New SEC Leadership Stance On Crypto, Palm Oil Prices In Nigeria | Business Incorporated
hello welcome to business Incorporated
live on channels television here’s
what’s coming up in the next 55
minutes the average cost of preparing a
p of jof rice for Nigerian family of
five Rose more than four times in almost
8 years hitting 16,9 55
naira see World Bank index shows global
commodity prices are rising after a
steep drop in 20
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23 plus Zambian inflation hits a 26
month
P hello welcome to the program I’m L
Williams let’s get to the markets now
starting with all markets see all prices
eased in early trade today’s concerns
about potential slowdown in the US
economy made prospects for delayed
interest ratees um cuts outweighed worri
over the risk of expanding conflict um
in the Middle East so we’re still seeing
a lot of volatility right there in the O
Market with Brent $882 cents a barrel
0.2% um getting closer to that $90 uh
per barrel Mark and we see WTI crew
still below $85 at this time
$82.95 a barrel also up
0.2% um this morning let’s get a check
on Metal’s market now we see gold prices
are steady as risk premiums over
tensions in the middle in the Middle
East um East while investors prepare for
US economic data that’s coming out today
GDP for the first quarter we’re
expecting that later
2,337 um dollar as for gold down about
0.1% but we see silver shining at this
time it’s up about
0.18% um $27 39 per ounce and we see
padium um holding on to that
$1,000 Mark by about $9 $9 at this time
up
0.17% and back here we see the um jolof
rice index as the average cost of
preparing a port of jolof rice for a
Nigerian family of five arose more than
4X in almost eight years largely as a
result of depreciation of the naira
that’s according to a new jof index
report by SPM intelligence the report
titled crisis at the table by sbm an
African Focus geopolitical research and
strategic Communications consultive firm
it shows that the cost of preparing a
part of um the popular Nigerian delicacy
Rose by 34% to
16,9 55 Nar in March 2024 from about
4,000 Nara in 201 um6 the sbm report
also highlighted that across 13 markets
um of on and amra state that experienced
the highest percentage increase about
44% with the cost of preparing jolif R
rising from 10,000 to
14,000 900 naira we’ll drill down more
on that data uh come tomorrow well some
company news now we see the biscuits and
bakery products group of the
manufacturers Association of Nigeria
held its AGM where participants shared
some practical strategies on how to
reduce operational costs suggestions
such as including views and suggestions
of plant workers came up as ways to
introduce cost-saving um Innovations our
correspondent any John MCC
reports and challenges of the biscuit
and SEC product arm of the manufacturers
Association of Nigeria is the focus here
the director general of the association
opens conversations by highlighting some
woring economic factors Nigeria is known
to be or was known to be the biggest
economy but from what the reviewers are
saying we have dropped to the fourth and
that is not Cherry news we will require
the resilience of sectors like yours to
be able ble to take us right back to
where we belong I encourage all of us to
sustain the resilience that we are known
for and to ensure that we are tenacious
in terms of driving those values that we
allow Nigerians to recognize that
patronage of made in Nigeria products is
the way to go and that there is no
nation that I’ve said before that will
truly be developed without a VAR
manufacturing seor some of the things I
learned here today I was
ways to sustain their resilience is what
the guest speaker came with the plan
director of cadb Nigeria PLC Mr Owen Aki
shares tips on Innovation to reduce cost
of operations production cost is going
up you know it’s going toide and of
course inadequate infrastructure as well
so it’s not just about the production
sector alone you know in our
organization we have the production we
have quality we have the you know
the business part of it the innovation
has to be end to end because everything
add up to our total manufacturing cost
and the cost of good Souls so it has to
be end to end so and it has is a rather
radical manufacturing process and it has
to be both in process and in
product thanks the biscuits and bakery
product sub sector of the manufacturers
Association of Nigeria is responsible
for 57% ENT output of the total
production from the manufacturers and
stakeholders there say their output is
currently challenged by macroeconomic
headwinds in John mea channels
television
news all right let’s get on to our first
conversation now looking at regulatory
issues we know the Securities and
Exchange um commission have a leadership
shake up at this time with the
appointment of
droni aama as the SEC director General
and board constituted in the persons of
Mr baa Jal executive commissioner we
also have Mrs Samia Assan Usman
executive commissioner we have FR tro
executive commissioner and Mr Leon Bell
are non-executive um Commissioners also
Mr casimo Garba kiry also his
non-executive um commissioner at this
time so we’re seeing a whole um shakeup
there uh with the leadership well let’s
get sense of what’s before this um new
leadership pending uh we get what the uh
the the house has to say you know about
um these um persons at this time if they
get you know the uh thumbs up to carry
on join us now is Professor uch W
professor of Capital Market and director
Institute of Capital Market studies
nasar State University joining us from
our buja studio great to have you on the
show thanks so much lady
so my pleasure being here fantastic so
talk to me about this um new leadership
you know pending approval by the uh by
the house at this time um what would you
say are the issues you know before this
um new
leadership well I would say even the um
current leadership has done um done well
uh done well in terms of um um improve
proving the confidence of the market um
in um regulation I’m sure you will agree
with me that um the regulatory
environment Capital Market environment
has improved um uh you know sign
significantly um the current leadership
at the SEC um was largely responsible
for the revised um Capital Market um
master plan and um we’ve also seen um
that the same leadership was um
responsible for the launch of the E
dividend mandate um you know man
management system so I I think um uh
overall I mixed um serious challenges um
they have been able to um uh you know
record some achievements which I expect
the new leadership to um you know to
continue when I talk about um serious
challenge I’m particularly referring to
the uh the directive um you know by the
government uh with respect to
self-funded
organizations um you know autod
deducting 50% of their gross earnings
you know um you know at source that’s to
a large extent affected the operations
of um the SEC you know no doubt and I
hope that um the this issue will be
looked into uh such that the new
leadership you know doesn’t have to
Grapple with such a you know major
challenge a major drawback and talk to
me about you know some of the um new
cabinets we have there and the new um DG
tell me what you know about
him well I think it’s a fantastic team
uh that has been put together again not
too far from what we also um had in the
past or what of course the team that is
currently uh in place um the new team I
a I would say uh round pecs and round
holes that’s the best way to describe
them uh beginning with the uh DG
designate Dr Tim Gama is somebody I’ve
known for you know quite a while may
interest you to note that in in 20 in
20 uh 2004 or thereabouts we were
together teaching in one Institute um in
in you know in Abuja uh the same year I
left for Nas State University you know
to be a Pioneer staff he also got into
uh Securities and Exchange Commission so
uh that’s to say he has been in the
commission for 20 years um so he’s
somebody that understands the the market
again our pass cross um when I I joined
the commission um on sabatical as Chief
Economist and director of research we
worked very closely together and uh even
shortly before then um we were both of
us were in South Korea um on a stud of
um the Korean capital Market visiting s
and Busan um uh you know to study the
derivative marketing you know in South
Korea uh he led a team then from the uh
commission and also the exch and some
exchanges including the uh current um
CEO of the Nigerian exchange that’s
exchange limited talking about Jude cha
we are all there in in in South Korea
and the report we did I led a team of
Consultants um you know Eng by SEC at
the time under the acting under the
leadership then of act the acting DG Mar
uduk the report we produced was what has
led to the uh today the facilitation of
the introduction of derivatives products
in the Nigerian Market which SEC of
course as you know has licensed about
eight derivatives you know product so Dr
GMA is somebody have um you know uh
worked with um a number of times and I
can tell you that he’s fit for fit for
purpose um he’s a typical round peg in a
round hole he understands the market
he’s been through many departments in
SEC at the time I was there he was
heading um um at one point exchanges and
later registration so I think he is a
typical Capital Market regulator and I
have no doubt he will do well uh and
he’s been supported by um very um you
know experienced um operators Capital
Market operators take the case of the
executive commission operations for
example um the you know the very fine uh
you know gentleman um he he was um the
former MD CEO of um Nast talking about
Bal you know Nast um you know PLC um an
investment expert and today he’s the
executive commissioner operations of
course he is very fit for that um the
executive commissioner legal fry auko
again a very brilliant lawyer when I was
in the commission she was also there who
worked together um then she was in legal
unit so she also understands uh you know
what she’s going to do the executive
commissioner uh Corporate Services U Mrs
Usman Usman is bringing to the
commission her experiences you know at
the debt management office so I think
these three will really support Dr agama
um if you also come over to the
non-executive Commissioners they’re also
well known in the market uh if you are
talking about the leco bell leco bell
fine gentleman stock broker former
commissioner for Finance in inun state
um you know with a a whole lot of
experience and then another well another
popular person in the market there you
know G coffee um MD CEO uh AP Securities
limited they’re all well grounded and of
course you talk about the chairman the
chairman um Mary um um Mera ALU Koka is
also somebody that is well experienced
um the chairman is from my second uh
stat my second state is nasar States and
um he’s from there he’s from Kei um
retired Central Banker um you know
retired from Central Bank for many years
and has been in the financial sector and
is important that he’s also being
brought in you know because um what’s
the function of the board essentially is
Corporate governance essentially is to
ensure that um the commission is um you
know um the the management is um you
know following the rules the commission
is being run well the market is being
run well Financial system is stable and
that’s why you also need somebody with
you know deep insights into the working
of the financial system as a whole um so
his experience at the central bank will
go a long way to rub off on the you know
the effectiveness of the board so
overall L I think the president you know
chose a very good team and um that of Dr
Tim aama excited me because as I said
ear on I know he’s um you know going to
deliver and I want them to you know
continue along the line of what lamido
UDA has done
no doubt um you know has done well
himself and his team he also um of
course has very fine people working
working you working with him the likes
of um di Oban you know and you know a
very um experienc qualified um fund
manager that headed um the executive you
know the operations unit there’s also
ibraim Bo well experienced for corporate
services and of course Regin and carosa
has been there um legal so the team has
done well uh despite challenges and I
want the new team you know to you know
move the um stage higher thank you so
much for giving us a great background
there of of the new um leadership you
know we have at this time pending
approval by the um house but let’s talk
about some of the issues you know before
this new leadership we know regulating
cryptocurrency is a big headache for
Regulators now globally and we Nigeria’s
blockchain um stakeholders they’ve
expressed hope and confidence you know
this newly appointed director General
saying that he’s um kind of a pro he has
a pro crypto you know background you
know at this time what do you think will
be his approach you know at of at
cryptocurrency at this
time well I think the the commission
will um strengthen the what is already
on ground um well as you know um over
the world particularly in developed
economies we’ve had this tozzle uh
between who should be regulating the
crypto assets um and that’s not
surprising you know giving the um you
know we say crypto assets is one asset
that suffers a definition problem you
know you you wouldn’t know whether it’s
a currency you wouldn’t know whether
it’s an asset you wouldn’t know whether
it’s a commodity so you find Regulators
um especially u in other climes you know
uh battling um you know battling with a
jurisdiction in the US for example this
battle has been between the Security and
Exchange Commission in the US and the
Commodities exchange um and um you know
trading um commission but in Nigeria
it’s interesting to to note that um it
does appear that the central bank has
you know recognized or is beginning to
recognize that the Security and Exchange
Commission has a major role to play in
regulating um you know crypto assets
because C assets um are more of
speculative Assets in our own case than
um you know uh currencies so the central
bank has also said that Banks should
only deal with crypto exchanges or
crypto platforms that are licensed by SE
and um as far back as 2001 2002 okay SE
came up with rules for regulating uh you
know digital um uh assets um I think
even during that time he came up with
even Capital requirements
saying digital exchanges should have a
minimum of 500 million or so in terms of
capital there was a fee for filing fee
processing fee and all that and also
went ahead to Define what digital assets
um are um um you know digital virtual
asset um you know platforms so I think
there’s already a regulation in place um
and of course you also hear that a
number of even crypto startups have even
applied to the commission for a license
talking about I think luno and one quas
or so have have applied so that’s to
tell you that the commission already has
something um some sort of framework in
place to regulate um cryptocurrencies so
what this new board now needs to do is
to up the an you know to strengthen it
and to ensure that you know only uh of
course in conjunction with Central Bank
only licensed crypto um uh you know
assets or exchanges um in Nigeria um
allowed to function the likes of binance
the likes of you know buy bits the likes
of KU coin we have seen how devastating
their impacts you know have been um on
the economy the other day you had the
efcc chairman talking about you know
freezing 300 accounts linked to this P2P
uh P2P platform so um it’s important
that if they want to operate in Nigeria
they they should come and formally
register with the commission and uh so
that the activities can you know can
come under under regulation that’s very
important yeah I guess this new
leadership have a lot of work you know
before them at this time but thank you
so much for breaking it down um for us
Professor u w professor of Capital
Market and director Institute of Capital
Market studies nasar State University KY
thank you so much for coming
on my pleasure lady
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welcome back let’s head to the markets
now we have uh will Bor gu with the
details at this time and will just
before you begin just go breaking news
okay the zig you know the ziga gold back
currency has lost value for the first
time oh my goodness yeah oh we didn’t
see that you know he cut the rally for
the you know Haled the rally for the
stock exchange and now we’re seeing it
losing value we had so much hopes for
that know currency especially being that
it’s gold backed but we’ll just wait and
see maybe know the Central Bank in
Zimbabwe was actually looking to weaken
it you know at this time strategy let’s
see how it plays out exactly maybe the
the market might actually rally that’s
in Stock Exchange maybe that’s weakness
we see right now okay thank you so much
L for that and now let’s begin with
major equities in Africa where
sentiments were negative at intraday
Nigeria’s ngx traded in negative
territory 0.13% down we see penny stocks
dominating trading top terms of top
gainers and top losers the big guys
probably very hiding right now so we see
South Africa also down at in
0.05% and elsewhere you see Egypt EG is
closed for national holiday but it ended
Wednesday trade in the red and you know
as analysts expected is well below the
26,000 level that was projected we’ll
probably be seeing more declines for
that exchange now we see expectations
are also high for Kenya stock markets as
it turns bullish the index closed
Wednesday session in the green 0.38% up
and see sentiments coming the NSE has
witnessed a remarkable growth recording
a substantial 2.97% increase in the
first quarter of this year now let’s
check out activities at the fixed income
Market bringing Chuka mauku is the group
head asset and liability management uba
hi Chas good to have you in the
program good afternoon CH let’s quickly
delve into the results from yesterday’s
treasury bills primary Market auction
where we saw an over subscription yes of
over
24% can you walk us through the details
of that auction and why we are seeing
this strong
demand well thank you v um like you
might rightly mentioned we saw about
suspicion of um you know well over 700
billion in fact to be precise 725
billion was the suspicion from offer of
142 billion um however about 333 billion
was sold um the stop rate remained the
same
20.7 from the last auction um the
interest is there um however what has
Humper the you know the interest
especially in terms of um you know uh
oversold um in terms of sales was the
fact that the system liquidity has
played a major role in the in the fix
inome Market the system has been in
deficit of well over um you know 1
trillion um though fact came in there
yesterday but then that didn’t do much
you know to alleviate you know the
tightness in the system and so that’s
what kind of like affected um the you um
affected the auction um yes this is a
good level to to BU
um I mean a year
of a year of 20.7 in fact anything above
19% for one year you know is a good
Youth and good is a c let me use the
word for investors fantastic for the ncv
auctions we look forward there to other
for other auctions that be taking place
but we seeing that the total demand for
treasury bills in the first quarter
stood at about 21 trillion n second
quarter as we mentioned there’s an over
subscription it appears to be kicking
off strong but should we expect similar
Trend in the second quarter as we saw in
the first
quarter yeah I’m so I mean if you look
at government deficit um that is well
over about 9 trillion um is obviously
indicate that the government is looking
to borrow more and so um you know
obviously government is not exploting
hasn’t exploit the um the international
market yet so everything is still within
the local market and that’s why we’ seen
you know this huge suspension um in
third in second quarter for example the
quarter he just mentioned well over Six
Trillion you know was sold in the market
and that gives you an idea what you know
um what government is looking to you
know the level of participation
government has and in terms of you know
trying to meet this deficit um to your
to the question of if we expect it the
next quarter I think that if you look at
the last auction you see that you know
gradually government I mean DMO and CBN
is beginning to reduce the amount sold
um for example the last auction before
this um well over 900 trillion was sold
and this one was just about 300 trillion
so I think that um you know government I
believe that they obviously have met or
are almost close to you know their
target and so that with seeing a little
bit of you know reduction in terms of
what is being sold and that also will
also tell you in terms of rates which
you know stood at the same level you
know irresectable of the fact that
liquidity is quite tight and so for me I
I think that going into the
um into into this next quarter we see
you know down one Trend in the youth um
you know uh by the time the you know
part of the strategy put in place by the
CBN begin to kick in um I’m hopeful that
um you know the next um
inflation figures will with with with
thin down a little bit and then we begin
to see some of this effect so that will
that obviously has you know will show
you that the government has obviously
has met part of their demand and then
this will um you know going forward we
probably might not see the um the one
trillion um offer or one trillion um
sold so what instruments are Market
players looking at as we speak and what
end of the curve are they playing at
I think on the bond side the 2034 has
been very active um irrespective of the
fact that system liquidity side but we
seen bullish sentiment in the 2034 on
the TB fight for example we’ve seen a
lot of bullish sentiment in the one year
um the one year like I mentioned they
came out at 20.7 and so it’s currently
trading around the 19 levels um so a lot
of interest is on the um on the longer I
mean on the 2034 um um on the bond side
um many of this interest is basically
before now many of the interest is
basically on the local side the pfas
guys and other but then the FP are
beginning to come in and so beginning to
see some of this huge interest in the
bond but um for now liquidity is playing
a major role and that has actually
affected bullish sentiment in the market
and also affected the youth c as well
thank you so much ukuku group head asset
and liability management you uba for
sharing your insights on business
Incorporated thank you thank you let’s
check out now Middle East markets major
equities in the Gulf traded mostly
positive at inad see Abu Dhabi up 0.01%
Dubai is also up 0.03% now Dubai listed
Emirates Islamic on Thursday reported a
record record 35% in the first quarter
of this year net profit increase of
811 billion dams that’s about $221
million now still within the region we
see Saudi uh down at injur day 0.59%
that’s the loan gainer in that region
and the katari index is up
0.01% looking at the US market stock
futures fell today after Tech Giant meta
platforms reported quarterly results
that disappointed investors future ties
to the Dow Jones drop 0.36% we see S&P
500 futures 0.6% down and Nasdaq futures
0.54% down now meta plunged 15% in
extended trading after the social media
giant issued light Revenue guidance for
the second quarter International
Business Machines that’s IBM fell 8%
after missing consensus estimates for
his first quarter Revenue now Traders
will be watching out for the first
quarter GDP reading that’s coming out
today as well as the um jbless weekly
jobless claims that’s also due today but
we’ll keep an eye for that let’s look at
Asian markets very quickly and see how
that region performed they closed the
markets today mostly in the Reds Japan
LED losses in that region 2.1 6% down
the cby in South Korea we see that down
1.76% and then we look at China we look
at in Hong Kong we see the index there
up the buck the trend you know the
negative Trend there they up 0.48% now
let’s look at China That’s Mainland
index and Shanghai we see
0.27% up and then the S&P ASX index is
closed for a national holiday that’s the
Anzac and uh we seen that’s the close
for yesterday day
0.01% L you know that the Anzac is a
very important holiday in Australia is
considered arguably one of the most
important national holidays in the
country and so C take breather from the
market interesting story with um Tesla
there you know getting a nice surge you
know yesterday about 9% about 40% down
you know yet to date so I’m wondering is
that Tesla talk out of the woods yet I
guess that’s what’s
sen seem to be bullish at the moment
because of you know the tax Robo the
robo taxes is talking about but some are
saying it’s not going to be a big thing
till the next five years you know that
maybe it’s going to be a thing in the
next five years but not now maybe it’s
not what we’re looking for but you know
Tesla he always thinks ahead let’s just
see how that and investors looking for
bullish stories right now for Tesla just
to save that stock thank you so much uh
will for the details there well let’s um
take it on to London now we have Juliana
join Jo us from our London Studio I’m
great to have you Julian so we see data
out in the UK UK shoplifting it’s the
worst in at least 20 years about 430,000
offenses logged in 2023 much higher you
know than 2022 I guess um the retailers
are having it quite bad or they had it
bad in 2023 when it comes to
shoplifting that’s absolutely right good
afternoon ly it does appear if you have
a close look at the data that was
released this morning by the National
Crime agency that thieves in England and
Welles are getting much Bolder and more
aggressive and I think this is a running
theme that we’ve seen since um the
lockdown I think a lot of people will
probably blame this on the cost of
living and the fact that you know people
if they can’t eat will steal um their
food but I think it’s so much broader
than that and again it comes a lot to
aggression because separately from the
National Crime agency data the British
retail Consortium have also um shown
that the growth in shoplifting is also
coupled with um staff being physically
assaulted sexually harassed um and spat
on so there’s a really big problem and
it’s not just lifting from stall so it’s
not just people taking an apple or
nappies so they can uh keep their babies
warm um I’m sure you must have seen it
on social media laddy where you’ve got
those um grabbing so lots of people
especially when you’re in central London
which is basically right where the
channels TV London Bureau is if you’re
walking around on the your phone a lot
of Thieves very Brazen on their bicycles
and lifting and snatching phones in fact
lots of celebrities from Nigeria who
have been in the UK have been robbed
including tiwa Savage quite recently so
it’s a massive issue and it’s not um
just data and statistics this leaks into
politics of course because we’ve got
local elections on the 6th of May and
sadique Khan who is the current mayor of
London is facing lots of criticism he is
trying to be a mayor again he’s a labor
mayor but then they’re looking at the
state of crime in the city in fact that
data from the National Crime agency also
shows that robberies are up 133% knife
crime has increased 7% knife crime of
course a stain on the black community
particularly the Nigerian community in
the UK because there is so many of us so
yeah not great statistics you got to be
very very safe and have your wits about
you when you’re in um the city of London
and according to the data in other
regions around England and Wales too
right I guess the retailers have to
spend more now on security at this time
but I guess we have more earnings um in
the UK at this time saintsbury we see
the profits um zop uh sales down for for
nest they tell us about you know some of
the latest earnings um out in the
UK yes um really big big we’re bang in
the middle of q1 trading season so we’re
getting a slew of updates Banks I
suppose the big one has got to be
Barkley’s um they’ve actually seen their
profits fall 12% in the first three
months of this year so 2.3 billion
pounds pre-tax profits if you compare
that it was um 2.6 billion pounds this
time last year pretty similar um issues
that we heard from Lloyd’s yesterday who
had a 28% profit um drop and that’s
because of the mortgage uh sector in the
UK it’s been really competitive after
struggling U because of Truss onomics It
Now became competitive people got back
on their feet so banks that were used to
a slew of customers are finding it
really difficult uh to attract and
retain them so that’s the issue with
Barkley as you mentioned sainsbury which
is the second largest
um grosser by um market capitalization
here in the UK they’ve had a bumper at 3
months their um Revenue has driven up
27% which is massive um and again that’s
because it is competitive uh but they’ve
been able to win loads of um customers
from some of their Rivals particularly
those offering cheaper options for
customers like Audi and little sa
three’s bosses have said trying to price
match against those um lower competitors
has been really good for them um even
though it’s not a UK company worth
mentioning this the the slump overnight
stat side on the New York Stock Exchange
of meta despite the fact that meta have
increased their revenue in the first
three months of the year and by more
than
27% over $
130 million us doar was wiped off their
stock market um their market
capitalization in out of hours trading
because um metab bosses said they’re
going to increase their spend in
artificial intelligence products which
is really interesting actually um seems
as if investors not sure about that
Metro of course are the owner for
Instagram uh WhatsApp and Facebook yes
quite interesting I see AI all over my
WhatsApp and uh Instagram at this time
not not using it yet but it’s just there
you know at this point how stocks how
stocks looking in the in the
UK pretty good apart from the local 250
the all share the Blue Chip is up 0.51%
the 5100 is up
0.60% and the F250 the domestic Market
that’s down by
0.03% some major issues with berbery um
suggestions perhaps that there could be
um a sale of that firm um in currencies
the British pound is currently trading
up up against the US dollar by
0.46% up to against the Euro by 0.19%
and the British CR is trading up against
the Japanese Yen by 0 . 68% at intraday
ly all right Julian thank you so much
for the update from the UK thank
you all right let’s take it on to Europe
now we see Tik Tok been one of the
fastest growing um social media sites
over the past few years it’s also been
controversial from the very start now
the EU is discussing a ban as hals with
DW and has details great to have you um
last what’s behind the latest um
discussions in Brussels
thanks for having me L uh well this is
first and foremost about a new service
Tik Tok has recently launched it’s
called Tik Tock light and within the EU
it’s only available in France and Spain
it is not available here in Germany
which is one reason why I haven’t looked
at it personally the other reason being
that I’m probably not part of the target
audience here that would be younger
people teenager and especially it seems
Miners and that is where the problem
lies Tik Tok light is offering those
kids points for watching lots of clips
and for inviting friends and the more
Clips you watch the more points you get
and these virtual points can actually be
exchanged for real money to be spent on
Amazon or other sites it seems pretty
clear that this incentive program is
likely to be addictive for kids and that
is the eu’s big concern here the eu’s
Digital Services act bans so-called dark
patterns which are manipulative ways to
keep users on platforms longer and Tik
Tok light is running a foul of that the
Commission in Brussels has asked Tik Tok
owner bite dance to run a risk
assessment and respond to some questions
now a bite dance has actually done that
it has just filed a risk assessment
report but that obviously won’t solve
the problem at hand yeah people of that
internet money at this time so this has
nothing to do with you know Tik Tok
being a Chinese own service
not really but there is a second case
being debated in Brussels and that has
to do with a company behind Tik Tok
being Chinese according to a study the
EU commission has seen Tik Tok allegedly
tends to feature and promote braging
content on its app also bite dance again
that is the owner of Tik Tok is accused
of not having provided a sufficient
level of data privacy and has thus
broken EU law now that law again would
be the data Security Act that I’ve just
mentioned and that one actually comes
with huge fines the EU can Levy fines of
up to 6% of a company’s annual revenue
and in the case of bite dance that would
be
billions all right how the markets um
look in
Europe well there’s a couple of quarter
reports out in the midst of earnings
season one of them here in Germany the
country’s largest bank Deutsche Bank has
reported very strong numbers that’s
likely to give stocks a boost here on
the other side we’ll likely see some
weakness in Tech and that is after
Facebook’s parent company MAA gave an
update on its current quarter the compan
is investing heavily in AI as we know
but they’re spending a lot more money
than investors had been expecting up to
$37 billion this year alone apparently
in an effort uh to catch up to others in
the business so that’s a lot of money
and it’s spooked investors later today
will get updates from alphabet and
Microsoft so more news from the tech
side all right L halter thank you so
much for the details all right now let’s
move on to other story we see although
credit to the private sector has
increased by over 93% as January 2024
small businesses are still squeeze for
funding because of factors which range
from uh character into risk to lenders
well the former managing director of the
bank of Industry who was a guest in
business morning suggesting uh emphasis
on shared risk schemes take a
listen you other CLS we have a credit
culture um from childhood you know that
you need to have a good credit score to
thrive in any society even to have a
phone plan with a GSM operator they’ll
take a credit to rent an apartment of
purchase a property and anything you
want to do they check your credit
because the credit course says a lot
about you
so we need to put in place a lot of
things in our ecosystem that would der
risk right potential uh lenders who we
deal with in this the market so we need
to have rating agencies like in India
they how they call the smear small and
medium racing agency small and medium
Enterprise racing agency of in India and
that speaks to the Credit Corporation
Consumer Credit Corporation that has
been floated in Nigeria for that
Corporation to to work efficiently they
need to address the credit culture of
Nigerians I mean I have immense
confidence in the young man who’s
appointed to lead the system there uh
one of the things he needs to do
advocacy role is to ensure that we have
a good credit culture in
Nigeria and to other African countries
now we see Zambia’s annual inflation
rate climb to a 26 month high and may
continue to increase as record the
drought in parts of a country’s new
weakness in the currency and that’s also
lifted prices consumer Prices rose 13.8%
in April compared with 13.7% last month
that’s causing according to the stati
general there says um Prices rose 1% in
the month from 1.2% in
March and global commodity prices are
leveling off after steep um descent that
played a decisive role in reducing
overall inflation last year which could
make it harder for Central Bankers to
cut interest rates quickly that’s
according to the world bank’s latest
commodity Market its Outlook the report
also shows a major um outbreak of
conflict and the Middle East could Hal
the inflationary Decline and has
occurred over the past two years between
mid 2022 and 2023 um global commodity
prices fell by nearly
40% looking at other Commodities at this
time we’ve seen the price uh recent
developments in the Palo sector in
Nigeria we’ve seen prices increase from
about 25,000 Nara per 25 L in January um
2024 to about 40,000 nirra per 25 lit in
April um 2024 that’s depending on your
location you know in the country at this
time let’s get a check what’s driving
prices now I’m joining me is T Kuma
manager economic research and financial
derivatives company great to have you on
the
show afternoon thank you for having me
so um talk to me now what do you think
is uh causing this complexity in the
Palo sector in Nigeria
yeah what you just read the the increase
in the price of 25 L of P oil from
25,000 to 40,000 that’s about 60%
increase in four month that shows that
food inflation is what is causing
inflation in Nigeria but let’s look at
the global market the global market
and the size of the palm oil Market is
about
was about
7.44 billion in 2023 currently in 2024
it’s around
738
billion out of that size of palm oil
Market key players like Indonesia and
Malaysia contributes about 85% so
Nigeria and and the rest of the world
are left with just 15% to contribute so
why are we importing more when we asked
P Oil we know is used for so many things
domestically
and in the industry and other uses so
Nigeria contribut just 15% of the global
Supply with other countries so how do we
up meet up with a a fall in demand there
are certain things that affect the the
pal sector in Nigeria this seasonal and
then location like you mentioned in the
introduction the season for harvesting P
around March and May
while October to to December is when the
product is very scar so what is
affecting the the price of palm oil in
the market is is a supply Gap yes
Nigeria is one of the major producers
but we contribute less than what
Indonesia and and Malaysia contributes
because the the the export of Indonesia
and Malaysia combined is about
75% of of the market so how do we make
up with the short we need to import and
like I said the value chain Where Do We
Belong do we export the cud PM oil the
CPO or how do we add value so that we
add to our domestic use and the
industrial
use oil is very
important but if we don’t produce as
much as we need then we need to import
so the shortage in in in domestic
production and there’s increase in
demand then we’re going to see a
continuous hike in the price of P Oil
okay well we have data from the eiu
suggesting you know although Palmer
production has started to you know
increase seasonally stocks are projected
to continue to fall um over time what do
you think is responsible for this um
gloomy forecast uh for for um
production yeah the the eiu data shows
very incredible results we expect the
the sector to grow by 1.9% in 2024 but
there a bit kind of reduction in the in
the overall forecast there there are
certain things that affect that sector
one is the the the climate change
climate change affects the P the P Farm
produce we have what we call Theo effect
Theo effect is a situation where the
Pacific Ocean increase the temperature
increased the weather becomes warmer
that change that effect affect the wind
flow the wind flow increases temperature
in certain regions of the world that
affects
productivity in the palm the Palm o the
Palm
industry another issue we
notice by doing a deep analysis of uh
the palm oil Market we discovered that
there have been a shift of late from
palm oil to other kind of oil like the
the rib seed oil and the flower seed
oil the data you read from the eiu we we
saw
that palm oil per million ton is around
$1,000 or above that is going to like
going to increase in
2024 and 2025 five but if you check the
the price per million ton of rap seed
oil for example is around $600 so and
palm oil is used for bofu which is a
good source talking about renewable
energy and sustainable development so
because of the increase in in the price
of palm oil we see industrialist
manufacturers of that use palm oil move
to a more cheaper source of oil which is
the r
SE so much um tev was great have you in
perspective there we’ll keep tracking uh
Palo prices see how it plays out for the
year that was um T Kuma manager economic
research at Financial derivatives
company thank you thank you very much
all right let’s get a check on all the
markets now to get a sense of what’s
happening in crypto space at this time
we know uh the it’s it’s red you know at
this point red on the screen uh with
just few few few Pockets just about
three pockets of green um right there
showing that there still profit taking
right here in the crypto U Market at
this time with Solana deep uh in the red
at this time uh let’s take a look at the
uh top cryptocurrencies that we track we
see that prices are quite uh low at this
point 3.76% drop big 5% um drop that’s
for cardano at 46 cents xrp 52 cents
didn’t really move much even though we
saw that big Rally from Bitcoin
4.36% um down so we’re seeing big big
drops um right there in the uh crypto
space let’s bring in Gilbert jat now
Financial Market analyst hello
Gilbert yeah greetings Mr L great to be
here great to have you g so um I I get I
I checked on coin market cap you know
where you find all the cryptocurrencies
uh at this time and I saw the the over 2
million crypto currency um projects
listed you know on coin market cap at
this time and I remember sometime you
know before maybe 2017 2016 it used to
be quite hard to get on cryp on coin
market cap to be listed or get your
project actually listed but we have over
2 million at this time Global stocks are
not more than about
55,000 right now that’s publicly quoted
um stocks and markets about 55,000 why
do we need over 2 million cryptocurrency
projects okay this is actually a result
of mainstream adoption and then
knowledge and I’m going to tell you why
you know when we got into the
cryptocurrency industry as early as we
did initially we were coming from where
we we coming from where we needed uh
persons to understand what
cryptocurrencies are and most persons
who came into the industry came in with
more of a specul a ative knowledge but
it has advanced Beyond speculation at
the moment and a lot of persons don’t
understand the development process of
creating cryptocurrencies so there are a
couple of reasons why you could see a
whole lot of these cryptocurrencies out
there unlike how we started one is lower
lower barrier to entry you know creating
a new cryptocurrency is significantly
easier and cheaper than launching a
publicly traded company you know like in
the stock market that has to do with a
lot of Regulation requirements and
fulfillment before you could actually
get into the public market for the case
of cryptocurrency it has to do with
technical knowledge another another has
to do with Innovation and experiment so
cryptocurrency space is relatively young
and evolving so they are new
cryptocurrency constantly emerging and
some of these yes they come with genuine
user case but most of them are just
speculative Ventures you know I I know
this cannot be compared to more
established cryptocurrencies out there
another is more lack of a centralized
Authority you know in the stock market
we have the SEC that is governing the
market but in cryptocurrencies we kind
of
decentralize and then we have the
presence of the security Exchange
Commission that says crypto is their
jurisdiction we also have the the
commodity markets that in the
marketplace also saying hey there are
some cryptocurrencies here that actually
Commodities on the other way we could
also see cryptos like Bitcoin which the
the Commodities Market may not say this
is their jurisdiction yet uh so will the
SEC not say it’s their jurisdiction but
yet it’s just like gold you know gold
may not be regulated by the SEC or
Commodities but yet gold still has to
operate under some laws of those country
and and then it now brings me to the
fact that this can be a little bit
parallel to the Doom bubble you know in
theom bubble it was easy to create
internet companies and take them public
and it was foed largely by a lot of
speculation in anticipation for the
future before you know that Doom crash
that happened and over 46% of the
companies that went public never
actually uh Rose back you know to be
companies that existed until now so
there are a lot of cryptocurrencies out
there and this does not mean that they
are going to survive I think a larger
percentage of the cryptos out there are
just made experiment some are just so
looking at looking
at so Gilbert looking at over 2 million
cryptocurrencies right now on coin
market cap how many do you think are
going to survive in the next five
years I actually think that over 50% of
the current projects that we have there
wouldn’t survive as a matter of fact
even among the top 100 cryptos right now
in the next 5 years we are going to see
some new guys stick over that top 100
yes I know there are some most solid
cryptocurrencies out there that are
going nowhere they have always been
there in the top 10 but most of even the
top 10 rights now the next five years
will be in the top 10 they may be go
down for to like 100 200 and you know
down the draam they keep going a lot of
more new better crypto project with
better user case in management are going
to take the floor all right Gilbert um
thank you so much and I did check on
recently added and there were all meme
coins you know coming in you know to the
market Market at this time but thank you
so much Gilbert drat it was great having
you
perspective yeah thanks for having me
all right thank you so that’s the show
today visit Channel tv.com for more um
updates I’m ly Williams from me and the
team right here at channels HQ it’s bye
for now
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