Educating the Next Generation in Nigeria, Africa As More American Kids Punt on Universities

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December 26, 2023

I just read a piece where it was noted that American young people are not really super-excited on going to colleges (i.e. universities). There are many reasons why that is happening, and those include the associated debts involved to attend colleges, the availability of many jobs which do not require having college degrees, and most importantly, they live in America where to a large extent governments work.

In that LinkedIn News update, the piece concluded with this line: “The number of undergraduates enrolling to college as of May was down 1.16 million compared to Spring 2020, per the National Student Clearinghouse”.

Good People, that is a very significant path-redirection. In spring 2020, the US population was about 331.4 million people. In May 2023, the population was about 340 million. So, despite the population increasing by more than 8 million people, more than 1 million are not enrolling in colleges. In China, literacy rate is more than 99.7% but college education is not that huge; they focus heavily on providing vocational and other important skills to young people, leaving the few interested in universituies to pay and attend. (Of course, many still attend colleges in the United States compared with averages in many countries.)

I have not read the full report, but this is what I see here: there is a massive disintermediation of the traditional university system. Yes, those kids are enrolling in programs, but not “colleges” or “universities”. People now create everything you can get in a typical college computer science program minus the networking and contacts, and dump them online for an insignificant fee. And with most tech jobs not including degree requirements, focusing on skills and capabilities, the kids are not motivated to pay those huge tuition fees for the papers.

Personally, I recommend that people attend college and universities because there is more to education than being prepared for work or getting jobs. Education is the liberation of the mind and if you do attend a great school, you will learn more outside the classrooms. Yet, I cannot ignore the fact that most non-college programs now have bootcamps, seasonal meetups, etc to deliver such experiences. Of course, you decide what works for you even as American kids are making their calls.

For Nigeria, we have an opportunity to fundamentally use this redesign to plan how to educate our young people. One of our portfolio companies in Tekedia Capital, Egoras, has an opportunity to scale but it continues to struggle to find industrial welders. Simply, Nigeria has many gaps which must be closed. And that means focusing on skills and what people can do, over papers they present! I think vocational non-college training & education is calling for attention.

I just read a piece where it was noted that American young people are not really super-excited on going to colleges (i.e. universities). There are many reasons why that is happening, and those include the associated debts involved to attend colleges, and the availability of many… pic.twitter.com/DFEI7BiWb1

— Ndubuisi Ekekwe (@ndekekwe) December 27, 2023

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Comment 1: Absolutely, your observations are spot on. The shifting trend in American youth opting out of traditional college enrollment does highlight a significant reorientation in education. While college education undeniably offers broader perspectives and opportunities beyond just career preparation, the mounting debts and the emergence of job opportunities not reliant on degrees are steering many towards alternative paths.

Indeed, online platforms and non-collegiate programs seem to be meeting the educational needs of American youth, signaling a shift in the way education is accessed and valued. Your viewpoint aligns with the idea that education should emphasize practical skills and capabilities rather than solely emphasizing academic credentials.

This presents an opportune moment for Nigeria to reassess its educational framework, bridging existing gaps by prioritizing skill-based education. Focusing on vocational non-college training could be instrumental in addressing these gaps and better preparing the younger generation for a changing job landscape. It’s a critical redirection that holds promise for reshaping the educational paradigm in Nigeria toward a more skill-oriented approach.

Paytm Lays Off 1,000 Employees Across Various Units as Part of A Broader Cost-Cutting Strategy

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Ojukwu Emmanuel

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December 26, 2023

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indian phone — Social media is huge in India

Paytm’s parent company, One 97 Communications, has laid off 1,000 employees across various departments, as part of a broader cost-cutting strategy.

The publicly listed financial services company announced that the layoff affects only 10% of the employee’s overall headcount, and comes on the back of Paytm, withdrawing from small-ticket consumer lending and the buy now pay later (BNPL) segment.

A significant number of affected workers are reported to be in the startup’s lending business, as well as payments and executives in operations and sales.

Speaking on the layoff at the company, a spokesperson said the downsizing of the part of the workforce, was necessitated due to the transformation of operations with AI-powered automation to drive efficiency and eliminate repetitive tasks and roles, thereby driving efficiency and growth.

The spokesperson said,

“Our core business of payment may see manpower increase by 15,000 in the coming year. With a dominant position in the payments platform and a proven profitable business model, we will continue to innovate for India. We are transforming our operations with Al-powered automation, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce within operations and marketing. Eventually, by the end of the fiscal year, the company intends to achieve the targeted 10-15% reduction in employee costs”.

Paytm had reported operating profitability in early 2023 and is currently aiming for EBITDA-level profitability. In Q2FY24, Paytm’s revenue from operations saw a growth of 32% YoY to Rs2,519 Cr, and its EBITDA before ESOP cost has improved to Rs153 Cr as compared to Rs84 Cr in Q1FY24 (excluding UP|incentives).

A report disclosed that Paytm is now focusing on building new products for its wealth management vertical. Also, it plans to build an insurance distribution marketplace to lead to the hiring of new talent, while other teams are being cut down.

Despite Paytm’s recent success, the stock hit the lower circuit, declining by 20%, on December 7, a day after the company said it would pay out from Paytm Postpaid and take a cautionary approach toward small-ticket loans going forward.

Founded by Vijay Shekhar Sharma, Paytm Payments Bank offers a Savings Account with no account opening charges or minimum balance requirements.

Every Paytm Payments Bank account holder is issued with a free Digital Debit Card at the time of account opening. Account holders can request a physical Debit Card through the Paytm Payments Bank section of their Paytm App.

Be it a zero balance savings account, spend analytics, digital passbook virtual debit card, fixed deposit, or money transfer, every feature has been thoughtfully created by Paytm Payments Bank to empower unbanked and underbanked Indians.

With over 300 million wallets and 30 million bank accounts, the payments company is driving financial inclusion in India.

BlackRock’s bitcoin ETF team has met 5 times with the SEC

By

Paul Ugbede Godwin

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December 26, 2023

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BlackRock, the world’s largest asset manager, is not giving up on its quest to launch a bitcoin exchange-traded fund (ETF) in the US. According to recent filings, the firm’s bitcoin ETF team has met with the Securities and Exchange Commission (SEC) five times since June 2023, discussing various aspects of its proposed product.

The SEC has been reluctant to approve any bitcoin ETFs in the US, citing concerns over market manipulation, investor protection, and custody issues. However, BlackRock is hoping to convince the regulator that its bitcoin ETF would address these challenges and provide a safe and convenient way for investors to access the cryptocurrency market.

BlackRock’s bitcoin ETF would track the performance of the CME CF Bitcoin Reference Rate, a benchmark that reflects the average price of bitcoin across multiple spot exchanges. The fund would also use a network of third-party custodians to hold the underlying bitcoins, ensuring that they are secure and insured.

BlackRock’s bitcoin ETF team has met with various SEC officials, including the director of the Division of Investment Management, the chief economist, and the senior advisor to the chair. The topics of discussion included the structure and operation of the fund, the valuation and liquidity of bitcoin, the risk management and compliance procedures, and the potential impact on the broader market.

BlackRock is not the only firm that is pursuing a bitcoin ETF in the US. Several other companies, such as VanEck, WisdomTree, and Valkyrie, have also filed applications with the SEC, hoping to be the first to launch a bitcoin ETF in the country. However, none of them have received a green light from the regulator yet.

The SEC has delayed its decisions on several bitcoin ETF proposals until early 2024, indicating that it is still reviewing the merits and risks of these products. The agency has also asked for public comments on various aspects of bitcoin ETFs, such as their potential benefits and drawbacks for investors, their impact on market integrity and stability, and their compatibility with existing regulations.

The demand for a bitcoin ETF in the US is high, as investors are looking for a more convenient and regulated way to gain exposure to the cryptocurrency market. A bitcoin ETF would allow investors to buy and sell shares of the fund on a stock exchange, without having to deal with the complexities and risks of buying and storing bitcoins directly.

A bitcoin ETF would also open up the cryptocurrency market to a wider range of investors, such as institutional investors, retail investors, and financial advisors. This could increase the adoption and acceptance of bitcoin as a legitimate asset class, and potentially boost its price and liquidity.

However, a bitcoin ETF also comes with some challenges and uncertainties. For instance, a bitcoin ETF would be subject to the volatility and unpredictability of the cryptocurrency market, which could expose investors to significant losses. A bitcoin ETF would also depend on the reliability and security of its custodians and service providers, which could pose operational and counterparty risks.

Moreover, a bitcoin ETF would face regulatory scrutiny and uncertainty from various authorities, such as the SEC, the IRS, and state regulators. A bitcoin ETF would have to comply with various rules and regulations regarding registration, disclosure, taxation, reporting, and auditing. A bitcoin ETF could also be subject to legal actions or enforcement actions from regulators or other parties.

Therefore, investors who are interested in a bitcoin ETF should be aware of both the opportunities and risks involved in this type of product. They should also do their own research and due diligence before investing in any bitcoin ETF.

BlackRock’s bitcoin ETF team is working hard to persuade the SEC that its product is worthy of approval. However, it is unclear when or if the SEC will grant its authorization. Until then, investors will have to wait patiently or look for other ways to access the cryptocurrency market.

The 5 biggest DeFi hacks of 2023

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Paul Ugbede Godwin

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December 26, 2023

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Decentralized finance (DeFi) has been one of the most innovative and lucrative sectors in the crypto space, but also one of the most vulnerable to attacks. In 2023, hackers managed to exploit several DeFi protocols and steal millions of dollars’ worth of crypto assets. Here are the five biggest DeFi hacks of the year and what we can learn from them.

BadgerDAO: $120 million

BadgerDAO is a DeFi protocol that aims to build products and infrastructure for Bitcoin on Ethereum. In January 2023, a sophisticated attacker exploited a flaw in the protocol’s smart contracts and drained $120 million worth of wrapped Bitcoin (WBTC) and other tokens from the platform.

The hacker used a flash loan to manipulate the prices of the tokens and siphon funds from the vaults. The BadgerDAO team said they were working with security experts and law enforcement to recover the funds and identify the attacker.

Cream Finance: $100 million

Cream Finance is a DeFi lending platform that allows users to borrow and lend various crypto assets. In February 2023, a hacker exploited a bug in the protocol’s integration with Yearn Finance, another DeFi platform, and stole $100 million worth of tokens from the platform.

The hacker used a flash loan to create a large amount of debt and then liquidated it at a favorable rate. The Cream Finance team said they were investigating the incident and working on a compensation plan for the affected users.

SushiSwap: $80 million

SushiSwap is a DeFi exchange that allows users to swap and provide liquidity for different crypto tokens. In March 2023, a hacker exploited a vulnerability in the protocol’s MISO launchpad, which is used to launch new tokens on the platform. The hacker was able to mint an unlimited amount of SUSHI tokens and sell them on the market, causing the price to plummet.

The hacker also stole $80 million worth of ETH and other tokens from the launchpad. The SushiSwap team said they were working on a post-mortem report and a recovery plan for the platform.

Alpha Finance: $50 million

Alpha Finance is a DeFi platform that offers various products such as lending, borrowing, leveraged yield farming, and stablecoins. In April 2023, a hacker exploited a flaw in the protocol’s Alpha Homora product, which allows users to leverage their positions in yield farming.

The hacker used a flash loan to borrow a large amount of ETH and then used it to manipulate the prices of the tokens on Alpha Homora and Uniswap, another DeFi exchange.

The hacker then withdrew $50 million worth of ETH and other tokens from the platform. The Alpha Finance team said they were working with security auditors and other DeFi protocols to mitigate the impact and prevent future attacks.

Compound: $40 million

Compound is one of the oldest and most popular DeFi platforms that allows users to earn interest on their crypto assets by lending and borrowing them. In May 2023, a hacker exploited a bug in the protocol’s oracle system, which is used to provide accurate price data for the platform. The hacker was able to manipulate the prices of some tokens on Compound and cause them to deviate from their market values.

The hacker then borrowed these tokens at a low rate and sold them on the market at a high rate, making $40 million worth of profit. The Compound team said they were fixing the bug and working on a compensation plan for the affected users.

These are just some of the major DeFi hacks that occurred in 2023, but there were many more smaller incidents that also caused significant losses for users and platforms. These hacks show that DeFi is still an emerging and experimental field that requires constant vigilance and security audits.

Users should always do their own research before investing in any DeFi protocol and be aware of the risks involved. DeFi has great potential to revolutionize finance, but it also comes with great challenges and dangers.

Illegal Printing of N23t under the Ways and Means is the single largest financial scandal in history of Nigeria

By

Paul Ugbede Godwin

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December 26, 2023

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One of the most shocking revelations that has emerged in recent times is the massive fraud perpetrated by the Central Bank of Nigeria (CBN) in connivance with the Federal Government.

According to credible sources, the CBN has been printing N23 trillion out of thin air and using it to fund the government’s deficit spending under the guise of Ways and Means. This is a clear violation of the CBN Act and the Constitution and amounts to the largest financial scandal in the history of Nigeria.

What are the implications of this illegal printing of money? First, it erodes the value of the naira and fuels inflation, which is already at a record high of 18.17% as of March 2023.

Second, it undermines the credibility and independence of the CBN, which is supposed to be the custodian of monetary stability and fiscal discipline. Third, it exposes the country to external shocks and debt distress, as the CBN will have to deplete its foreign reserves or borrow more to repay its obligations. Fourth, it jeopardizes the future of generations of Nigerians, who will have to bear the burden of this reckless and irresponsible fiscal policy.

The Nigerian people deserve to know the truth about this monumental fraud and hold those responsible accountable. The former CBN Governor, Godwin Emefiele, must explain how and why he authorized this illegal printing of money without any parliamentary oversight or public disclosure.

The former Minister of Finance, Zainab Ahmed, must also disclose how much of this money has been spent and on what projects or programmes. The National Assembly must conduct a thorough investigation into this matter and ensure that appropriate sanctions are meted out to those who have violated the law and betrayed the trust of Nigerians. The civil society and the media must also play their role in exposing this scandal and demanding transparency and accountability from the government.

This is not a matter that can be swept under the carpet or ignored. It is a matter that affects the economic well-being and sovereignty of Nigeria. It is a matter that calls for urgent action and reform. The illegal printing of N23 trillion under the Ways and Means is the single largest financial scandal in the history of Nigeria, and it must not go unpunished.

How can we prevent this from happening again?

One possible solution is to amend the CBN Act and limit its power to print money without approval from the National Assembly. Another possible solution is to strengthen the oversight and audit functions of the Office of the Auditor-General of the Federation and other relevant agencies.

A third possible solution is to enhance public awareness and civic engagement on fiscal matters and hold public officials accountable for their actions. These are some of the ways we can safeguard our economy and democracy from this kind of abuse.