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Home Blog Page 5693

Living vs Living Well

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About 12,000 years ago, the total number of people living in the world was about 4 million. In the year 1800 (that is more than 200 years ago), the world population was about 1 billion people.

Currently, the number of people living in the world is over 7.7 billion. That means in the past 2 centuries, the population of people living on planet earth increased by approximately 800%.

This is a staggering explosion in population growth within a 200 years period, compared to preceding years.

When a human is born into the world, it is usually a moment of celebration. Those cute little humans with bright eyes and irreproachable mien will make a stony heart melt. They are the reason the human race goes on and on.

But that is not where the story ends…actually, that is where the real story begins.

When that beautiful, innocent-looking baby is born, what you have in your hands is a breathing living consumption machine with needs and desires. As that human keeps growing, his/her needs and desires keep growing in size, scope and complexity.

The fulfillment or otherwise and the rate of fulfillment or otherwise of those needs and desires will determine whether such a human lives a happy life or not, whether they become an asset or a liability to their society, and whether the people who birth them end up being fulfilled parents or having loads of sorrows.

While rapid innovations have brought about diverse better options for people in this 21st century, the quality of living for billions of people around the world has actually decreased compared to people who lived in the world with lesser innovative sophisticated options in preceding centuries.

The word ‘suicide’ has never been more familiar than it currently is in the 21st century. So many people around the world plan and execute their own death by their own hands due to the choking limitations frustrating their living.

According to the World Health Organization, more than 700,000 people die by suicide every year. It was further revealed that ‘’for every adult who died by suicide, there may have been more than 20 others attempting suicide.

That means if 700,000 people die by suicide in a year, more than 14 million people also attempted suicide in that same year.

It is very eye-opening to note that 77% of suicides occur in low and middle income countries. Also instructive to note that a huge proportion of the world population are concentrated in low and middle income countries, especially low-income countries.

So what is the wisdom in recklessly birthing children into an overpopulated world that is increasingly more difficult to live in?

As at 1960 when Nigeria gained independence from her British colonialists, total population was about 45 million people. 61 years later (2021), the total number of people living in Nigeria is currently more than 211 million people.

One do not need to wonder why poverty, hunger, insecurity, suicide rate, conflicts and so on are increasing every day in Nigeria. A major answer to that question is already staring everyone in the face.

Purchasing Power Parity (PPP) as a measure of the strength of a country’s currency compared to other countries also reflects people’s living standard in a country in comparison to other countries.

The International Monetary Fund (IMF) in 2021 did an estimate of PPP in 188 countries which also revealed how well people are living in such countries.

Out of the 188 countries, these are the first five countries with the highest PPP in their chronological order: 1. Luxembourg 2 Singapore 3. Ireland 4. Qatar 5. Switzerland.

  • Luxembourg has the highest PPP in the world, their population is just a little over 600 thousand.
  • Singapore has the second highest PPP in the world, their population is about 9 million
  • Ireland has the third highest PPP in the world, their population is about 5 million
  • Qatar has the fourth highest PPP in the world, their population is about 3 million

Nigeria is number 136 out of 188 countries on the PPP list and her population is over 211 million people.

Population alone does not account for the poor quality of life in a country, but it goes a long way in that accounting.

For the fourth year in a row, Finland has been rated as the country with the happiest people in the world. The total number of people living in Finland is about 5.5 million people.

Poor people are usually the ones who birth more children. I do not understand how a man and his wife with 3 kids would be living in a single room. How could any right-thinking man father 3 children when he could only afford a single room rent?

Even rich parents should be scared of birthing more than 2 humans. The quality of living for a child goes beyond the material comfort you can provide for that child, it also has to do with safety amongst other things.

Nigeria has reached a stage where the rich can no longer rest easy because there are too many frustrated poor people around. For example, you and your child are a goldmine in the hands of kidnappers and armed robbers.

So, instead of having many children due to available sufficient fund, having one or two kids and using the extra fund for human development sponsorship in your sphere of influence could be a better idea. That way, yourself and your children are guaranteed a better chance at peace and safety.

The joke is on the few rich people who think they are living a good life. No! They’re not. Not when they can’t enjoy that money in peace.

The beauty of living is not in the quantity, it is in the quality. It is how well people live that makes them appreciate their existence and develop the enthusiasm to contribute positively to the world they live in.

Otherwise, you have a miserable human being who would either be living in a vegetative state, become a liability/danger to the world or use their very hands to end the life that they had without their own consent.

Nobody owes you gratitude for mere procreation. Nearly everyone with a penis and a vagina can do that. You deserve an applause for birthing humans and giving them wings to fly.

Treat human life with care. Reproduce human life with reverence. The wellbeing of the world and its inhabitants are counting on it to thrive.

Nigeria’s Biggest Risk As Digital Currency E-Naira Emerges

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There is a massive promise on the ascension of a digital currency, e-naira, in Nigeria. But e-Naira can also crack Nigeria’s economy. I have a 25 document which I have been creating on E-Naira as I continue to evaluate the opportunities and risk.  The fact is this: if E-Naira launches, expect everyone to move his or her money from retail banks to CBN (Central Bank of Nigeria) – and if that is the case, retail banks will have limited money to lend, freezing banking as we know it.

Magically, if people cannot borrow from banks because the money is in the CBN vault, the economy will crash as we cannot have growth. I do expect the CBN to cap how much people can keep in e-Naira; otherwise, our economy will fold. 

Already, my model is that up to 10% of Naira will be in e-wallets by 2025 and with that, retail bank-driven CBN pushed monetary policy will not “affect” 10% of naira. In other words, if monetary policies are designed around control via retail banks and money is warehoused in Pass, Flutterwave, Paystack, expect dislocations.

I am waiting for the CBN technical document on the digital currency. Depending on what they have there and the apparatus it wants to run the show, we will know what the future holds. But one thing is certain: if you disintermediate retail banks through e-Naira, you will destroy Nigerian economy overnight because companies cannot source funds for growth. You cannot expect the citizens to hold money directly with the apex bank and still expect the retail banks to still have money to lend!

Of course, from ease of use, no issues of failed banks to deal with, zero or extremely low transaction costs, to ability to engage citizens directly on monetary policies via many tools like interest rates, e-naira will be a positive.

A Nigeria’s Massive Opportunity Arrives in 2022 As Era of Fintech 2.0 Begins

 

Tesla outperformed auto stocks with 224% ROI in last one year, but trailed NIO

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Tesla is among the notable growth stocks that have recorded significant returns for investors. Despite the electric vehicle manufacturer’s stock slumping in 2021, it has maintained an edge over competitors.

According to data acquired by Finbold, Tesla stock registered an ROI of 224.93% between June 2021 and June 2020, outperforming some of its major competitors. Among the selected vehicle manufacturers, Tesla only trailed China-based NIO, which had almost double returns at 539.13%. Ford Motor ranks third with returns of 152.28%, followed by General Motors at 141.08%, while Volkswagen AG ranks fifth at 116.62%.

Other stocks with key returns include XPeng (75.47%), Oshkosh (74.08%), Navistar (60.29%), Toyota  42.19%), and Honda (25.22%)

Between the period, Tesla also maintained a superior stock price growing from $191.95 in 2020 to $623.71 in 2021. Elsewhere, last year, NIO’s stock price was at $6.9, while in June 2021, the stock stood at $44.1.

Tesla benefiting from green energy debate 

Having established its position as a  leader in electric vehicle manufacturing, Tesla stock benefitted from some of the initiatives around environmental conservation. According to the research report:

“In the wake of a new focus towards the climate change agenda, Tesla has been at the center of attention, with more investors betting on the company. Some jurisdictions are also enacting legislation favouring consumers opting for electric vehicles, and as a leader in the sector, Tesla stands to gain.”

Based on the Tesla returns, it is clear the massive gains made in 2020 were enough to sustain profitability for investors despite the stock slumping in 2021. The growth was mainly guided by fundamental factors like greater retail investor interest in the stock and the inclusion of the S&P 500 index.

However, for Tesla to remain with the upper hand, the company needs to look out for competition.

Source: Finbold newsletter

A Nigeria’s Massive Opportunity Arrives in 2022 As Era of Fintech 2.0 Begins

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The Central Bank of Nigeria plans to unveil Nigeria’s digital currency. Yes, the e-Naira is coming next year. I am looking for startups which are thinking ahead of this new market, and ready to build a product for that future. While we do not know fully what it would look like, one thing I know is this: there would be new or updated payment gateways and possibly Nigeria will have nodes for “agents” at different levels of market stacks, from commercial banks to mama put and akara sellers. This is a cambrian-level opportunity and it looks promising.

The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, has revealed that Nigeria will launch a digital currency. With this, Nigeria tracks other nations which plan or have launched digital currencies. China is expected to roll out the e-yuan, its digital currency, at scale, later in the year. The United States has also started work on e-dollars.

Next month, Tekedia Mini-MBA LIVE is converging a session to be anchored by Dubai-based Bitfxt (crypto exchange) and BoundlessPay (crypto payment) on Digital Currencies: E-Yuan, E-Dollars, and E-Naira. We do expect to learn a lot about this evolving market and how businesses and entrepreneurs could prepare for that future. Yes, I want to make sure people can pay for Tekedia Mini-MBA with e-Naira once it goes live.

At Tekedia Capital, this is an area we hope to invest if indeed the Central Bank of Nigeria (CBN) decentralizes the distribution of the e-Naira to the extent that our phones, portals, etc become our banks, and our bank accounts are now ‘warehoused” in the CBN, at least up to a level. 

If you have a compelling vision with a roadmap of that future, I will personally write a cheque once CBN shares guidelines on the protocol. More so, we would like to invite you to this exclusive conversation for the Tekedia community. Indicate your interest by commenting below.

The race to Fintech 2.0 in Nigeria is beginning next year. Are you ready? Who builds the first e-naira compatible API?

The Central Bank of Nigeria’s N430-440/$ True Value, Nigeria’s New Private Equity Fund to Fight Poverty

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Despite what we have in the books now, it seems the Central Bank of Nigeria has found another point for the Naira: “The Governor of the Central Bank of Nigeria, Godwin Emefiele advised investors in the U.K that he expects the true value of the naira to be between N430-440 to the dollar. Mr. Emefiele made this comment in a Webinar organized by the Standard Bank of Africa (parent company of Stanbic IBTC Nigeria). According to sources who attended the event on Monday, Mr Emefiele told participants that the current exchange rate at the parallel market was between N430-440/$1 and not the black-market rate which closed at about N500/$1.”

In an apparent attempt to woo foreign investments, the CBN Governor also encouraged foreign investors to reconsider their waning interest in Nigerian Equities suggesting that some of the stocks were undervalued. Nigeria’s capital importation data into equities was just $755 million in the whole of 2020 compared to $1.8 billion in 2019.

Nigeria needs the foreign investors desperately into the economy as whenever they show interest in our stock market, numbers move. Yet, it is really challenging for the investors since if the Naira continues to move negatively in the forex market, taking mid to long term positions will become harder. This is compounded by the foreign reserves which have gone down to a four year low. If that trajectory does not change, another currency devaluation would be on the way.

Tough decisions coming early in Q3 2021 for the nation and it would be really challenging. Sure, crude oil price is showing positive signs and if happens at high volume, we could buy a few more months.

Meanwhile, the Nigerian government has inaugurated the National Steering Committee (NSC) of the National Poverty Reduction with Growth Strategy (NPRGS), with the aim to lift 100 million Nigerians out of poverty. The Chairman of the committee is the Vice President. This committee will establish a private equity fund, the Nigeria Investment and Growth Fund (NIG-Fund), to lead resource mobilisation drive and manage its resources. Besides this playbook, Nigeria needs to work to stabilize the Naira. If we keep the Naira fairly stable, investment capital will arrive, and government will not even need to expand bureaucracy.

STATE HOUSE PRESS RELEASE
PRESIDENT BUHARI INAUGURATES STEERING COMMITTEE ON POVERTY REDUCTION, ESTABLISHES PRIVATE EQUITY FUND
President Muhammadu Buhari Tuesday in Abuja inaugurated National Steering Committee (NSC) of the National Poverty Reduction with Growth Strategy (NPRGS) to be chaired by Vice President Yemi Osinbajo, reiterating his commitment to lifting 100 million Nigerians out of poverty in ten years, with a well-researched framework for implementation and funding.
Speaking at the ceremony attended by the Vice President, Secretary to the Government of the Federation, Boss Mustapha, some governors and top government officials, President Buhari noted that the NPRGS had already proposed the establishment of a private equity fund, the Nigeria Investment and Growth Fund (NIG-Fund), to lead resource mobilization drive and also manage the resources in a sustainable manner.
“This journey began in January, 2021 when I directed the Chairman of the Presidential Economic Advisory Council and Secretary to the Government of the Federation to collaboratively work together to articulate what that will lift 100 million Nigerians out of poverty in ten (10) years.
“I am happy to note that the process of designing this inclusive poverty reduction strategy recognized and addressed past mistakes as well as laying the foundation for a sustainable poverty reduction through the wide range consultations held at all levels of government, development partners, the private sector as well as the civil society,’’ he said.
The President added that the National Poverty Reduction with Growth Strategy would address the underlying causes of poverty on the basis of which it developed programmes that would deal with the multi-dimensional nature of poverty within the practical context of comparative advantage of human and natural resources in the various geo-political zones.
He noted that:
“The major challenge before this National Steering Committee is to translate our good intention into positive impact of the average Nigerian so that we create an appreciative impact on the poverty situation in our country.
“If India can lift 271million people out of poverty between 2006 and 2016, Nigeria can surely lift 100million out of poverty in 10 years. Fortunately, we have already started but we need to unlock the challenges of slow implementation, inappropriate targeting and absence of adequate resources.’’
President Buhari listed the responsibilities of the steering committee to include: anchor collaborative efforts; provide oversight for the implementation of the strategy; provide guidance to Technical Working Group and Federal Ministries, Extra Ministerial Departments and Agencies, subnational governments and other stakeholders on meeting the objectives of the programme as well as monitoring progress and any other effort that would enhance attainment of the objective of lifting 100 million people out of poverty in 10 years.
According to the President: “The performance of our economy despite COVID-19 gives me comfort that we can achieve our goal but we need to seriously scale up and work more with state and local governments.
“This call becomes more pertinent in the face of recent forecasts by the International Monetary Fund, the World Bank and our own Nigerian Economic Summit Group which all agreed that Nigeria needs to frontally tackle her poverty situation if our economic gains are to be sustained.’’
President Buhari said the National Steering Committee of Nigeria’s National Poverty Reduction with Growth Strategy also include Secretary to the Government of the Federation, Chief of Staff to Mr. President, Governor of Ekiti State (South West), Governor of Delta State (South South), Governor of Sokoto State (North West), Governor of Borno State (North East), Governor of Nasarawa State (North Central) and Governor of Ebonyi State (South East).
Other members of the committee are: Minister of Finance, Budget and National Planning, Minister of State for Budget and National Planning, Minister of Humanitarian Affairs, Disaster Management and Social Development, Minister of Agriculture and Rural Development, Minister of Industry, Trade and Investments, Minister of Labour and Employment, Minister of Education and Minister of Health.
President Buhari charged the committee to commence work immediately so that the Technical Working Group would also begin putting the nuts and bolts together.
“You may, therefore, wish to consider providing immediate guidance to the TWG on the following, establishment of the NIG-Fund leveraging on the Development Finance Assessment Report, public and private sector funding; harmonise existing human capital development; scale up existing Poverty Reduction Initiatives such as the Social Investment Programmes, various agricultural support initiatives as well as support to Micro-Small and Medium Enterprises; and leverage on existing development partner support programmes and projects with potentials for quick-wins e.g the Nigeria COVID-19 Action Recovery and Economic Stimulus.’’
The President said the responsibilities were onerous, but expressed confidence that the committee will be able to lay the foundation and demonstrate, within the next two years, the practicality of lifting 100 million Nigerians out of poverty in or under 10 years.
“As you all know funding will always be a challenge especially in these times when resources are limited. The NPRGS has, thus, proposed the establishment of a private equity fund, the Nigeria Investment and Growth Fund (NIG-Fund), to lead our resource mobilization drive and also manage the resources in a sustainable manner,’’ he added.
In his remarks, the Chairman of the committee, Vice President Osinbajo said the National Poverty Reduction with Growth Strategy would consolidate other efforts of the government to reduce poverty which include N-Power, school feeding and conditional cash transfer.
The Vice President noted that the President’s position that local governments, states and the federal government should work jointly to alleviate poverty in the country will be properly reflected in the framework and implementation, stressing the need for access and inclusivity.
The SGF said the poverty situation in the country assumed an enormous proportion, with an increasing population, adding that the situation was compounded by the COVID-19 pandemic.
He said the administration responded to the COVID-19 poverty fallout swiftly and was able to ameliorate the situation, and also ensured a quick exit from recession.
Femi Adesina
Special Adviser to the President
(Media & Publicity)
June 22, 2021