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Home Blog Page 5750

The Central Bank of Nigeria’s US Dollar Battle – And New $5,000 Intra-Deposit Limit

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Nigeria Naira US Dollar

Nigeria is not healthy. And the Central Bank of Nigeria (CBN) is applying panadol even when it knows that panadol has no chance of providing any cure. A few weeks ago, we got the news that commercial banks would only allow a maximum of $10,000 monthly (cash) deposit within Nigeria. Today, the latest is that the apex bank has adjusted that to $5,000.

Left and right, the apex bank is trying to wean Nigerians of US dollars. There are many consequences already, as most of the fintech trading foreign apps have been wounded, since their customers cannot fund dorm accounts for the transactions. A peer to peer is never efficient when you want to do fairly big deals.

“There is a $5,000 monthly cash deposit limit. We encourage you to make more deposits via electronic transfers. Cash funded transfers to beneficiaries with accounts in other banks in Nigeria are no longer allowed. There will be no restriction to the frequency or value of transactions for accounts funded through inflows but supporting documents are required before payments are processed. Cash deposits are no longer allowed for Wealth Management Investments.”

So, if you want to deposit cash into your dorm account in Nigeria, the maximum now is $5,000. But if you want to do electronic transactions, you can but of course the rates are always above the roof. Besides, when you do these deals, you have to provide documents that they are legitimate transactions.
The apex bank is trying many things. But I am not sure it has a chance: fixing Naira will come via factories and warehouses and not any financial engineering at CBN headquarters and commercial bank branches! Those factories and warehouses can include new digital products created by innovators.

We’ve Invested In Four Startups in Q2 2021 Already

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Tekedia Capital has taken small positions in four startups already in Q2 2021. We like them and depending on the data we continue to gather, we will present them (alongside others) before our investors in the next investment round. Typically, we do not present any business we are not invested in, and typically we invest first, risking our capital and using that to have better insights on startups before we move to the big board.

 They are in automotive plus*, financial API, credit with new basis and security systems. I will share about them after  our members have invested in the next round, as I want them to get in, at good valuations. Members, feel free to reach out; we will be happy to share as you plan. Nonetheless, you will get a note on May 24 as scheduled.

Tekedia Capital offers a specialty investment vehicle (or investment syndicate) which makes it possible for citizens, groups and organizations to co-invest in innovative startups and young companies in Africa. To invest and help build the Next Africa, learn more here.

A Charter for the Igbo Apprenticeship System (IAS)

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Two countries have called, a World Bank funded project has called, and many universities are asking questions. Nigeria’s Igbo Apprenticeship System (IAS) can even yield forex if we do it well. Like the Confucius of China, Kaizen of Japan, Six Sigma of the United States, Nigeria has a chance to propel IAS at the heart of the new global stakeholder capitalism.

I have defined the IAS thus: “The Igbo Apprenticeship System is a business philosophy of shared prosperity where participants co-opetitively participate to attain organic economic equilibrium where accumulated market leverageable factors are constantly weighted and calibrated out, via dilution and surrendering of market share, enabling social resilience and formation of livable clusters, engineered by major participants funding their competitors, with success measured on quantifiable support to stakeholders, and not by absolute market dominance.”

Comment on LinkedIn Feed

Comment: I am aware there is an apprenticeship system among every ethnic group in Nigeria, Ndubuisi. Each one nearly similar to the Igbo apprenticeship system, some even better. Yorubas, Hausas, Fulanis, Idomas, and others have it.

Historically, it appears to have been the primitive learning institution for almost every race. I do not think any single tribe or race in the world can claim any form of ownership on this principle.

Rather than attributing ownership of this principle to any ethnic group, I feel it would be best to focus on developing the general principle as it exists.

Response: a.H, the difference with the Igbo Apprenticeship System and why the world is paying attention is that it has real data to justify that it works. In 1970, every Igbo began with 20 pounds. Within 40 years and using the IAS, they have acquired 70% of all real estate in Abuja. No other ethnic apprenticeship in Africa has created that level of wealth. More so, South East Nigeria has the highest literacy rate in Nigeria, on average. Imo tops at 96.43% (out of every 100 people above 15 years, 96 can read/write)

Yet, that was a place that began from zero, after war, with 20 pounds even if that person had one million, So, while every tribe has apprenticeship, none has delivered market results that IAS has offered and that is what is unique. The Igbos are supposed to be the poorest today in Nigeria. Yet, UN ranked them highest. Sorry, I have to bring this which usually divide but I need to respond with data.

I will not be spending time if there is no value in it. I hope you open your mind and let us advance Nigeria instead of the usual tribal arrows.

Welcome Veterinary Business Management Association, ABU Zaria

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Join me to welcome students and members of Veterinary Business Management Association at Ahmadu Bello University, Zaria, Nigeria to Tekedia Institute, as they begin a two-phase work via Tekedia CollegeBoost. Tekedia CollegeBoost is an Advanced Diploma in Business Administration designed for students in colleges. It involves an 8-week program which could be broken into two semesters or taken in one semester, depending on the arrangement with the school or group of students. For more on CollegeBoost, click here.

Communique Issued By Southern Nigeria Governors (full text)

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COMMUNIQUE ISSUED AT THE CONCLUSION OF THE MEETING OF THE GOVERNORS OF SOUTHERN NIGERIA IN GOVERNMENT HOUSE, ASABA, DELTA STATE, ON TUESDAY, 11TH MAY, 2021

At its meeting, held today, 11th May, 2021, the Southern Governors Forum reviewed the situation in the nation generally and focused on the current security situation, agitations/restructuring, prospect for inter-state collaboration and partnerships as well as on the incidence of the COVID-19 Pandemic. Rising from the meeting, the Forum:

i) affirmed that the peoples of Southern Nigeria remain committed to the unity of Nigeria on the basis of justice, fairness, equity and oneness and peaceful co-existence between and among its peoples with a focus on the attainment of shared goals for economíc development and prosperity;

ii) observed that the incursion of armed herders, criminals and bandits into the Southern part of the country has presented a severe security challenge such that citizens are not able to live their normal lives including pursuing various productive activities leading to a threat to food supply and general security. Consequently, the meeting resolved that open grazing of cattle be banned across Southern Nigería;

iii) noted that development and population growth has put pressure on available land and increased the prospects of conflict between migrating herders and local populations in the South. Given this scenario, it becomes imperative to enforce the ban on open grazing in the South (including cattle movement to the South by foot);

iv) recommended that the Federal Government should support WILLING States to develop alternative and modern livestock management systems;

v) agreed that the progress of the nation requires that urgent and bold steps be taken to restructure the Nigerian Federation leading to the evolution of state police, review of revenue allocation formula in favour of the sub-national governments and creation of other institutions which legitimately advance our commitment to and practice of true federalism;

vi) recommended that in view of widespread agitations among our various peoples for greater inclusiveness in existing governance arrangements, the Federal Government should convoke a national dialogue as a matter of urgency;

vii) recommended that in deference to the sensitivities of our various peoples, there is need to review appointments into Federal Government Agencies (including Security Agencies) to reflect federal character as Nigeria’s overall population is heterogenous;

viii) resolved to foster cooperation among the Southern States and the nation at large. In this connection, Secretaries to the Governments of the Southern States are to work together to develop and institutionalize a mechanism to foster this cooperation which will advance the comparative economic advantages and other interests of the Southern States;

ix) expressed concern on the continued gridlock on the Oshodi – Apapa Expressway and the chokehold it has exerted on the nation’s economy being the sole outlet from Apapa Wharf. The meeting therefore recommended the activation and establishment of ports in other States of the federation to create new jobs and promote socio-economic activities in the country;

x) the meeting expressed concern on the economic implications of another lockdown on the country, and therefore suggested greater coordination and cooperation between Federal and State Governments in evolving strategies for dealing with the pandemic;

xi) expressed very grave concern on the security challenge currently plaguing the nation and strongly urged that Mr. President should address Nigerians on the challenges of insecurity and restore the confidence of our people; and

xii) expressed gratitude to our host, Governor Ifeanyi Okowa for his generosity and hospitality.

Arakunrin Oluwarotimi Akeredolu, SAN
Governor, Ondo State

His Excellency
Dr. Victor Okezie Ikpeazu
Governor, Abia State

His Excellency
Chief Emmanuel Udom
Governor, Akwa Ibom State

His Excellency
Senator Diri Draoye
Governor, Bayelsa State

His Excellency
Willie Obiano
Governor, Anambra State

His Excellency
Prof. Ben Ayade
Governor, Cross Rivers State

His Excellency
Senator Dr. feanyi Okowa
Governor, Delta State

His Excellency
Engr. David Umahi
Governor, Ebonyi State

His Excellency
Godwin Obaseki
Governor, Edo State

His Excellency
John Olukayode Fayemi
Governor, Ekiti State

His Excellency
Ifeanyi Ugwuanyi
Governor, Enugu State

His Excellency
Senator Hope Uzodimma
Governor, Imo State

His Excellency
Babajide Sanwo-Olu
Governor, Lagos State

His Excellency
Dapo Abiodun
Governor, Ogun State

His Excellency
Isiaka Adegboyega Oyetola
Governor, Osun State

His Excellency
Oluwaseyi Abiodun Makinde
Governor, Oyo State

His Excellency
Ezenwo Nyesom Wike
Governor, Rivers State