Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, has revealed that the Nigerian government has undertaken a comprehensive restructuring of its revenue streams in a bid to boost revenue and economic growth.

This overhaul, he disclosed during a podcast hosted by Bruit Costaud in collaboration with Ballard Partners of the United States of America, aims to address longstanding challenges of leakages and inefficiencies in revenue collection.

“We no longer wait for reconciliation with revenue generating agencies and Government Owned Enterprises (GOEs) as was the practice in the past. Instead, we now deduct automatically from source to plug leakages,” Edun said, outlining the government’s proactive approach.

Drawing parallels with President Tinubu’s successful revenue reforms in Lagos, Edun emphasized the application of digitalization and advanced technology to enhance monitoring and collection efficiency at the federal level. He highlighted the seamless, automated, and digital process implemented by the government to ensure timely revenue capture without the need for subsequent reconciliation.

“There has been an application of technology to make sure that what is due to the federal government, particularly from its various revenue-earning agencies and companies and enterprises is now not taken based on compliance or not taken at the end of the year.

“Each day now, a federal government enterprise earns revenue, government checks, and immediately it takes it seamlessly, automatically, and digitally. So there is no issue of there may be a discussion later as to let us reconcile and so forth.

“But what we did is we looked at the rules, the regulations, the guidelines, the Fiscal Responsibility Act and so forth. And then we looked at the percentage exactly due to government without waiting for whether there is a surplus or not, and so forth.

He explained that “This transformative approach ensures that the federal government receives its due revenue from agencies and enterprises on a daily basis, without reliance on year-end reconciliations. By adhering to existing rules, regulations, and guidelines, we have streamlined revenue collection, promoting fiscal responsibility and accountability.”

The minister’s revelations mark a departure from previous perceptions of revenue generation practices, debunking notions of widespread malpractice and non-compliance with the provisions of the Fiscal Responsibility Act (FRA, 2007) as well as the subsequent amendment in the 2020 Finance Act.

Furthermore, Edun outlined efforts to revolutionize tax administration in Nigeria, emphasizing the importance of enhancing efficiency and eliminating wastage without resorting to tax hikes. He underscored the significance of two key policies—removing petroleum subsidies and unifying the exchange rate of the Naira—as integral components of the government’s economic stabilization program.

Highlighting tangible progress, Edun cited an increase in daily oil production and the cessation of unsustainable petroleum subsidies, which had previously posed significant financial challenges.

He stated that before the current reforms by Tinubu’s administration, “there was no longer revenue coming from the all-important oil company, NNPCL.

“Rather, there was a payment of the unsustainable petroleum subsidy that was costing $10 billion a year.

“That was costing two per cent of GDP. That threatened the very finances of the federal government, and linked to that was the foreign exchange subsidy where the arrangements for putting foreign exchange into the economy were lopsided and were inefficient and lacked transparency and created tremendous arbitage and rent-seeking.”

He commended President Tinubu’s decisive actions in restoring government revenues and curbing illicit practices in the petroleum sector.

“So, Mr. President removed those two subsidies and by taking those steps, he saved the Nigerian economy because you now have a recovery of government revenues and has also stopped the incentive, for instance, the flight of petroleum products across the borders.

“We have sluggish growth than the population growth of 3 percent in recent years which has shown up in increasing poverty, human development index and unemployment figures.

“But that was then. There has been a programme to stabilize the economy which is having positive effects,” he said.

Addressing concerns about economic stability and investor confidence, Edun applauded the growth of the All-Share Index (ASI) and increased portfolio investment in Nigerian securities. While acknowledging the benefits of portfolio investments, he stressed the government’s commitment to attracting foreign direct investment (FDI) in real sectors of the economy.

Edun emphasized the need for a stable exchange rate regime, low-interest rates, and moderate inflation rates to foster a conducive investment climate. He outlined ongoing reforms in the National Social Investment Programme (NSIP) to ensure accountability and integrity in the disbursement of benefits to vulnerable Nigerians and small enterprises.

In a bid to curb abuses in duty waivers, Edun announced a shift towards post-import grant of waivers, aiming to prevent misuse of incentives. Additionally, he reassured Nigerians of the government’s commitment to alleviating economic hardships through targeted palliative measures, including wage awards and strategic grain releases.

Looking ahead, Edun affirmed the government’s determination to address youth unemployment through innovative schemes and initiatives. He underscored President Tinubu’s unwavering commitment to empowering Nigerian youth and fostering inclusive economic growth.

The US Department of State has set its sights on the potential risks posed by artificial intelligence (AI), commissioning an exhaustive report from AI startup Gladstone, aimed at unraveling the merits and demerits of the emerging technology.

Released on Monday, the 284-page dossier serves as a clarion call, warning of the perilous consequences, including the potential end to humanity, that could ensue from the unchecked advancement of AI technology.

“At Gladstone, we have meticulously examined the trajectory of AI development and its implications for society,” stated Jeremie Harris, CEO of Gladstone. “Our findings are deeply concerning, suggesting that the advent of AGI could usher in a new era of existential threats unparalleled in human history.”

The report, initiated in October 2022, aims to assess the risks of AI weaponization and the loss of control over advanced AI systems. It noted that some of the risks could “lead to human extinction.”

Drawing insights from 200 industry stakeholders and analyzing historical precedents, Gladstone’s research sheds light on the profound challenges ahead.

“AGI represents a paradigm shift in technological capabilities,” explained Edouard Harris, CTO of Gladstone. “We must confront the reality that these systems could be weaponized in ways that pose grave risks to global security.”

One of the primary concerns outlined in the report is the potential for AI weaponization across multiple domains, including biowarfare, cyber-attacks, disinformation campaigns, and autonomous weaponry. Jeremie Harris highlighted the urgent need to address cyber threats, which he identified as a particularly acute risk.

“Cyber attacks orchestrated by AI systems could wreak havoc on critical infrastructure, destabilizing economies and threatening lives,” warned Jeremie Harris. “We cannot afford to underestimate the destructive potential of such technology.”

In addition to the risk of weaponization, the report underscores the perilous prospect of losing control over advanced AI systems. The emergence of AGI, capable of surpassing human intelligence, raises profound ethical and existential questions.

“Ensuring human oversight and control over AI systems is paramount to prevent unintended consequences,” emphasized Edouard Harris. “Failure to do so could lead to mass casualties and global destabilization.”

The report’s findings have elicited diverse responses from experts in the field, who spoke to BI, reflecting a spectrum of viewpoints on the risks and benefits of AI development. Robert Ghrist, associate dean at Penn Engineering, expressed cautious optimism about the future of AI but stressed the importance of vigilance.

“While the potential of AI is immense, we must approach its development with a keen awareness of potential risks,” remarked Ghrist. “Balancing innovation with safeguards is essential to harnessing the full potential of AI for societal benefit.”

However, some experts share a more pessimistic outlook, echoing the report’s concerns about the existential threats posed by AGI. Geoff Hinton, a leading figure in deep learning, warned of the possibility of human extinction within the next few decades.

“The unchecked development of AGI poses an existential threat to humanity,” cautioned Hinton. “We must heed the warnings and take decisive action to mitigate these risks before it’s too late.”

Despite the alarm raised by Gladstone’s report, not all experts agree on the appropriate response. Lorenzo Thione, an AI investor, cautioned against overreacting to the potential risks, advocating for a balanced approach that fosters innovation while addressing concerns.

“While we must take AI risks seriously, we must also avoid stifling innovation with excessive regulations,” argued Thione. “Finding the right balance is crucial to navigating the complex challenges posed by AI.”

In response to the report’s recommendations, which include the establishment of AI safety regulations and international cooperation, opinions among experts diverge. Artur Kiulian, an AI analyst, questioned the feasibility of regulatory solutions and emphasized the need for adaptive strategies.

“While regulation is important, we must also recognize the limitations of top-down approaches in a rapidly evolving landscape,” remarked Kiulian. “Flexibility and innovation are essential to effectively addressing AI risks.”

David Krueger, an AI researcher at Cambridge University, echoed the call for proactive measures to mitigate AI risks but stressed the importance of global cooperation.

“Addressing AI risks requires international collaboration and coordination,” asserted Krueger. “Only through collective action can we navigate the challenges posed by AGI and ensure a safer future for humanity.”

However, the Gladstone report has amplified calls for AI regulation, especially as the US policymakers and stakeholders drag their feet in developing a framework that will guide the emerging technology. With its potential to reshape society in profound ways, the warning from the Gladstone report buoys several other calls on the authorities to address concerns of potential harm that decisions AI development may impact on humanity.

Access Bank’s parent company (Access Holdings) is largely a “startup” now with the untimely passing of Herbert Wigwe. With no succession plan in place, any leader would likely struggle before all the stakeholders. So, to manage the paralysis, the Board has to return to a known vector, a co-founder, who had served as the banking unit’s CEO. So, it did not come as a surprise that Access Holdings has chosen Aigboje Aig-Imoukhuede as its chairman: “Following extensive consultations with key stakeholders, the holdco board decided to invite Mr Aig-Imoukhuede to the helm of governance”.

Founders have more bandwidth to try new ideas, win or make mistakes than professional managers, because they are assumed, as being founders, they are entwined within the interest of the mission they started. What could fire a professional manager could be accepted for a founder. In Facebook’s Meta, any manager would have gone during the company’s voyage into metaverse, but Mark Zuckerberg, being founder-CEO, was untouched.

It comes down  to a new vision and executing that vision for Access Bank: “I am thrilled to be back in active service to the Access Group ecosystem. I am confident that working with our directors, our exceptional team of executives and our best-in-class banking and finance professionals, we will deliver outstanding value to our esteemed stakeholders,” Mr Aig-Imoukhuede said.

Destination: the banks of the future will be tech companies which offer banking services, and not necessarily banks which use technology in their operations. Aig-Imoukhuede has to lead Access into that future. Good luck.

As a returning founder, in a banking institution with a broken succession, he needs to craft a new mission, especially during this time of an economic miry clay in Nigeria.

Access Bank’s parent company (Access Holdings) is largely a “startup” now with the untimely passing of Herbert Wigwe. With no succession plan in place, any leader would likely struggle before all the stakeholders. So, to manage the paralysis, the Board has to return to a known… pic.twitter.com/rIfLTwWX3i

— Ndubuisi Ekekwe (@ndekekwe) March 14, 2024