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Nigerian Lawmakers Remove N5bn Yacht from the N2.17tn Supplementary Appropriation Bill, Following Public Outcry

By
Samuel Nwite
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0

The Nigerian Senate and the House of Representatives have passed the controversial N2.17 trillion 2023 Supplementary Appropriation Bill after its third reading, removing the controversial N5 billion budgeted for yacht, following outcry from civil society organizations and the general public.

The House of Representatives also made significant changes to the proposed supplementary budget, including an increase in the allocation for student loans and adjustments to other critical areas. The Chairman of the House Appropriations Committee, Abubakar Bichi Abubakar, shared these changes during a press briefing on Thursday.

One noteworthy adjustment was the increase in the budget for student loans, which was raised from the initially documented N5.5 billion to N10 billion. This decision was made to address concerns about the low budgetary allocation for student financial support.

Additionally, the budgetary allocation for the Ministry of Defence was increased from N476 billion to N546 billion in response to heightened security concerns.

Bichi also revealed that the minimum wage for workers was considered and approved for onward transmission to the executive branch. The House is committed to ensuring proper legislative oversight to ensure the full implementation of this decision.

The sum of N100 billion, as requested by the Minister of the Federal Capital Territory (FCT), Nyesom Wike, was retained for the FCT.

Ultimately, the House passed the revised supplementary budget, amounting to N2.177 trillion. Notably, the initial budget allocation had sparked controversy due to the inclusion of N5.09 billion for a presidential yacht in the Federal Government’s N2.1 trillion supplementary budget. The yacht was listed as part of the Nigerian Navy’s proposed capital expenditure of N42.3 billion.

Prior to the bill’s passage, the Senate adopted the report of the harmonized sittings of both chambers, which was submitted by Chairman of the Appropriations Committee, Senator Solomon Olamilekan Adeola (APC Ogun West).

The bill progressed through readings in both the upper and lower chambers with an emphasis on its significance for the country’s welfare. The Supplementary Appropriation Bill was introduced by President Bola Tinubu, who sought approval for a total of N2,176,791,286,033. This supplementary budget is intended to address various critical needs, including labor wage adjustments and security measures.

President Tinubu had also submitted the 2024-2026 Medium-Term Expenditure Framework (MTEF) & Fiscal Strategy Paper to the National Assembly. Previously, the Senate had approved N819 billion, which included a N500 billion palliative package.

The supplementary bill is considered essential to implement additional palliative measures, including wage awards. The Federal Executive Council had given its approval to the 2023 supplementary budget of N2.1 trillion earlier.

During debates in the Senate, lawmakers stressed the urgency of expediting the passage of the supplementary budget. They highlighted the need to address critical areas, such as infrastructure, insecurity, labor demands (including a N210 billion wage award payment), and a N5.5 billion student loan.

The proposed supplementary budget allocates N610 billion for temporary wage awards to federal civil servants and a conditional cash transfer program aimed at supporting vulnerable individuals and households. Specifically, the wage award for four months is expected to cost the federal government approximately N210 billion, while the conditional cash transfer program will account for N400 billion.

However, some extravagant items on the budget triggered outcry of civil society groups and the general public. The budget includes a fleet of SUVs for the president and his wife, a presidential yacht, the renovation of his villa, and other government offices – expected to gulp billions of naira.

The development comes amid a rising economic crisis that has seen the poverty rate of the country accelerate. Tinubu announced the removal of fuel subsidy in late May, during his inaugural speech, and subsequently, the Central Bank of Nigeria (CBN) announced the removal of control pegs around the dollar, allowing the naira to trade freely in the FX market.

These economic reforms have exacerbated the rising cost of living – shooting inflation to 26.72%, as petrol prices rose as much as N617 per liter and the naira crashed to more than N1200 per dollar in the parallel market.

The government’s decision to include luxury items in the budget for the political elite amid the suffering has been described as insensitive.

Tracka, a non-governmental organization monitoring the implementation of budgets and contracts awarded by the government, began collecting 10 signatures for the letter intended to deliver to the Senate on Friday. The aim is to compel the red chamber to “delete the frivolous items in the N2.17 trillion 2023 supplementary budget before it gets sent to the President for assent.”

Rising Cases of Insider Fraud: Nigerian Fintech Companies Should Exercise Thorough Scrutiny When Hiring Employees

By
Ojukwu Emmanuel
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0

There is no disputing the fact that Fintechs have opened a new market for improvement in financial payments and transactions, however, the industry is currently ravaged by the rising attack of cybercriminals who exploit companies systems to steal consumers’ funds.

In Nigeria, fintechs are experiencing significant financial losses due to hacking incidents. A recent report on Nairametrics revealed that Nigerian fintechs suffered over N5 billion in losses to hackers year-to-date (YTD) in 2023.

The report further reveals that insider connivance, involving employees of Fintech companies, is suspected in most of the cases, making it challenging for these companies to secure their systems effectively.

According to different sources in the industry, this trend has become a major challenge for fintech companies in Nigeria. In another case of insider fraud fingered in Patricia’s N2 billion losses, facts have emerged that the stolen funds had the hands of a few insiders who perpetrated such a dastardly act.

Also, just recently, it was reported that Nigerian payments giant Interswitch is currently grappling with the loss of N30 billion to chargeback fraud, with the incident directly linked to a few former and current Interswitch employees who likely exploited vulnerabilities in the company’s system.

With all these incessant insider fraud cases occurring across several Fintech companies in Nigeria, it is a call to action for these companies to exercise thorough scrutiny when hiring employees.

Fintech companies should be intentional with their hiring process, by placing a high premium on thoroughly scrutinizing job applicants before offering them employment. This vetting process involves comprehensive background checks, reference verifications, assessments of an individual’s integrity and trustworthiness, amongst others.

While these processes might not entirely eradicate fraudulent activities, a thorough hiring and vetting process can mitigate the risk of hiring individuals with malicious intentions. It can also deter potential wrongdoers and ensure that the workforce is comprised of trustworthy professionals.

Beyond initial vetting, fintech companies should also consider implementing ongoing monitoring and security protocols to detect and prevent insider fraud as employees’ circumstances or motivations can change over time.

By carefully scrutinizing potential employees and implementing thorough security measures,  fintech companies can eradicate and mitigate financial losses, and also prevent incidents that can bring damage to a company’s reputation.

Following a similar pattern with Fintechs, data released by the FITC revealed that most frauds in the banks also have the involvement of insiders.

In (Q2) of 2023, the FITC reported that there was a 20.54% increase in insider involvement in the frauds committed across the bank in the second quarter of the year.

Considering the increasing instances of employees engaging in fraudulent activities, banks have been advised to exercise heightened vigilance when hiring new staff or contracting outsourcing firms for employment purposes.

To prevent staff involvement in fraudulent behavior, the FITC recommended the acknowledgment and offering of rewards to employees who have demonstrated exceptional integrity in situations where they could have acted otherwise.

Mohamed El-Erian on Bitcoin, SEC ETF Approval and BTC $652M Withdrawal

By
Paul Ugbede Godwin
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The cryptocurrency market has been buzzing with excitement and anticipation since the news broke that the U.S. Securities and Exchange Commission (SEC) is working with several companies to approve a Bitcoin spot exchange-traded fund (ETF).

A Bitcoin spot ETF is a type of investment product that tracks the price of Bitcoin directly, rather than through derivatives or futures contracts. This means that investors can buy and sell shares of the ETF on a regulated stock exchange, without having to deal with the complexities and risks of storing and transferring Bitcoin themselves.

A Bitcoin spot ETF would also provide more transparency, liquidity, and accessibility to the cryptocurrency market, potentially attracting more institutional and retail investors. Moreover, a Bitcoin spot ETF would be a major milestone for the recognition and legitimacy of Bitcoin as an asset class, as it would signal that the SEC is comfortable with the regulatory and compliance standards of the underlying Bitcoin market.

However, a Bitcoin spot ETF is not a done deal yet. The SEC has been notoriously cautious and skeptical about approving any cryptocurrency-related products, citing concerns about market manipulation, fraud, custody, and investor protection. The SEC has rejected several proposals for Bitcoin ETFs in the past and has delayed or postponed its decisions on many others.

The latest reports suggest that the SEC is in active discussions with several companies that have filed applications for a Bitcoin spot ETF, including VanEck, Valkyrie, WisdomTree, and NYDIG. The SEC is reportedly asking these companies to provide more information and data about how they would ensure the accuracy and reliability of the Bitcoin price, how they would prevent market abuse and manipulation, and how they would safeguard the investors’ funds.

The reports also indicate that the SEC is leaning towards approving a Bitcoin spot ETF that would use a single source of pricing data, rather than an index or a basket of sources. This would reduce the risk of discrepancies or discrepancies between different price feeds, which could lead to arbitrage opportunities or unfair advantages for some traders.

The SEC has set deadlines for its decisions on some of the Bitcoin spot ETF applications in November and December this year. However, these deadlines are not binding, and the SEC could extend them further or ask for more information from the applicants. The cryptocurrency community is hopeful that the SEC will finally give the green light to a Bitcoin spot ETF this year, as it would be a game-changer for the industry and the investors. However, there are no guarantees, and the SEC could still surprise everyone with a rejection or a delay.

Therefore, investors should be cautious and realistic about their expectations, and not base their investment decisions solely on the outcome of the SEC’s review process. A Bitcoin spot ETF would be a positive development for the cryptocurrency market, but it is not a silver bullet that would solve all its challenges or risks.

In a major move that signals a shift in the crypto market, 19,197 Bitcoin ($652M) has been withdrawn from Binance, the world’s largest cryptocurrency exchange by trading volume. This is the largest single-day outflow of Bitcoin from Binance since November 2020, when the price of Bitcoin was around $15,000.

What does this mean for the crypto industry and investors? There are several possible explanations for this massive withdrawal of Bitcoin from Binance. One is that some large investors or institutions are moving their Bitcoin to cold storage or other custodial services for long-term holding, as they anticipate higher prices in the future.

Another is that some traders are transferring their Bitcoin to other exchanges or platforms that offer more favorable trading conditions, such as lower fees, higher liquidity, or more regulatory clarity. A third possibility is that some users are withdrawing their Bitcoin from Binance due to security or compliance concerns, as Binance has faced increased scrutiny and pressure from regulators and authorities in various countries.

Whatever the reason, this event shows that the demand for Bitcoin remains strong and that the market is maturing and evolving. It also indicates that Binance may need to adapt and improve its services and operations to retain its dominant position in the crypto space.

Binance has been one of the most innovative and influential players in the crypto industry, offering a wide range of products and services, such as spot and futures trading, margin and lending, staking and mining, decentralized finance (DeFi), and its own blockchain and token (Binance Chain and BNB). However, it has also faced challenges and criticisms, such as frequent outages, security breaches, customer service issues, and regulatory uncertainty.

As the crypto market grows and becomes more mainstream, Binance will have to balance its vision of creating a global and open platform for crypto innovation with the reality of complying with different rules and regulations in different jurisdictions. It will also have to compete with other exchanges and platforms that are emerging or expanding in the crypto space, such as Coinbase, Kraken, FTX, Bitfinex, Huobi, OKEx, Gemini, Bitstamp, and others.

The withdrawal of 19,197 Bitcoin ($652M) from Binance is a sign that the crypto market is not static or monolithic, but dynamic and diverse. It is a reminder that investors and users should always do their own research and due diligence before choosing where to store and trade their crypto assets.

In a recent interview with CNBC, Allianz chief economic adviser Mohamed El-Erian shared his views on why Bitcoin is gaining popularity among investors. He argued that Bitcoin is seen as a hedge against the erosion of government bonds, which have traditionally been the safest and most reliable assets in the market.

El-Erian explained that government bonds are losing their appeal because of the unprecedented fiscal and monetary stimulus that has been unleashed by central banks and governments around the world in response to the Covid-19 pandemic. This stimulus has pushed bond yields to historic lows, reducing their income potential and increasing their sensitivity to inflation and interest rate risks.

He said that investors are looking for alternative ways to preserve their purchasing power and diversify their portfolios, and Bitcoin offers some attractive features in this regard. He cited Bitcoin’s limited supply, its global reach, its growing adoption by institutional players, and its resilience to regulatory challenges as some of the factors that make it appealing.

However, he also cautioned that Bitcoin is not without risks, and that it is still a highly volatile and speculative asset that can experience sharp price swings. He said that investors should be careful not to overexpose themselves to Bitcoin, and that they should understand the underlying technology and the implications of its decentralization.

He concluded that Bitcoin is not a fad or a bubble, but rather a reflection of the changing dynamics of the global financial system, where trust in traditional institutions is being challenged by new innovations and disruptions.

Fueling a new era of Digital Currency with Boundless Energy

By
Paul Ugbede Godwin
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0

Digital currency, or cryptocurrency, is a form of money that exists only online. It is decentralized, meaning that no central authority controls it, and it can be transferred securely and anonymously across borders. Cryptocurrency has the potential to revolutionize the way we exchange value, create new business models, and empower individuals and communities.

However, there is a major challenge that hinders the widespread adoption of cryptocurrency: energy consumption. The process of creating and verifying transactions on a blockchain, known as mining, requires a lot of computing power and electricity. According to some estimates, the global energy consumption of cryptocurrency mining is comparable to that of some countries, such as Argentina or Norway. This raises environmental and ethical concerns, as well as economic and technical ones.

How can we overcome this challenge and fuel a new era of digital currency with boundless energy? The answer lies in harnessing the power of renewable energy sources, such as solar, wind, hydro, and geothermal. Renewable energy is clean, abundant, and cost-effective, and it can provide a sustainable and scalable solution for cryptocurrency mining.

There are already some initiatives that are exploring this possibility. For example, SolarCoin is a cryptocurrency that rewards solar energy producers with coins that can be exchanged for other currencies or goods and services. Another example is HydroMiner, a project that uses hydroelectric power to mine cryptocurrencies in the Alps. These projects demonstrate that renewable energy can not only reduce the environmental impact of cryptocurrency mining, but also create new opportunities for innovation and social impact.

Digital currency, such as Bitcoin, Ethereum, and others, relies on a network of computers that perform complex calculations to verify transactions and secure the system. This process, known as mining, consumes a lot of electricity and generates a lot of heat. According to some estimates, the annual energy consumption of Bitcoin alone is comparable to that of some small countries.

However, there is a solution that can overcome this challenge and fuel a new era of digital currency with boundless energy: nuclear fusion. Nuclear fusion is the process that powers the sun and the stars, where two light atoms fuse together to form a heavier one, releasing a huge amount of energy in the process.

Unlike nuclear fission, which splits heavy atoms and produces radioactive waste, nuclear fusion is clean, safe, and virtually limitless. If we can harness the power of nuclear fusion on Earth, we can create an abundant source of energy that can meet the needs of digital currency and beyond.

How can we achieve nuclear fusion? The answer lies in creating and sustaining a plasma, a state of matter where atoms are stripped of their electrons and form a hot, ionized gas. To initiate fusion reactions, the plasma must be heated to hundreds of millions of degrees Celsius and confined by a strong magnetic field. This is not an easy task, but it is not impossible either.

Several research projects around the world are working on developing fusion reactors that can achieve these conditions and produce more energy than they consume. One of them is the International Thermonuclear Experimental Reactor (ITER), a multinational collaboration that aims to build the world’s largest fusion device in France by 2025.

If successful, ITER will be a game-changer for digital currency and humanity as a whole. It will demonstrate that nuclear fusion is feasible and scalable, opening the door for commercial fusion power plants in the future. It will also provide a reliable and affordable source of energy that can support the growth and innovation of digital currency without compromising the environment or security. It will enable us to create a new economy based on decentralized, transparent, and efficient transactions that can benefit everyone.

Nuclear fusion is not a fantasy or a pipe dream. It is a scientific and technological challenge that can be overcome with dedication, collaboration, and creativity. It is also an opportunity to fuel a new era of digital currency with boundless energy. The future is bright, and it is powered by fusion.

By combining the advantages of digital currency and renewable energy, we can create a more efficient, inclusive, and resilient financial system that benefits everyone. We can also contribute to the global goals of reducing greenhouse gas emissions, increasing access to clean energy, and promoting economic growth and development. This is the vision of a new era of digital currency with boundless energy.

PayPal to offer crypto services in UK; Taiwan to make Bitcoin legal Tender

By
Paul Ugbede Godwin
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0

PayPal, the global online payment platform, has announced that it has received regulatory approval from the Financial Conduct Authority (FCA) to provide cryptocurrency services in the United Kingdom. This means that PayPal customers in the UK will soon be able to buy, sell, hold and use various digital currencies, such as Bitcoin, Ethereum, Litecoin and Bitcoin Cash, within their PayPal accounts.

This is a significant milestone for PayPal, which launched its crypto service in the US last year and has seen a strong demand from its users. According to a recent survey by the company, more than half of its crypto customers said they are more likely to use digital currencies as a payment method after using PayPal’s service. Moreover, PayPal claims that its crypto service can help increase the adoption and awareness of cryptocurrencies among its 400 million users worldwide. Also, there have been new products like Mostbet aplikace which are distributed through digital systems.

PayPal’s crypto service in the UK will offer several features and benefits for its customers, such as:

Easy and secure access to cryptocurrencies through the PayPal app or website, without the need for additional wallets or passwords. Educational resources and guides to help customers understand the basics and risks of crypto investing. Real-time prices and charts to track the performance of different cryptocurrencies. The ability to convert cryptocurrencies to fiat currencies at any time, with no fees until 2022. The option to use cryptocurrencies as a funding source for purchases at millions of PayPal merchants around the world, with instant conversion at checkout.

PayPal’s crypto service in the UK is expected to launch in the coming weeks and will be available to verified customers who have a bank account or debit card linked to their PayPal account. The company plans to expand its crypto offering to other markets and regions in the future, as well as to introduce new features and functionalities.

PayPal’s move into the crypto space is part of its broader vision to become a “super app” that offers a variety of financial services and products to its customers. The company has recently acquired several fintech startups, such as Curv, a digital asset security firm, and Paidy, a Japanese buy now, pay later platform. PayPal also announced that it will launch its own digital wallet, called PayPal Cash Plus, which will allow customers to access their funds across different accounts and services.

PayPal’s entry into the UK crypto market is likely to have a positive impact on the growth and innovation of the local crypto ecosystem, as well as on the wider adoption and acceptance of digital currencies among consumers and businesses. PayPal’s crypto service will also face competition from other players in the space, such as Coinbase, Revolut, Wirex and Bitstamp, which offer similar or complementary services. However, PayPal’s brand recognition, large customer base and extensive merchant network could give it an edge over its rivals.

PayPal’s crypto service in the UK is a welcome addition to the diverse and dynamic crypto landscape in the country, which has been attracting more attention and investment from both local and global players. As one of the leading online payment platforms in the world, PayPal has the potential to bring crypto to the mainstream and make it more accessible and convenient for millions of people.

Taiwan to make Bitcoin legal Tender

In a historic move, Taiwan has announced that it will make Bitcoin a legal tender in the country, becoming the second nation in the world to do so after El Salvador. The decision was made by the Legislative Yuan, the unicameral legislature of Taiwan, after a heated debate and a close vote on October 30, 2023.

The bill, titled “The Digital Currency Legalization and Regulation Act”, aims to provide a clear legal framework for the use, exchange, taxation and regulation of Bitcoin and other cryptocurrencies in Taiwan. The bill also recognizes Bitcoin as a foreign currency for the purposes of foreign exchange and trade.

According to the bill, Bitcoin will be treated as a legal means of payment for all public and private transactions in Taiwan, as well as a store of value and a unit of account. The bill also stipulates that all individuals and businesses that deal with Bitcoin must register with the Financial Supervisory Commission (FSC), the main financial regulator in Taiwan, and comply with anti-money laundering and counter-terrorism financing rules.

The bill also grants the FSC the authority to issue licenses for cryptocurrency exchanges, custodial services, mining operations and other related businesses. The FSC will also be responsible for setting the standards and guidelines for the security, transparency and consumer protection of the cryptocurrency industry in Taiwan.

The bill was proposed by a coalition of lawmakers from various political parties, led by Chen Chih-Chung, a member of the ruling Democratic Progressive Party (DPP) and the son of former President Chen Shui-bian. Chen Chih-Chung said that the bill was motivated by the need to embrace the global trend of digitalization and innovation, as well as to boost Taiwan’s economy and competitiveness.

“Bitcoin is not only a technological innovation, but also a social and economic revolution. By making Bitcoin a legal tender, we are opening up new opportunities for our people, our businesses and our nation. We are also sending a clear message to the world that Taiwan is a leader in digital transformation and a defender of freedom and democracy,” Chen Chih-Chung said in a press conference after the bill was passed.

The bill was met with mixed reactions from different sectors of society. Some praised the bill as a bold and visionary move that would put Taiwan at the forefront of the cryptocurrency industry and attract more foreign investment and talent. Others criticized the bill as a risky and irresponsible gamble that would expose Taiwan to financial instability, cyberattacks, fraud and money laundering.

The bill also faced strong opposition from China, which considers Taiwan as part of its territory and has been increasing its military and diplomatic pressure on the island. China has banned all forms of cryptocurrency trading and mining since 2017 and has repeatedly warned Taiwan against any moves that would challenge its sovereignty or undermine its “one China” policy.

China’s Foreign Ministry spokesperson Zhao Lijian condemned Taiwan’s decision to make Bitcoin a legal tender as a “provocative and illegal act” that would “severely damage” cross-strait relations and regional peace and stability. Zhao Lijian also urged the international community to “reject and sanction” Taiwan’s “separatist” actions.

Taiwan’s President Tsai Ing-Wen defended the bill as a sovereign and democratic choice of the Taiwanese people and said that Taiwan would not bow to China’s threats or interference. Tsai Ing-Wen also expressed her confidence that Taiwan would be able to overcome any challenges or risks that might arise from adopting Bitcoin as a legal tender.

“Taiwan is a free and open society that respects innovation and diversity. We are not afraid of change or challenge. We believe that Bitcoin can bring positive changes to our economy, society and culture. We also believe that Bitcoin can help us strengthen our ties with our friends and allies around the world who share our values and vision,” Tsai Ing-Wen said in a televised address to the nation.

The bill is expected to take effect on January 1, 2024, after a two-month period of public consultation and preparation. The FSC has announced that it will issue detailed regulations and guidelines for the implementation of the bill before the end of this year.

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