The Central Bank of Nigeria has frozen accounts belonging to Rise Vest and Bamboo.
More details soon…
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Bitcoin, the world’s biggest and best-known cryptocurrency, has suffered a huge downturn below the $40,000 mark on Wednesday.
This comes as China announced that it is banning financial institutions and payment companies from providing services related to cryptocurrency transactions,
China also issued a warning to investors against speculative crypto trading.
Things You Didn’t Know About Bitcoin, Other Cryptocurrencies
Reuters reports that following China’s anti-cryptocurrency directive, Bitcoin plunged by about 9% to as low as $38,940.04, even slipping below a key 200-day moving average.
This is just as the cryptocurrency suffered a dip of around 12% less than a week ago, bringing the coin’s price down to about $50,900 (₦20,880,707.00) after Tesla CEO, Elon Musk, announced that the carmaker would no longer be accepting crypto-transactions.
According to Reuters, Bitcoin is now down 40% from the year’s high of $64,895.22 on April 14.
See The List of Countries Where ‘Cryptocurrency Trading’ Is Legal, Illegal
Another most traded cryptocurrency known as Ether, the coin linked to the ethereum blockchain network, has also dropped about 15% to $2,875.36.
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Nigeria’s payment technology company, Flutterwave, has announced a multi-year partnership with Basketball Africa League (BAL) on Monday.
Africa’s premier men’s basketball league kicked off its inaugural season on Sunday, May 16, at the Kigali Arena in Kigali, Rwanda, with 12 competing teams from across Africa.
According to a statement released on the fintech company’s website on Monday, the partnership is expected to leverage on the BAL and Flutterwave’s shared commitment to driving economic growth across the continent through the launch of a digital campaign that will provide select African entrepreneurs and small businesses with the opportunity to travel, connect and engage with other African markets.
Flutterwave Listed Among 100 Most Influential Companies By Time
Commenting on the partnership, Flutterwave’s Chief Commercial Officer, Ifeoluwa Orioke, said: “As a lifelong basketball fan, I am excited that we are able to team up with the BAL as it tips off its inaugural season.”
“There’s progress going on in Africa, and this is the time to tap into the enthusiasm of young people to unite the continent and open doors for young Africans through sports.”
According to BAL President, Amadou Gallo Fall, “Technology plays an important role in basketball and our ability to make our content and products accessible and convenient for fans to consume,”
“This partnership also reflects our ambition to play a role in the industries that will shape the continent’s economic growth, facilitate entrepreneurship and strengthen the continent’s position on the global stage.”
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Bitcoin rallied from three-month low on Monday in a volatile session that saw investors initially selling and then buying cryptocurrencies in the wake of Tesla boss Elon Musk’s tweets about the carmaker’s bitcoin holdings.
In his latest tweet, Musk said “Tesla has not sold any bitcoin”. That seeming clarification came after his weekend tweets that hinted Tesla is considering or may have already sold some of its massive holdings.
Musk has boosted crypto markets with his enthusiasm for the asset class, but has lately roiled trade by appearing to cool on bitcoin in favour of its one-time parody, dogecoin. The gyrations are beginning to spook even steeled traders.
Does Elon Musk Have A Hidden Agenda With Dogecoin?
Bitcoin fell more than 9% on Monday to as low as $42,185, its lowest since Feb. 8, but rallied more than 5% to around $44,220.
Ether, linked to the ethereum blockhain, fell even more to as low as $3,123.94, and then rallied to $3,400.
Dogecoin fell nearly 7% to $0.48, and all three are well under recent records.
“Elon Musk has been the catalyst to this, but ultimately it just comes down to the nuts and bolts of what crypto really is: it’s a store of value, but it’s also a momentum vehicle, and right now the momentum is to the downside,” said Chris Weston of brokerage Pepperstone in Melbourne.
“Why would I want to buy bitcoin right now – even if I’m bullish – until the liquidation is over and you see some consolidation in price?” Weston added.
Bitcoin Dips As Elon Musk’s Tesla Dumps The Cryptocurrency
On Wednesday, Musk said Tesla would stop taking bitcoin as payment, owing to environmental concerns about energy use to process transactions. Defending that decision on Sunday, he suggested Tesla may have sold its own holdings.
In response to an unverified Twitter account called @CryptoWhale, which said https://bit.ly/2QsUQkw: “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn’t blame him…,” Musk wrote: “Indeed”.
It was not clear whether he was confirming sales or whether he referred only to the fact that he had faced criticism, until his clarification in Monday’s tweet.
Musk said Tesla would not sell its bitcoin, but the cryptocurrency has dropped by almost a quarter since Musk’s reversal on Tesla taking it as payment.
On Tuesday, Reuters reported Tesla is seeking to enter the multi-billion dollar U.S. renewable credit market, hoping to profit from the Biden administration’s march toward new zero-emission goals.
Cryptocurrency: Tesla Investment Spikes Bitcoin To Record $45,000
Dogecoin is also yet to fully recover from Musk describing it as a “hustle,” although he did boost the price last week by saying he was working to improve its efficiency.
For an asset class that has surged this year, with dogecoin up about a hundredfold, ether up more than fourfold and bitcoin gaining 45%, some are beginning to call time on the wild ride.
“Our weekend trading has kicked up, and we’re looking at some serious liquidations through the exchanges,” said Pepperstone’s Weston.
“I am closing the short-bitcoin/long-ethereum trade and moving to the sidelines,” he added. “I feel the dust really needs to settle here.”
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Tesla Inc will no longer accept bitcoin for car purchases, Chief Executive Elon Musk said on Wednesday, citing long-brewing environmental concerns for a swift reversal in the company’s position on the cryptocurrency.
Bitcoin fell more than 10% after Musk tweeted his decision to suspend its use, less than two months after Tesla began accepting the world’s biggest digital currency for payment. Other cryptocurrencies, including ethereum, also fell before regaining some ground in Asia trade.
The use of bitcoin to buy Tesla’s electric vehicles had highlighted a dichotomy between Musk’s reputation as an environmentalist and the use of his popularity and stature as one of the world’s richest people to back cryptocurrencies.
Cryptocurrency: Tesla Investment Spikes Bitcoin To Record $45,000
Some Tesla investors, along with environmentalists, have been increasingly critical about the way bitcoin is “mined” using vast amounts of electricity generated with fossil fuels.
Musk said on Wednesday he backed that concern, especially the use of “coal, which has the worst emissions of any fuel.”
“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment,” he tweeted. Tesla shares fell 1.25% after hours.
Tesla revealed in February it had bought $1.5 billion of bitcoin, before accepting it as payment for cars in March, driving a roughly 20% surge in the cryptocurrency.
Tesla would retain its bitcoin holdings with the plan to use the cryptocurrency as soon as mining transitions to more sustainable energy sources, Musk said.
Bitcoin Passes $30,000 For First Time
Bitcoin is created when high-powered computers compete against other machines to solve complex mathematical puzzles, an energy-intensive process that currently often relies on electricity generated with fossil fuels, particularly coal.
At current rates, such bitcoin “mining” devours about the same amount of energy annually as the Netherlands did in 2019, the latest available data from the University of Cambridge and the International Energy Agency shows.
“The environmental impact from mining bitcoins was one of the biggest risks for the entire crypto market,” said Edward Moya, a senior market analyst at currency trading firm OANDA.
Meltem Demirors, chief strategy officer at digital asset manager CoinShares Group, said Tesla was unlikely to have sold many, if any, cars using bitcoin and the backflip generated positive publicity while simplifying payment processes.
See The List of Countries Where ‘Cryptocurrency Trading’ Is Legal, Illegal
“Elon was getting a lot of questions and criticisms and this statement allows him to appease critics while still keeping bitcoin on his balance sheet,” Demirors said.
Mark Humphery-Jenner, an associate professor of finance at the University of New South Wales, said he was more concerned about Tesla management’s “very hasty and precipitous” decision-making.
Musk did not say in his Twitter comments whether any vehicles had been purchased with bitcoin and Tesla did not immediately respond to a request for comment.
CRYPTOCURRENCY SUPPORT
Some bitcoin proponents note that the existing financial system – with its millions of employees and computers in air-conditioned offices – uses large amounts of energy too.
Musk reiterated he remained a strong believer in cryptocurrencies.
Elon Musk Is World’s Second-Richest Person, Overtakes Bill Gates
“We are also looking at other cryptocurrencies that use <1% of bitcoin’s energy/transaction,” he tweeted on Wednesday.
Just a day earlier, Musk had polled Twitter users on whether Tesla should accept dogecoin, a currency he has helped turn from a joke into a valuable commodity.
He announced on Sunday that his commercial rocket company SpaceX will accept dogecoin as payment to launch a lunar mission next year – just hours after he sent the cryptocurrency spiraling downward when he called it a “a hustle” during a guest-host spot on the “Saturday Night Live” comedy sketch TV show.
CHINA DOMINANCE
The dominance of Chinese bitcoin miners and lack of motivation to swap cheap fossil fuels for more expensive renewables could mean there are few quick fixes to the cryptocurrency’s emissions problem.
Nigeria’s Oil Faces Threat As Electric Vehicle Sales Rise
Chinese miners account for about 70% of bitcoin production, data from the University of Cambridge’s Centre for Alternative Finance shows. They tend to use renewable energy – mostly hydropower – during the rainy summer months, but fossil fuels – primarily coal – for the rest of the year.
Officials in Beijing are conducting a check on data centres involved in cryptocurrency mining to better understand their impact on energy consumption, sources told Reuters last month.
In theory, blockchain analysis firms say, it is possible to track the source of bitcoin, raising the possibility that a premium could be charged for green bitcoin.
Reuters
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CBN has granted Access Bank, one of Africa’s biggest retail bank their approval-in-principle to restructure to a holding company.
The bank has also received regulatory approvals to commence operations in Mozambique under the name Access Bank Mozambique, S.A. (Access Bank Mozambique), and plans to acquire a majority holding in South Africa’s Grobank Limited.
The bank revealed in a notification which was filed at the Nigerian Stock Exchange and signed by Sunday Ekwochi, Company Secretary, that its desire to operate as a holding company would enable the bank to further accelerate its objectives around business diversification, improved operational efficiency, talent retention as robust governance.
With its vision of being Africa’s gateway to the world, Access announced that its subsidiary, Access Bank Mozambique, has entered into a definitive agreement with ABC Holdings Limited(ABC Holdings), a wholly-owned subsidiary of Atlas Mara Limited (Atlas Mara) to acquire African Banking Corporation (Mozambique), S.A., (BancABC Mozambique) for cash, in a combination of definitive and contingent considerations.
Access Bank has also entered into a definitive agreement with GroCapital Holdings (GroCapital) to invest in Grobank Limited over two tranches. The first is an initial cash consideration for a 49 percent shareholding and subsequently increased to a majority stake in the second tranche.
#EndSARS: Access Bank Announces N50b Interest-Free Plan For Businesses
Both tranches are subject to various regulatory approvals and the overall transaction is also subject to Grobank’s shareholder approvals. GroCapital, whose shareholders include the Public Investment Corporation – which doubles as Africa’s largest investment manager, and Fairfax Africa Holdings – a leading global investor, will retain an existing but diluted shareholding in Grobank as part of the outlined transaction terms.
Speaking on these developments, Herbert Wigwe, GMD/CEO Access Bank said: “We have consistently said that we are focused on building the scale needed to become a leading African bank; one that leverages our experienced and growing talent base and key stakeholder partnerships towards driving sustainable impact and profitability.
“Today’s announcement demonstrates further commitment to delivering our strategic aspirations of becoming Africa’s Gateway to the world in line with our vision to be the World’s Most Respected African bank.
“These transactions will significantly strengthen our presence in Southern Africa and further our footprint for growth in the SADC region. With a broader presence across the continent, Access Bank will be better placed to support our customers who are increasingly looking towards intra Africa growth. The proposed transactions will accelerate the Bank’s momentum towards delivering world-class banking services to an expanded customer base across Africa. Our goal remains to reach and impact 100 million unique customers across the continent by 2022.”
The Central Bank of Nigeria (CBN) says it will resume weekly forex sales to Bureau de Change operators from August 31.
In a circular signed by O.S. Nnaji, director of trade and exchange department, the apex bank said BDCs must not exchange the naira at more than N386/$.
The apex bank said its decision to resume FX sales to BDCs is to enhance accessibility to forex “particularly to travellers” since the resumption date for international flights has been announced.
Naira Weakens Marginally Against Dollar, Hits N472
Musa Nuhu, director-general of the Nigerian Civil Aviation Authority (NCAA), announced on Thursday that international flights will resume on September 5; shifting it from August 29.
Providing a breakdown of the rates, the CBN said: “Please be advised that the applicable exchange rate for the disbursements of proceeds of IMTOs for the period Monday, August 31 to Friday, September 04, 2020, is as follows:
* IMTSOs to banks: N382/$1
* Banks to CBN: N383/$1
* CBN to BDCs: N384/$1
* BDCs to end-users: Not more than N386
* Volume of sale to each market is $10,000 per BDC.
The apex bank said FX sales to BDCs will hold on Mondays and Wednesdays in the first instance.
Okonjo-Iweala: I Saved Billions Of Dollars As Nigeria Finance Minister
“The BDCs are to ensure that their accounts with the banks are duly funded with the equivalent naira proceeds on Fridays and Tuesdays,” the circular read.
“Banks shall continue to sell foreign currencies for travel-related invisible transactions to customers and non-customers over the counter upon presentation of relevant travel documents (passport, air ticket and visa).”
Retail giants and one of Africa’s biggest grocery store, Shoprite on Monday announced that is it working out formal plans to leave Nigeria or sell a majority share of its operations in the country.
The organization said this in its operational and voluntary trading update for the year ended on June 28, 2020 made available to newsmen.
The company announced that its decision follows “approaches from various potential investors, and in line with our re-evaluation of the group’s operating model in Nigeria.”
News Flash: Shoprite Initiates Process To Exit Nigeria
After the announcement, many Nigerians have taken to the micro-blogging site, Twitter to express their views and opinions on the development.
Some claim it is a bad sign for the country and further evidence that the economic situation in the country is very harsh.
Many others are worried about the fate of thousands of workers and their families that will be affected by this move.
See some Reactions Below:
Year 2020 in Nigeria ! Gokada Suppressed. Opay Pinned down. Shoprite is packing their Bags. CBN is still removing an unexplainable stamp duty charge. Your bank is still billing you for the ATM card maintenance that is in ur pocket. Clearing fee at the port is crazy.
— Èrin Lakataábu (@TheOgbeniOpa) August 3, 2020
Africa's biggest grocery retailer, Shoprite, is exiting the continent's most populated country, Nigeria, after 15 years
The SA retailers have struggled in the Nigeria market & most recently Mr Price also exited Nigeria
Is there ease of doing business in Nig?
Job loss again.
— Uncle AJ (@UNCLE_AJALA) August 3, 2020
https://twitter.com/BiyiThePlug/status/1290215911614320640?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1290215911614320640%7Ctwgr%5E&ref_url=https%3A%2F%2Fwww.naijanews.com%2F2020%2F08%2F03%2Fthis-is-terrible-news-nigerians-react-as-shoprite-announces-it-is-leaving-nigeria%2F
I always tell people to respect Igbo business men. Nigeria is not structured in a way anyone can come in and do business. You have to master the terrain for you to excel. Igbo men have somehow mastered it. I am deeply sad Shoprite is leaving Nigeria but I am not surprised.
— Aji Bussu Onye Mpiawa azụ 🇨🇮 (@AfamDeluxo) August 3, 2020
https://twitter.com/Mistakobz/status/1290200608419409920?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1290200608419409920%7Ctwgr%5E&ref_url=https%3A%2F%2Fwww.naijanews.com%2F2020%2F08%2F03%2Fthis-is-terrible-news-nigerians-react-as-shoprite-announces-it-is-leaving-nigeria%2F
https://twitter.com/sisi_alagboeko/status/1290201469807779840?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1290201469807779840%7Ctwgr%5E&ref_url=https%3A%2F%2Fwww.naijanews.com%2F2020%2F08%2F03%2Fthis-is-terrible-news-nigerians-react-as-shoprite-announces-it-is-leaving-nigeria%2F
Based on memos flying up and down
Apparently there are local investors interested in the shoprite franchise.
So technically na just new ownership
— Osi (@Osi_Suave) August 3, 2020
This is terrible news. || Shoprite announced plans to pull out of Nigeria https://t.co/D0VL4weUu1
— Demotivational Speaker (@OdunEweniyi) August 3, 2020
The same way Shoprite is leaving is the same way I will leave cos country yí wrong nau.
— ÀGBÀ (@Oli_Ekun) August 3, 2020
Cost of doing business is so high in Nigeria. You provide your own power, your own water etc…
Costs just keeps getting higher and higher.
The unfortunate thing about this Shoprite debacle is the huge loss to staff, contractors and supplier.
An unfortunate domino effect.
— Mo-Mo (@Morris_Monye) August 3, 2020
So shoprite is leaving Nigeria,thousands of people will be without jobs now,other thousands depending on those people’s incomes,my new neighbor works with shoprite in Ibadan&he has 3kids,his wife is a private school teacher and haven’t worked in a while,so many people like that🤦♂️
— Oyindamola🙄 (@dammiedammie35) August 3, 2020
Some others are blaming the administration of President Muhammadu Buhari for the decision of Shoprite and some other companies to leave Nigeria.
So Shoprite is pulling out of Nigeria after years….Lol
I will be waiting for one Ayourb or Ajuri to lecture me on how this won't affect Nigeria economy, and how Buhari war against corruption led to it. They might come up with "corruption is going in shoprite". Predictable.— Premier (@SodiqTade) August 3, 2020
ShopRite leaving is proof you need that Buhari is an economic failure
Nigerians are poorer, FDI is leaving and foreign companies are closing
You don't fight poverty by closing your borders for trade
You will just create a man made inflation & worsen poverty
— William (@_SirWilliam_) August 3, 2020
The Nigerian government has been advised to stop banks in the country from selling airtime or recharge cards.
Doyin Okupe, a former aide to former Presidents Olusegun Obasanjo and Goodluck Jonathan, believes that by retailing recharge cards, banks are contributing to the already high rate of unemployment in the country.
In a tweet, the former presidential aide pointed out that recharge card business is worth about N10 billion per day and is capable of providing jobs for 5 million youths nationwide.
Lagos Govt Seals 13 Banks, 30 Buildings On Airport Road, See Why
“Govt must stop Banks from selling of recharge cards,” he said.
“This business is worth about N10B/day and can provide jobs for 5m youths nationwide and reduce unemployment.
“Banks should not be in the retail business where they strangulate small individual traders. Government must protect MSMEs,” he said.
Staff at the search giant Google, who were first sent home in March due to the coronavirus pandemic are not expected to return in a large capacity until at least July 2021, according to the Wall Street Journal.
The decision slams a majority of Google’s 200,000 employees around the world and was fueled in part around uncertainty regarding the upcoming school year.
Alphabet CEO Sundar Pichai was reportedly “swayed in part by sympathy for employees with families to plan for uncertain school years that may involve at-home instruction, depending on geography.”
Google Vs Microsoft: Google Set To Modify Gmail, As Competition Heats Up
Google had previously told employees to prepare to work from home through the end of 2020, with a return to the office tentatively scheduled for January.
The Mountain View, Calif.-based company in May said that employees working from home will be allowed to expense up to $1,000 for home office needs like standing desks and ergonomic chairs.
Silicon Valley’s tech titans have signaled that working from home may be the new norm moving forward. Twitter CEO Jack Dorsey previously said that he foresees some employees choosing to forego daily trips to the office forever, while Facebook boss Mark Zuckerberg said half of the social-networking giant’s employees could be working remotely within the next five to 10 years.
Apple & Google To Develop Applications For Covid-19 Tracking
Shares of Alphabet were up 0.8 percent in Monday morning trading.