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Wema Bank Lifts Restriction on Naira Mastercard Int’l Transactions, Allows $500 Monthly

By
Samuel Nwite
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0

Wema Bank has lifted the suspension of international transactions on its naira cards, following the floatation of the Nigerian forex market.

The bank, in a note sent to its customers on Friday, said it has imposed a $500 monthly limit on international transactions carried out on its naira cards.

The news comes as a relief to Nigerians, who are hoping that other banks will follow suit as soon as possible.

Nigerians have gone through a rough path carrying out international POS transactions, following the country’s FX crisis that compelled the central bank to introduce several restrictive policies to protect the naira.

Against this backdrop, restrictions on the dollar eventually closed every window of international transactions on naira Mastercard and Visa. Commercial banks began to announce the suspension of international POS and web transactions to their customers, leaving many, especially Nigerians running Small and Medium Enterprises (SMEs), stranded.

But following last month’s announcement by the Central Bank of Nigeria (CBN), removing control pegs around the naira, thereby collapsing multiple exchange rates into one, Wema Bank has taken the lead in resuming card-based cross-border transactions.

The bank said in the notice that customers can now enjoy seamless transactions and make international purchases using their naira cards.

“You can now use your Naira cards, including Mastercard, ALAT Mastercard, and Visa, for international spending. For your international transactions, you can enjoy up to $500 per month,” the notice reads.

“Here’s what you need to know:
Expanded Possibilities: The Naira card allows you the freedom to make international purchases, explore international online stores, and buy from your favorite international brands. You know what? The world is now at your fingertips!

“Monthly Limit: To provide you with enhanced security and control, there is a $500 monthly spending limit for international transactions. This allows you to manage your expenses responsibly while enjoying the benefits of international spending.

“Effortless Convenience: Your Naira card gives you the convenience of making payments in foreign currencies, eliminating the need for currency conversion or carrying excess cash. It’s a hassle-free and secure way to shop and transact abroad.”

Following the deregulation of the FX market, banks are now allowed to carry out dollar transactions using market-determined rates. On Friday, the exchange rate between the dollar and naira fell to its lowest ever at N803/$1 at the investor & exporter window.

Binance Lays Off More Than 1,000 Employees to Focus on Talent Density Across the Organization

By
Ojukwu Emmanuel
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0

Crypto exchange Binance has reportedly laid off more than 1,000 employees, as it plans to focus more on talent density across the organization.

According to Wall Street Journal, Binance could lay off one-third of its workforce, which was nearly 8,000 before the start of layoffs.

Speaking on the recent layoff of employees at Binance, a spokesperson said,

“As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic. This is not a case of right-sizing, but rather, re-evaluating whether we have the right talent and expertise in critical roles”.

Bitcoin prices plummeted on Saturday, slipping back nearly $30,000 per token after the news of Binance laying off part of its workforce emerged.

The crypto exchange has faced significant regulatory challenges over the last few months, culminating in lawsuits from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over alleged mishandling of customer assets and the operation of an illegal, unregistered exchange in the U.S.

Binance has continued to encounter a barrage of regulatory challenges across multiple countries, signaling a significant crackdown on the crypto industry.

Last month, the US regulator sued Binance, its CEO Changpeng Zhao, BAM Trading, and BAM Management over allegedly mishandling funds and lying to regulators.

In a federal lawsuit, the regulator filed 13 charges against the defendants. Later, a US judge urged the SEC to reach a settlement with crypto exchange Binance to let it continue operating in the US.

While it has reached an agreement with the U.S. SEC to dismiss the previous temporary restraining order that aimed to freeze all Binance.US assets, which resulted in it shutting down dollar deposits and setting a June 13 deadline for its US customers to withdraw funds, the regulatory blows haven’t stopped there.

In Belgium, Binance was also ordered by Belgium’s Financial Services and Markets Authority (FSMA) to immediately cease all offers of virtual currency services in the country.

The FSMA noted that “Binance is offering and providing exchange services in Belgium between virtual currencies and legal currencies, as well as custody wallet services, from countries that are not members of the European Economic Area. The FSMA ordered Binance to cease with immediate effect, offering or providing any of its services in Belgium.

As Binance countries face a myriad of regulatory pressures, which has also seen a number of key executive departures, the crypto world continues to watch closely.

Meanwhile, Binance founder Changpeng Zhao has repeatedly dismissed concerns about the future of the exchange. He has underscored Binance’s commitment to cooperate with regulators while noting that the crypto industry lacks clear regulatory frameworks in several countries.

Notably, Zhao mentioned that Binance has grown its international compliance team and advisory board by 500% since 2020, including appointments from major global regulators like the Financial Action Task Force.

He also noted that Binance has been actively implementing Anti-Money Laundering policies on its platform, cooperating with crypto intelligence firm CipherTrace to ensure further protection.

Goldman Sachs projects Nigeria to become World’s Fifth Largest Economy by 2075

By
Paul Ugbede Godwin
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0

Nigeria, the most populous country in Africa, is on track to become the world’s fifth-largest economy by 2075, according to a new report by Goldman Sachs. The report, titled “Africa’s Turn: The Path to Prosperity”, analyzes the economic prospects of 11 African countries, including Nigeria, and projects their growth trajectories based on various factors such as demographics, governance, infrastructure, natural resources, and human capital forecasts that Nigeria will overtake Germany, Japan, Brazil and Indonesia in terms of GDP by the end of the century.

According to the report, Nigeria’s gross domestic product (GDP) is expected to grow at an average annual rate of 6.2% from 2020 to 2075, reaching $15.3 trillion by the end of the period. This would make Nigeria the fifth-largest economy in the world, behind China, India, the United States, and Indonesia. Nigeria’s GDP per capita is also projected to increase from $2,229 in 2020 to $29,652 in 2075, surpassing the current levels of countries such as Brazil, Russia, and Turkey.

The report attributes Nigeria’s impressive growth potential to its large and young population, which is estimated to reach 733 million by 2075, making it the third-most populous country in the world after India and China. Nigeria has a population of over 200 million people, with a median age of 18.4 years, making it one of the youngest and fastest-growing markets in the world.

Nigeria is also the largest oil producer in Africa and the sixth largest in the world, with proven reserves of 37 billion barrels. Moreover, Nigeria has been investing heavily in its power, transport, and digital sectors, as well as in its human capital development and anti-corruption efforts. Nigeria’s economy is also becoming more resilient and diversified, with services accounting for over 50% of GDP and agriculture for over 20%.

The report also highlights the opportunities and challenges that Nigeria faces in achieving its economic potential. The opportunities include expanding its domestic market, increasing its regional and global integration, leveraging its diaspora network, and fostering innovation and entrepreneurship. The challenges include managing its fiscal and external balances, addressing its security and environmental issues, improving its business environment and regulatory framework, and enhancing its social inclusion and cohesion.

The report also highlights Nigeria’s abundant natural resources, especially oil and gas, which account for about 10% of its GDP and 90% of its exports. Moreover, the report notes that Nigeria has made significant progress in improving its governance and institutional quality, as well as investing in infrastructure and human capital development.

However, the report also warns that Nigeria faces several challenges that could derail its growth prospects if not addressed effectively. These include security issues such as terrorism, insurgency, and communal violence; environmental issues such as climate change, desertification, and pollution; social issues such as poverty, inequality, and unemployment; and economic issues such as fiscal deficits, debt sustainability, and exchange rate volatility. The report urges Nigeria to implement sound macroeconomic policies, diversify its economy away from oil dependence, enhance its business environment and competitiveness, and foster regional integration and cooperation.

The report concludes that Nigeria has a unique opportunity to leverage its strengths and overcome its challenges to achieve its full potential as a global economic powerhouse. It states that “Nigeria’s success will not only benefit its own citizens but also have positive spillover effects for the rest of Africa and the world”.

Elon Musk wants to add an “Instagram-Styled” Tab for Twitter that will focus on Photos and Videos

By
Paul Ugbede Godwin
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0

Elon Musk, the billionaire entrepreneur and founder of Tesla and SpaceX, has recently expressed his interest in adding a new feature to Twitter that would emphasize visual content. In a tweet on July 14, Musk suggested that Twitter should have an “Instagram-styled” tab that would show only photos and videos from the people you follow, without any text or links. He also added a poll asking his followers if they would use such a feature.

Musk’s tweet received mixed reactions from the Twitter community, with some users supporting his idea and others criticizing it. Some argued that Twitter is already saturated with images and videos, and that adding another tab would make the platform more cluttered and less informative.

Others pointed out that Twitter already has a media tab that shows all the photos and videos from a user’s profile, and that Musk’s proposal would not add much value. Some also questioned Musk’s motivation for wanting such a feature, suggesting that he might be trying to promote his own products or personal brand through visual content. Some of the recent additions include Spaces, a feature that allows users to host live audio chats; Tip Jar, a feature that enables users to send and receive money; and Super Follows, a feature that will let users charge for exclusive content.

However, some users also praised Musk’s idea and said that they would enjoy seeing more photos and videos from their favorite accounts. They claimed that such a feature would make Twitter more engaging and entertaining, and that it would allow users to share their creativity and personality more easily. They also noted that Twitter has been lagging behind other social media platforms like Instagram and TikTok in terms of visual content, and that adding an “Instagram-styled” tab would help Twitter attract more users and advertisers.

Musk is not the first person to propose such a feature for Twitter. In fact, Twitter itself has been experimenting with different ways to showcase visual content on its platform. In 2019, Twitter launched Fleets, a feature that allows users to post ephemeral stories that disappear after 24 hours. In 2020, Twitter introduced Spaces, a feature that lets users host live audio conversations with other users. And in 2021, Twitter announced Super Follows, a feature that will enable users to charge for exclusive content such as newsletters, podcasts, or videos.

Twitter has not officially responded to Musk’s suggestion, but it is unlikely that the company will implement such a feature anytime soon. Twitter has been focusing on improving its existing features and introducing new ones that align with its vision of being a platform for public conversation. Some of the recent additions include Spaces, a feature that allows users to host live audio chats; Tip Jar, a feature that enables users to send and receive money; and Super Follows, a feature that will let users charge for exclusive content.

It is unclear whether Twitter will take Musk’s suggestion seriously and implement an “Instagram-styled” tab for its platform. However, it is evident that Twitter is aware of the importance of visual content in the social media landscape, and that it is willing to try new things to keep up with the changing preferences and expectations of its users.

Debts Are Better When Localized

By
Ndubuisi Ekekwe
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1

Nigeria recorded a Government Debt to GDP of 38% in 2022 (latest full data).  For the US, the debt-to-GDP is 123%. Yet, from IMF to World bank, the consensus is that Nigeria is severely indebted while the US is just fine.

  • 2003: 
  • Debt: $6.8 T 
  • GDP: $11.5 T 
  • 2013: 
  • Debt: $16.8 T 
  • GDP: $16.9 T 
  • 2023: 
  • Debt: $32.6 T 
  • GDP: $26.5 T

Why? In an Igbo novel (Uwadiegwu), BN Obodo dropped a great hint: when you borrow, go to your kinsman so that if the debt goes bad, he may lock you up but at the same time he would be expected to take care of your family since he is your kinsman! That is how debts work: pains are lesser when the debt is home.

Provided the US dollar is the currency of the debt, the US can afford more printing machines to print more US dollars but Nigeria must EARN any dollar to pay the dollar-denominated debt. So under that construct, Nigeria’s debt becomes more precarious than the United States’ because its national policy must be configured in ways that ensures that it can earn US dollars, because it needs to pay its debts. 

Magically, balance of payment and balance of trade dominate every aspect of the national strategy, adding new layers to the viability of the Naira! The implication: a vicious circle which over time cripples the economic wellbeing of the people. But it is not the US dollar fault, it is the fault of Nigeria’s national leaders who just like to borrow and borrow to consume.

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