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Tekedia Mini-MBA edition 13 has started and Week 1 courseware posted. Please check the Board. The Zoom link for the first live session, scheduled 7pm WAT on Saturday, Feb 10, 2024, has been posted.
From next week (week of Feb 12), we will be meeting live on Tuesdays, Thursdays and Saturdays at 7pm-8pm WAT. Please put these dates on your calendar as we do not send reminders.
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There are three steps; Step 3 is compulsory. If you do not do Step 3, you will not see your course in your profile. Here is the instruction for account setup – https://school.tekedia.com/support/support/. (Please note the support video on the page as it may be helpful)
Once you complete the setup, you will see a post under LESSONS titled “Board13: Program News, Zoom Schedules and WhatsApp Link”. Please read it and join the WhatsApp Group, and note the Live Zoom schedules. The Week 1, Week 2, etc will drop as we progress in the program.
Yes, Tekedia Mini-MBA edition 13 begins. I invite you to join us if you have not registered. It is going to be a playground of knowledge. Accelerate your leadership ascent with Tekedia Institute.
Great observation by SH that Abia budgeted N1.5B for two Hilux. But if you look at that data, you will notice that it was a pure typo. They listed Hilux purchases many times and the prices are consistent with normal market value, except the one that SH noted. You cannot buy one car on a budget for N750m and N15m in the same budget report.
Calculate the total expenses for Vehicles and you will see that the 2 no Hilux was a typo; that was not a car line. The state should fix that typo. This is the file, search Hilux and check all places it is mentioned, check the numbers. Then add all the car, you will see that line was a typo https://abiastate.gov.ng/wp-content/uploads/2024/01/ABIA-STATE-2024-APPROVED-ESTIMATES.pdf
Yet, this shows why governments should be thorough especially when transparency is the new game. We must commend SH for taking time to look into these numbers. It should be commended as that is how we can build a nation. Abia publishes its master budget file to the last Kobo. Of course, the real deal will be reconciling budget with actual expense; I am very confident that Abia will pay a normal rate for Hilux.
Also, besides Hilux, Abia is buying Innoson Motors. In that master file, you will see many Innoson vehicles. The challenge is that Innoson lead time is long for some security operational vehicles. When I visited home during Christmas, all the commissioners I met in Abia State used Innoson Motors.
The rumour that Abia does not buy local should be modulated; it buys local but for security vehicles, it cannot wait for ages. In short, the Nigerian government is also buying local; I have seen the data. The challenge remains that lead time from local car markers can run into months. This contrasts with Japanese firms which can “produce” 5m cars waiting for buyers.
I am just a citizen; I do not work for any government. I looked at the same data as SH, and made these points. Many asked me to comment, I have done just that. This is a pure typo but that does not mean we should celebrate mistakes in budgets.
This is an update on ‘The Happening’ For anyone who has not seen Part 1, which was published directly to LinkedIn, click HERE
Today, we start with looking at the progress of the auction and try to digest what is going on.
I’ve taken a screenshot of the top 10 so far by highest current bid price. The current price of the HNS coin today is $USD 0.03549. So the bid leader, .web with 250,000 HNS is currently at $8,872.50 , while the No. 10 spot is being held by .euro at 30,000 HNS which is $1064.70
This particular type of auction is called a Vickrey auction (named after Columbia University professor William Vickrey who invented it in 1961). The total sums seen in the column represent two components – a bid and a ‘blind’.
The ‘blind’ is a sum that gets locked in the auction until it ends. Bidders use it to disguise the real size of the bid. In the example of .web, nobody except the bidder themselves know how much they have bid.
All everyone else knows is that the bid is something less, or equal to 250,000 HNS ($8,872.50). The only way another bidder can be 100% sure to outbid, is to bid more than 250,000 HNS, even though the bid itself, what the leading bidder has actually committed, may be a lot less than this.
The 250,000 HNS total is called the ‘Lockup Amount’.
Early bidders often put huge blinds on top of small bids, in an attempt to frighten off other bidders and get a name cheaply. It is questionable to what extent the tactic has worked so far.
If we look at the column to the right of the HNS column we see how much time is left in each auction. It currently varies between a few hours under 4 days, to a few hours over.
.web already has 13 bids and one of them (I can see from my own system) – with 5,061.00 HNS ($169.61) Lockup Amount, is newer than the 250,000 HNS lock up, so it is probably all bid and no blind.
Further bids are highly likely to come in on these names between now and the end of the auction. All blinds are immediately returned at the end of bidding as long as the bid is ‘revealed’. This is done automatically by Namebase, but in self-custody wallets, it is a process.
In a Vickrey auction, the winner only pays the second highest bid. They will get refunded the difference. All unsuccessful bidders will get bids refunded.
Bid related Refunds have to wait the full length of the cycle. When a lot of high value names come on the market like this, even ‘whales’ can easily get their funds tied up quickly if they get too carried away with bidding.
This comes to the second type of strategy to maximise benefit from the appearance of a lot of high value or interesting names on the auction at once -waiting around until the last moment when many of them are going to end at the same block count, looking for a low bid opportunity, and jumping in with a bid just before the last block closing the auction, has been completed.
This is known as ‘sniping’.
This is a common tactic for those who can be flexible about what they want to win. Many people are focused on ‘flipping’ names (buying them on the auction and selling them later in secondary markets at a profit).
9ja Cosmos has a strategic approach to acquisitions and focuses on what can work in whatever is its active development project. We will generally not pay attention to opportunities outside our project focus, unless they are ridiculously cheap and notionally capable of offering quick return. Liquidity is important to progress our projects.
Invest at your own risk and always DYOR.
9ja Cosmos is here…
Get your .9jacom and .9javerse Web 3 domains for $2 at:
I do not work in the Central Bank of Nigeria. But I have access to information which may make some directors there jealous. I speak on average 10 companies in Nigeria weekly because we run the most active entrepreneurial school in Africa.
The smartest people in Nigeria are the young people, and they’re well ahead of all of us. They invent sophisticated business models and sell some to Nigerian banks. I will share one here which took off massively from July 1, 2023, after the Naira floating policy. Many banks have this product in Nigeria.
Yes, new business models evolved after the Naira floating policy last year. Some of the things the Central Bank of Nigeria is doing will take time to work as some of our lending products are cross-border in nature now with masked USD component. I have identified ten new models and will share one today.
Follow me:
Note: no USD fund has been imported into Nigeria. And the US dollar which shows in the balance sheet of the local Nigeria bank is a collateral on a loan issued in Naira.
Does the Central Bank of Nigeria (CBN) understand how to handle the Naira and the USD components of this transaction? I just explained one of many financial trajectories which are turning the Naira on its heads.
Nigeria was broken in 2017 but post-May 2023 policies accelerated things; everyone knows what happened. Check the rate of foreign currency importation, not the amount raised? I mean, if you do not understand this, you are 10 years behind in the Nigerian capital and banking sector. The forex market in Nigeria is so advanced that it may take the central bank years to catch up because the tools we use to regulate and monitor banks cannot understand what happens.
Stay tuned for model #2. These are new business models which are reshaping banking, FX and the broad capital market in Nigeria. Interestingly, these things are 100% legal. The challenge is the distortion in the funding equilibrium.
Yet, we can fix these issues if we get to work. The floating of Naira made Naira vulnerable and that was why I called it “One of the worst economic policies in Nigeria since 1999“.