He had a dream: “seven cows came out of the river and stood there eating grass. They were healthy, good-looking cows. Then seven more cows came out of the river and stood on the bank of the river by the healthy cows. But these cows were thin and looked sick. The seven sick cows ate the seven healthy cows.” And Pharaoh was  troubled because none of his thinkers, strategists and astrologers could interpret this dream.

Ancient Egypt was unrivaled in knowledge and wealth. It had the best “universities” with the finest thinkers. When Moses was called to lead the Israelites and he appeared before his brethren, they marveled because he had studied under the Pharaohs. Egypt was the home of the world’s greatest leadership and management system. The Pharaoh’s conceived and built engineering wonders, and executed things which remain wonders even in our modern world.

They called Joseph and he interpreted the dream: “It means that you’re going to have seven lean years eventually, but the good news is you’ll have seven good years first.” On the strength of this interpretation, Egypt planned its economy for the next 14 years. In anecdotal non-Biblical data, Egypt was the only country during those years which got things right; others had issues.

Across Africa, we have many modern Josephs: your crude oil will run dry in 30 years; your diamond mines will lose value in 30 years, etc. What are the leaders doing since the dreams have been interpreted? We have many interpreters today but we do not have great planners and implementers of visions. Pharaoh did not just plan, he also executed the plan, and when the famine came, he was able to ensure his people did not suffer.

In your company, what are you doing on those dreams of market changes (petro-yuan, ChatGPT, etc) which have been interpreted by the head of strategy? Learn from Pharaoh: he received the message, and he executed on the message. #action

Source: Genesis 41

Question: What will happen to our startup investments if the Yuan takes over USD as the world’s leading currency: “Saudi Arabia is open to discussions about trade in currencies other than the US dollar, according to the kingdom’s finance minister.”

My Response: If part of the world decides to use Yuan over Dollar, that will not destroy a Kenyan or Nigerian or Chilean business. You just re-price in the new currency. Our world is moving into a phase where currency will be abstracted out (you want to pay someone in London from New York, PayPal takes care of everything, and you will not see GBP anywhere). Sure, the US may see pressure on its economy if countries begin to pack reserves in Yuan.

The CFA franc zone has been in a union for decades. Yet, that zone is one of the least developed regions in Africa. In other words, currency does not offer huge advantages in the international market if you are not productive.  That was my specialty in my Banking and Finance PhD and I wrote the lead paper for the African Union on this matter

In the 1890s as Great Britain began to pass the baton to the US as the world’s dominant economy, it did all but with a diminishing production capacity, the message was clear: balance of trade wins, and powers economic supremacy. In the last ten centuries, China has dominated at least 6 economically. China is winning on the balance of trade and will pass the US – and the Yuan will rise. But just like the UK and broad Europe did not collapse when the pound lost to the USD, Africa should be fine. Indeed, most of the things used in Africa are imported from China, paying for those in Yuan may even help Africa.

We will win by solving market problems; currency strategies are limited to pushing competitive positioning in markets over a long time. If our startups offer value in markets, they will be fine, whether they’re paid in USD or Yuan, and irrespective of what the world uses.

Comment: ..but prof due to the expected collapse in the value of USD, should we not expect that all countries with USD denominated assets will experience a corresponding devaluation of their assets which would negatively impact their economies and standard of living. Thus one would expect that in order to escape the effects of the anticipated changes, entities with Dollar denominated assets should move them to more immune holders of value.

My Response: Certainly, there would be perturbations but people who remain productive will be fine. If the US empire begins to fade and people think putting their money in Chinese banks would be safer, people will do that. Yet, the openness in New York and London will not be replaced in months but decades if China takes over economically. More so, nothing stops UK and US banks to benchmark Yuan making sure your money stays in Goldman Sachs in its Yuan docket instead of in a bank in Beijing.

My thesis remains: the structural alignments where currency tracks economic dominance may be muted due to technology as tech will abstract currency just as tech will take out language barriers. If you have an asset in Morgan Stanley in USD and Yuan becomes dominant, they will offer a Yuan product. You can ask them to move everything to a “Yuan wallet”. If they do not do that, a startup will do that.

And the big one – would China be happy to allow its currency to appreciate? For years, the US has been demanding that as it continues to give China a huge advantage in the international market. In other words, if the US-based assets in Morgan Stanley begin to lose value compared to Yuan, it means Yuan is strengthening. That will become a huge issue for China, taking out what has helped it in global commerce. That can even shift back the advantage to the US.

Ghana explained why production matters (it lost its peg to USD). And Russia, through Elvira Nabiullina, their central bank governor, makes it clear that national economies cannot kaput even with the highest sanctions in records and blockade on currencies. The only thing that works is this: be productive as a nation or company, and you will be fine.

Finally, for Tekedia Capital portfolios priced in USD (dynamic assets, not docile dollar denominated assets), if USD is losing value, you simply re-price considering the new reality. That is what we do with naira where as exchanges move, real estates, etc reprice. The key thing remains: are you productive as that is what gives power to do anything? If you are, you can change move from USD to Yuan and still pursue the business missions. Great products and visions will thrive, in USD or Yuan!

Third Party Proceedings, Intervention Suits, & Class Actions/Representative Suits in Nigeria – What You Need To Know

In dispute resolution, there are types of suits that should be specially considered when deciding on who can sue and who cannot. It also helps to know when a certain type of courtroom action is necessary.

This article will be looking at 3rd party proceedings, Intervention Suits & Class Actions, especially regarding the topics of :-

– When they are necessary.

– The recognized objections to such suits.

– The requirements needed for such suits.

What is a 3rd party proceeding? 

A 3rd party proceeding occurs where a person sued claims that a 3rd party not before the court is actually responsible for the harm suffered by a plaintiff, hence necessitating the joinder of that 3rd party to the suit.

What are the recognized objections to 3rd party proceedings?

A 3rd party proceeding can be objected to on the grounds of :-

1. Claiming that the 3rd party claims is based on grounds not recognized under Nigerian Law.

2. A 3rd party simply stating that he is not liable to the defendant.

3. The plaintiff alleging embarrassment by a 3rd party suit.

4. Arguing that the 3rd party joinder will delay the trial.

What then is an intervention suit?

An intervention suit is a 3rd party known as an intervener applying to a court via a motion on notice to be joined to a particular suit on the grounds of:-

1. The argument by the intervener that he ought to have been joined in the suit in the first place.

2. Proving to the court that its judgment will affect him.

3. Proving that he is a necessary party for the purpose of properly determining the suit.

What are class actions?

Class actions (or appropriately under Nigerian Law, “Representative Suits”) are group-instituted lawsuits involving a large group of similarly affected plaintiffs on the basis of the need for less cumbersome litigation.

When are representative suits necessary?

Representative suits are applicable in the following subject matters (especially in jurisdictions like Lagos) :-

1. Administration of an estate.

2. Property subject to trust.

3. The construction of any written instrument or law.

4. Disputes involving land held under customary law as family or communally held property.

What are the conditions for bringing a representative suit under Nigerian Law?

To successfully commence a class action, the court must be satisfied that: –

1. There is a class of persons that can’t be easily ascertained.

2. There is a class of persons that might be ascertainable but cannot be found.

3. If ascertainable and found, it is expected to use a class action suit.

Pleadings Under Nigerian Law

In civil litigation, disputes are mainly a contest of facts being adduced by parties to a suit. These facts usually constitute what are known as pleadings and are the means by which parties are to outline their cases under Nigerian law.

This article will be looking at the topics of:-

1. The functions of pleadings.

2. The contents of pleadings under Nigerian law.

3. The types of pleadings.

4. Facts that don’t need to be part of pleadings.

5. The amendment of pleadings where necessary.

What are the functions of pleadings?

The functions of pleadings include: –

1. The proper definition of issues in dispute between the parties.

2. Enabling parties to a suit to have an understanding of the cases they are to face.

3. Serving as a permanent record of the dispute between parties to a suit.

4. Helping the court determine if it has jurisdiction over a matter.

5. It helps to determine where the burden of proof lies.

What are to be the required contents of pleadings under Nigerian law?

Pleadings are to contain strictly facts and not arguments of law except where applicable, as part of proceedings in lieu of demurrer or where customary, Islamic or foreign laws are to be pleaded.

What are the examples of matters that must be specifically pleaded?

The following matters must be specifically pleaded:-

1. Matters that will surprise the other party if not pleaded e.g immunity, illegality or fraud.

2. Insanity in probate matters.

3. Counterclaims & Setoffs.

4. Infidelity in matrimonial cases.

5. Equitable Maxims.

6. Traditional history, custom, family, history in land disputes.

7. Special detailed damages.

8. The failure to fulfill a condition precedent. 

What are examples of facts that do not need to be pleaded? 

The following do not need to be pleaded: – 

1. Satisfaction of a condition precedent

2. Facts that must be presumed

3. Facts that may be judicially noticed.

What are the acceptable ways of responding to statements contained in the pleadings of an opposing party in a suit?

Statements in pleadings can be responded to by :-

1. Traversing: – Which are simply categorical denials.

2. Confession & Avoidance: – This is where a defendant admits an allegation but provides new facts negating the admission. 

3. Counterclaims: – This is a countersuit issued by a defendant in a suit and that actually exists as a suit in its own right even after the determination of the original suit it was commenced counter to.

Are pleadings renewable?

Yes, they are because they are prone to expiration by having validity periods of 3-6 months in most Nigerian jurisdictions.