DD
MM
YYYY

CATEGORIES

PAGES

DD
MM
YYYY

spot_img

CATEGORIES

PAGES

Home Blog Page 4954

NBC Suspends the Shutdown of 52 Erring Broadcast Stations, Says Stations Have 3 Days to Pay Their Debts

By
Tiamiyu Ismail
-
0

The National Broadcasting Commission (NBC) has suspended the shutdown of the broadcast stations whose licenses were revoked on Friday over unpaid dues.

The commission made it known in a statement released on Saturday that the stations now have up to Tuesday August 23 to pay their debts.

According to Balarabe Shehu Ilehah, the director-general of the commission, the decision was motivated by the intervention of concerned groups and visible efforts by some of the defaulting stations to clear their debts.

The statement went as follows:

“Following the intervention of concerned groups and visible efforts by some of the defaulting licensees to offset their debts, the National Broadcasting Commission hereby serves this notice of an extension of deadline to shutdown to 6:00pm on Tuesday August 23, 2022”

“All affected broadcast stations who fail to defray their debts on or before August 23, 2022 are directed to shutdown by 12 am on August 24, 2022”.

NBC Revokes Licenses of 52 Nigerian TV and Radio Stations and Demands their Immediate Shutdown

Overcoming Deathtraps in Investment Financing: Insights from Andrew Stotz, A Financial Expert

By
Tiamiyu Ismail
-
0

Financial intelligence is a scarcely developed skill in most individuals which is often responsible for their likelihood of success or failure in their personal, social and professional lives. A fundamental aspect of this skill is the ability to recognise and utilize opportunities even amidst scarcity. Remember the three motive of wanting money according to Maynard Keynes which include; transactionary, precautionary and speculative? The speculative motive embodies the idea of investment financing, and it is mostly accepted as the basis of wealth building.

Invariably, investment financing is often thought or learned from the perspective of what desirable skills to possess. However, it has been observed that an equally rewarding or even more rewarding approach looks at the subject in terms of the undesirable things we often take for granted in our day to day lives.

Financial investment expert and writer, Andrew Stotz, in his personal account of his financial investment failures titled My Worst Investment Ever identifies the key markers of a prone-to-fail investment and how a potential investor can circumvent these errors. The short book started out from the sampled opinions of the author’s friends and acquaintances, detailing their worst investment experience. It occurred that each respondent had such a vivid story to tell. The author describes the inspiration of the book as follows:

“In the world of finance, we are always talking about our winnings, about the story of our returns. But we so rarely talk about failures. Thus, the book is about investment failures.”

Stotz dissects the key drivers of a successful investment in four broad levels. In each level are decision errors that often cause the investor to lose out in the investment.

The first thing to consider is to deal with the basics. This involves thoroughly understanding the business venture; both its outlook and internal realities including its operating models, management team, and culture. According to Stotz, to avoid failure at the early stages of business, one must endeavor to put the basics in place.

The following decision errors emanates from not being able to deal with the basics:

  1. Buying into an illiquid investment that is hard to sell
    According to Stotz, investing in unlisted private companies poses a unique challenge because it is very difficult to exit when you are no longer satisfied with the management.
  2. Buying into an illiquid investment where you lack influence over management
    Here, it is stated that owning a minority stake is highly risky because as a minority you have little or no influence over the way the business is running. For example when you are an employee, there are times when management offers you your own shares in the company. In this case, you are better off when you avoid it since you will have no control over the management of the company. Moreover, you will have deferred your compensation, and if things go wrong, there may not be a buyer for your shares. Hence, the investor suffers due to lack of control.
  3. Putting faith in an unproven management team
    Here, Stotz contextualizes a common belief that the familiar devil is much better than the unfamiliar angel. According to Stotz, the changeover of the management is crucial to the survival of the venture. This was a case of new management taking over a family-run business. In such cases, investors expose themselves to the risk that the new management is unable to make the business successful. Hence, the lesson here is to stick to proven management if possible.
  4. Investing in people you don’t know and not revising their past and references
    Though this is similar to the previous case, it is however different because it goes beyond simply trusting on management to other things that informs our biases and irrational decisions. For example, some individuals make investment decisions based on how gracefully a pitch appeals to them or based on the culture, class or race of the people they are investing with. One must endeavor to carry out a thorough research or do what is called due diligence about the person’s past decisions and relationships.

The second driver is keeping an open mind such that you can easily overcome hureustics. Businesses evolve along with major and minor changes in the mode and social relations of production. A combination of macroeconomic and microeconomic forces could disrupt the market and set in a new ordinance. Therefore, the rational investor must keep an open mind and be ready to forego their favourite endeavour when necessary. This is simply “knowing when you must kill your darling” according to Stotz.

The following decision errors develop from failing to get past one’s residual knowledge:

  1. Being oblivious or deliberately disregarding major shift in an industry      One major risk of investing in an individual stock is the risk that something major changes in the industry in which the company is operating. These changes can start small at first and can seem to have little impact. But they can gather steam. For example, during the Covid19 lockdown, investment in real estate, particularly office space financing, and transportation went down due to remote working.
  2. Relying too much on professionals Author noted that one of the lessons of his career is that financial professionals are driven by many different factors than the the investor’s concern which is simply the performance of their investment. Also, it is often the case that brokers are cheerleaders for stocks rather than thoughtful analysts. Therefore, one must never eliminate the conflict of interest in the financial world. You must seek financial advice from people who disclose their conflicts of interest.
  3. Buying the dip without a second thought
    You definitely will be facing a high risk when deciding which course of action to take when the price of stock is falling. Referencing the prospect theory by economist and Nobel price winner, Daniel Kahneman and Amos Tversky, Stotz proposes that when for example you, as an investor,  buy a stock at 100 and it goes to 110, you feel great, but when it goes to 90 you feel about two times worse than you felt great when it went up by 10. This will cause you to make mistakes when prices are falling.
    Also due to overconfidence, when the share prices start to fall we think if we liked it at 100 we should like it even at 90. However, a better way to think of this is that while the analysis may be correct, the timing may be wrong. The author argues that if a stock falls by 20 percent to 25 percent in most market, you’d be better off selling it and hold cash.
  4. Ignoring the reality that things change for companies. Sometimes we are blinded by love– we like companies and their management so much and we know them so well that we think they will always be successful and be a good investment. But things change for companies. One must understand that previous glories do not guarantee success in the future.

The Africa’s Missing Presence – And Why It Defines The Economic Destinies of Many

By
Ndubuisi Ekekwe
-
1

For centuries, the world was in a state of economic stasis. In other words, if you check the gross world product (aggregate of all national GDPs) over the last 2000 years, nothing was happening at scale. But things started changing. The data (the map above) shows the actual wealth of nations since that Adam Smith classic of the invisible hand and productivity. Until Africa begins to show up on this map, it cannot advance the welfare of its citizens.

More money in the national purse does not improve the lives of citizens. That is why crude oil money deceives. You receive $10 billion in your bank account with limited economic activity since the oil is picked raw and moved to another country to be refined. Sure, you can employ 20,000 people. With limited economic activity, your GDP is $20 billion. That GDP is a measure of your economic activity which gives us jobs and opportunities.

But someone who does not have oil, but gets $5 billion in the bank through its farming processes, outperforms. Yes, that farming involves many economic activities: cultivation, transportation, processing, etc. Because GDP measures economic activities, not money in the bank, that person can end up having a GDP of $40 billion since that agriculture enables many activities, providing ways to support lives.

In our modern history, nothing does that economic translation better than manufacturing. Unfortunately, Africa has no impact therein. That must change for Nigeria and Africa.

Comment on LinkedIn Feed

Comment: In all seriousness, our narrative ought to have transcended “How Europe Underdeveloped Africa” to how Africans are developing Africa. Rather regrettably, the narrative has remained constant in our mouths.

Until we graduate from economic over-dependency to self-reliance —not that the needed human and natural resources for such economic growth and development are lacking but the obvious inability, for too long, of the African leaders to activate the inertia —through transformational leadership, across-the-board. In that direction, the sleeping giant will be awakened to her position among the comity of nations.

My Response: We actually regressed from where Europe left us in the manufacturing space. So, instead of making progress, we are moving backwards.

 

Experience Quality Business Education at Tekedia Institute

By
Ndubuisi Ekekwe
-
0

Learners from 41 countries. 300 global faculty. 12 weeks covering all core elements of business. Solid testimonials. No matter your sector, your industry or discipline, Tekedia Mini-MBA will make you better. Just yesterday, I had to personally respond to META (yes, Facebook) on one of our alumni joining the company; Arinze Onyeasigbulem put that as urgent.

Tekedia Institute offers Tekedia Mini-MBA, an innovation management 12-week program, optimized for business execution and growth, with digital operational overlay. It runs 100% online. The theme is Innovation, Growth & Digital Execution – Techniques for Building Category-King Companies. All contents are self-paced, recorded and archived which means participants do not have to be at any scheduled time to consume contents. Besides, programs are designed for ALL sectors, from fintech to construction, healthcare to manufacturing, agriculture to real estate, etc.

We’re building a generation. Experience it, beginning Sept 12, 2022. Cost remains N90,000 or $170 depending on your payment method. Register here 

Tekedia Institute >> Africa’s temple for mastering the physics of modern business.

IATA’s Trapped Fund: More International Airlines to Suspend Flights to Nigeria

By
Samuel Nwite
-
0

The repatriation faceoff between the Nigerian government and the International Air Transport Association (IATA) is escalating and may stifle the flow of international airlines into the country.

The President, Association of Foreign Airlines and Representatives in Nigeria, Kingsley Nwokeoma, said if the situation is not swiftly addressed, more international carriers would join Emirates Airlines, which earlier this week announced that it’s suspending flights to Nigeria effective September 1.

Nwokeoma made the postulation following the announcement by the British Airways on Thursday that it is going to hike the cost of its flight tickets.

“Good afternoon. Please be informed that information reaching us from BA indicates that the airline is changing to full fares F, J, W and Y any moment from now. Kindly let (us) issue any pending tickets to avoid fare increase,” a notice from the British Airways said.

IATA had decried the Nigerian government’s unwillingness to release now over $450 million earned revenue of foreign airlines. The aviation body said the situation will hurt the country.

“Airlines can’t be expected to fly if they can’t realize revenue from ticket sales. Loss of connectivity harms the economy, hurts investor confidence, impacts jobs and people’s lives. The Government of Nigeria needs to prioritize the release funds before more damage is done,” IATA said.

Punch quoted Nwokeoma as saying that if other countries behave like Nigeria, there will be no aviation industry. He added that the way it is going, Nigerians may end up depending on neighboring countries for international flight services.

“This is just the beginning. It is over $1 billion dollars that is being held and they (foreign airlines) cannot repatriate it. If other countries are like Nigeria, there will not be any industry because this money is used for maintenance. Even the money used to pay their staff in Nigeria is coming from other climes.

“Aviation industry is all about 100 per cent safety. If there is no money, safety will not be 100 per cent guaranteed. So, it is going to continue. Emirates has kick-started it and I’m sure that you are aware that British Airways has cut flights into Nigeria and that is how it is going to start.

“Just like Emirates did, they will first of all cut their flight into Nigeria and they will look at it holistically again and if it is not working out, then it’s not working out. This did not start today. It started over the years and the government is not doing anything.

“Look at it this way, when things were not this bad, what commitment did the government make? Is it now that things are gloomy? So, we hope that we don’t have to go to Benin Republic, Togo or Ghana before we can fly out or do our international travels,” he said.

Lamenting further, Nwokeoma said airline companies need the fund to stay in business.

“I keep asking this question that if other climes are behaving like Nigeria, will there be an aviation sector? The airplanes that come in are not our freight. They have to pay Boeing, they pay AirBus, they pay all these people, they have a payment scheme and where is the money coming from? So, it is an issue,” he said.

Emirates Airlines was the first among many that are involved in the $450 (now $464) million trapped fund to pull out of Nigeria. The United Arab Emirates (UAE)-based company’s share of the fund, which has been increasing by $10 million monthly, was originally $85 million.

While other airlines are yet to take similar steps, there is concern that Emirates’ decision will eventually get contagious and its impact will cripple Nigeria’s aviation industry that has been on life support for months now.

Nigeria’s inability to repatriate the trapped funds is as a result of its forex crisis. Dollar shortage has forced the Central Bank of Nigeria (CBN) to tighten its forex policies, limiting the outflow of foreign currencies to the barest minimum.

Nwokeoma said British Airways’ move to increase fares is to make up for dollars loss and it will result in expensive air tickets.

“It is basically to cover for the dollar loss, but some airlines are doing it already. So, that means air tickets will be more expensive.

“It will be more expensive because it will now be in relationship with the black market rate. So, the F, J, W, Y middle seats will be more expensive,” he said.

Nigeria’s Aviation Minister Hadi Sirika said it is not the first time Nigeria was withholding funds belonging to foreign airlines but there are efforts to see that the funds are released. However, the revolting steps being taken by foreign airlines shows that whatever the Nigerian government is doing to address the challenge is not working.

1...4,9534,9544,955...7,952Page 4,954 of 7,952

© Tekedia. All rights reserved.

Term & Privacy

© Tekedia. All rights reserved.

Term & Privacy