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Issue #74: Pelosi, Taiwan and another Economic war?
The Dominos have begun falling and Taiwan is caught in the middle of it all.
The Finance Professionals Network
Aug 8, 2022 · 8 min read
Finance x TEch
Social commerce is a rising tide in eCommerce and has shown to be an effective way to run businesses
The Finance Professionals Network
Aug 6, 2022 · 4 min read
Finance x TEch
White labelling and its applications to SaaS and BaaS solutions and the future of technology in Finance.
The Finance Professionals Network
Jul 29, 2022 · 3 min read
Issue #73: NNPC Reform: A new hope for a better Nigeria?
Subscribe and share for more in-depth Economic and Business Analysis Analyst Corner On Tuesday, July 19th, the Nigerian National Petroleum Corporation (NNPC), the country's primary economic support engine, was formally renamed NNPC Limited. The Corporation, which was established in 1977, is responsible for managing the country's petroleum resources as well as conducting petroleum exploration activities through the nation's refineries. The unveiling of the new NNPC Ltd. was a step toward commercialization and privatization. Privatization will, however, begin on July 1, 2023. Allow me to illustrate the distinction with an example. Assume you decide to start a bakery as a side hustle. Because you must go to work for the majority of the day, you hire a manager to oversee your bakery and increase its profitability; this is called "commercialization." One morning, you decide to start a fintech company and sell your bakery to a close friend, who now owns it; your bakery has been privatized. What's the new NNPC all about? The NNPC has now been commercialized through the formation of the NNPC Limited. As a result, the corporation will now operate as a limited liability company. This means that the company now has a separate Board of Directors to which the company's executive directors will report. The company will go public in June 2023 through an initial public offering (IPO), becoming a public limited liability company, which means that the company's shares will be offered on the floor of the Nigerian Stock Exchange. By the end of that IPO, the company will have been fully privatized. The Reform's Key Takeaways The Petroleum Industry Act (PIA), 2021, mandates that the new NNPC Ltd. operate in accordance with the Companies and Allied Matters Act (CAMA). As a result, the company will be able to operate commercially without relying on government funds. It will also distribute dividends to shareholders and keep 20% of profits for reinvestment in the business. Because the law prohibits subsidies in the downstream sector, including petrol, the new company will be unconcerned about petrol pricing and subsidies. Subsidies have prevented the corporation from contributing as much as it should to the nation's revenue for months. In addition, the company will no longer forward funds to the Federal Account Allocation Committee (FAAC) for monthly distribution to the three levels of government. The corporation was previously managed as a revenue generator for the Nigerian government. Every month, state governments would flock to the FCT to cut their piece of the "national cake." It's just a means to an end. While some Nigerians argue that the new NNPC Limited is only a sham after over 40 years of perpetual loss due to mismanagement, optimists envision an oil company that will encourage investment and growth in order to boost our economy. In my opinion, the company can only succeed as a commercial entity if the federal government wants it to. I believe that privatizing the NNPC will improve its efficiency in the long run because the board will be more business-oriented than political, and they will carry out their responsibilities from an economic standpoint. Nigeria ran a budget deficit of N3.09 trillion in Q1 For the first quarter of 2022, the Nigerian government had a budget deficit to the tune of N3.09 trillion ($ 7.26 billion). The spending was funded through borrowing from the local and International Market and privatization proceeds of N2.57 trillion, and N1.16 trillion. By the end of the quarter, Nigeria’s public debt rose to N41.6 trillion from N39.56trillion at the end of December 2021 European Union demands more gas imports from Nigeria Europe is seeking to increase gas imports from Nigeria to above the current 14 per cent as a result of a shortage in gas supplies. The Deputy Director-General of the European Commission’s Department of Energy, Matthew Baldwin, said Friday “Europe is in a tight spot in relation to gas following the Russian invasion of Ukraine and instability in our gas market, the threat perhaps to cut off supply altogether.” Gas is a vital transition fuel that we will need in the European Union in our pipes all the way through 2045 and beyond… there are ways we could work with you to improve the cleanliness of that gas through technologies,” Mr Baldwin said. The Pope goes on a trip of Penance for Residential schools Between 1881 to 1996 over 150,000 indigenous children were separated from their families and brought to residential schools. The discovery of unmarked graves close to some of these schools last year sparked renewed conversations about a dark time in Canadian history and the roles the Catholic church played during the period of the Residential school. The Pope has visited Canada on a trip of Penance in response to the Catholic church’s involvement. Between 1881 to 1996 over 150,000 indigenous children were separated from their families and brought to residential school. The discovery of unmarked graves close to some of these schools last year, sparked renewed conversations about a dark time in Canadian history and the roles the Catholic church played during the period of the Residential school. The Pope, has visited the Canada on a trip of Penance in response to the Catholic church’s involvement. Did you know Ancient Phoenician port in North Africa was founded by colonists from Tyre in the late 9th century BC. A leading trading centre, it was in conflict with Greece from the 6th century BC, and then with Rome, and was destroyed by Roman forces in 146 BC at the end of the Punic Wars. Box office Banger Outlaw King (2018) , Based on the Scottish War for Independence, Outlaw King explores the resistance of Robert the Bruce who ruled as King of Scotland from 1306 – 1329. The Movie depicts the initial victory of the English army at the Battle of Methven and the Scottish victory at the famous battle of Loudoun Hill in 1307. IMDb 6.9/10 Quote of the week “If you look at what you have in life, you'll always have more. If you look at what you don't have in life, you'll never have enough” -Oprah Winfrey Subscribe and share for more in-depth Economic and Business Analysis
The Finance Professionals Network
Jul 25, 2022 · 5 min read
Issue #72: Doom and Gloom as Inflation shows no sign of retreat
Nigeria's inflation stands at 18.6% as US inflation reaches all-new highs at 9.1%
The Finance Professionals Network
Jul 18, 2022 · 6 min read