The Nation Newspaper

Tag: equity

  • Osuntokun to monarchs: embrace fairness, equity

    Professor emeritus of History and International Relations Akinjide Osuntokun has urged  leaders to embrace fairness and equity and be more sincere in their dealings.

    He spoke at the Joseph Ayo Babalola University’s yearly Oba Oladele Olashore Memorial Lecture. The lecture is in honour of the late monarch who was a philanthropist and pioneer Chancellor of JABU.

    Osuntokun, who was the guest lecturer, spoke on: ‘The Yoruba and the burden of their history in the politics of Nigeria’.

    He called for unity among Yoruba monarchs to break the north/south division and form a common front in Nigeria’s politics.

    Osuntokun spoke on the myths surrounding the emergence and existence of Oduduwa being the progenitor of the Yoruba race, the Yoruba, as well as history of wars and division within the race over the years.

    Osuntokun also touched on the Ilorin and Fulani factors in Yoruba politics and outlined the role of Yoruba obas in the development of the race.

    He described the Yoruba as the most urbanised on the continent.

    Going down memory lane, he recalled the contributions of eminent individuals, such as the late Chief Obafemi Awolowo, to various national discourse, a development which he said, led to the convocation of the Egbe Omo Oduduwa in 1947 to rally support for the Yoruba, as well as the emergence of the Action Group (AG), which eventually became the ruling party in Western Nigeria with Awolowo as the Premier.

    JABU Vice-Chancellor, Prof Sola Fajana, eulogised Oba Olashore’s generosity to the institution during his lifetime.

    Registrar Wale Aderibigbe, praised Osuntokun’s mastery of the topic, promising the sustainability of the lecture.

  • ‘Africa is world’s most attractive equity market’

    Africa  is still one of the world’s most attractive markets for private equity, Boston Consulting Group (BCG) has said.

    The Financial Group, in a statement signed by Associate Director and a co-author of the report, Marc Becker,  said Africa remains one of the world’s growth opportunities for private equity investors, though with some facing serious challenges of recent.

    To generate the high returns that investors expect, however, funds should consider more flexible investment strategies and new types of corporate targets, the report stated.

    The report, titled: Why Africa Remains Ripe for Private Equity, notes that since the early 1990s, the number of private equity funds active in Africa has swelled from about a dozen to more than 200, while funds under management have risen from some $1 billion to upwards of $30 billion. This rapid growth, combined with the recent downturn in Africa’s largest economies, has raised concerns among some analysts that a bubble is emerging, the statement said.

    The report said most private equity funds and principal investors tend to invest only in minority stakes, with the goal of better managing their risks by leveraging robust local partners. While they overwhelmingly focus on a limited pool of investment targets: profitable companies with annual revenue of more than $100 million and proven track records.

    The report advised that alternative investment approaches are particularly important if funds are to meet the rising expectations of their investors. It said: “Increasingly, development finance institutions are being joined by global institutional investors that are far more focused on high returns. As prices for stakes in large African companies rise, it will become more difficult for private equity funds to deliver high returns. To fully capture the opportunities in Africa and earn high returns, private equity funds must adapt to the rapidly evolving market and consider more flexible investment strategies.”

    The report recommended that private equity investors consider other investment approaches, such as majority stakes, strategic partnerships, and evergreen funds, rather than only funds with timing constraints for divestiture. It also suggested that funds look at a wider range of targets, such as Africa’s growing pool of dynamic smaller companies with significant growth potential.

    “Too many private equity investors are pursuing the same kind of target with the same kind of deal structure,” said Patrick Dupoux, a BCG Senior Partner and a co-author of the report who leads the firm’s activities in North Africa.

    He added: “But look beyond the narrow cohort of Africa’s corporate elite and you’ll see that the continent offers real opportunities. Some of the most promising targets in Africa are companies that are still off the radar of most funds.”

    On their optimism, he stated that despite the rapid growth in funds and a crash in global commodity prices that has hit a number of African economies, the following factors support a positive outlook for private equity.The factors he itemised is that the amount of private equity and principal investment capital under management in sub-Saharan Africa remains very low relative to world standards with a mere 0.1 per cent of GDP. That compares with approximately 1 per cent of GDP in western countries.

    Others are that despite recent setbacks, most economists expect that GDP growth in Africa will rebound over the medium term, driven by a swelling middle class, rising foreign investment in infrastructure, and a growing skilled labor force. The statement also hinted that the pool of investment targets is growing with nearly 11,000 African companies having revenue of $10million to $100million and assets of $20 million to $200million yearly.

  • Equity and clean hands

    FOR too long, our leaders and their families have taken us for a ride. They treat the commonwealth as their personal property and do not give a care in the world about the led. As far as they are concerned, the people can go to hell as long as they live well. The welfare of the led is not their priority, yet they were elected to take care of the people. They do not believe that they should aspire to be the people’s leaders; they are satisfied being leaders of their families, feeding and meeting their needs with public funds.

    Our leaders are our greatest enemies. The nation is where it is today because of them. They had all the opportunities in the world to make the nation great, but they did not do what was expected of them. The nation made money – tons of it – from oil under their watch, but the cash was not well spent. The money found its way into their pockets, while the people groaned in poverty. The money meant for millions of Nigerians was pocketed by our leaders, their wives and children.

    Since this administration came on board on May 29, last year, we have been regaled with reports of how these leaders milked the nation. By leaders, we are not referring to the former president, vice president, governors, deputy governors and leaders of the legislature only, but all those who held key positions in their administration as well as the military chiefs. The military brass, especially turned out to be a big disappointment. We have heard of how some service chiefs used their positions to acquire wealth in the immediate past administration.

    Money meant for the acquisition of equipment to combat Boko Haram was diverted. The military brass converted the money into their own use, acquiring houses, cars and other properties as if those things were going out of fashion. They were not bothered about the men they sent to fight Boko Haram in the Northeast; they were more interested in pocketing the billions of dollars meant for the prosecution of the war. They expected the soldiers to fight with their bare hands. When these people rebelled, they were court-martialled. Yes, a soldier signed to die for his country, but not to commit suicide. But his superiors wanted him to commit suicide by not providing him with the equipment to fight.

    The generals were lucky that the soldiers did not turn on them. Elsewhere, soldiers have mauled their generals for cheating them. But in our own case, our generals had the temerity to court-martial soldiers that they did not provide arms and ammunition to do their job. Citing military law, they said it was a cardinal sin  for a soldier to refuse to fight. We all know that. But what do we say of the generals, who embezzled the funds meant for arming the soldiers?

    The cheek of it is that some of them are claiming that they did not do anything wrong despite the overwhelming evidence against them. They are contending that the billions of dollars found in their accounts belong to them. They also claimed that the multi-billion naira properties found in their names were legally acquired. The question is: how much is their salary that they would own such fat bank accounts and plush houses? They have even gone to court to enforce their fundamental rights! Can you beat that?

    In this league is the immediate past First Lady, Dame Patience Jonathan, who is battling the Economic and Financial Crimes Commission (EFCC) in court for freezing her accounts with Skye Bank. The court is the last hope of the common man, as the saying goes. The courts are there to uphold the scale of justice and ensure that an aggrieved party is fairly and justly treated. Thus, parties who go to equity must do so with clean hands. How clean are the hands of those seeking to enforce their rights against the government? Can a party claim for a wrong, which raises more questions than answers?

    Dame Patience is seeking N200 million damages from EFCC and Skye Bank for the the freezing of her four accounts containing $15,591,700 (about N4,926,977,200). Since the story broke Nigerians have been wondering how she came about the money. $15.5 million is no chicken change. I do not know the work she did besides being the first lady for about six years to have made such money. Oh! I forgot, she was also a permanent secretary in Bayelsa State. We all know the salary of permanent secretaries. Except, she was placed on a special salary, there is no way she could have made $15 million for the four or so years that she served as permanent secretary.

    As first lady, I do not think that she was on salary because the office is not recognised in the Constitution. But being a powerful position with a lot of patronage, she could have used it to make money. Which may have been the case in this instance. If that is the case, is her action defensible? There must be something that Dame Patience knows that we do not know to have come out boldly to fight for this money. As things are, she should be ready to tell the world how she came about the money in order to get it back.  Is the money from her salary as a civil servant? Is it from a contract? What kind of contract is it? Was the contract bid for? Under what name did she bid for the contract? As our former first lady, we are entitled to know the source of the money. It is when she is able to explain how she got the money that she can legally make a claim for it.

    We do not expect our former first lady to be poor, but we do not also expect her to be stupendously rich without telling us the source of her wealth. Since she is laying claim to the money, the onus is on her to tell us how she made it. If she cannot do that then she should forfeit it to the state. As the legal maxim goes : ‘’He who comes to equity must come with clean hands”.

  • Light with equity

    Light with equity

    What does power have in common with superstition? Well, the following story illustrates it. Somewhere around Ikot Ekpene, a power line met a higher power. The shrine. Some staff who wanted to route the modern marvel through the community ran away. Why? The priests pursued them. They swore that if they came near with their wires and woods and technicians and their funny regalia, the shrine would invoke death and disease.

    Power pass power, as Nigerians would say. You would have expected the opposite. It makes us reflect on our history. Where were the African gods when the white man came with guns? One community after community, one god after another yielded in disgrace as the white man thrashed through and imposed a colonial rule.

    But here, in today’s Nigeria, modern still bows to ancient. The carriers of natural shock yielded to the awful prospect of spiritual electrocution. But modernity is defiant, must have its way. Not always, not with these men in Akwa Ibom whose tongues spewed out curses of the end of days. They asked for compensation first. They had it. The gods yielded not to firepower but to filthy lucre. The gods have become human.

    All the staff returned. Where ritual reigned, lines now swagger. Physical light replaces what Joseph Conrad calls, with impish disdain of African society, “the night of first ages.”

    In the same way, power supply in Nigeria has taken quite the same trajectory. We try to supply power. We stop it. When it is not corruption, it is red tape. When it is not red tape, it is gas supply. When it is not ignorance about gas supply, it is lack of accountability. When it is not lack of accountability, it is inefficiency. When it is not inefficiency, it is culture, or it is greed. A sort of chaos theory takes aim at our country that has grappled for over 50 years with how to turn on the light and keep it turned on.

    With this mesh on our hands, we are raging towards the dying of the light. So, it is true that we are groping with about 2000 megawatts of supply today when the average consumer is being asked to pay rates at the projection of 4000 megawatts. So, why the outcry? I say, why not? The Gencos and the Discos are not reconciling accounts.

    But we must start from the beginning. Gas. Without sabotage of the militants, we still don’t have enough gas. A revolution is required which will have to involve tweaking how our gas deals were configured in the past. Today, only 16 per cent of the gas goes to local consumption. The NLNG sells 38 per cent to foreign markets. About 36 per cent is a toss-up from what is called associated gas from oil wells and direct clear, but this is often frustrated because the western companies who work our wells are not interested in gas. They want only oil. That revolution of gas will stop the 10 per cent that flares interminably into our skies.

    The real issues are with the Gencos and Discos. For now, an illusion reigns about transmission. It has 5000 megawatts capacity. It is believed that it is not enough. For what we supply, it is. We have never surpassed 5,000. For Gencos, I have a lot of pity. I paid a visit to the Egbin Power Plant and saw that a lot has been invested. Before its takeover, it operated at 30 per cent. It now operates at about 87 with 1,100 megawatts. But it all depends on gas availability.

    But to get power to a high level, it has to come with small wins. Here and there, we have headaches. One, money has to be spent on bringing many of the turbines in all the power plants to high level. Many of them need money. Egbin, for instance, has invested about $400 million. Two, there are areas where legal cases have stood in the way of installations of power. Three, the various Gencos have many turbines lying fallow. Why? They need a lot of money to install them. Many of the companies that took over did not have a sense of what they were going into until they possessed, except a few like Egbin. Even at that, they did not anticipate the Naira fall.  Three, IPP also are under construction. Four, Aba Power Plant of about 141 megawatts just settled out of court, so is now under construction. Ditto to Zungeru power plant now under construction after legal row over commission claims.

    But the immediate problem is now accountability. The Discos are now being accused of not making the money received from consumers available to transmitters and Gencos. Part of it is fraud. Consumers have been charged the same rate when power was about 4000 which is the projection. Now, it is about 2000, they are charged the same. This is not fair.

    I understand the bellwether minister, Babatunde Raji Fashola, SAN, has set up a committee for them to reconcile accounts to reflect what has been supplied. They are short-changing the consumer. It may be standing in the ability of the DISCOS to get enough power to supply to consumers. Many Nigerians are complaining that when they had an average of two hours power supply a day, they are paying about the same rate when they had six hours.

    This is a call for transparency, and the NERC should be the agency to step in and ensure that light comes with equity. This should complement the efforts of the bellwether minister to solve the supply chinks in different parts of the country.

    Another issue is the huge debts from big federal government institutions, including agencies and the military. But the Discos have been saying that the consumers are not ready for power supply. They say that it costs a lot to give power and we want to have it for cheap. They have a point. We had the same story with oil marketers. They had to withdraw and forced Nigerians to pay for fuel before we settled for it.

    Nigerians use power carelessly. Sometimes a light bulb will beam from morning to morning. Until we are ready to pay for power and turn on the light or the fan or the air-conditioner only when we need it, we shall never enjoy power. In advanced countries, they use power rationally.

    Only with consumption discipline shall we say we have conquered power.

  • Niger Delta activist seeks true federalism, equity

    Niger Delta activist seeks true federalism, equity

    A Niger Delta activist and President of Okrika community in River State, George Olugwe, has advised the Federal Government to ensure true federalism and equity.

    He also urged the government to set aside employment quota for Niger Delta indigenes.

    According to him, this is the only solution to the lingering problem.

    He also suggested establishment of schools and skills training centres to empower the people and declared that the problem in the region is one that cannot be solved through force or counter-violence.

    On infrastructure, he said the road network in the region is very poor. He cited the East-West road that leads Port Harcourt to Lagos through the Midwest, which has been abandoned over a year ago. He also mentioned Eleme junction to Akwa Ibom State, which has become a death trap, wondering why this should be so, while the resources of the region is been used to develop other regions. He concluded that this is what has resulted in the agitations and the recent violent blowing up of oil pipelines by the Niger Delta Avengers to drive home their demands.

    .  He advocated a continuation of the amnesty programme and said the only notable activity going on in the region in recent time is the clean-up exercise in Ogoni land. Olugwu Advised the government to create entrepreneurship programmes across the area to encourage new innovation and mutual ideas through better understanding, stressing that there cannot be progress unless there of

    On government’s plan to cite the NLNG Dry Dock in Badagry and the Petroleum Institute in Kaduna because of high level vandalism in the Niger Delta, Olugwe said nobody can work in a hostile environment and advised the militants to sheathe their swords and embrace dialogue.

  • Indigenes appeal for equity

    Indigenes of the Federal Capital Territory (FCT) have appealed to the incoming administration of Gen. Muhammadu Buhari to involve them in his administration, in order to benefit from the change which they have prayed for, even as they said they had been marginalised by past and present administrations.

    The leader of Dagbalo community, Rev. Danjuma Tanko, who made the appeal on behalf of the indigenes in a press briefing on the future of Abuja natives, said the people of Abuja have suffered endless marginalisation.

    According to Rev. Tanko, since the existence of Nigeria, the people of Abuja have never been given the chance to participate in the affairs of governance, saying that the North Western State era was the beginning of marginalisation for the people of Abuja.

    “This situation continued during the days of the military rules, when we expected participation during the Second Republic. The incoming administration should give hope to the people so that they will feel and participate actively in the change that we have being praying for.

    “No political appointment has been offered to the indigenes. The people of Abuja have a lot of graduates today, but there are no jobs for them. Our means of survival has been ceased from us and converted into buildings and road constructions.

    “Even with the present degree of development in the city, it is highly worrisome if this is an invasion. We are law-abiding people and we pay our taxes directly and indirectly,” he said.

    Tanko further said the federal allocation which the FCT benefited from in theory and not in practical, other Nigerians who are already benefiting from their states also come to the FCT to control the revenue allocation without considering the interests of the indigenes.

    “The end result on how they manage the FCT allocation is a total neglect of indigenous communities and advancement of act of impunity, whereby they cease our lands without alternative means or compensation, developing and providing infrastructure on the ceased farmlands, while the indigenes lack good roads and electricity in their communities.

    “Our traditional status should also be upgraded and given the chance to contribute actively in the affairs of nation-building. It must be noted that these people have sacrificed their kingdoms for the peaceful co-existence of Nigeria. So, they must be carried along in the scheme of things,” he said.

     

  • Private equity firms raise $3.3b

    Ernst & Young has estimated that Africa focused Private Equity (PE) firms raised $3.3 billion last year, FBN Capital, a management consultancy, has said.

    It said Nigeria would be the leading destination of those funds, adding greater opportunities and rewards lie in PE.

    FBN Capital said the findings of the National Bureau of Statistics (NBS) showed that an average household has 5.7 people, adding that Nigeria has 23.4 million people in the middle class, an equivalent of almost 14 per cent of the population. According to the report, consumption by households ranges from between  $23 and $115 per day.

    The study showed that the middle class population had increased six-fold since 2000, indicating a redistribution of wealth amounting to more than just “trickle-down”.

    According ot the study: “Many investors have bought into the story of the emerging middle class. Marriott of the U.S bought South Africa’s Protea Hospitality Group, which has several properties across Nigeria. Local e-commerce companies such as Jumia and Konga are expanding rapidly on the back of foreign investment.

    “Shopping malls are the most visible examples of this investment. Market research for the Jabi Lake Mall in Abuja identified 68,000 households within its target consumer area spending at least $150,000 per year on consumables. This would place them well above the middle class range.”

    However, FBN Capital said the story is at odds with the generally disappointing results of listed consumer goods companies in first quarter of and second quarter of 2014.

    “Their sales growth has slowed markedly. We have also bought into the story and suggest that the listed companies, unlike the many which are privately owned, may not be targeting the best domestic market. The listed companies account for no more than five per cent of this segment of the economy in sales terms,” it said.

    Globally, money committed to private equity funds but yet un-invested – stands at a record $1.19 trillion, up from $1.08 trillion at the end of last year and comfortably above the pre-crisis peak.

    This suggests that a lot of money will be chasing the best investments, pushing up prices and potentially forcing some funds to make do with less attractive opportunities.This unspent cash looms at a time when private equity funds are already being forced to pay historically high prices for companies.

     

  • Private equity firms raise $3.3b, says FBN Capital

    FBN Capital has said that management consultants, Ernst & Young estimate that Africa focused Private Equity (PE) firms, raised $3.3 billion in 2013. The investment and research firm said Nigeria will be the leading destination of those funds, adding that the greater opportunities and rewards lie in PE firms

    FBN Capital said finding of the National Bureau of Statistics, is that the average household has 5.7 people, adding that Nigeria has 23.4 million middle class, equivalent to almost 14 per cent of the population. According to the report, consumption by the households ranges from $23 to $115 per day.

    The study reported that the Nigerian middle class population has increased six-fold since 2000, indicating a redistribution of wealth amounting to more than just “trickle-down”.

    “Many investors have bought into the story of the emerging middle class. Marriott of the US bought South Africa’s Protea Hospitality Group, which has several properties across Nigeria. Local e-commerce companies such as Jumia and Konga are expanding rapidly on the back of foreign investment.

    Shopping malls are the most visible examples of this investment. Market research for the Jabi Lake mall in Abuja identified 68,000 households within its target consumer area spending at least $150,000 per year on consumables. This would place them well above the middle class range,” it said.

    However, FBN Capital said the story is at odds with the generally disappointing results of listed consumer goods companies in first quarter of and second quarter of 2014.

    “Their sales growth has slowed markedly. We have also bought into the story and suggest that the listed companies, unlike the many which are privately owned, may not be targeting the best domestic market. The listed companies account for no more than five per cent of this segment of the economy in sales terms,” it said.

    Globally, money committed to private equity funds but as yet un-invested – stands at a record $1.19 trillion, up from $1.08 trillion at the end of 2013 and comfortably above the pre-crisis peak.

  • Abia 2015: Our case built on equity – Nkire

    Abia 2015: Our case built on equity – Nkire

    In this interview, Theo Nkire, former Attorney-General of Abia State, makes a case for equity in deciding who becomes Abia State governor in 2015. Sam Egburonu reports

    You are the leader of Ukwa-Ngwa Professionals, what does the organisation represent?

    The organisation is an association of professionals of Ukwa-Ngwa origin who are committed to the development of Abia State, and who share in the conviction that Aba, the famous industrial and commercial hub, holds great potentials to support the development of Abia State.

    The association seeks to achieve the development of the full potentials of Abia State with Aba as a pivot. It also seeks the election of an Abia State Governor of Ukwa-Ukwa extraction who will bring about rapid economic and social development of Abia State with Aba as the economic hub.  To achieve our goals we seek a partnership with the Government of Abia State and leaders of Abia across our state.

    How is it different from other organisations in Ukwa-Ngwa?

    It is a gathering of professionals. Secondly, because we are individuals with no personal political ambitions of our own, our goal is to serve our homeland and our state and we do so using our personal contributions.

    Who are the sponsors of the organisation?

    The Ukwa-Ngwa Professionals, as a group, sponsors itself. It works with resources its members raise. It supports causes it believes in with members’ contributions.

    Why is Ukwa-Ngwa Professionals at the forefront of the agitation for an Ukwa-Ngwa governor?

    Since independence, no person of Ukwa-Ngwa descent has had the opportunity to be Premier of a Region or Governor of our state in Nigeria, not Eastern Region, Imo State or since creation of Abia State. Abia was created from two Senatorial Zones of old Imo State, Aba Senatorial Zone and Umuahia Zone which included Afikpo and Ohaozara (now in Ebonyi State).The Ukwa-Ngwa area is currently made up of nine of the 17 local governments in the state. It is home to more than 60 percent of the state population and it is yet to produce a governor. It is only fair, just and equitable that this happens. Our founding fathers agreed and laid a foundation for fairness and equity in the rotation principle they enshrined in the Abia Charter of Equity. This was the basis for the formation of the state. Those who work to destroy this foundation are against the peace in Abia State and this is why we commend Gov. Theodore Orji for his consistency in affirming this principle of equity and fairness.

    Is it constitutional to zone political office to a particular area?

    I have said before and I will say it again that intrinsic in the federal character provision of the Constitution is the principle of zoning and rotation. The Constitution of the Federal Republic of Nigeria established the quota system, and even went further to establish a Federal Character Commission to work to ensure equity in the employment and enhancement of public officers, it lays a foundation for each people to co-ordinate their affairs and manage their government in a way to ensure equitable and fair representation. Inherent in this principle is that areas in a state can and have often agreed and zoned offices using the mechanism of political parties because we are in a multi-party democracy.

    What is the Abia Charter of Equity that people keep mentioning in this case?

    The Abia Charter of Equity is a child of circumstance.  After the two Senatorial Districts of Aba and Umuahia of old Imo State decided to seek a state of their own, some disagreement arose between the two brothers that led to the breakaway of a large majority of the Aba people to form a Movement of their own – the Aba State Movement, then led by Dr. George Wigwe.  The Abia Charter of Equity was a fence mending measure adopted by the movement to reassure what remained of the Aba group within its fold that the events that led to the breakup would never arise again.  Indeed, the Abia Charter was extracted from the Umuahia (Bende) group, led by Dr. M. I. Okpara by what remained of the Aba (Ukwa-Ngwa) group. After the breakup, Chief B. A. Wachuku was made Vice Chairman to Dr. Okpara and Dr. Moses Agbara became Secretary. These were measures to re-assure Ukwa-Ngwa of their place in the proposed state.

    The Charter enshrined the principle of equity in distribution of political office and leadership and clearly stated that the position of governor will rotate between the Aba and Bende zones of the state. Unfortunately this agreement was more honoured in breach than the observance until Governor Theodore Ahamefule Orji decided that what is fair is fair and that the peace and development of Abia State required that equity and fairness be respected. He is a man who saw it fit to honour the agreement others chose to break with impunity.

    Does the Charter support the agitation of Ukwa-Ngwa for a governor?

    Of course, it does.  The bedrock of the Charter is equity, justice and fairness.

    What an idea! The Ukwa-Ngwa agitation for fairness and recognition started in colonial times. It came to the fore at the Willink’s Commission 1943 when aggrieved by the injustices of the time our people for the first time in our history were compelled to call for the creation of an Aba State.  So how could the Abia Charter, which came into being almost 40 years later, in 1980, predate our agitation?  Does the Abia Charter support our case?  Of course, it does.  Indeed, in the context of Abia State, the Charter does not only support our case; it is the foundation of our cause.  The Charter is our reference point.  Whenever the leaders neglect to do what is just and equitable, we remind them of the Charter.

    The Charter is about equity, it is about fairness. Our case rests on the fairness of rotating power, which the Charter advocates, now (as the PDP has directed) among our three Senatorial Zones of Abia North (1999-2007), Abia Central (2007-2015) and Abia South from 2015. In Abia State, nobody who supports equity, fairness and justice would support that the governor should come from any zone other than Abia South.

    What is your reaction to the fears of some that an Ukwa-Ngwa governor would marginalise other parts of the state?

    That fear is laughable.  Ukwa-Ngwa people are traditionally a peace loving and hospitable people.  We extend our goodwill to all; with malice towards none.  What powers do we have to marginalise anyone?  He who wants equity must do equity.  He who comes to equity must come with clean hands.  Ukwa-Ngwa people want equity and they have come with clean hands; with malice towards none.

    We are in a democratic dispensation. The government has three arms; an Executive, the Legislature and the Judiciary. We have freedom of the press and courts, which settle disputes in Nigeria and Abia State. This is not a military regime with its hierarchical and command structure. A governor who does not do well can be impeached as we are beginning to see all over.  As a group, we will not support a governor from anywhere in Abia State who incites divisions among our people.

    How have Ukwa-Ngwa addressed these fears?

    The Ukwa-Ngwa Professionals, as a group, has continued to consult with leaders of other communities in Abia, and to discuss, evaluate and allay these fears. This is why we have proposed to work with different groups and of course with the political leadership in the state, which is well disposed to ensure that no mistakes are made in this regard.

    There are fears that Ukwa-Ngwa is divided over who will become the next governor and this could scuttle the agitation.

    It is not true. Ukwa-Ngwa is united in the quest for a governor of Ukwa-Ngwa descent in 2015. Who among us would be the governor is a different matter. Political office is occupied through political contest.  A multi-party democracy is intended to create competition. Though it has been zoned to Abia South, the office of governor by our Constitution will be competitively sought. The huge interest is natural, it is expected, and it is not strange, but as the days go by, you will see that the selection process will continue to reduce the contestants until we all select one through the polls to be our governor.

    What deal did Ukwa-Ngwa reach with Governor Theodore Orji that make him support the agitation?

    None that I know of; if you know any, please tell me.

    Some say you offered him the Abia Central Senatorial seat to support the Ukwa-Ngwa cause?

    The Abia Central seat is not ours to give.  We are a state made up of different peoples. Politics is not a zero sum game; it is a give and take game. We preach equity and fairness, which means that you do not only consider your interest but you consider that of other groups. Abia Central Senatorial Zone is made up of six local governments – three from Ukwa-Ngwa and three from Umuahia. The local governments from Umuahia are entitled to produce a Senator for the zone, under an arrangement that enables the senatorial seat to rotate between Ukwa-Ngwa and Umuahia. This fair arrangement has been in place since 1999. We are a fair people; we come to equity with clean hands. We need to be commended rather than vilified.

    To answer you directly, the Abia Central seat is not ours to give.  You cannot give what you do not have. Ochendo is a great son of Abia State.  If he expresses interest, when the time comes, you can be in no doubt the support he will get will be overwhelming.  The Ukwa-Ngwa local governments will all support him and the entire Abia Central Senatorial Zone will support him.

    What is the Ukwa-Ngwa Professionals’ position on politicians outside Ukwa-Ngwa contesting the governorship?

    It is undemocratic to shut anyone out in a political contest.  In Jos in 1998, people like Abubakar Rimi from Kano State contested the presidential primaries of the PDP though the position was zoned to the South. The important thing is for the party to do the needful. You leave the rest to the individuals concerned.  In our case, the party has done the right thing by zoning the position of governor to Abia South.  It is fair, it is just; it is equitable.

    As a group and as a people, Ukwa-Ngwa is pleading with our brothers and sisters from Abia North and Abia Central to please, toe the party line.  As loyal party members, they should obey the party and work together with us to achieve success.  Without them, we cannot defeat the opposition.  We must all work together in the PDP family to win.  When next it is their turn, we promise to do the same; support them to win.

    What is in this struggle for you as an individual?

    Oh, my God!  A great deal.  A whole lot.  There is so much in it for me as an individual.  First, there is the joy, that ‘joy that passeth understanding’; the joy that in my lifetime, one of our own will be piloting the ship of state in Abia.  Then my name will be AHUKANNA; for I would have seen more than Dr.  Jaja Wachuku, I would see more than De George (Dr. George Wigwe) would.  I would have seen more than Hon. H. M. J. Wachukwu.  I would have seen more than my great friends and compatriots Engr. Frank Uzoma Azuogu, Diwa (Chief Enyinnaya Ihediwa) Dr. Nwanganga Ubani-Ukoma and the many others who were in the struggle with us but are no more with us today.  My new name will be AHUKANNA; but I will still be in good company: Emma Adaelu will still be around, God willing.  So will Dr. Asobie, Oji Alala and the numerous other people who have been with us from the beginning and those who have joined us over the years.

    For me, the joy will be that in my lifetime Aba can assume its rightful place as the Japan of Africa. I weep whenever I hear people born in Aba, but of Nnewi parentage, refer to Nnewi as the Japan of Africa – a name specifically coined for Aba by our leader, Dr. George Azubuine Wigwe, in view of the then emerging indigenous technology for which Aba had become so very well-known across Africa and the world.  What do they know about the name?  Aba shall return!  The Japan of Africa will rise again!

    My joy shall know no bounds when I find myself part of a new Abia State wherein the new governor, building on the solid foundations laid by his predecessors will embark on an all rounded development of our state with Aba as the focal point, the fulcrum of that development project.

    How would you react to the thinking that you are priming yourself to be the godfather of the Ukwa-Ngwa Governor?

    You have to be a god before you become a godfather.  Luckily, for me, I am not a god. I cannot become a godfather.  This generation of Ukwa-Ngwa people is not looking for a leader.  This generation of Ukwa-Ngwa people is blessed with great leaders. In April 2006, we, the leaders, chose one of our own, Elder Emmanuel Onyemaobi Adaelu, as leader of the Ukwa-Ngwa people. He is a great leader.  I adore him.  I respect him.  He has led us ever since.  I am confident, it will be his greatest joy (just as it will be mine, too) to live to see that day – 29 May 2015  – when an Ukwa-Ngwa son or daughter will be sworn in as governor of Abia State.

    Godfather?  Never.  I do not even think of it.  God is the one I worship; in whom I live and have my being. Godfather?  No. Never. Father?  Sure, of great men and women who love me and I love them too.

    What would be Ukwa-Ngwa reaction in 2015 if it does not produce the governor? 

    Ukwa-Ngwa shall produce the governor of Abia State in 2015, God willing.  See how it works.  The PDP has zoned the position to Abia South.  We are working hard to see that the other two important parties in the state namely the APC and APGA do the same.  We are already in consultation with the leadership of those parties. If we succeed in those negotiations, then it means the candidates of the three major parties in the state will be Ukwa-Ngwa people and whoever wins then will be Ukwa Ngwa.

    This is as far as human reasoning and human ability go; but God is the ultimate giver of power.  He gives it to whoever He desires.  Our simple prayer today is that He may give it to Ukwa-Ngwa in 2015.

  • Foreign equity portfolios rise to N972.5b

    •Dominate market at 51%

    Foreign investors gradually built up their stakes on Nigerian equities from about 37 per cent of total transactions at the stock market in January 2013 to achieve dominance over 11-month period with 50.94 per cent by the end of November 2013.

    The latest report on the foreign portfolio investment flow by the Nigerian Stock Exchange (NSE) indicated that foreign investors accounted for N972.5 billion out of total transactions of about N1.91 trillion during the 11-month period, representing 50.94 per cent of total transactions during the period. Nigerian institutional and individual investors, which had started the year with dominance of about 63.1 per cent, closed the period with 49.06 per cent with transactions valued at N936.49 trillion.

    However, portfolio flow analysis showed a consistent trading pattern in foreign transactions. While foreign investors flowed in more funds than they took out in the first half, they have taken more money out than they invested since the beginning of the second half, showing a sustained trend of profit-taking in the second half.

    But with the significant inflows in the first half, net position by the 11-month period still remained positive. Total foreign inflow closed November at N498.9 billion as against total outflow of N473.6 billion, representing positive net inflow of N25.3 billion.

    The last two months of October and November also saw marked improvements in foreign interests in the Nigerian market with substantial increase in foreign transactions. Foreign portfolio investments, which had shown month-on-month slowdown in the third quarter, picked up in October. Total foreign transactions closed October at N82.33 billion including inflow of N39.45 billion and outflow of N42.88 billion. Total foreign transactions rose to N88.89 billion in November, including inflow of N42.68 billion and outflow of N46.21 billion.

    In September, total foreign inflow was N26.14 billion as against outflow of N27.88 billion, bringing total foreign transactions to N54.02 billion. Total transactions at the stock market during the month stood at N108.19 billion, out of which domestic investors contributed N54.17 billion or 50.07 per cent.

    In August, foreign inflow had stood at N31.12 billion as against outflow of N39.76 billion. Total foreign transactions thus stood at N70.88 billion, 52.26 per cent of the total turnover of N135.63 billion recorded for the month.

    Foreign investors had took out nearly a double of every penny they invested in the Nigerian stock market in July, unusually high disparity between foreign portfolio inflow and outflow, which led to significant decline in net foreign investment in the Nigerian stock market.

    The seven-month report for the period ended July 2013 had indicated that total foreign inflow stood at N31.81 billion as against outflow of N61.90 billion in July, showing the widest divergence between inflow and outflow so far this year.

    Total foreign transactions thus slowed to N93.71 billion in July as against N150.24 billion in the previous month. However, foreign investors remained dominant in stock market’s transactions with 62.53 per cent of the aggregate foreign-domestic transactions in July, an increase on 51.13 per cent recorded by foreign investors in June.

    With the outflow in July, net foreign investment declined from about N73 billion by June to N42.59 billion by July.

    Total foreign inflow had risen to N90.15 billion while outflow stood at N60.09 billion as total foreign transactions increased to N150.24 billion in June.

    Total foreign transactions in the Nigerian market for the seven-month period stood at N676.25 billion, 50.73 per cent of aggregate transactions of N1.33 trillion by foreign and domestic investors during the period. Breakdown of foreign transactions during the seven-month period showed inflow of N359.47 billion as against outflow of N316.88 billion. Nigerian investors accounted for N656.85 billion over the seven months.

    Foreign investors had capitalised on general market optimism in July ahead of the release of the first half earnings reports of quoted companies to monetize and rebalance their portfolios. Nigerian equities had consolidated their bullish rally in July with capital gains of some N581 billion. Aggregate market value of all equities closed July at N12.007 trillion as against its opening value of N11.426 trillion for the month. The All Share Index (ASI), which doubles as benchmark index for all equities on the Nigerian Stock Exchange (NSE) and country index for Nigeria, also rose from month’s opening index of 36,164.31 points to close at 37,914.33 points, a month-month average positive return of 5.08 per cent.

    First-half report on foreign portfolio investment flow had shown that total transactions-including buy and sell deals, by foreign investors totaled N582.64 billion, accounting for 49.24 per cent of total turnover at the NSE during the period.

    The report had indicated that in most instances, foreign investors flowed in more funds than they took out, leaving the stock market with a positive net foreign investment of about N73 billion within the period. Foreign portfolio inflow stood at N327.66 billion as against outflow of N254.98 billion.

    Total turnover value at the NSE during the first half was N1.18 trillion with both foreign investors and domestic investors dominating transactions in three months each. But while foreign investors had maintained gradual and steady increase and decline in portfolio adjustments, Nigerian investors showed large fluctuations.

    Nigerian investors dominated the market within the first two months and were supplanted by foreign investors in March and April. Indigenous investors regained dominance in May and were displaced by foreign investors in June.

    Foreign investors accounted for 36.89 per cent, 39.65 per cent, 52.78 per cent, 64.48 per cent, 48.68 per cent and 51.13 per cent in January, February, March, April, May and June respectively.

    Portfolio transactions by foreign investors totaled N61.46 billion, N75.97 billion, N80.14 billion, N122.97 billion, N91.86 billion and N150.24 billion in January, February, March, April, May and June.

    The report underlined the structural outline of Nigerian investors, which was largely skewed in favour of institutional investors. For instance, institutional Nigerian investors accounted for 66.7 per cent or N95.78 billion of domestic investors’ turnover in June, last year while retail investors contributed 33.3 per cent or N47.81 billion.

    The report had shown stronger momentum in foreign portfolio investments in the stock market as the 2013 first-half report was substantially above six-month average over the past five years.

    Foreign investors staked about N4.08 trillion on quoted shares on the NSE between 2007 and 2012. Foreign investors had gradually and consecutively increased their investments in Nigerian equities from about 15 per cent of total market turnover in 2007 all through till a high of about 67 per cent in 2011.

    Foreign portfolios were particularly the main drivers of transactions on the NSE in the past two years, with foreign investors accounting for average of two-thirds of equity transactions between 2011 and 2012.

    The report underlined the early positioning of the foreign investors, who had saw through