aggravated Nigeria’s dollar shortages, as these corporations previously contributed substantial foreign exchange inflows. For small businesses, the departure of these multinationals has had cascading effects, as many smaller firms were dependent on the supply chains and operations of these larger entities.

In light of the severity of the situation, experts have called for immediate government intervention to prevent further damage to the small business sector. A state of emergency on the economy, as suggested by Egbesola, could pave the way for more aggressive and targeted measures to support small businesses. Economists have noted that the survival of this critical sector is essential not only for job creation but also for the stability of the economy as a whole.