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Hello <<First Name>>,

It’s a day after the 14th of February, We hope your week, not just yesterday, was filled with love. 

Also, Congratulations to Nigeria’s Female Basketball team (DTigeress) for qualifying for the Tokyo 2020 Olympics. It is a big deal! 

 

Now, The Stories for the Week.

Elections

 

The Fewer, the better
 

@MrOdanz


 

The wishes of Kelvin and others have come to pass, as one year after the Independent National Electoral Commission (INEC) cut down the number of registered parties in Nigeria from 91 to18, dropping off a whooping 74 political parties!

 

Tell me more

De-registering political parties happen every now and then -- between 2011 and 2013, INEC under Prof. Attahiru Jega deregistered a total of 39 political parties. However, this appears to be the first time a large number of parties are being de-registered at once. 

 

Why were the Parties de-registered?

The reason INEC gave was that the parties were deregistered for their inability to fulfil the requirements for existence based on Section 225A of the 1999 Constitution (as amended). 

In simple terms: They failed to meet requirements for registration as well as win significant share of their jurisdiction.
 

Other obvious reasons not stated

Most of the 91 political parties that fielded over 23,000 candidates in the last general election were quite unserious as they did not campaign but sought to take advantage of the free publicity or the neediness of other parties/ candidates.

Some political parties were established to reap financially from post-primary crises that usually rock the dominant political parties, by making their party platforms available to unhappy contestants from majors parties for an undisclosed fee or choosing to back a dominant party for a fee.


 

What are people saying?

Many people outside the political parties affected are happy about this and even think the number of political parties should be brought down to as low as 5 parties.

There is also the question of whether parties should be de-registered or the criteria for party registration be made more stringent?

 

Big Picture: The reason for being a multi-party state is to promote expression of free political will, however, it tends to lead to longer elections and wastage of resources.

Also, Nigeria might be a multi-party state but it is more of a dual party state with the two dominant political parties being the All Progressives Congress and the People’s Democratic Party.

Banking

 

Banks have to make money

 

Why do businesses still crawl even after so much money is pumped into them?

Amongst other reasons, CBN says one of the major constraints for business growth in Nigeria is high-interest rates from banks. 


 

Banks always want to make money, right?

After the Central bank slashed bank charges last December, that included charges made for withdrawals from other ATMs, banks have now devised means to make the money back from their customers, especially business owners. 

 

What the review said

CBN made a downward review on bank charges for withdrawal from other ATMs from N65 to N35, including other e-transactions including the cost to obtain a new hardware token or renew old one, reduced from 3,500 to 2,500, charges on card maintenance were slashed to N50 quarterly instead of monthly and other payment reviews that took effect January 1, this year.

 

They found a way out

With interest on savings and fixed deposits as low as 1.25% and lending rate as high as 25%, also with the fall of Treasury bill yields from 12% to about 2.5% and 4.9%, banks gain a lot by offering their customer’s money to borrowers in high lending rates so they can make money from loan interest. This, in turn, poses challenges to small and medium scale businesses. 

 

Banks have also reconfigured their dispensing machines to not dispense more than N10,000 at once so customers looking to make huge withdrawals would go countless times and get charged for it. 


 

So far so good

Since the rise of lending rates and collateral rates, small businesses have grown cold feet in getting loans from banks even with their money in those banks, this suggests a higher focus on bigger businesses and a low support system for SMEs from these banks.  
 

Also, with the new bank ATM configuration,  it has become overly inconvenient for customers to use the automated Teller Machines, they now prefer to go through the counter, which has made banking processes longer and more hectic, where customers spend more time in making transactions. 

Africa

 

Silencing the Guns

 

The leaders of Africa’s 55 states and 1.3 billion population gathered earlier this week in Addis Ababa to discuss Africa’s most critical issues. 

 

About this year’s African Union meeting

The AU’s 33rd summit ran with the theme of “Silencing the Guns: Creating conducive conditions for Africa’s development.” A reminder of an aspiration set out by African leaders in 2013 to end war and prevent genocide on the continent by 2020. 

 

It’s 2020 has the mission been accomplished?

Nope, according to the Armed Conflict Location & Event Data (ACLED), more than 28,000 Africans were killed in acts of political violence in 2019. This is down from a peak of more than 40,000 in 2014, which was, in turn, up from about 8,000 in 2005.

 

What is a major driver of this?

Longer Terms: Presidents Sisi of Egypt, Museveni of Uganda, Nkurunziza of Burundi, and Condé of Guinea are among those who have pushed through constitutional amendments to secure a longer-term in office, literally over the dead bodies of those opposed to these desires.

 

Other countries such as Mali, Burkina Faso, Niger, Chad, and Nigeria where conflicts aren’t due to longer terms also have their own tales of unspeakable suffering happening in their home countries.

 

Big Picture: All politicians would be delighted if the killings would simply stop but wars and conflicts happen because different parties want different things. For all killings to stop, this would mean sacrificing the economic interests of the elite class and the corruption of their political systems that are major drivers of this circle of violence.

 

We have a New AU Chair: South Africa’s President Cyril Ramaphosa took over as the new AU Chair.

The AU chair is elected by the AU Assembly of Heads of State and Government for a one-year term, with responsibilities including representing the continent at various international forums such as the G20.

 

Some of AU’s Priorities in 2020

@Crisisgroup

Media
 

Children Entertainment  channels have to diversify

 

Cocomelon is a popular kids channel on YouTube that specializes in creating 3D animated content in traditional nursery rhymes and its own original children songs. The channel has 72.8 million subscribers and generates 3 billion views each month which translates into about $11.3 in monthly ad revenue. It is the second most-viewed YouTube channel behind T-Series, India’s music giant.

 

So what’s up with them?

It and other kids channels are looking into diversifying their revenue. It plans to make albums of the channel’s popular songs and children toys. Cocomelon’s creator, Jay Jeon also says he’s looking into developing a full-length theatrical movie for kids. 

 

Why

Youtube was fined $170 million by the US Federal Trade Commission to settle charges that it built algorithms that created behavioral profiles for kids younger than 13 violating the Children’s Online Privacy Protection Act. This change made the top kid’s channels lose about 50-60% of their revenues in ad sales.

 

How YouTube and YouTubers Make Money

YouTube makes money by creating a platform for businesses to place their product adverts (ads) and increases the relevance of these ads by personalizing it to each viewer’s browsing history. YouTube creators, on the other hand earn money from advertisements that air alongside their YouTube videos. Google takes a cut of 45% while the creators take 55%.

Worth Reading 📚

Quote 💭

 

“It is the greatest of all mistakes to do nothing because you can only do little.”

 

– Sydney Smith (English clergyman and philosopher)

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Written by Daniel Adeyemi, Bright Azuh and Damilola Amusan.

 

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