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Nigeria’s Education Budget: Comparing the 1960s and the Current Era

By
Ndubuisi Ekekwe
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1

Time flies but we could go back to see how some of our founding leaders governed Nigeria and its regions. In Nigeria’s 2024 national budget, we have about 7% allocated to education (you must include TETFund in the computation). If you average our budget on education to our GDP over three decades, Nigeria does not show up in the top 40 countries in Africa (see source here). 

Countries like Congo DRC, Chad and Niger are ahead of us. They may not have big universities, but they invest a lot on vocational training. In other words, you may not hold a BSc, but there is a technical school around the corner to learn how to install tiles or do plumbing work.

Now, see on this table how Nigeria used to spend on education. I am sharing data around 1955-1962. Then the government was organized in regional format, and budgets were structured that way. Of course, the regional premiers had inputs on the budgets. (Doing a report connecting education to development from 1945 to 2023, in Nigeria. So, I have pulled data from archives; New York Times is indeed a resource.)

You can see that education was averaging at least 15% of the national budget. Of course, there was no stealing and that 15% went into education. Today, when we say we are budgeting 7%, the budget execution may not even hit 80% which means ideally, we are spending just 5.6% assuming no leakages. If you include leakages, the budget may not be up to 3% of the budget.

Now you can see that the drop in quality is not because our kids do not have the right oil in the brain. It is simply that Nigeria has left what was working with our “security votes” which is a legal way to “steal”.

Nigerian modern leaders abandoned the pursuit of knowledge and the liberation of the mind, and whenever that happens, nations struggle.

GBTC’s asset bleeding to blame for week of flat crypto product flows

By
Paul Ugbede Godwin
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0

The past week has seen a lackluster performance of crypto products, with no significant inflows or outflows recorded. According to a report by CoinShares, the total assets under management (AUM) of crypto products remained at $62.7 billion, a slight decrease from the previous week’s $63.3 billion.

One of the main factors behind this stagnation is the continuous decline of GBTC’s AUM, which dropped by $1.4 billion in the past week. GBTC, or Grayscale Bitcoin Trust, is the largest and most popular crypto product, holding about 75% of the market share. However, GBTC has been suffering from a persistent discount to its net asset value (NAV), meaning that its shares are trading below the value of its underlying assets.

The discount, which reached a record high of 21.23% on March 4, has deterred investors from buying GBTC shares, as they would be paying more for less exposure to Bitcoin. Moreover, some investors have been selling their GBTC shares to arbitrage the price difference, adding more downward pressure on the product.

The discount is partly attributed to the lock-up period of GBTC shares, which requires investors to hold them for six months before they can sell them on the secondary market. This creates a mismatch between supply and demand, as new investors are reluctant to buy GBTC shares at a premium, while existing investors are eager to sell them at a discount.

Another factor that contributes to the discount is the increasing competition from other crypto products, especially exchange-traded funds (ETFs). In the past few months, several Bitcoin ETFs have been launched in Canada and Brazil, offering investors a more convenient and cost-effective way to access the crypto market. These ETFs have lower fees than GBTC and trade at or near their NAV, making them more attractive alternatives.

The report by CoinShares suggests that some of the outflows from GBTC may have been redirected to these ETFs, as they have seen inflows of $49 million in the past week. The report also notes that there is a strong demand for a Bitcoin ETF in the US, as evidenced by the recent filings by several firms, including Fidelity and VanEck.

However, the approval of a Bitcoin ETF in the US is still uncertain, as the Securities and Exchange Commission (SEC) has repeatedly rejected or delayed such proposals in the past. The SEC has expressed concerns about the volatility, liquidity, custody and manipulation of the crypto market, and has asked for more regulation and oversight before it can greenlight a crypto product.

Therefore, GBTC may still have a chance to regain its dominance in the crypto product space, if it can address its discount issue and improve its value proposition. One possible solution is to convert GBTC into an ETF, which would eliminate the lock-up period and align its price with its NAV. However, this would require approval from the SEC, which may not be forthcoming anytime soon.

Another possible solution is to reduce GBTC’s management fee, which is currently 2%, much higher than the average fee of 0.5% for crypto ETFs. This would make GBTC more competitive and appealing to investors who are looking for lower costs and higher returns.

In any case, GBTC’s performance will have a significant impact on the overall crypto product market, as it represents a large portion of the investor demand and sentiment. If GBTC can overcome its challenges and regain its attractiveness, it may spark a new wave of inflows and growth for the crypto product sector.

US national debt reaches new all-time high of $34.1 trillion in January 2024

By
Paul Ugbede Godwin
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0

The US national debt has hit a new record of $34.1 trillion in January 2024, according to the latest data from the Treasury Department. This is an increase of $4.3 trillion from January 2020, when the debt was $29.8 trillion.

The debt has been growing rapidly due to the unprecedented fiscal stimulus and relief measures enacted by the federal government in response to the COVID-19 pandemic and its economic fallout. The debt-to-GDP ratio, which measures the debt relative to the size of the economy, has also reached a historic high of 153%, surpassing the previous peak of 119% in 1946, after World War II.

The rising debt poses significant challenges and risks for the US economy and its future prospects. Some of the potential consequences include:

Higher interest payments: As the debt grows, so does the cost of servicing it. The Congressional Budget Office (CBO) projects that net interest payments will rise from $345 billion in 2020 to $914 billion in 2030, accounting for 3.1% of GDP. This means that more tax revenues will have to be diverted to pay for the interest, leaving less room for other spending priorities or tax cuts.

Reduced fiscal space: A high debt level limits the government’s ability to respond to future crises or emergencies, such as wars, natural disasters, or recessions. The government may face difficulties in borrowing more money from investors, who may demand higher interest rates or lose confidence in the US’s creditworthiness. Alternatively, the government may have to resort to printing more money, which could lead to inflation and currency depreciation.

Lower economic growth: A high debt level may also have negative effects on the long-term growth potential of the economy. Some studies suggest that a high debt-to-GDP ratio can reduce the rate of economic growth by crowding out private investment, lowering productivity, and creating uncertainty and instability.

Given these challenges and risks, many economists and policymakers have called for a comprehensive and credible plan to reduce the debt over time and restore fiscal sustainability. However, there is no consensus on how to achieve this goal, as it involves difficult trade-offs and choices among competing objectives and interests. Some of the possible options include:

Raising taxes: Increasing tax revenues can help reduce the deficit and slow down the growth of the debt. However, raising taxes can also have adverse effects on economic activity, especially if they affect incentives to work, save, invest, or innovate. Moreover, raising taxes can be politically unpopular and face resistance from various groups and constituencies.

Cutting spending: Reducing spending can also help reduce the deficit and slow down the growth of the debt. However, cutting spending can also have negative impacts on social welfare, public services, infrastructure, national security, or research and development. Moreover, cutting spending can be politically difficult and face opposition from various groups and beneficiaries.

Reforming entitlements: Reforming entitlement programs, such as Social Security, Medicare, and Medicaid, can help reduce the long-term pressures on the budget and the debt. These programs account for a large and growing share of federal spending and are projected to increase significantly as the population ages and health care costs rise.

However, reforming entitlements can also entail significant changes in benefits, eligibility, or contributions for current or future recipients. Moreover, reforming entitlements can be politically contentious and face resistance from various groups and stakeholders.

The US national debt has reached a new all-time high of $34.1 trillion in January 2024, reflecting the unprecedented fiscal response to the COVID-19 pandemic and its economic consequences. The high debt level poses significant challenges and risks for the US economy and its future prospects, such as higher interest payments, reduced fiscal space, and lower economic growth.

To address these challenges and risks, a comprehensive and credible plan to reduce the debt over time and restore fiscal sustainability is needed. However, such a plan involves difficult trade-offs and choices among competing objectives and interests, such as raising taxes, cutting spending, or reforming entitlements.

Baidu Partners Samsung to Integrate Ernie Chatbot Into Galaxy S24 as PayPal Integrates AI Features

By
Ojukwu Emmanuel
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0

Chinese tech giant Baidu has formed a strategic partnership with South Korean multinational manufacturing company Samsung, to integrate its Ernie Chatbot into the recently launched Galaxy S24 smartphone.

This partnership will see Samsung use Baidu’s advanced Ernie model to add new tools and functions to its smartphone. The updated Samsung Note Assistant, powered by Ernie, now offers content translation and summarization into organized formats, which can quickly change content into shorter easy-to-understand formats with just a press of a button.

The inclusion of Baidu’s ERNIE model in the Galaxy S24 Series opens up a world of advanced AI functionalities previously unseen in smartphones. Users can now benefit from real-time call translation, enabling seamless communication with individuals from different cultural backgrounds.

Additionally, the AI chatbot empowers the device to generate detailed summaries of articles, web pages, and documents with utmost accuracy, simplifying research and information gathering.

Announcing its partnership with Baidu, Samsung said via a statement,

“Now featuring Ernie’s understanding and generation capabilities, the upgraded Samsung Note Assistant can translate content and also summarize lengthy content into clear, intelligently organized formats at the click of a button, streamlining the organization of extensive text”.

With the launch of the Ernie 4.0 version in October last year,  Baidu claims it is the most powerful version of the Ernie foundation model to date, which has the full capabilities of understanding, generation, reasoning, and memory, claiming that the chatbot capabilities are as advanced as that of OpenAI’s GPT-4 model.

This strategic collaboration between Baidu and Samsung signifies a major step forward in AI integration within smartphones. By leveraging the power of Baidu’s ERNIE model, Samsung has crafted a device that exemplifies the harmonious blending of diverse AI technologies.

It is understood that the South Korean multinational manufacturing conglomerate has ushered in the era of Artificial Intelligence (AI) on smartphones, with the latest launch of the extraordinary Galaxy S24 Ultra

Unveiled at the Galaxy Unpacked 2024, the S24 Ultra comes with several AI features aimed at enhancing use, especially the phone’s most fundamental role, communication.

With the launch of the remarkable S24 ultra, Samsung looks to leapfrog Apple with AI enhancements to Galaxy smartphones that will ‘reshape the technology landscape’ The sales pitch for the recently launched Galaxy S24 phones revolves around an array of new features powered by artificial intelligence.

Besides featuring some of Samsung’s own work in AI, the Galaxy S24 lineup will be packed with some of the latest advances coming out of Google.

PayPal Integrates AI Features on Platform to Streamline And Expedite Transactions For Customers

American multinational financial technology company operating an online payments system, PayPal, has integrated several Artificial Intelligence (AI) features, to streamline and expedite transactions for customers.

The company via an announcement on

Thursday, disclosed that it will be launching six new additional features on the platform that will utilize AI to help merchants increase sales, make the checkout process more efficient, and give personalized offers to each customer.

Furthermore, the app is getting a new “CashPass” feature that gives customers access to hundreds of personalized cash-back offerings called “Smart Receipts”, with personalized recommendations, enhanced checkout, and guest experiences.

PayPal added that the Smart Receipts feature will be able to track customer’s purchases and harness AI to predict what they may want to buy next from the merchant.

Another feature that will integrated into the platform is the advanced offers platform that will enable merchants to use customers’ shopping data and reach customers based on what they have bought across the internet, down to the stock-keeping unit (SKU) and the individual product.

The financial technology company is also building transparent, easy-to-use privacy controls so if a customer does not want their data shared with merchants to personalize their shopping experience, they can opt in or out.

There will also be the roll-out of a new feature called “Fastlane” service that offers a one-click guest checkout experience that will allow users to make quick purchases on Merchant websites that use PayPal’s platform.

PayPal notes that the standard guest checkout experiences are slow and require users to update their credit card information and shipping address. Customers will soon be able to save their information with Fastlane to check out in one tap. They won’t need to enter a username or password or update their personal information.

Announcing the integration of several AI features to the platform, President and CEO of PayPal Alex Chriss via a statement,

“PayPal is introducing six new innovations that will not only solve customer pain points, but we believe will change the world of payments and commerce. From New solutions for merchants to speed up checkout and personalize offers, to a new customer app that will give our loyal customers more reasons to shop with PayPal, to the next generation of Venmo designed to be the growth for local small businesses, PayPal has always brought the future of money to our consumers and merchants and today marks the next revolution”.

With the introduction of AI features to PayPal, investors hope the new management under Alex Chriss who resumed position last year September, will revive PayPal’s stock, which is down more than 22% from January 2023 due to margins that have underwhelmed investors.

Chriss has described 2024 as a “transition year” for PayPal and has promised to grow revenues beyond transaction-related volume.

Bitcoin is Empowering And An Internet Store of Value for Different People

By
Paul Ugbede Godwin
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0

Bitcoin is a digital currency that operates on a decentralized network of computers, without the need for intermediaries or central authorities. Bitcoin is often referred to as the “internet of money” because it enables peer-to-peer transactions across the globe, without borders or barriers.

But Bitcoin is more than just a payment system. It is also a form of digital asset that can store value over time, independent of any government or corporation. I will explain why Bitcoin is “empowering” and “internet store of value”, and how it can benefit individuals and society.

Bitcoin is empowering because it gives users full control over their own money. Unlike traditional currencies, which are issued and controlled by central banks, Bitcoin is created and distributed by the network of users, following a set of rules that are transparent and verifiable.

Users can send and receive bitcoins without intermediaries, fees, censorship, or restrictions. Users can also choose their own level of security and privacy, depending on how they store and use their bitcoins. Bitcoin empowers users to be their own bank, and to participate in a global and open financial system.

For example, Alice is a freelance writer who lives in Nigeria. She works for clients from different countries, who pay her in different currencies. She used to face many challenges when receiving her payments, such as high fees, delays, exchange rate fluctuations, and fraud. She also had to deal with the instability and inflation of her local currency, the naira.

But ever since she started using Bitcoin, she has been able to receive her payments faster, cheaper, and more securely. She can also save her earnings in Bitcoin, which preserves her purchasing power and gives her more financial freedom.

Bitcoin is internet store of value because it has the properties of sound money. Sound money is money that has a limited supply, is durable, divisible, portable, fungible, and recognizable. Bitcoin has all these properties, and more. Bitcoin has a fixed supply of 21 million units, which ensures its scarcity and protects its purchasing power from inflation.

Bitcoin is durable because it exists as digital information that cannot be destroyed or corrupted. Bitcoin is divisible because each unit can be split into 100 million smaller units, called satoshis. Bitcoin is portable because it can be transferred anywhere in the world with an internet connection.

Bitcoin is fungible because each unit is interchangeable and indistinguishable from another. Bitcoin is recognizable because it has a unique and recognizable code that can be verified by anyone.

Bitcoin is not only a store of value, but also a growing one. Bitcoin’s value is determined by the supply and demand of the market, not by the whims of governments or corporations. Bitcoin’s value has increased over time, as more people adopt it and recognize its potential.

Bitcoin’s value is also supported by its network effect, which means that the more users and applications it has, the more valuable and useful it becomes. Bitcoin’s value is also enhanced by its innovation and improvement, which means that the network constantly evolves and adapts to new challenges and opportunities.

For example, Bob is an investor who believes in the long-term potential of Bitcoin. He started buying bitcoins in 2014, when they were worth around $500 each. He held on to his bitcoins through the ups and downs of the market, ignoring the short-term volatility and focusing on the long-term trend.

Today, his bitcoins are worth over $40,000 each, giving him a return of over 8000%. He plans to keep holding his bitcoins for the foreseeable future, as he expects them to appreciate even more as more people discover and use them.

Bitcoin is empowering and internet store of value because it offers a new way of thinking about money and finance. It challenges the status quo and opens up new possibilities for individuals and society.

It enables people to have more freedom, choice, and opportunity in their economic lives. It also creates a more fair, inclusive, and resilient financial system that can serve the needs of everyone.

For example, Carol is a social activist who cares about human rights and environmental issues. She supports various causes and organizations that work to make the world a better place. She uses Bitcoin to donate to these causes and organizations, as well as to support other activists around the world who face oppression or censorship from their governments or corporations.

She also uses Bitcoin to raise awareness and educate others about the benefits and potential of this technology. She believes that Bitcoin can empower people to create positive change in the world.

These are just some examples of how Bitcoin is empowering and internet store of value for different people in different situations. There are many more stories and use cases that illustrate the power and potential of this technology.

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