When Nigeria floated its currency along with the removal of fuel subsidy, I wrote in June 2023: ‘Nigeria’s floating of its currency, while progressive, will cause severe perturbations in the economy – and a stable state may not come as most experts have predicted… You will see state-wide comparative advantages emerge with energy cost making most northern areas less appealing for localization of “industries”’. 

In other words, over time, most states in the northern part will fade economically because variances on energy prices will make things harder for companies to locate there. That concern is now real as fuel scarcity concerns hit the nation: “Nigerians are grappling with fuel scarcity and soaring prices, with costs reaching up to N2,000 per liter in Sokoto and varying across different states.” 

Here are some samples, fuel prices per liter.

• Sokoto: N2,000
• Abuja: N1,300
• Lagos N800

Note the key phrase “varying across different states”; yes, prices of energy will vary significantly across the nation. 

When Nigeria floated its currency along with the removal of fuel subsidy, I wrote in June 2023: ‘Nigeria’s floating of its currency, while progressive, will cause severe perturbations in the economy – and a stable state may not come as most experts have predicted… You will see… pic.twitter.com/mSkMhgt3Tr

— Ndubuisi Ekekwe (@ndekekwe) April 28, 2024

Comment: Policy makers of yore used to have the PEF( Petroleum Equalisation Fund) to avoid the situation you just pointed out. Of course with the removal of subsidy and market forces dictating prices, the north is already disadvantaged. But labor costs will still be cheaper for industries

My Response: Good point, the NORTH will have advantages in some areas of course.

In a step aimed towards broadening access to higher education and nurturing skill development among Nigerian students and youths, President Bola Tinubu has appointed Mr. Jim Ovia, CFR, as the Chairman of the Board of the Nigerian Education Loan Fund (NELFUND). 

This appointment underscores the government’s dedication to leveraging expertise and experience in fostering entrepreneurship and educational empowerment.

Mr. Ovia, renowned as the founder of Zenith Bank, brings to his new role a profound understanding of finance, entrepreneurship, and youth development. His alma maters include prestigious institutions such as Harvard Business School and the University of Louisiana, where he acquired a master’s in business administration, highlighting his readiness to steer NELFUND towards its objectives effectively.

President Tinubu expressed unwavering confidence in Mr. Ovia’s capacity to lead NELFUND towards achieving its mission of providing equitable access to higher education. 

“Education is the bedrock of any prosperous society. With Mr. Ovia at the helm, we are reaffirming our commitment to ensuring that no Nigerian student faces barriers to pursuing higher education due to financial constraints,” Tinubu remarked.

The National Student Loan Programme, a flagship initiative introduced during President Tinubu’s administration, aims at ensuring sustainable access to higher education and skill development for Nigerian students and youth. 

Enacted as the “Access to Higher Education Act, 2023,” this groundbreaking legislation established the Education Loan Fund to offer interest-free education loans to Nigerian tertiary education seekers. The repayment period commences two years after the completion of the National Youth Service Corps (NYSC) program.

Under the stewardship of Mr. Ovia, NELFUND seeks to provide financial assistance in the form of loans to economically disadvantaged Nigerian students, empowering them to pursue their academic aspirations without financial hindrances. 

This appointment aligns with President Tinubu’s broader commitment to enhancing access to higher education and fostering critical skill development among Nigerian youths.

The NELFUND emerges as a beacon of hope in the education sector, often marred by financial barriers. The idea, conceived by President Bola Tinubu’s administration, is said to be rooted in the urgent need to address the systemic challenges hindering the educational aspirations of Nigerian youths.

Also, Tinubu’s vision for NELFUND aligns with broader national goals of empowering Nigerian youths with the tools and resources needed to excel on a global scale. With Mr. Ovia at the helm, the Nigerian Education Loan Fund is expected to play a pivotal role in shaping the future of higher education in Nigeria, ensuring that no student faces barriers to pursuing their academic aspirations due to financial constraints.

The Fund is targeting at least 1.2 million beneficiaries in its first disbursement of the student loan, according to Akintunde Sawyerr, managing director of NELFUND.

Addressing concerns about fraud and misuse of the loans, Sawyer also disclosed that the Unified Tertiary Matriculation Examination (UTME) registration number; national identification number (NIN), and bank verification number, (BVN) were major requirements for accessing student loans.

He said disbursement would be in two segments: “The school fee will be paid to the institution on behalf of the student and the stipend directly to the student’s account.”

However, many have criticized the federal government over the amount allocated for the loan scheme, noting that it belies the claim that the government is giving education priority. Acknowledging this, Sawyerr said, the N50 billion was one percent of the revenue generated by the Federal Inland Revenue Service (FIRS) annually.

In the ever-evolving sectors of technology and commerce, Google has found itself at a crossroads, grappling with two formidable challenges that have reshaped its trajectory: the ascent of generative AI and the encroaching specter of regulation. 

Over its 25-year history, the tech giant has weathered storms and soared to unprecedented heights, yet these dual threats have sparked a fundamental reevaluation within the company.

Responding to the shift brought about by generative AI, Google has embarked on a journey of transformation, embracing artificial intelligence as the cornerstone of its future endeavors. Through extensive restructuring, divisions within Search, Android, and hardware have been realigned to prioritize AI-driven initiatives. Notably, the introduction of the Gemini AI model symbolizes Google’s strategic pivot towards capitalizing on the vast potential of AI technology.

In a bid to reassure stakeholders and fortify its position, Google has undertaken decisive actions, including project terminations and workforce reductions, aimed at streamlining operations and sharpening focus. The culmination of these efforts was underscored by Google’s historic announcement of its inaugural dividend and a monumental $70 billion share buyback, coinciding with the unveiling of its Q1 2024 earnings report.

The market’s response has been resoundingly positive, propelling Google’s parent company, Alphabet, to achieve and sustain a remarkable $2 trillion market capitalization milestone for a whole day. This is unlike in November 2021, when it briefly touched the threshold. With this milestone, Google ranks as the fourth most valuable public company globally. It follows Nvidia with a market capitalization of $2.2 trillion, Apple with $2.6 trillion, and Microsoft with $3.0 trillion. Amazon holds a valuation of $1.8 trillion, while Meta is valued at $1.1 trillion.

In stark contrast to its peers, Google has demonstrated a proactive approach to monetizing AI applications, forging partnerships, and leveraging technology to generate tangible value. Collaborations with industry players like Discover Financial and Ikea underline Google’s commitment to driving innovation and delivering results in the burgeoning AI industry.

According to The Verge, the company also disclosed that Discover Financial is implementing AI tools for approximately 10,000 call center agents, while Ikea is experiencing a rise in revenue through “value-based bidding solutions.” 

Although not currently discussing the monetization of AI-generated answers in Google Search, CEO Sundar Pichai expressed confidence in their ability to manage the costs associated with serving these queries.

Despite these advancements, Google remains cautious about disrupting its core search business, explaining that it has a measured approach to AI integration. CEO Sundar Pichai has emphasized the importance of enhancing the search experience while preserving traffic to external sites, striking a delicate balance between innovation and stability.

“We’re being measured in how we do this, focusing on areas where Gen AI can improve the search experience while also prioritizing traffic to websites and merchants,” said Pichai.

Beyond AI, Google’s traditional revenue streams continue to thrive, with robust growth in search and advertising revenue, YouTube ads, and subscriptions. The company’s Q1 2024 financial performance, which shows $23.7 billion in profit on $80.5 billion in revenue, indicates that the tech giant is holding tight its traditional revenue streams despite interest in AI.

In the first quarter, search and advertising revenue experienced a 14 percent year-over-year increase, while YouTube ads saw a nearly 21 percent increase. Additionally, revenue from “subscriptions, platforms, and devices” rose by 18 percent year over year, primarily attributed to premium YouTube subscriptions, according to Google’s chief business officer, Philipp Schindler. This growth does not necessarily stem from Pixel 8 sales, per The Verge.

Looking ahead, Google is poised to unveil further innovations and updates at its forthcoming developer conference, Google I/O, slated for May 14th. 

Besides its efforts to grab the maximum share of the emerging AI market, the company announced its efforts to enhance its competitiveness against platforms like TikTok and Instagram Reels. 

Philipp Schindler noted that 50 percent more creators are uploading short-form videos on YouTube Shorts, and the monetization rate of Shorts has increased by 12 percent in the last quarter alone. These improvements indicate Google’s commitment to strengthening its position in the short-form video market.