The Supreme Court Ruling on Old Naira Note And Why It Can Also Rule on Exchange Rate

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February 8, 2023

The Supreme Court of Nigeria has ruled – and the citizens must respect that decision: “The Supreme Court Wednesday ordered the Central Bank of Nigeria (CBN) not to end the use of old naira notes on 10 February.” Why many may not like the pause on the new Naira policy, there is no reason to cause problems. If you shift the deadline past the election day, the policy has no value. If you allow the old Naira notes to be used past the election day, the policy has no value.

Yet, it is no more about the election, it is about the institutions in the nation. I do not like the ruling since it will certainly bring back money politics, but I also must understand that anytime goes in Nigeria.

Can we get the Supreme Court to rule to make exchange rate $1 to N200 now that it can overrule the apex bank, entrusted with the nation’s monetary policy. There is a precedent to that call: the court ruled on the pricing of electricity, freezing the rates which had attracted many foreign investors into the industry.

When it finalized its approved rates, since then, no investor wants to touch the Nigerian electricity sector because doing so is largely wasting money at the distribution phase. Possibly, had the court left the pre-deal rates, more investments would have arrived. Today, most investors in Discos abandoned the plan because there is nothing there. Those new rates remain a big challenge why the sector is not attracting adequate funding.

We respect the rule of law and the power of the courts. But Nigeria is getting into a new territory where pricing, monetary policies, etc are now largely set by the Court. We have to watch the implications. Sure – we can get our electricity from the courts because they can rule “let there be electricity in all homes for free”. Waiting for that ruling soon.

The Supreme Court Wednesday ordered the Central Bank of Nigeria (CBN) not to end the use of old naira notes on 10 February.

The News Agency of Nigeria (NAN) reports that a seven-member panel of the court, led by John Okoro, gave the order of interim injunction amid acute scarcity of newly redesigned N200, N500, and N1,000 currency notes.

The court gave the order temporarily, cancelling the CBN’s 10 February deadline to end the validity of the old versions of the banknotes based on an ex parte application filed by three northern states being controlled by the All Progressives Congress (APC).

The three applicant states are – Kaduna, Kogi and Zamfara.

Comment on Feed

Comment 1: Once upon a time, we believed that the judges’ wigs symbolized wisdom, but now no wisdom has been shown in this ruling. Perhaps the courts have the plan to rule on interest rates soon. The judiciary now is somewhat laughable!

Comment 2: Are we saying the policy was about the election in the first place? As far as i am concerned, we still need the courts in this part of the world to act on some needed debates. If the framework on electricity was properly done, i believe investors will come to the party. The Apex court is the sole defender of the ordinary man, and we appreciate the judgment.

My Response: “If the framework on electricity was properly done, i believe investors will come to the party.” – they are waiting for 7 years. You told me that one shoe is N400, I invest. After my investment, your court says it is now N150. I will abandon the shoe. And they did and everyone is using generators. Waiting for the court to rule on Interest Rate to be set at 0%!

Comment 3: As much as I respect the institution of the CBN, I think the Supreme Court stands to protect the interest of the common Nigerian people. If the CBN makes a policy the negatively impact on the people, is it not right the court comes in. The redesign of the Naira may have the good intentions of checkmating vote buying but if the country runs into anarchy before even Election Day then what has been achieved. People are really suffering. I mean major suffering

My Response: ” I think the Supreme Court stands to protect the interest of the common Nigerian people.” – that is a problem. The apex court is primarily to interpret the laws of the nation as written by the parliament. The goal is not to rule on emotions and feelings. The court destroyed the electricity sector when it reversed the rates the government agreed with investors in our Disco. Today, because the court ruled, no one wants to put in more money.

Sure, it can rule on the exchange rate tomorrow and fix N200 to $1 since we’re suffering due to exchange rate issues. Indeed, it can rule on the vacation days of a CBN guard.

What is the CBN for if the Supreme Court will make the calls. Today, NERC, the electricity regulator, is irrelevant because it is unable to fix rates because the court froze it.

Do you know why you do not have water in your city? A court ruled that water rates cannot be increased and in some cities in Nigeria, the rates have not changed in 20 years. Get me right, I respect the rule of law. But that you have power does not mean you must fight every war. Our courts are not helping on these issues.

Comment 3R: Ndubuisi Ekekwe well then the law stands to protect the people. The really on ground is no longer emotional and sentimental. It is pure anarchy. The CBN should have done full risk assessment before putting up the policy. People are hurting. Like they said ‘Rome is the people’ CBN has the now to prove that the court decision was wrong

My Response: I am not writing about this particular case. I am focusing on the whole concept that a Court will be ruling on this type of issue. This is not about a good or bad policy on the people, my focus is why the Court becomes the only agency since it can wage legal wars on any agency. It froze NERC on its electricity regulation by fixing prices people pay for light. Think beyond this current rule where we’re going. Can it rule also on exchange rate and interest rate? Yes, because we’re suffering due to them.

Comment 4: The Judgement has been hailed by many! The untold hardship that CBN and its political bandwagon and associates wanted to achieve has been halted and We Move till after the election before the hearing of the court case will be open. Hopefully, both the old notes and new notes will be released by the banks so that normalcy will return to the country. Whoever then wanted to cry because of vote buying should do so of their own volition.

My Response: We are suffering due to high interest rates in the banking sector. Can it rule and make it 0%?

Comment4A: High interest is based on risk and market forces.
The New notes debacle is based on incompetence and hubris.

My Response: It is a CBN policy and could be used to influence the market forces, pushing the interest rate to a new level. Interest rate is not set in isolation. You bring other mechanisms at play. My issue is not this current ruling, it is the idea that a Court can rule on pricing of electricity, water rates, and things you would not have expected the Court to decide.

WeTransfer is Venturing into NFTs and Web3 Cloud Storage

By

Paul Ugbede Godwin

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February 8, 2023

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WeTransfer, a freemium file-sharing company founded in 2009, based in Amsterdam has taken a step toward Web3 integration by enabling users to generate and share NFTs from their phones through a partnership with Blockchain firm Minima based in France. Minima is a cooperative network that enables everyone to freely connect to a blockchain where every user runs a complete constructing and validating node.

WeTransfer has an infrastructure that enables easy integration with privacy script that blockchain users can leverage on. WeTransfer also allows large files to be downloaded without requiring you to create an account to receive the files sent.

According to Damian Bradfield, the Chief Creative Officer at WeTransfer, the decision to partner with Minima came due to a closely-aligned vision and target market.

WeTransfer is thrilled to work with Minima, whose vision is aligned strongly with ours to seamlessly connect people and facilitate innovation and creativity without sacrificing privacy.

WeTransfer, which allows large files to be downloaded without requiring you to create an account to receive the files sent, does indeed have an infrastructure that should enable relatively easy integration with the privacy afforded to blockchain users who take advantage of it.

In order to run a node, a Minima user will only have to download the blockchain’s app and allow it to run in the background. Minima Coin, the blockchain’s proprietary token, might be the payment method of choice for NFT transactions that will be carried out due to the partnership.

According to Hugo Feiler, the CEO of Minima, the collaboration will allow his project to get a foothold in the digital art industry from the get-go, attracting NFT artists who will be able to collect royalties on digital artworks sold via Minima for as long as they wish.

We as a partnership look forward to supporting the development and acceleration of creativity in the digital age where individuals retain ownership and control of their workThis partnership will explore the practical use of NFT technology, something which interests not only the crypto industry, but will be a test case to demonstrate the potential of wider adoption of this innovative digital tool.

The Minima blockchain – and presumably the NFT capability developed alongside WeTransfer – will be launched later this month. The app is allowing users to run their own Minima node, and will be available for download in over 180 countries, joining other hosting providers like Google and AWS in enabling blockchain-based operations on cloud storage.

Zoom Announces Plan to Trim Workforce by 15% to Navigate The Uncertain Economy

By

Ojukwu Emmanuel

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February 8, 2023

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American communications technology company headquartered in San Jose California, Zoom, has revealed plans to trim 15% of its workforce which is about 1,300 workers as it plans to navigate the current economic downturn.

The company’s CEO Eric Yuan via a blog post disclosed that the business during the peak of the pandemic hired too many staff to support the quick rise of users on the platform and their evolving needs.

He noted that the firm made a mistake by failing to thoroughly analyze team members or assess if it was growing sustainably towards the highest priorities. With the current uncertain global economy, the company was left with no option but to trim its workforce.

Commenting on Zoom’s decision to layoff some members of its workforce, he wrote;

“Over the past few years, Zoom has become an indispensable source of connection for businesses and individuals as well as a globally recognized brand. Whether you have been at Zoom since the beginning or joined us more recently, you’ve played an important role in our evolution, and that makes today’s announcement particularly difficult.

“We have made the tough but necessary decision to reduce our team by approximately 15% and say goodbye to around 1,300 hardworking, talented colleagues. I know this is a difficult message to hear, and certainly not one I ever wanted to deliver.”

Yuan, who took the blame for the company’s current unfriendly condition, disclosed that each organization across Zoom will be impacted by the layoffs, noting that a single departure was not taken lightly.

By showing accountability not just in words but actions, the CEO further revealed his decision to slash his salary for the coming fiscal year by 98% and forgo his FY23 corporate bonus.

Also, members of his executive leadership team will reduce their base salaries by 20% for the coming fiscal year while also forfeiting the FY23 corporate bonuses.

Meanwhile, laid-off full-time employees in the U.S. will be offered the following support;

Up to 16 weeks’ salary and healthcare coverage
Payment of your earned FY’23 annual bonus based on company performance
RSU and stock option vesting for 6 months for US employees and through August 9, 2023, for non-US employees.
Outplacement services that include 1:1 coaching, workshops, networking groups, and more

Also, support for Zoom employees outside the U.S. will be similar and will take into account local laws.

Zoom’s revenue surged 326% year-over-year, to $2.65 billion, in the 12 months through Jan. 31, 2021, due to strong demand from consumers and remote workers. The company’s net income increased by a factor of more than 50 in the same time frame. But as workers began returning to offices, the company revenue gradually began to decline.

In a bid to keep the company afloat and maintain revenue growth, last November, Zoom rolled out a new set of email and calendar features along with an artificial intelligence assistant called the Virtual Agent to its platform, to enhance users’ experience.

Reconciliation or Divorce: Atiku versus Tinubu’s Views on Neoliberalism

By

Mutiu Iyanda

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February 8, 2023

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Nigerians have less than 20 days to choose one out of over 10 presidential candidates. The candidates, their political parties and their supporters have been marketing and promoting different agendas since September 28, 2022. The candidates have been at various places, telling citizens that they all have what it takes to lead Nigeria and provide much-needed public goods between 2023 and 2027. They have hailed people and are still hailing people with their different promises that aim at elevating the socioeconomic status of individuals and the political status of the country regionally and internationally. Most of the time, they made citizens the subjects of their promises and ideological orientations, with few understanding the implications of being the subjects.

Our analyst examines the neoliberalism agenda of two of the three leading candidates in this piece by paying attention to their previous utterances on the agenda. Senator Bola Ahmed Tinubu of the All Progressives Congress and Alhaji Atiku Abubakar of the People’s Democratic Party are not minors when it comes to discussing national politics. They have been political leaders at various levels and members of various committees. They are business owners who understand how the private sector works in addition to understanding existing nuances in the public sector. Therefore, they cannot be seen as political contestants who do not know the implications of promoting specific political and social ideologies. For instance, as a political and economic ideology, neoliberalism emphasises the importance of free markets, individual freedom, and minimal government intervention. Before the 2023 presidential election campaign, the two candidates have hailed Nigerians with the ideology at various stages of their political careers and contributions to national discourse. Our checks reveal, however, that one of the candidates appears to have disassociated himself from the ideology in recent campaign activities.

“If you see the amount of work the government has to do in this country, like building and rebuilding our ports, constructing our railway lines, building our highways – let me borrow Dokpesi’s word – it is a ‘humongous’ amount of money that you require. You know that the government doesn’t have it,” he said. “I would rather concession most of this to the private sector and give them tax breaks. They invest, recover their money and we will have development, progress, jobs, and prosperity,” the presidential candidate of the PDP said during one of his recent political outings. He further said his privatization plan is not to render people jobless but to ensure effective governance.

According to him, privatisation would help get the comatose but money-guzzling refiners into productive hands and ultimately ensure that Nigeria becomes a chemical refining hub. Atiku argued that the private sector suffers when it is not productive. Therefore, the one way to kickstart its productivity is by privatizing assets that aren’t productive.

In 2021, in a statement titled ‘Privatisation of Refineries and Other Assets: Better Late Than Never,’ and reported by a national online medium, Alhaji Atiku called for transparency in the process of privatising the assets. Alhaji Atiku noted that the privatisation of public assets which he once championed and was scorned for by the All Progressives Congress-led administration is now being embraced by the same administration. According to our check, Alhaji Atiku advised the Federal Government to embrace privatisation in 2015. Two years later, Professor Yemi Osinbajo, while acting as President, reported that no fewer than 142 public enterprises had been privatised since the inception of the National Council on Privatisation (NCP).

Alhaji Atiku appears to be far from alone in hailing Nigerians with the ideology. Our checks reveal that some of his political supporters and members of the parties from which he has run are very interested in his idea of ensuring market deregulation and the sale of dormant public assets. The spokesperson of Atiku/Okowa Campaign Organization recently highlighted how the privatisation plan for the refineries would benefit Nigeria.

While some Nigerians believe that privatising public companies has benefits, they believe that Alhaji Atiku Abubakar will likely repeat his approach as Vice President and Chairman of the Privatisation Committee. As a result, many non-state actors, including labour unions, students, and public affairs analysts, are opposed to reintroducing the agenda if he is elected president. Senator Bola Ahmed Tinubu recently hinted that Alhaji Atiku would sell national assets to the highest bidder and then flee with the proceeds.

However, numerous checks reveal that Senator Bola Ahmed Tinubu cannot be exonerated from politicians who hail Nigerians with the ideology. In 2019, he urged the Federal Government to revisit power sector privatisation. When he was governor of Lagos State between 1999 and 2007, he tried to sell the State Water Corporation, but it was stopped after a civil society protest.

Why Google Search Business Model Will Evolve As AI Chatbot Rises [video]

By

Ndubuisi Ekekwe

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February 7, 2023

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Google Search is an aggregator. It has a great dinner table where merchants and advertisers want a nice seat. They pay money, bidding in a digital auction, so that Google can give them a prominent position. Simply, when users come to Google and search for something of interest, sometimes, Google will show them links already paid for, and souped by the advertisers and merchants. When users click those links, Google makes money!

This symbiotic relationship has existed since Google invented its algorithm. But over the next few quarters, the business model must evolve.

Recall that when a merchant or an owner of a website hires a Search Engine Optimization Engineer, that person is doing everything to make it easier for Google to discover the merchant’s website. In other words, it works to make Google’s business model easier since it needs to find those websites (the raw materials) for it to create value for users or web surfers. The merchant of course celebrates because when many people discover and find it, it can make sales and grow its mission.

Google can afford to allow surfers to use its search products for free because those clicks pay the bills. But today, with the rise of ChatGPT, and a possible Google response, named Bard, the old business model may be expiring.

The New Playbook

When users type something of interest on Google, Google will show links where they can find that information. But for ChatGPT, it does not show links, rather, it parses data from the web, and gives a decent summary. Simply, ChatGPT serves the meal while Google sends users to go grocery shopping. That grocery shopping means you have to buy the items, and then come and make the food for the meal. How many people want to go grocery shopping when there is a ready-made meal, which can match on quality and value, what the personally cooked meal will produce? Not many!

This is where it gets interesting: if Google’s Bard follows ChatGPT and provides summaries with no links, Google will be unable to make money via links. So, what would be the option to make money? Subscription.

In other words, the future of Google Search business model will be anchored on subscription. ChatGPT Plus has already alerted the world that very soon, that “free” knowledge has to be paid for. I expect Google to launch Google Bard+ which we have to pay for when the sponsored links are made to “disappear” a little more.

Of course, Google can also just expand its search result and also add links, making it possible that it can provide great summaries to users while also offering the ability to sell links, to sustain its business model. But over time, we can have that as a subscription baked into other Google products which people already pay for.

The Challenge from Microsoft

Google has to fight this battle vigorously since Microsoft is working to revamp Bing with a new DNA coming from ChatGPT.

Microsoft has significantly upped the stakes in the tech world’s ongoing race to reinvent and reinvigorate internet search engines with AI technology. The company announced Tuesday that it is integrating OpenAI’s next generation large language model into its search engine Bing, a version that is even more powerful than ChatGPT, which has captivated the internet since it was launched 10 weeks ago. The parent company of LinkedIn developed a proprietary way of working with the next-gen tech, calling its new model Prometheus.

Microsoft will also launch a new version of its Edge browser, which will incorporate the new AI features into its sidebar. Google unveiled Bard, its own AI chatbot, on Monday.

[…]

“AI will fundamentally change every software category, starting with the largest category of all – search,” said Satya Nadella, Chairman and CEO, Microsoft. “Today, we’re launching Bing and Edge powered by AI copilot and chat, to help people get more from search and the web.”

A LinkedIn user provided a summary of the Microsoft event as follows:

?Satya acknowledged, “the race is on”

?Bing will still link to web results and aim to drive traffic to websites

?Microsoft says the freshness of results is going to be shocking

?Bing will have an expanded search box for up to 1,000 characters

?No clear answer about how much it costs to run a query in search vs. AI chatbot

?No extra cost for users, the AI features are free

?Bing aims to fact-check AI answers with search results

?Apparently, Bing also uses Prometheus (a next-gen LLM) for its search algorithm and claims relevance has gone through the roof

?”40% of the time, people click on search links and click back immediately”

?Ads will remain in search results

?Edge will be able to read and summarize PDFs you open with the browser

?Microsoft plans to integrate with all browsers – will Chrome open it up or use Google’s model?

All Together

Google Search is an aggregator, orchestrating relationships between users and merchants. This symbiotic relationship has existed since Google invented its algorithm. But over the next few quarters, the business model must evolve. In this piece with an accompanying video, I explain that over time, we will expect Google to offer search via subscription, bundled with other Google products, for its best search+ product. It is very clear: if Google provides the answers and people do not need to click links a lot (the revenue source), subscription becomes an option to protect revenue.