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House of Reps Declares the Launch of Nigerian Air Fraudulent

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The House of Representatives has declared the launch of Nigerian Air fraudulent, ordering that the national carrier project, which reportedly gulped N85 billion, be suspended immediately.

Chairman of the House Committee on Aviation, Nnolim Nnaji, made the declaration following an investigation that witnessed the major stakeholders in the deal between the Federal Government and Ethiopian Airlines denying knowledge of the launch.

As part of the investigation, the committee summoned the Permanent Secretary of the Ministry and other relevant stakeholders to present themselves and provide the necessary information.

In its response to the inquiry, the Ministry of Aviation claimed Nigeria Air was only unveiled and not launched. The committee however dismissed the response as an attempt to divert lawmakers’ attention.

Last month, after the former Minister of Aviation Hadi Sirika unveiled a plane with the name Nigerian Air, investigative journalist David Hundeyin was quick to point out that the aircraft belongs to Ethiopian Airlines, and had been fraudulently rented for the launch.

Days later, Hundeyin reported that the plane had returned to its route in service to the Ethiopian Airline.

Aviation expert and analyst, Captain Ado Sanusi, also said in an interview with ChannelsTV then that it is practically impossible for Nigeria Air to start commercial passenger operation in two days given the rigorous process involved, upholding the Hundeyin’s report that the launch is fraudulent.

During the investigation, the Nigerian Airspace Management Agency (NAMA) told members of the committee that the aircraft bearing Nigerian colors was on a chartered flight to Nigeria. According to other stakeholders who confirmed NAMA’s disclosure, a chartered flight could be painted in any color and with any inscriptions.

In his testimony to a Senate committee on Aviation, Capt. Dapo Olumide, the Interim Managing Director of Nigerian Air, confirmed that the unveiled Nigeria Aircraft was hired. According to him, the aircraft that came and left was a legitimate chartered flight which can be done by anyone who doesn’t have a license as long as you pay for it.

At the meeting, the Chairman of the Senate Aviation Committee, Senator Biodun Olujimi had wondered why the immediate past Minister of Aviation hurriedly unveiled a national carrier on the last day of the Muhammadu Buhari administration.

Olumide, who boasts of over four decades of experience in the aviation industry, noted that for Nigeria to operate an airline, the aircraft must be registered in Nigeria.

He testified that the particular aircraft that was unveiled was not registered and came into Nigeria with a few days’ clearance from Ethiopia and was returned after use.

Nigerian Air is not licensed to fly

Following the controversy surrounding the launch of Nigerian Air and the allegation of fraud leveled against it, further investigations revealed that the airline is not fully certified to fly.

Olumide confirmed that in his testimony to the senate committee. He said that Nigeria only has airport license which is one of two licenses required for operating an airline and it does not permit one to carry out commercial service operations

He further explained that Nigeria Air needs at least three registered aircraft before it could be issued a license and approved for operation by the Nigeria Civil Aviation Authority.

The captain, who confirmed that he was appointed in February 2022, to secure the air operating certificate for Nigerian Air, disclosed that Nigeria is not at a point of operating the airline yet, as Nigeria Air does not have terminals for international operations.

He further explained that there are five phases or steps one goes through to get the needed license and Nigeria Air is still in phase one of the process.

RESOLUTION OF THE HOUSE OF REPS COMMITTEE ON AVIATION

The Committee after careful evaluation of the issues on deliberation is totally dissatisfied with the actions of the former Minister of Aviation, Sen, Hadi Sirka in going ahead to flag off the operations of Nigeria Air despite a standing Court injunction against such, and without any provision for sustaining the operations of the airline.

We are equally irked by the role played by Ethiopian Airline in this whole process. It does not speak well of the excellent brotherly relationship existing between our two nations.

A careful review of the process indicates the exercise to be highly opaque, shrouded in secrecy, shoddy and capable of ridiculing and tarnishing the image of Nigeria before the international community.

We want to put on record, that the Committee and indeed the National Assembly had no role in the purported launch of Nigeria Air or anything related thereof.

While the Committee and indeed the parliament is not opposed to Nigeria having a National Carrier, as a matter of fact having a National Carrier is highly desirable to us as a people and Nigeria, as a nation. However, such a process should be transparent and all embracing.

We, as a Committee, would not accept any attempt by any individual or group of individuals or organization to hide under the project and siphon our commonwealths.

Consequently, the Committee hereby resolves to:

  1. Direct the Federal Ministry of Aviation and its partners in the Nigeria Air project to immediately suspend flights operations and every other actions with respect to the Nigeria Air;

  2. Urge our new President, Bola Ahmed Tinubu, GCFR the President and C-in-C, to as a matter of urgency constitute a high-level Presidential Committee to undertake a holistic Review of the Processes of the whole Nigeria Air project, and advice the government on the way forward.

  3. Ensure that all individuals, or groups, or organization involved in the controversial shenanigan named “Nigeria Air Take-Off” are brought to book, prosecuted and sanctioned.

Tim Cook Says Apple is Watching ChatGPT Closely

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Apple CEO Tim Cook has revealed that he is a fan of ChatGPT, the high-flying OpenAI chatbot known for its impressive ability in handling various tasks.

In an interview with ABC’s “Good Morning America”, Cook, who disclosed recently that he uses ChatGPT and is excited about the tool’s unique applications, said that Apple is watching the AI tool closely.

AI language models such as ChatGPT and Google’s Bard have been taking center stage in tech and business discussions since late last year. ChatGPT has shown an incredible ability to handle tasks such as writing essays, music, articles, codes, etc. but has raised serious concerns about safety and misinformation.

Despite the concerns, the AI tool has seen wide adoption with Microsoft investing billions of dollars in the technology and has incorporated it into some of its businesses like the Bing and Microsoft Teams. Several other companies are expected to onboard the ChatGPT soon.

Cook said that the general public doesn’t think of AI that Apple clearly integrates into its products today as artificial intelligence features.

While the Cupertino giant’s chief admits that large language models show great promise, he expressed concern that they have the potential for “things like bias, things like misinformation [and] maybe worse in some cases.”

CNBC quoted the CEO as saying that there is a need for AI, which is powerful and fast-moving tech development, to be regulated.

“If you look down the road, then it’s so powerful that companies have to employ their own ethical decisions,” Cook said. “Regulation will have a difficult time staying even with the progress on this because it’s moving so quickly. So, I think it’s incumbent on companies as well to regulate themselves.”

The AI race is happening amid great concern about the technology’s risks. Elon Musk, the co-founder of OpenAI, has warned that artificial intelligence has the potential to end civilization if not regulated. Musk’s concern has been acknowledged by political and tech leaders, including OpenAI CEO Sam Altman.

CNBC reported that a host of tech leaders, including DeepMind CEO Demis Hassabis, Anthropic CEO Dario Amodei, and Altman, signed a statement last week about AI risks.

However, there is another concern per CNBC. AI researchers and critics increasingly say that overarching statements about AI’s growing power and threats distract from the real-life harms that the algorithms can cause to marginalized communities right now, rather than in an unspecified future.

Cook did not say if Apple plans to integrate ChatGPT in the future, but at the company’s annual developer conference, WWDC, it touted new applications of machine learning for the iPhone, iPad, and Mac.

The applications are AI models that can issue smart prompts to users for potential journal entries, better AI tools for autocorrect and dictation in messaging, and more comprehensive facial recognition features for identifying friends, family, and pets in photos, according to CNBC.

U.S. Securities and Exchange Commission (SEC) Goes After Crypto Exchanges

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What is happening? SEC sues Coinbase, just days after it launched the legal high-voltage signal on Binance: “The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase Global Inc., the largest U.S. crypto asset trading platform, for allegedly violating securities laws. The SEC claims that Coinbase has been operating as an unregistered broker, exchange and clearing agency since 2019, and has allowed its users to trade 13 crypto tokens that were actually unregistered securities.”

Hodlers, the government is making its point. Let’s see how you guys react. It is an illusion to think you can be on this earth and have another god!

I have maintained this point for years: the government does not need to pursue the decentralized coins (debatable since the mining is under the control of few lords), all it needs is to disconnect the exchanges, and once that is done, everything will fade for institutional investors, even if small peer-to-peer marginal hodlers continue to believe. Shine ya eyes!

The Securities and Exchange Commission sued Coinbase for violating securities laws on Tuesday in New York federal court, just a day after charging crypto rival Binance. The SEC alleges that Coinbase, the biggest U.S. crypto platform, broke its rules by operating without registering with the regulator and letting users trade 13 assets that are securities. It comes just a day after the SEC charged fellow crypto platform Binance and its founder Changpeng Zhao with securities law violations, leading investors to pull $780 million in 24 hours, reports Reuters.

The SEC lawsuit alleges that Binance misused customer funds and lied to regulators and investors, with claims that it commingled billions of dollars in client funds and diverted them to a separate firm run by Zhao.

In a statement, Binance said allegations that user assets were put at risk “are simply wrong.”

Exchanges outside the United States will be celebrating now as most US holders will move their assets outside the US. This is not the end of the crypto economy; it could just be a transmutation in the US.

The crypto world has been rocked in the past 48 hours, as the Securities and Exchange Commission clamps down on both Binance and Coinbase. The move deeply affected its CEOs’ wallets in the last two days, per the Bloomberg Billionaires Index. Binance boss Changpeng Zhao saw his wealth drop by $1.4 billion to $26 billion, while Coinbase CEO Brian Armstrong’s fell $361 million to $2.2 billion. The SEC charged Binance and Zhao with several securities law violations Monday and the following day filed a lawsuit against U.S. crypto platform Coinbase. A lawyer for the platform said it was prepared to take its legal fight with the SEC to the Supreme Court.

The SEC has also asked a federal court to freeze the assets of Binance’s U.S. operation, alleging that the world’s largest crypto exchange has shown “disregard” for the law and that customers’ funds are at risk.

Binance said allegations that user assets were ever put at risk “are simply wrong.”

The two exchanges both saw net outflows — the difference between deposits and withdrawals — of more than $1 billion in the 24 hours after the SEC’s lawsuits were announced, Fortune reports. (LinkedIn News)

SEC Sues Coinbase Global Inc

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The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Coinbase Global Inc., the largest U.S. crypto asset trading platform, for allegedly violating securities laws. The SEC claims that Coinbase has been operating as an unregistered broker, exchange and clearing agency since 2019, and has allowed its users to trade 13 crypto tokens that were actually unregistered securities. The SEC seeks civil penalties, disgorgement of ill-gotten gains, and a permanent injunction to prevent Coinbase from further violating SEC rules.

The lawsuit, which was filed in the U.S. District Court for the Southern District of New York on June 6, 2023, is the second action by the SEC against a major crypto player in two days. On June 5, 2023, the SEC sued Binance, the world’s largest crypto exchange by volume, over securities matters. The SEC accuses Binance of making false statements to investors and violating securities laws.

The SEC alleges that Coinbase provided a marketplace for securities transactions, effected securities transactions for its customers’ accounts, and served as an intermediary and depository in settling securities transactions. The SEC also alleges that Coinbase failed to register its staking program, which allowed customers to earn profits from the proof of stake mechanisms of certain blockchains and Coinbase’s efforts.

The SEC argues that Coinbase’s failure to register has deprived investors of significant protections, such as inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest. The SEC also charges Coinbase’s holding company, Coinbase Global Inc. (CGI), as a control person of Coinbase and thus liable for certain of Coinbase’s violations. The SEC seeks injunctive relief, disgorgement of ill-gotten gains, civil penalties, and other remedies.

Coinbase has denied the allegations and said it will continue to operate its business as usual and said that it has been seeking reasonable crypto rules from the SEC for years, but only received legal threats instead. The company said that it is confident in the legality of its assets and services, and that it will continue to operate its business as usual. Coinbase also accused the SEC of conducting a cursory investigation and not being fair or reasonable when it comes to its engagement on digital assets…

In a blog post published on March 22, 2023, Coinbase’s chief legal officer Paul Grewal said that the SEC delivered its lawsuit after a “cursory investigation” and that Coinbase has been asking for reasonable crypto rules for Americans. Grewal also said that Coinbase is confident in the legality of its assets and services and that it welcomes a legal process to provide clarity and demonstrate that the SEC has not been fair or reasonable when it comes to its engagement on digital assets.

Re-examine why potential investors do not value the company higher

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The Amazon revenue for the last reported full year was $524.897 billion. Walmart recorded  $572.75 billion over the same period. Walmart market capitalization is $402.61 billion while Amazon’s is $1.3 trillion. In other words, even though Walmart generates more revenue, leading Fortune 500, Amazon is worth more by at least a factor of 4.

Indeed, there are many factors investors consider as they value companies, including growth rate, profitability, business model, margin – and revenue is just one of the components. How you make money, most times, is more important than how much money you have made!

Builders: re-check that business model, and re-examine why potential investors do not value the company higher. Look beyond your revenue to other indicators.

Comment on Feed

Comment 1: Prof. Ndubuisi Ekekwe please elaborate a bit more on this statement you made, “How you make money, most times, is more important than how much money you have made!”.

Thanks for the daily loads of knowledge and learning you dish out here.

My Response: If you run a website and people come and buy things and go. And you make $10,000 monthly. Another makes a website and sells the same things you do. But his users are subscription customers and he is making $8,000 monthly. We will value his company more than yours because with the subscriptions, we see a customer-base (yours are consumers). 

He can do many things to increase that subscription via loyalty programs, etc. Largely, even though you are making more money, your risk is higher and your growth paths are not clear. But the subscription competitor is well positioned. So, how he is making money has been considered to be more important besides the amount of money made during the company valuation.

Comment 2: The valuation could potentially be different if Amazon is disaggregated into separate business units. I would wager that the valuation of e-commerce/retail business,as a standalone business, may be at parity with Walmart. I would not be surprised if the market has priced in the valuation of the cloud service business in the overall valuation of Amazon.

My Response:Market did price AWS and that is part of the conversation. But developing AWS without the one oasis of ecommerce would have been impossible! I explain here https://www.tekedia.com/capture-value-even-as-you-deliver-value-to-customers/