Late Friday night, prolific social media user Javier Milei directed followers to a site that purported to raise money for small businesses in Argentina using crypto.

Half a world away, digital currency entrepreneur Hayden Davis saw the value of the Libra token, a so-called memecoin he helped launch, begin to surge. Its market value flew past $1 billion, $2 billion, all the way over $4 billion.

When it collapsed, as such tokens often do, Milei’s presidency in Argentina was in crisis mode. Investors like Barstool Sports founder Dave Portnoy suffered steep losses and dubbed the token “the biggest rug pull of all time” — a reference to the crypto lexicon for a scam. Davis himself, in a later post on social media, acknowledged holding some profits despite the declines.

The events are now the subject of an internal government probe. Prominent members of the crypto world are pointing fingers at each other as Milei tries to recover from a political black eye.

“The Libra saga is a travesty,” said Henry Elder at UTXO Management. “It’s a stark illustration that the current crop of crypto leaders lack any moral compass whatsoever.”

Milei, meanwhile, is heading to Washington this week in hopes of meeting Donald Trump. The Argentine leader wants to secure the US president’s support for his country to receive more money from the International Monetary Fund in a new program that’s still under negotiation, as well as possible exemptions from Trump’s tariffs.

Milei won Argentina’s election in late 2023 by a landslide with supporters desperate for a swift economic overhaul after several years of crisis. He’s increasingly aligned himself with right-leaning leaders worldwide, and his crypto hype was reminiscent of the token Trump himself launched just days before his inauguration.

The Libra token launched on Solana, a blockchain with fast transaction speeds and low fees that’s made it popular with memecoin traders.

Compounding the confusion over the weekend were the contradicting tales. After Libra crashed, Davis — the chief executive officer of Kelsier Ventures — said Saturday in a video posted to X that he was Milei’s adviser, “working with him and his team on much bigger tokenization and really cool stuff in Argentina.” Milei’s office then issued a statement saying Davis “didn’t have nor has any connection to the Argentine government.”

• Multiple US economic data releases this week could affect crypto portfolios, with potential volatility following last week’s CPI data.
• Key events include the Federal Reserve’s January FOMC minutes, initial jobless claims, and consumer sentiment index, all impacting market sentiment.
• Market closures for President’s Day will pause traditional trading, but Bitcoin remains available for trading throughout.
  

  ---

Crypto market participants, including traders and investors, should brace for multiple US economic data this week, which could affect their portfolios. Key events this week could drive volatility after the US CPI (consumer price data) last week. Meanwhile, Monday’s US President’s Day will keep markets closed, but Bitcoin will be available for trading throughout.

JANUARY FOMC MINUTES

The Federal Reserve (Fed) will release minutes from January’s FOMC (Federal Open Market Committee) meeting on Wednesday, February 19. This week, one of the key US economic reports will be released. What policymakers say may help the markets better understand the Fed’s interest rate plans.

Recent reports showed that CPI inflation increased month over month. This is bad news for the short term, leading to negative feelings in the crypto markets. However, there are no strong signs that inflation is speeding up again.

Jerome Powell, the chair of the Fed, informed a Senate Banking Committee that he is not rushing to lower interest rates. President Donald Trump urged for larger cuts to address high inflation, but Powell remained steadfast.

Market players are preparing for more changes as they look for new policy updates. The January FOMC minutes might shed light on this issue, particularly about whether rate cuts are on the way or if officials are signaling a more aggressive stance.

INITIAL JOBLESS CLAIMS

The crypto market will pay attention to the initial jobless claims on Thursday, in addition to the January FOMC minutes. This data will give a glimpse into the US labor market. For the week ending February 15, there were 213,000 new unemployment insurance applications filed by US citizens.

This report fell short of early predictions and was below last week’s adjusted figure of 220,000. The US Department of Labor (DoL) noted a seasonally adjusted insured unemployment rate of 1.2%. MarketWatch data indicates a median expectation of 215,000 for this week’s initial jobless claims.

Higher jobless claims reported on Thursday indicate growing economic difficulties and a declining job market, which may result in lower consumer spending. This slowdown has led the Fed to think about cutting interest rates to boost the economy.

CONSUMER SENTIMENT

The preliminary report of the US Consumer Sentiment Index shows how confident and positive consumers feel about the economy. The University of Michigan will publish this information on Friday. A good report on Friday may boost confidence in financial markets, including cryptocurrencies. This could lead to more interest in Bitcoin as investors look for assets that can grow.

[Crypto Economy]

If you've ever looked for an editing app for your device, chances are you've come across Adobe Photoshop at least once. The professional image editing software has been a go-to for photographers and designers for years, and is available as a part of Adobe's Creative Cloud subscription. While Photoshop is incredibly powerful, it's far from the best tool to use for beginners. You may even spend more time navigating the tool's interface than making an edit that should've taken you a maximum of five minutes — which is something no one wants! While you could certainly learn your way around Photoshop, that's not exactly ideal if you only edit images occasionally.

Luckily, Adobe didn't forget about you. In 2021, the company launched Adobe Express, a cloud-based, all-in-one content creation tool. Think of it as a middle ground between Photoshop and the basic built-in editing apps on your device, like Apple Photos or Google Photos. It offers more advanced features than these default apps, but without Photoshop's complexity.

Fast forward to 2023, Adobe integrated its generative AI model, Firefly, into Express, bringing a bunch of AI-powered editing tools like Generative Fill and Text to Image to the app. The best part? Many of Express's AI features, like Remove Object and Background Remover, are free to use. Below, we'll cover Adobe Express AI features we recommend trying if you think Photoshop is too complicated.

While the features below are free to use, some may require generative AI credits, which free users get 25 of per month. Express currently offers two paid plans: Premium and Teams. The former costs $9.99/month or $99.99/year, while the latter is priced at $4.99 per user/month for a monthly subscription or $49.99 per user/year. Paid plans come with 250 credits monthly.

Creative block spares no one, not even professional graphic designers or social media influencers. When it hits, the "Generate Image" tool is exactly what you need, which uses generative AI to transform text prompts into images. To use the tool on Adobe Express's website, go to "Generate with AI" > "Generate image".

In the left-hand panel's text box, describe the image you want to create.

On mobile, head to the app's homepage, tap the plus (+) icon in the bottom right-corner, and choose a size. Then, tap the plus (+) icon in the bottom-left corner, scroll through the options, and select "Generative" > "Generate Image". Choose an image size from the following: Square, Landscape, Portrait, and Widescreen. Finally, describe what you'd like to create. 

Before hitting the "Generate" button, you can adjust a few settings to refine your image. On the website, these options are in the left-hand panel, while on mobile, tap Settings below the text box to find them.

If you have a reference image that matches the look you're going for, add it under "Style". Similarly, if you have an image that you'd like to influence the layout you'd like, add it under "Composition". To specify the overall look of your image, you can expand "Content type" and choose from Auto, Photo, Graphic, or Art. Finally, you can fine-tune your image's artistic feel by choosing from "Styles" like Neon and Origami. When you hit "Generate", Express will instantly create four images. You can either select one or generate more if none fit your vision. Note that this tool uses AI credits, so be mindful of how many images you generate!

Regardless of if you post for a large audience or not, you've likely captured the perfect shot after an exhaustive shoot, only to have it ruined by a photobomber or an unwanted object. Instead of letting your efforts go to waste and reshooting, your best bet is to use an app to edit out any unwanted objects in your photos. Adobe Express's Generative Fill tool makes it easy to do that within seconds. To get started, launch Adobe Express on your device and click the plus (+) icon. On the website, you'll find it on the top-left corner of the screen. Meanwhile, on mobile, it's located in the bottom-right corner of the screen. Click "Upload media" to add the image you'd like to edit to the editor. Now, select your image in the editor, and click "Remove object".

Adobe suggests covering both the object and a bit of the surrounding area for better results. You can adjust the brush size by dragging the slider left or right for more precision. Once ready, click "Remove," and the tool will generate three edited versions of your image with the object removed. You can "Keep" one, "Discard" them, or generate more until you're satisfied. This tool works similarly to Apple's new Clean Up feature, which is among the best Apple Intelligence features released so far. So, if your device isn't compatible with Apple Intelligence, Adobe Express is a great free alternative.

Then, brush over the area where you'd like the object to appear (on mobile, tap "Next" first). Make sure to fully cover the space where the object should go. If needed, adjust the Brush size using the slider for better precision. Once you're satisfied with your selection, click "Insert". Similar to the above, Express's AI will generate three versions of the edited image for you, which you can either "Keep" or "Discard." Alternatively, you can choose to generate more. Keep in mind that both Generative Fill features use AI credits. So, if you're on the free plan, make sure you keep a close eye on how often you use these features due to limited generative AI credits.

While you may have an eye for art, crafting clear, well-written text to complement your visuals isn't always as easy, and there's nothing wrong with that! Thankfully, Adobe's Rewrite feature has got your back. It helps you fine-tune written content within your designs so you can focus more on the design aspect. The Rewrite tool is currently available in 27 different languages, including English, Spanish, Turkish, and Hindi. It uses generative AI credits and can rewrite up to 1500 words at a time. However, you can use it as often as needed to rewrite longer text, provided you have enough credits.

Using the Rewrite tool is simple. Open a new or existing design in Adobe Express, highlight the text you want to refine in the editor and select "Rewrite." On the website, the option appears above the highlighted text. On mobile, you'll find it in the toolbar at the bottom. You'll then see two sections labeled "Suggested edits" and "Make it more..." The first lets you "Rephrase," "Shorten," or "Lengthen" your text, while the second allows you to adjust its tone to better match your style. 

Once you've selected your options, hit "Generate" to get three refined versions (if your selected text is under 150 words) or one version (if beyond 150 words) in seconds. If you're satisfied with one, select it and click Replace to swap your current text, or choose Add as page to duplicate your design with the generated text. If none feels right, you can generate new options until you find the perfect fit.

If you've ever created posts for a multilingual audience, you've likely had to translate your content into each language manually. While tools like Google Translate help, updating each design with translated text can still be time-consuming. Thankfully, you can automate this process using Adobe Express's Translate tool. Powered by GPT-4o, the tool can translate content into 46 languages. Note that this tool is currently not available in China, Russia, and Belarus. 

To use it, open a new or existing design, and click on the "Translate" icon in the header.

Mahnoor Faisal/SlashGear
 Expand the "Translate to" dropdown and select your desired language. One of the best parts about Adobe Express's Translate tool specifically is that you can translate your design into up to 20 languages in one go. You can also change the tone of your translated text by expanding the "Tone of voice" dropdown and selecting Formal or Informal. Otherwise, choose "Don't change the tone" if you'd like to keep the original style. Select the pages to translate, and make sure to choose the text objects you would like to translate on each page of your design. Then, click the "Translate" button.

Mahnoor Faisal/SlashGear
After a few seconds, your design will be duplicated with the text in your desired language(s). Currently, the "Translate" tool isn't available on Adobe Express Mobile, so you'll need to use the web editor to use the tool. Fortunately, the tool is free across all Express plans and doesn't require generative AI credits.

[.slashgear]

KEY POINTS

•  
  Despite DeepSeek rattling markets, large tech companies continue to spend heavily on artificial intelligence (AI) infrastructure.
•  
  Microsoft has already provided details on the returns it is beginning to see.
•  
  Much of the AI capital expenditures are going to Nvidia, and that's not its only growth segment.

After a huge run higher, Nvidia (NVDA 2.63%) stock hasn't even been keeping up with the overall market in recent months. There are several reasons for that, but the big question for investors is whether it's now time to take advantage of Nvidia's stagnant share price.

The stock soared about 85% over the last year, yet it is lower than it was four months ago, even as the S&P 500 has a total return of about 4% in that time. But now it looks like there are over 300 billion more reasons to buy the stock. That's because several big tech companies plan to spend as much as $320 billion on data centers and artificial intelligence (AI) infrastructure over the next year.

NASDAQ: NVDA

Nvidia

Today's Change

(2.63%) $3.56

Current Price

$138.85

 

YTD1W1M3M6M1Y5Y

PRICEVS S&P

 

 NVDA

KEY DATA POINTS

Market Cap

$3.4T

Day's Range

$135.50 - $139.25

52wk Range

$66.25 - $153.13

Volume

195,479,557

Avg Vol

244,376,206

Gross Margin

75.86%

Dividend Yield

0.02%

Hopper to Blackwell to Rubin AI solutions

Nvidia's recent success is relatively easy to explain. Its advanced AI graphics processing unit (GPU) chips are in high demand. Using management's guidance for its soon-to-be-reported fiscal fourth quarter, revenue for the fiscal year ended in late January should show year-over-year growth of about 110%. That's especially impressive considering quarterly revenue is approaching $40 billion.

Nvidia also shared its plans with investors for continued innovation that should keep driving demand. Sales of its H100 and H200 GPU chips have been boosting revenue growth, and Nvidia now has its Blackwell AI architecture in production.

CEO Jensen Huang has called demand for Blackwell "insane." Investors will hear an update on its Blackwell sales when Nvidia reports earnings on Feb. 26. The company might also discuss the next-generation Rubin AI platform that is due in 2026.

Massive total addressable market

One recent headwind for Nvidia stock was the surprising announcement last month from privately owned Chinese start-up DeepSeek. That company reportedly created a high-performing large language model (LLM) for just $6 million. While many question the authenticity of that total capital cost, the DeepSeek product raised uncertainty about how much large-cap tech companies would continue to spend on Nvidia AI products.

But those companies aren't throttling back on spending. Meta Platforms, Amazon, Alphabet, and Microsoft each announced spending plans for data centers and AI infrastructure in 2025. As a group, the investments could total as much as $320 billion over the course of just one year.

Amazon expects to lead the way with $100 billion in capital expenditure. CEO Andy Jassy stated, "The vast majority of that capex spend is on AI for AWS (Amazon Web Services)." Alphabet plans about $75 billion and Meta $65 billion. Microsoft will continue on its plan for $80 billion in AI investments through June of this year.

That company said it is already seeing returns on its investment. Satya Nadella, chairman and CEO of Microsoft, noted, "Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year over year." Nvidia is the clear leader in hardware for AI infrastructure and is arguably the biggest benefactor from all that capital spending.

Nvidia's under-the-radar catalysts

On top of those tailwinds related to AI data center spending, Nvidia has other growing segments. Its gaming business generates the second most revenue. Gaming revenue has accelerated in each of the last three quarters, reaching its highest level since Nvidia's quarterly period ended May 1, 2022.

Its professional visualization business provides a platform for creating industrial AI simulations and uses AI to drive efficiencies for industrial developers. That segment's revenue has increased in each of the past three quarters and has more than doubled in the last two years. Automotive and robotics revenue has also accelerated, with growth in each of the last five quarterly periods.

Those other business segments use AI and also offer software solutions to Nvidia's AI hardware customers. That helps to provide a flywheel effect as its next-generation AI architecture continues to improve and be utilized in its various platform solutions.

The upcoming quarterly report could bring share price volatility, but investors should look to hold Nvidia for its long-term potential. A pullback that might come from the quarterly report would just provide an opportunity to buy more Nvidia stock.

[The Motley Fool]

Samsung Galaxy S24 owners frustrated by the repeated delays to the One UI 7 release potentially have some good news. According to the leaker Tarun Vats, the Samsung Galaxy S25’s best new AI feature is likely to be added to last year’s handset as part of the stable One UI 7 release when it finally emerges.

“The Galaxy S25's ‘Audio Eraser’ feature is most likely coming to the Galaxy S24 series with the One UI 7 update!”, Vats wrote on X.

For those unfamiliar, Audio Eraser leverages artificial intelligence to detect and remove unwanted noise — wind, passing cars, city hubbub, etc. — leaving just the sounds that you intended to capture. It’s very handy for those who regularly use their phone to take video in challenging conditions.

In fact, it doesn’t even need to be video taken on the phone itself — as our Senior Channel Editor for Phones John Velasco found in his extensive testing of Audio Eraser, it will work on any video. As you can see from the included clips, it’s an impressive feature.

The good news about S25 hand-me-downs doesn’t stop there. The next day, Vats returned to suggest that two more AI features would be passed down to older models.

While LOG Video is only “confirmed” for the Samsung Galaxy S24 Ultra, Best Face will apparently roll out to all Galaxy S24, S23 and S22 models with the One UI 7 update.

LOG video recording gives video editors more control over color grading on captured footage. Though undeniably a niche feature, it can get very good results in the right hands, as John found when testing the S25 Ultra’s LOG Video implementation earlier this month. 

Best Face is far more mainstream and extremely useful. As long as you have motion photos enabled, it lets you go into any photo and pick from a number of possible faces caught in the moments leading up to the photo being taken, ensuring that nobody is pulling a strange expression or caught with their eyes closed.

These are all exciting extra features, but the bad news is that Samsung doesn’t seem in any rush to get the update to older handsets. In another post on X, Vats says that Six One UI 7 beta updates are expected for the S24, with the last one arriving in April.

That means we could be looking at May for the final stable release — by which point the Android 15 operating system on which it’s based will be nine months old.

[tomsguide]

The Emotional Weight of a Diplomatic Snub

Diplomatic tensions, especially those that trigger public embarrassment, can have deep psychological effects on a nation’s collective identity. The denial of visas to Nigeria’s Chief of Defence Staff, General Christopher Musa, and other top military officers by the Canadian High Commission has sparked a wave of outrage, confusion, and introspection. While, on the surface, it may appear as just another bureaucratic matter, the deeper psychological and sociopolitical implications cannot be ignored.

As a psychologist, I see this moment as more than just a visa issue—it is a direct challenge to Nigeria’s self-perception, governance credibility, and institutional accountability. Nations, like individuals, have egos and identities that influence how they react to rejection. Public humiliation, particularly at the hands of another country, can feel like an assault on national dignity and often triggers defensive, rather than reflective, responses.

The Nigerian government’s reaction—ranging from outright condemnation to defensive aggression—shows a deep-seated anxiety about global perception and a reluctance to confront uncomfortable realities about governance, military oversight, and international standing. This moment forces Nigeria to reflect on its position in global diplomacy and its approach to leadership, military engagement, and respect for international norms.

Why Has This Triggered National Embarrassment?

National shame arises when a country experiences public rejection or humiliation that exposes weaknesses in its leadership, governance, or global reputation. The psychological impact of such events can be severe, influencing not just the nation’s leadership but also its citizens’ sense of identity and pride.

The denial of visas to Nigeria’s top military officers is not just a logistical inconvenience—it calls into question Nigeria’s diplomatic leverage, military credibility, and international reputation. The immediate reaction from government officials, including the Minister of Interior and National Security Adviser, Nuhu Ribadu, has been defensive, emotional, and aggressive. But from a psychological standpoint, such overreactions often stem from a deep-seated need to protect national pride rather than an effort to genuinely understand the root cause of the situation.

This event forces Nigeria to ask itself some uncomfortable but necessary questions:

Was this visa denial a diplomatic oversight or a deliberate message?

Could it be a quiet response to human rights concerns linked to the Nigerian military?

Is it a reflection of Nigeria’s declining global credibility and governance issues?

Could this be a silent way for President Tinubu to send General Musa a message about the boundaries of power under civilian rule?

Was this a subtle warning about Nigeria’s diplomatic and military decisions?

Instead of deflecting blame outward, it is essential to examine how Nigeria’s actions, priorities, and international perception might have contributed to this moment of national embarrassment.

Where Is the Leadership? The Silence That Speaks Volumes

A psychological analysis of leadership in times of crisis shows that strong leaders take control of narratives, provide clarity, and ease national anxiety. But in this situation, Nigeria’s top leadership, including President Bola Tinubu and Minister of Foreign Affairs Yusuf Tuggar, has remained largely silent.

In psychological crisis management, effective leaders respond quickly, with clarity and control to prevent speculation, misinformation, and a deepening sense of national insecurity. Silence, in moments of crisis, creates a vacuum of uncertainty, anxiety, and suspicion.

If this trip was an official engagement, why hasn’t the presidency defended it? If it was unauthorized, why hasn’t there been a firm government stance clarifying that this was not a state-sanctioned event? Instead, Nigerians are left with a mix of emotional reactions, vague outrage, and a lack of clear direction from those in power.

The absence of a strong, rational, and measured response exposes institutional disorganization, lack of coherence in international engagement, and leadership inconsistencies. A nation seeking global respect must handle diplomatic issues with strategic clarity—not reactionary emotions.

Diplomatic Embarrassment or Misplaced Priorities?

A fundamental question arises: Why was Nigeria sending such a large military delegation to the Invictus Games? The Invictus Games is an honorable initiative that promotes healing and rehabilitation for wounded military veterans. However, given Nigeria’s pressing domestic challenges, economic struggles, and security concerns, should this have been a priority?

Perception matters in diplomacy. A country battling economic hardship, growing insecurity, and governance failures should be seen tackling internal problems, not prioritizing international social events. This trip, whether necessary or not, has created the impression of misplaced priorities.

Former Chairman of the National Human Rights Commission, Prof. Chidi Odinkalu, has rightfully raised concerns about whether this was a necessity or a reflection of a culture of entitlement among Nigerian officials. Military leaders should be focused on restoring security at home, not attending high-profile sporting events.

Contradictions: Why Was Mrs. Musa Welcomed While Her Husband Was Denied?

This raises critical diplomatic and psychological questions:

If Canada’s decision was a direct snub to Nigeria, why were family members allowed entry?

Could this mean that the visa denials were targeted at specific individuals rather than a blanket diplomatic issue?

If Nigerian officials are truly embarrassed by this, why are their families enjoying the event without concern?

This contradiction undermines the government’s outrage and raises doubts about whether this was a true diplomatic insult or a rejection of specific military officials.

Emotional Reactions vs. Strategic Diplomacy

Instead of measured diplomacy, the Nigerian government’s reaction has been reactionary and emotional.

The National Security Adviser, Nuhu Ribadu’s statement—“Canada can go to hell”—is an aggressive, undiplomatic response that escalates tension rather than addressing the issue. In psychology, such reactions stem from wounded national pride rather than rational crisis management.

A mature, well-governed nation should engage diplomatically, not resort to emotional outbursts. Handling diplomatic embarrassment with grace and strategic response determines a nation’s standing on the global stage.

Conclusion: Nigeria Will Reflect, Reform, and Regain Respect

Though this situation may be embarrassing, it also presents an opportunity for reflection and change. To Canada, we say this—while we are Africans, we are a people of dignity. This moment has reminded us of the need for accountability, strategic leadership, and governance that prioritizes national progress over personal interest.

We accept our reality and recognize where we must do better. Nigeria will not shy away from self-examination. Instead, we will take this as a challenge to reassess our global standing, reform our institutions, and rebuild credibility.

Respect is not demanded—it is earned through leadership that reflects national integrity. Nigeria must ensure that the next time it engages with the world, it does so with the strength of responsible governance, diplomatic intelligence, and a renewed commitment to international credibility.

As a nation, we will rise above this moment, implement necessary changes, and prove that Nigeria’s dignity and global respect come not from entitlement but from the strength of its reforms.

Elon Musk’s Department of Government Efficiency (DOGE) has sparked alarm by seeking access to a system with the US tax office that has detailed financial data about millions of Americans, US media reported.

Spearheaded by Musk, the world’s richest man, US President Donald Trump has embarked on a campaign to slash public spending deemed wasteful or contrary to his policies.

The Washington Post and others reported that the latest request is for DOGE officials to have broad access to Internal Revenue Service (IRS) systems, property and datasets.

This includes the Integrated Data Retrieval System (IDRS), access to which is usually extremely limited and which offers “instantaneous visual access to certain taxpayer accounts”, according to the IRS.

As of Sunday evening, the request had not been granted, the reports said.

But it has sparked alarm within the government and among privacy experts who say granting Musk access to private taxpayer data could be extraordinarily dangerous, according to ABC News.

[OPinion Nigeria]

PZ Cussons Nigeria PLC has announced that its Board of Directors, after careful deliberation, has decided to convert $34.26 million of its outstanding loan into equity.

In June 2022, PZ Cussons Holdings Limited (PZCH) loaned $40.26 million to PZ Cussons Nigeria PLC (PZCN) to help cover raw material and operational costs, which were difficult to manage due to currency shortages.

However, between 2023 and 2024, the Naira experienced significant devaluation, which negatively impacted PZCN’s financial results and led to a rise in its foreign currency-denominated loans.

In response to these challenges, the company’s board has decided to strengthen its balance sheet by settling the outstanding shareholder loan obligation and reducing exposure to foreign currency fluctuations.

According to a disclosure signed by Alsec Nominees Limited, the company secretary, and published on the NGX on February 15, 2025, the Board stated:

“After extensive discussions, we have agreed that converting a portion of the outstanding loan, amounting to USD 34.26 million, into equity is the most effective strategy to reduce debt and strengthen the Company’s balance sheet, while significantly minimizing the risk of future foreign exchange losses.” 

Post-Conversion, a remaining shareholder loan balance of $6 million will still be payable to PZCH.

Backstory 

In June 2022, PZCH provided a loan of USD 40.26 million to its subsidiary, PZCN, to help the company meet its foreign currency obligations for raw materials and operational expenses.

• However, after the foreign exchange market was liberalized in June 2023, the Naira experienced significant devaluation. This led to an unrealized exchange loss of N157.9 billion and a negative shareholders’ equity of N27.5 billion by May 31, 2024.

Despite these financial challenges, PZCN demonstrated revenue growth, achieving increases of 34% and 42% year-on-year for the full and half financial year periods ended 31 May 2024 and 30 November
2024 respectively.

• Nevertheless, the ongoing depreciation of the Naira continued to negatively affect profits, pushing net equity further into the red, reaching N34.5 billion as of the latest financial results on November 30, 2024.

In response to these difficulties, the Board is actively exploring strategic options to improve the financial health of the company.

• A significant proposal on the table is to convert USD 34.26 million of the outstanding loan into equity.
• This move aims to strengthen PZCN’s balance sheet while minimizing the dilution of minority shareholders.

The Plan 

The plan is to convert part of the outstanding shareholder loan of $34.26 million (N51,795,312,646.72) into equity at a price of N23.60 per share, effective February 12, 2025.

• This will create 2,194,716,637 new ordinary shares at a value of 50 kobo each for PZCH, increasing the company’s share capital by N1,097,358,318.50.
• These new shares will have the same rights as existing ones.

Shareholder approval is required, along with clearance from the Securities and Exchange Commission (SEC) for the conversion and registration of new shares on the Nigerian Exchange Limited.

The Board has approved these conversion terms after discussions with PZCH and recommends them for approval at an Extraordinary General Meeting on March 13, 2025, at Transcorp Hilton.

• After the conversion, PZCH’s ownership will grow from 73.27% to 82.79%.
• Other shareholders will see their stakes reduced: CardinalStone will drop from 4.91% to 3.16%, AMCON & PFA will fall from 1.56% to 1.01%, and other shareholders will decrease from 20.25% to 13.04%.

What to know 

• Shareholder loan terms will remain unchanged after conversion, as they are already favorable compared to current lending rates in Nigeria.
• The Board approved the conversion terms after discussions with PZCH and will recommend them for shareholder approval at an Extraordinary General Meeting on March 13, 2025.
• This conversion aims to strengthen the balance sheet, reduce foreign exchange risk, improve financial ratios, restore a positive net asset position, and enhance investor confidence and market value.

[Nairametrics]

Former Senate Chief Whip, Ali Ndume, has urged the Federal Government and the National Assembly to investigate allegations by U.S. Congressman, Scott Perry that the United States Agency for International Development (USAID) has been funding terrorist organisations, including Boko Haram.

Naija News reports that the American lawmaker, a Republican from Pennsylvania, made the claim last Thursday during the inaugural hearing of the U.S. House Subcommittee on Delivering on Government Efficiency.

In a viral video, Perry alleged that USAID had been providing up to $697m annually to terrorist groups, including Boko Haram.

Reacting to the allegation during an interview on Channels Television’s Politics Today on Sunday, Ndume lamented over the devastating impact of Boko Haram in the country.

He described the allegation as weighty and worrisome,” stressing the need for a thorough investigation.

“Boko Haram has ravaged not only the North-East but even Nigeria as a whole. You can remember how Boko Haram bombed the police headquarters and the UN office in Abuja. The casualties were enormous. But the security agencies have raised this issue indirectly several times. Even the Borno State government was wary of the operations of some NGOs,” Ndume stated.

He recalled a past security operation where an NGO was allegedly caught training individuals on how to use firearms.

“We have been wondering for years—aside from raids and kidnappings—where are these terrorists getting their funds? It’s worrisome. Now that a U.S. Congressman has openly spoken about it, we can’t dismiss it as just an allegation. It’s more than that. That’s why the Nigerian government and the National Assembly, especially, need to investigate and verify the veracity of such claims,” he added.

He further noted that 400,000 displaced persons from Borno, Adamawa, and Yobe states are currently taking refuge in Niger, Chad, and Cameroon.

“When you look at these figures, it’s alarming. And when you analyze Boko Haram’s modus operandi, you begin to question whether they are receiving supplies from external sources,” he said.

The lawmaker revealed plans to raise a motion in the Senate on Tuesday to push for a formal investigation.

“This is a matter of urgent national importance. We need to set up a strong committee involving security agencies like the Office of the NSA, the DIA, and the DSS because this falls within their responsibilities. It’s not just about internal security,” he stated.

[NaijaNews]

The New Nigeria People’s Party (NNPP) has engaged in war of words with the Patriotic Volunteers, a group within the opposition All Progressives Congress (APC) in Kano state, over the announcement made by the APC group to form what it termed as “shadow government” to checkmate the administration of Governor Abba Kabir Yusuf.

In a statement issued as a counter to the group’s announcement, and signed by the state commissioner for Information Comrade Ibrahim Abdullahi Wayya, the state government described the group’s intention to form a shadow government in the state as not only a desperate and politically motivated scheme but also a dangerous move with serious social and legal implications for the entire state and Nigeria’s democratic system.

The commissioner said democracy does not permit anyone to lose their sense of judgment simply because they have lost relevance within their party’s political structure, adding that the right to freedom of expression does not grant anyone the liberty to make reckless statements or take actions that undermine constitutional governance and the sovereignty of an elected government.

“Let me remind these elements within the Kano APC that, in a democratic system like ours, forming a government within a government is entirely illegal and unconstitutional. A shadow government, as practiced in the United Kingdom, exists within a parliamentary system where opposition parties appoint “shadow ministers” to scrutinize the ruling government. However, Nigeria operates a presidential system, which neither recognizes nor supports such a structure outside the institutional framework of the law,” he said.

The group under the its national President of the group and former Secretary to the State Government (SSG), Alhaji Usman Alhaji, had revealed a plan to form a shadow government apparatus that will effectively put an eye on the state government’s activities..

According to him, the group is planning to assign its members to all the Ministries, Departments and Agencies (MDAs) to monitor their activities and make “constructive” criticism that would prompt the government to do the needful.

“This is what is obtainable in the UK where we see opposition parties form the shadow government to checkmate the incumbent one. We are going to replicate it in Kano by assigning our members at MDAs to monitor the activities there and come up with a report. We are committed to doing this, because what we want is a better Kano for all,” he said.

[DailyTrust]