Economic Policy: More Clarity, Less Ambivalence (LBS Executive Breakfast Session – June 2021)

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CBN Adopts NAFEX as Official Rate

Making Omelette Without Breaking Eggs

Economists and investors sighed with relief when the CBN finally adopted the NAFEX (N410.93/$) rate as the Nigerian official exchange rate. But the markets took advantage of consumer vulnerability, pushing the naira over the N500/$ mark in the parallel market.

This was because of three distinct factors a. Panic buying b. Speculative trading and c. Front loading of future demand. Our economic analysis based on the cobweb theorem of prices (exchange rate) moving towards an equilibrium says that prices will rise initially when there is a demand gap before falling in the short run.

LBS Executive Breakfast Session

Therefore, we expect the forex market to correct itself in July with the naira appreciating towards N470-N490/$. The current PPP value appreciated from N507/$ to N490/$ in the last two weeks. Whilst the autonomous market rate fell from N485/$ to N502/$. Once the CBN increases supply in the market by 20%-25% the naira will appreciate in the autonomous market towards its fair value. 

Rising Oil Prices – A Bittersweet Experience

Nigerians had mixed feelings when the price of Brent crude crossed $70pb – a 24 month high. The first being that the federal government revenue will increase and the naira will appreciate whilst the second was that we will have to pay N200/litre or more for petrol.

The questions in people’s minds were what is the government is going to do with the improved revenue? Is it going to have an impact on me or is it going to be in the words of Fela – Suffering and smiling?

In this edition of the LBS Breakfast Session, Bismarck Rewane and the FDC Think Tank discuss relevant policy directions and their implications on your business operations.

Download – The LBS Executive Breakfast Session – June 2021

Telecoms Operators Receive Orders To Suspend Twitter – ALTON

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The Association of Licensed Telecommunication Operators of Nigeria (ALTON), an industry group, says it had received directives from the Nigerian Communications Commission (NCC), the industry regulator, to suspend access to Twitter.

The President of ALTON, Mr. Gbenga Adebayo stated this in Lagos on Saturday hours after the social media giant deleted a tweet from President Buhari’s account and the Buhari-led administration announced the suspension of Twitter.

Adebayo noted that the association wished to confirm that its members had received formal instructions from  NCC, the industry regulator, to suspend access to Twitter.

“ALTON has also conducted a robust assessment of the request in accordance with internationally accepted principles.

“Based on national interest provisions in the Nigerian Communications Act, 2003, and within the licence terms under which the industry operates;  our members have acted in compliance with the directives of NCC.

“We will continue to engage all relevant authorities and stakeholders and will act as may be further directed by the NCC, ” Adebayo said.

He said the association remained committed to supporting the government of the Federal Republic of Nigeria and upholding the rights of citizens.

As an industry, ALTON endorsed the position of the United Nations that the rights held by people offline must also be protected online, Adebayo’s statement said.

He noted that this included respecting and protecting the rights of all people to communicate, to share information freely and responsibly, and to enjoy privacy and security regarding their data and their use of digital communications.

Northward Direction Persists In Local Bourse, NSE ASI Up 46bps

The equities market closed in bullish form at the end of today’s trading session as the benchmark index improved by 0.46% to close at 38,726.10 points.

The market capitalization increased by ₦95 billion to close at ₦20.18 trillion.

Four of the five sectoral indices under coverage improved. The Industrial goods index, the biggest gainer, strengthened by 1.00%, followed by Banking (0.33%), Oil & Gas (0.06%) and Consumer goods (0.04%) indices respectively. Conversely, the Insurance index was the only loser, declined by 0.56%.

Investors’ sentiment strengthened in today’s trading session, as market breadth increased to 2.2x from 1.27x. This was illustrated by the advance of 22 stocks, led by MORISON (9.71%) and VERITASKAP (9.09%), and the decline of 10 stocks, led by CWG (-9.47%) and REGALINS (-9.09%).

In terms of activity levels, total volume and value declined by 20.28% and 15.43% compared to the previous, as investors exchanged about a 199.06million units of shares worth over a N1.59billion.

Fixed Income

There was inactivity across the bond yield curve as 3 of the 4 bond yields under coverage remained constant while the 2-Year tenor ( FGN-APR-2023) marginally declined by 0.01%. FGN-APR-2024, FGN-JAN-2026 and FGN-JUL-2030 remained constant at 11.68%, 12.16% and 12.94% respectively.

Treasury bill yields for 90, 180, and 365-day papers closed at 4.44%, 6.19% and 9.50%.

We expect a bullish momentum in the next trading session as the equities market still presents decent opportunities for investors chasing positive real return on investments.

Market Snapshot

  • Northward Direction Persists in Local Bourse, NSE ASI Up 46bps
  • Inactivity Across Bond Yield Curve as 3 of the 4 tenors remained constant.
  • Mixed Sentiment in Global Stocks
  • Parallel Market Exchange Rate Reports at N502.00/$
  • Two of the Three Tenors of Treasury Yields remained constant.

Airtel Rolls Out Massive Home Broadband Discounts With ‘HBB Seasonal Offer’

Leading telecommunications services provider, Airtel Nigeria, has announced the introduction of its HBB Seasonal Offer, a value offering that offers customers exciting discount deals on its Home Broadband devices.

Airtel says the offer is designed to ensure its Home Broadband customers get the best out of its Broadband services on the widest 4G Network in Nigeria.

According to Airtel, customers now have the opportunity to own Airtel Home Broadband (HBB) devices such as routers and MiFis at discounted rates bundled with Broadband Data from June 1, 2021, till August 31st, 2021.

The Routers, which were previously priced at N25, 000 will be sold at N19, 999 with up to 160GB bonus data and Mifis hitherto sold at N12, 000 can now be purchased for N9, 999 with up to 55GB bonus data.

Commenting on the new offer, Godfrey Efeurhobo, Director, Home Broadband, Airtel Nigeria, said the HBB Seasonal Offer will further extend the Broadband experience to more customers across the Country.

According to him, the offer, which has been designed to meet the growing demand for quality Home Broadband experience with consideration for affordability is a veritable platform to support the new normal of Work from Home, Study from Home, Entertainment at home with friends and loved ones, connecting multiple devices simultaneously to Wi-Fi with superior data quality seamlessly.

“Airtel is committed to creating unique and innovative value propositions that makes life simpler, easier, better, and more fun for all its customers.

“There is a growing demand for superior internet connectivity on Home Broadband internet, and with this new offer, we are confident that consumers in the segment will have an enriched experience and be further empowered to realize their full potentials, especially with its affordability and Reliability,” he said.

Zamfara State Gripped By Humanitarian Crisis As Violence Escalates

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Spiraling violence between armed groups in Nigeria’s northwest has driven thousands of people from their homes; Conditions in the resulting displaced people’s camps are dire, with a lack of food, water, and shelter; We are urging for an immediate scale-up in the humanitarian response in Zamfara state to meet people’s basic needs.

Rising violence in northwest  Nigeria’s Zamfara state is causing a humanitarian crisis, warns Médecins Sans Frontières (MSF). MSF is calling for an urgent humanitarian response for people in the region, who are desperately short of food, drinking water, shelter, protection and basic services, including healthcare.

“Our teams in Zamfara state have witnessed an alarming rise in preventable illnesses associated with a lack of food, drinking water, shelter and vaccinations,” says MSF’s Dr Godwin Emudanohwo, speaking from the hospital MSF supports in the town of Anka. “Children keep on arriving here in a very bad condition.”

“In the first four months of 2021, our teams in Anka, Zurmi and Shinkafi treated 10,300 children for severe acute malnutrition, measles, malaria, watery diarrhoea and respiratory infections,” says Dr Emudanohwo. “This is 54 per cent higher than in the same period last year.”

What began as occasional clashes between farmers and herders, competing over increasingly scarce land and water resources, has now evolved into generalised random violence by armed groups, who use kidnapping and plundering as a lucrative source of income.

People who make it to MSF health facilities say that the surge in violence has driven them to flee their homes, farms and grazing lands. Some have sought protection in Zamfara’s larger towns, such as Anka, where they are sheltering in camps, both formal and informal.

Living conditions in the camps are dire, with no regular food distributions or proper shelter and with insufficient water and sanitation facilities, according to MSF teams. Other people have stayed in villages, too afraid to travel on insecure roads and delaying their trips to seek healthcare or fulfil other basic needs.

“There’s hardly any food to give to my children,” says Halima, two of whose children are being treated for severe acute malnutrition by MSF in Anka hospital. “We can no longer grow crops because criminals attack our farms.”

“Two of my children got measles and they were growing very thin. The roads are very dangerous, but I had to risk our lives and bring them to hospital,” says Halima. “Last time, when their elder sister got measles, I decided too late to travel by road and bring her to hospital. She had complications and now she is blind.”

In February 2021 there were more than 124,000 displaced people living in in Zamfara state, according to the International Organization for Migration (IOM) – an increase of more than 12,000 since August 2020. In Anka town alone, our teams have counted more than 14,000 displaced people, with around 1,599 arrivals in the past four months.

“We had to flee our grazing lands and most of our cattle were stolen,” says Nana, who is sheltering in a camp for displaced people on the edge of Anka. “Now there’s very little for us to eat. I make a living by selling cows’ milk to local people.”

The 150 beds in MSF’s paediatric ward in Anka hospital are already full, but staff fear the worst is yet to come.

“We are currently running over our bed capacity in Anka hospital,” says Dr Emudanohwo. “Families tell us they won’t be able to farm for the new season, which means a new cycle of hunger.”

“And the rainy season is yet to start, when malaria and other seasonal diseases increase,” continues Dr Emudanohwo. “People here need food, safe water and vaccinations now.”

“The survivors are afraid to take the roads, so they usually arrive at our clinics too late to prevent sexually transmitted infections, with serious mental trauma and in desperate need of protection”. Dr. Noble Nma, Msf Medical Activity Manager in Shinkafi.

Rise in kidnapping and sexual violence

As the violence spirals, reports of kidnappings, killings, armed robbery and sexual violence have multiplied.

“From January to April, our teams in Zamfara have received over 100 victims of sexual violence,” says Dr Noble Nma, MSF medical activity manager in Shinkafi, where we run a clinic for survivors of sexual violence. “Women and sometimes men are abducted by armed men and subjected to violation for a few weeks before being returned to their community. This is in addition to the violence faced by women within the community itself.”

Fear of travelling along dangerous roads means that rape survivors often seek support late, or not at all. “The survivors are afraid to take the roads, so they usually arrive at our clinics too late to prevent sexually transmitted infections, with serious mental trauma and in desperate need of protection,” says Dr Nma. “They tell us that there are more survivors out there who are afraid to travel here, so we fear that we’re only seeing the tip of the iceberg.”

MSF is one of just a few aid organisations working in Zamfara state. This is not the first time we have raised the alarm on the urgent need for increased humanitarian assistance and protection in the region.

“Our teams have witnessed the speed at which the situation in Zamfara state has deteriorated,” says Froukje Pelsma, MSF head of mission in Nigeria. “The lives of people in northwest Nigeria are now dominated by hunger, abuse and preventable diseases.”

“What is happening here is a humanitarian emergency that needs urgent attention and a fast and proper response,” says Pelsma. “The authorities and all relevant stakeholders should assume their responsibilities towards affected communities.”

StarTimes Slashes Decoder Price for UEFA Euro 2020

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UEFA Euro 2020 is starting in about six days. To ensure that every home can enjoy the thrilling tournament, StarTimes is offering a wide range of affordable watching options.

Starting June 5, New subscribers can enjoy a special Euro 2020 offer as StarTimes dish and decoder kit will be slashed to N8900 as against N11,200. The dish decoder comes with a monthly subscription for subscribers to see all the EURO 2020 matches live in HD as well as enjoy over 120 TV and audio channels.

Euro 2020 Countdown Begins on StarTimes BRANDSPURNGEuro 2020 Countdown Begins on StarTimes BRANDSPURNG

For existing subscribers, StarTimes brings all the matches on basic bouquet (antenna users) for N1700 monthly or Smart Bouquet (dish users) for N2200 monthly. For more flexibility, StarTimes subscribers can choose to recharge monthly, weekly or daily. A daily subscription is N160 daily on the basic bouquet and N200 daily on the smart bouquet.

From June 11 to July 11, the top 24 European teams will play 51 matches, up to three matches a day during the group phase.

“We are excited to air UEFA Euro 2020. We expect great action with most of the world’s best players and teams participating. Football fans have been forced to pay ever-higher prices to watch major competitions in the past. This isn’t right. Football should be made available for all. This is what StarTimes strives to achieve, to ensure that every African football fan can enjoy Euro 2020,” Viki Liu, Content Director, StarTimes Nigeria said.

How to bypass Nigeria’s suspension on Twitter through VPN

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Nigerians, who rank among the most vocal and frequent users of the popular micro-blogging site, Twitter, now have to contend with no longer having access to the medium.

The development comes in the wake of the indefinite suspension of the operations of the social network in Nigeria. The suspension was made public by the Minister of Information and Culture, Alhaji Lai Mohammed. Mohammed announced the suspension in a statement in Abuja on Friday, June 4.

The statement reads, “The Federal Government has suspended, indefinitely, the operations of the microblogging and social networking service, Twitter, in Nigeria. “The Minister of Information and Culture, Alhaji Lai Mohammed, announced the suspension in a statement issued in Abuja on Friday; citing the persistent use of the platform for activities that are capable of undermining Nigeria’s corporate existence.

“The Minister said the FG has also directed the National Broadcasting Commission (NBC) to immediately commence the process of licensing all OTT and social media operations in Nigeria.”

VPN to the rescue

Meanwhile, despite the ban by the FG, Nigerians can still use the medium through a Virtual Private Network (VPN).

A Virtual Private Network (VPN) is a connection that allows users to establish a protected network connection when using public networks. VPNs basically aid users protect their internet traffic and keep their identities private online.

With a VPN, internet traffic is routed through an encrypted tunnel that nobody can see into. This includes including hackers, governments, and even the telecommunications/internet service provider. In other words, a VPN hides your internet protocol (IP) address. The IP is the unique number that identifies an internet user and his/her physical location.

Below are a few tips on how to get and install a VPN

VPNs abound in their number. It is important to note that while some of them are free, others are paid. The difference exists in their utility levels or functionalities.

However, this is not to state that free VPNs do not deliver value. Some free VPNs, such as Windscribe, even offer as much as 10GB of free data to users. Other free VPNs include Hide.me, ProtonVPN, Speedify and TunnelBear, among others.

It is advisable to use only a reliable app download portal when getting a VPN. Visit the Google PlayStore or Apple Appstore on your device

  • Search for VPN
  • You will see a number of options and having ascertained if you are going for a free or paid one, you can make a choice from the available options
  • Open the selected VPN app and download/install it on your device
  • Select your new location by choosing any country of your choice (not Nigeria, in view of the ban)
  • Connect your VPN
  • Voila! You can now use Twitter
  • Please note that the use of a VPN may prevent you from accessing other location-based apps on your device. To use these apps, you may need to disconnect your VPN.

FG Suspension: How to use Twitter in Nigeria

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Nigerians, who rank among the most vocal and frequent users of the popular micro-blogging site, Twitter, now have to contend with no longer having access to the medium.

The development comes in the wake of the indefinite suspension of the operations of the social network in Nigeria. The suspension was made public by the Minister of Information and Culture, Alhaji Lai Mohammed. Mohammed announced the suspension in a statement in Abuja on Friday, June 4.

Specifically, the minister cited the persistent use of the platform for activities capable of undermining Nigeria’s corporate existence. The statement was released by Mr Segun Adeyemi, Special Assistant to the President (Media), office of the Minister.

The statement reads, “The Federal Government has suspended, indefinitely, the operations of the microblogging and social networking service, Twitter, in Nigeria. “The Minister of Information and Culture, Alhaji Lai Mohammed, announced the suspension in a statement issued in Abuja on Friday; citing the persistent use of the platform for activities that are capable of undermining Nigeria’s corporate existence.

“The Minister said the FG has also directed the National Broadcasting Commission (NBC) to immediately commence the process of licensing all OTT and social media operations in Nigeria.”

Telecommunications companies in Nigeria, whom Nigerians rely on for data to access Twitter services, have already pulled the plug on the medium. Browsers and apps are no longer connecting to Twitter, with Nigerians reporting the cessation of service from around midnight.

Consequently, a groundswell of reactions has trailed the development.

Nigerians from all walks of life have condemned the government’s action. Amnesty International has also weighed in, urging a rescinding of the decision; while the Socio-Economic Rights and Accountability Project (SERAP) has also threatened to sue the FG.

Meanwhile, despite the ban by the FG, Nigerians can still use the medium through a Virtual Private Network (VPN).

A Virtual Private Network (VPN) is a connection that allows users to establish a protected network connection when using public networks. VPNs basically aid users protect their internet traffic and keep their identities private online.

With a VPN, internet traffic is routed through an encrypted tunnel that nobody can see into. This includes including hackers, governments, and even the telecommunications/internet service provider. In other words, a VPN hides your internet protocol (IP) address. The IP is the unique number that identifies an internet user and his/her physical location.

Below are a few tips on how to get and install a VPN

VPNs abound in their number. It is important to note that while some of them are free, others are paid. The difference exists in their utility levels or functionalities.

However, this is not to state that free VPNs do not deliver value. Some free VPNs, such as Windscribe, even offer as much as 10GB of free data to users. Other free VPNs include Hide.me, ProtonVPN, Speedify and TunnelBear, among others.

It is advisable to use only a reliable app download portal when getting a VPN. Visit the Google PlayStore or Apple Appstore on your device

  • Search for VPN
  • You will see a number of options and having ascertained if you are going for a free or paid one, you can make a choice from the available options
  • Open the selected VPN app and download/install on your device
  • Select your new location by choosing any country of your choice (not Nigeria, in view of the ban)
  • Connect your VPN
  • Voila! You can now use Twitter
  • Please note that the use of a VPN may prevent you from accessing other location-based apps on your device. To use these apps, you may need to disconnect your VPN.

Paxful Launches E-Commerce Solution to Strengthen Cryptocurrency Adoption

Peer-to-peer fintech partnering with businesses to offer bitcoin as a payment option

3 June 2021: Paxful, the leading global peer-to-peer fintech, today announced Paxful Pay, an e-commerce solution that allows businesses worldwide to receive bitcoin.

The service is available today and allows customers to pay with almost 400 payment methods – exchanging into bitcoin that is sent to the merchant’s digital wallet. Businesses can register now to add Paxful Pay as a purchase option to their online checkout process.

Paxful , paxful Pay, E-Commerce,Cryptocurrency

Through Paxful Pay, businesses can manage their earnings and convert bitcoin into their local currency on the Paxful Marketplace using almost 400 payment methods. Merchants will also have control over the configuration of the solution on their Paxful Merchant Dashboard and can track every transaction.

The company expects to expand to other digital currencies and plans to introduce automatic conversion into stable coins such as Tether (USDT). Further down the line, Paxful Pay will allow merchants to automatically convert bitcoin into their local currency within their bank account.

Consumers can expect the typical e-commerce flow — but will now have the option of selecting Paxful Pay as a payment method. This will prompt users to create a new profile or login as an existing Paxful user. Users can then use almost 400 payment methods to complete their purchase. With their Paxful login, users can also take advantage of Paxful’s other products such as Paxful Marketplace and Paxful Wallet.

Ray Youssef, CEO and co-founder of Paxful, said:

“In many regions across the globe, we see people use bitcoin as a financial tool for purchasing goods and services. Bitcoin has several different use cases that we have only begun to leverage, and e-commerce is a great example. At Paxful, it’s imperative that we give users and businesses around the world the opportunity to take advantage of the power of bitcoin to gain financial freedom.”

Artur Schaback, COO and co-founder of Paxful, said:

“We’re thrilled to bring Paxful Pay to our global community. There is a clear need to offer local options for bitcoin and this product is a culmination of our efforts to deliver on that demand. By offering users the ability to complete purchases using almost 400 payment methods, they will now have an even stronger financial solution at their fingertips. We cannot wait to expand this offering to encompass as many merchants as possible.”

Currently, Paxful has over a hundred merchants on Paxful Pay. As the company ramps up the service, it expects to onboard a select number of new merchants in the coming weeks. From there, Paxful Pay will expand more generally.

Founded in 2015 and completely bootstrapped since then, Paxful is headquartered in New York with offices in Estonia, the Philippines and Russia. The team has doubled in size over the last 12 months, growing to over 400 people.

Paxful is a peer-to-peer finance platform for people to make payments, transactions, and send money by buying and selling cryptocurrencies as a means of exchange. Founded in 2015 by Ray Youssef and Artur Schaback, Paxful’s mission is to help everyone have equal access to finance no matter who or where they are. Six million people use Paxful to buy and sell Bitcoin (BTC), Ethereum (ETH) and Tether (USDT) with almost 400 different payment methods.

Ray Youssef, co-founder, and CEO of Paxful, set up the Built with Bitcoin Foundation to help people have access to education and water. To date, the foundation has built four schools (two in Rwanda, one in Kenya, and one in Nigeria). The Built with Bitcoin Foundation is funded by Paxful and the cryptocurrency community.

WHO Announces Simple, Easy-To-Say Labels For SARS-CoV-2 Variants

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The World Health Organisation (WHO) has assigned simple, easy to say and remember labels for key variants of SARS-CoV-2, the virus that causes COVID-19, using letters of the Greek alphabet.

These labels were chosen after wide consultation and a review of many potential naming systems. WHO convened an expert group of partners from around the world to do so, including experts who are part of existing naming systems, nomenclature and virus taxonomic experts, researchers and national authorities.

WHO will assign labels for those variants that are designated as Variants of Interest or Variants of Concern by WHO. These will be posted on the WHO website.

These labels do not replace existing scientific names (e.g. those assigned by GISAID, Nextstrain and Pango), which convey important scientific information and will continue to be used in research.

While they have their advantages, these scientific names can be difficult to say and recall, and are prone to misreporting. As a result, people often resort to calling variants by the places where they are detected, which is stigmatizing and discriminatory. To avoid this and to simplify public communications, WHO encourages national authorities, media outlets and others to adopt these new labels.