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Tag: wealth

  • Wealth means good health, food, bed, says Ex-Punch chair Ogunsola

    Wealth means good health, food, bed, says Ex-Punch chair Ogunsola

    Chief Ajibola Ogunsola has reasons to call up friends and throw a party. Recently retired as the Chairman of Punch, he has seen a company he took over in 1987 resurrect from a near dead situation to become one of the leading dailies in Nigeria. Ogunsola, who is 70 today, went down memory lane, writes Seun Akioye

    It is impossible not to feel contrasting emotion when you are in the presence of Chief Ajibola Ogunsola, especially when the venue of the meeting was Punch Place, the headquartersof  Punch where for 25 years he was the Chairman.

    On one hand, you want to feel at ease with a man who at 70 still exhumes the radiance he possessed 25 years earlier and on the other it was to feel subsumed speaking to a man who got straight Distinctions in his West African School Certificate (WAEC) and bagged a degree in Mathematics, before he became the first Actuarial scientist in Nigeria.

    The Chief, it seems, has lost none of his usual briskness and aptitude for orderliness. He rearranged his personal items in such orderly manner taking care to ensure like items were put together. “I have to re arrange my table; so, it will not look disorderly,” he said with a smile as he finished the task.

    For those who are unfamiliar with Punch, it may be forgiven if you feel the story of the paper has always been rosy and rich. Founded in 1973 by the late Chief Olu Aboderin, the elder half-brother to Ogunsola, the newspaper had a fairy tale rise when it started. But that success was cut short a few years later and when the founder died in 1984, his elder brother, Moyo, invested heavily in the company and took over as chairman.

    He did not last long at the helm as he died in 1987, but by one of those ironies of which fate is never tired, it was the destiny of Ogunsola that seemed tied to that of the company in a strange and intriguing manner.

    “It was a series of family accidents that put me here, the circumstances of the time were such that I had no choice than to become the chairman of Punch. Could I do it? It was very obvious it would be a hard slug. Knowing I had no choice than to become the chairman, I had to face it,” Ogunsola said, suddenly wearing a serious look.

    His status at Punch is legendary. Fondly referred to as “Chairman Emeritus” after bowing out for the founder’s first son, Wale, he still commands the respect and awe which made him the dominant figure in the company for many years. Credit for much of the success of the company today could be attributed to him but he humbly deflected such praises to his team and insisted he was not just being polite.

    Growing up

    Ogunsola’s growing up could be likened to one of a fairy tale, his father, a high chief in the courts of the Olubadan of Ibadan was by no means a poor man. Things were even brighter for his mother who as a successful trader was richer than his father.

    But, as influential as they were, two unrelated events directed the course of his life; one was attending the prestigious Government College, Ibadan (GCI).

    “I have to admit that going to Government College, Ibadan played an important part in my coming out with excellent results. GCI was a big thing in those days and attending the school was a major factor in my life,” he said, still with that smile and the tingle in the eyes which one may mistake for arrogance.

    But, his palm-kernels were not cracked for him by any benevolent spirit; he worked hard to crack them himself. Possessing more than an average intelligence, he came out with distinctions in secondary school, a feat he was quick to point out “was really a distinction in our days” and proceeded to study Mathematics at the University of Ibadan, though not without initial misgiving.

    “I didn’t want to do a Honours in Mathematics because we saw it as a narrow path. It was better to be a professional,” he said.

    But, like a guardian angel, his brother, the late Moyo Aboderin, told him about Actuarial Science and he decided to give it his best.

    “I have never heard of it until my brother told me about it and that changed my life,” he said.

     Ogunsola’s decision to study Actuarial Science later turned out to be the singular act that would prepare him for life in the media, though he did not know it at the time. After graduating in 1967, he took several courses in Actuarial Science and despite the odds, he became the first black African to qualify.

    “When I got the call that I have passed my exams and inducted as a Fellow of the Institute of Actuary, I was so happy, I almost cried,” he recalled.

    Everything he did from there seemed to prepare him for the task at The Punch. He became Life Manager at Nicon Insurance and later the Chief Executive at Niger Insurance where for 11 years he learnt the rudiments of managing people and resources.

    But, family tragedies changed the course of his life and fate put on him responsibilities it had hitherto prepared him for. In 1984, the founder of Punch, Olu Aboderin died, followed by the death of Chief Moyo Aboderin three years later.

    Ogunsola recalled: “The death of my brothers changed the course of my life; I would never have been involved in Punch.”

    However, the stage was set for one of the most definite personalities to take the company beyond its dreams.

    A perfectionist or Hitler?

    When Ogunsola took over the helms at Punch in 1987, someone remarked that the paper was in “Intensive Care Unit” (ICU). It was not a metaphoric statement but a fact of the affairs at the time. Ogunsola also affirmed, saying it was a “hell of a time”, one he “wouldn’t want to go through again”.

    It was worse than starting afresh. The company was neck deep in debt from the banks and bills from long standing libel suits.

    “After Chief Moyo died, there was no big money coming in. I was not rich. I am still not rich; I inherited massive bank loans. So, no bank will borrow us money; so, if the fortunes fall, there will be nowhere to turn to. We had to rely entirely on our wits,” he said.

    Ogunsola had to take drastic actions, many of them painful and unpopular. His long reign was characterised by what many would call high-handedness and brutality. Some have even referred to him as the ‘modern Hitler who whipped the staff into line.’  Ogunsola smiled through it all. He did not seem to be offended or affected by the unsavoury appellations attached to him.

    “Whatever was done was to make things better. I told myself that we must succeed because there was nowhere to turn to if we fail,” he said in a low tone.

    One could almost feel sorry for Ogunsola as he tried to justify his actions.

    “I had to behave the way I did. Throughout my chairmanship, we had problems on grammar, we had to train the staff,” he said.

    But that did not solve the problem and what followed was a string of retrenchment, which created a seeming atmosphere of job insecurity.

    “ A staff that is not competent will pollute the system. They are the ones who become politicians in the company, always saying things that were not true. They polluted the others. There was no point keeping them. One of the painful things we had to do was conduct periodic English test; if you didn’t show improvements, then you had to go.”

    Situation was dire and money scarce. Ogunsola recalled the creditors and the unpaid bills and how he employed, at times, unconventional means to wriggle out of the doldrums.

    “I used to hide under my table when creditors came in those days. One man had come to execute a libel judgment against us and he wanted to take all the air conditioners. I begged him and promised to start payment in 48 hours. The next day, we went to court to ask for a stay of execution, which was the only way we could have survived.”

    The paper also had its fights with the military.

    “Oh the military,” he said, his voice rising with a little excitement.

    “ I think we were first shut down in 1990;  the six weeks closure was intense. I am sure they wanted to kill us. We were just creeping out of the hole. If IBB (Ibrahim Badamosi Babangida) knew, closing us for one month more, Punch would have died.”

    So, what was the magic that saw the company rise to become one of the market leaders today?

    “There was no magic, only hard work,” Ogunsola revealed.

    His training as an Actuarial scientist also prepared him to take logical and deliberate steps after a thorough research.

    “We brainstormed a lot; my singular contribution was to insist and ensure we got information about the working of the system before we took decisions. We tried to measure everything.”

    Not many low moments

    The Emeritus chairman has lost none of his exactitude and deliberate approach. He took his time to collect his thoughts so he could get the exact dates and facts. He was deliberate about the use of language. It must convey his exact thoughts; there cannot be an in-between.

    When memory failed him-as it did a couple of times- it seemed to frustrate him. But the Managing Director of Punch,    Ademola Osinubi was on hand to help him. A note was passed to him; he stopped, put on his reading glasses to read it, and then continued as if he never stopped at all.

    “At 70, I can say that I am fulfilled. I am not excessively ambitious, maybe that is why I am happy,” he said.

    But, Ogunsola’s definition of fulfillment and wealth may be a little strange to the materialistic for they are restricted to these three sentiments: Good health, good food and a good bed to sleep.

    He is very appreciative of being alive. Being the only one remaining of his mother’s six children, he counted it a privileged to be 70 years, a distinction some of his siblings did not have. Instructively, one of his low moments was when an unexpected death of a loved one occurred, especially those involving dramatic circumstances. 1984 was one of them.

    The other is when he loses money. “If I do an investment and it fails and I lost a substantial sum, it takes some time for me to recover,” he said.

    Growing old, looking young

    Someone remarked the Chief was looking good and asked for the recipe. “We have good genes in our family, if you look at my brother, Olu, he was fairly good looking. So, if you eat good food, have a good family and a decent house and you are fairly good looking, you will most likely look younger.”

    He has maintained a healthy diet too but in the hard way. Many years ago, while he had lunch with the Olubadan  of Ibadan, Oba Samuel Odulana Odugade, he was mixing soft drink with beer and seemingly enjoying his life. The Olubadan  cautioned him and since then he stuck with healthy lifestyle and eating habit.

    In his old days, Ogunsola continues to do what he knew how best-  giving directions and leading- but this time through the ongoing National Conference. He has been one of the prominent elders working things from behind the scene and coming to the front when necessary. “Everybody knows Nigeria is in trouble and we may continue to perform below par for a long time. Frankly, nobody knows what will happen after 2015,” he said.

    However, he believes that the recommendations of the conference, if properly implemented, may still rescue Nigeria out of the blues and wants the recommendations to be seen as total package not individual ideas.

    His is the story of a man who has been defined by one of the offices he has held: chairmanship of Punch. Only a few remember he was the first Nigerian Actuarial Scientist, fewer still remember he once held the strings at Nicon and Niger Insurance. But everyone remembers the time of Ajibola Ogunsola at Punch and as President of the Newspapers Proprietors Association of Nigeria (NPAN). For an unbiased interrogator, Ogunsola has contributed more to journalism. He holds the chieftaincy of Baa Royin (Chief Newsman) of Ibadan land.

    Today, the doyen clocks 70 years and congratulatory messages will flood the newspapers and perhaps airwaves. But has the doyen bid a final goodbye to the media? Not in the least. He sits on the board at  Punch where he continues to give his expert advice and input into that company. To cater for his pecuniary needs, he relies on the dividends of past investments, which, he said, is enough to make him live a good life. At least in the Ogunsola fashion.

  • How to make wealth

    How to make wealth

    Author: Brian Sher
    Publisher: Prima Publishing
    Reviewer: Goke Ilesanmi

    Yoruba adage says anybody that does not know where and how his or her mates got wealth will just pursue wealth aimlessly until he or she will die.  To prevent such tragic or aimless pursuit of wealth, this book tagged “What Rich People Know & Desperately Want to Keep Secret” has been written to offer necessary guide on how rich people do it.

    It is written by Brian Sher, who bagged a degree in Marketing from the University of New South Wales. Sher’s subsequent business travels overseas sparked his interest in consultancy. He says most people dream of being rich. Sher adds that a relative few set off on a different journey, a journey so challenging and demanding, yet so exciting that it brings new life and new meaning. He says in the end, many of these dreams are also shattered as a result of lack of knowledge of what rich people know.

    This book has six parts of 44 chapters. Part one is christened “The basics of success”,and contains four chapters. Chapter one is interrogatively titled: “What are riches, and what do rich people do?”According to Sher here, nearly everyone in life wants to make more money and the truth, however, is that being truly rich in life is not just about having more money but striving for balance in all aspects of your life.

    Chapter two examines your first step on the road to riches. Here, Sher says in everything we do, we have to consider where we are coming from, what business conditions are now and what we have to know before we begin.

    In chapters three and four, Sher discusses why more businesses fail than ever succeed and four critical advantages your competitors can never have.

    Part two is conceptually summarised as “You”, and covers 14 chapters, that is, chapters five to 18. Chapter five is based on the starting point for all riches. Here, the author says one thing he discovered early in his business career is that there is no point in reinventing the wheel.  Sher stresses that for this reason, you must learn all you can from successful people, in the form of reading their books, learning about their lives, talking to them, etc. He expatiates that as a result of his studying successful people very well, he has been lucky enough to discover many of the habits they have in common.

    The author says the richest and the most successful people are the most-rounded people. Sher educates that he has found out that most successful people have 36 personal qualities, some of which are: practising perfectly to make perfect; having an open mind; flexibility; focusing on continuous self-improvement; dreaming big dreams; having a clear sense of direction; setting goals; becoming self-employed, etc.

    In chapters six to 18, Sher identifies education as the only one shortcut to success; stresses the need for you to dream big and be unique or be nothing at all. He advises you to ask for help, adding that you will be surprised at what will happen. Sher says you need something far more valuable than money before you get rich. He stresses that passion is the secret weapon of the rich, adding that rich people feel alive and exhilarated because of risk. Sher advises you to take responsibility and take charge. He says you should move fast or get out of the way, adding that you should always be self-employed.

    Part three is tagged “Your marketing”, and contains eight chapters, that is, chapters 19 to 26. Chapter 19 is titled: “The machine that drives your business”. According to Sher here, marketing is the second critical area of your business and the machine that drives your business.

    In chapters 20 to 26, this author defines marketing and reflects on the number one reason why most people never get rich. Sher also examines concepts such as the death of market share; making it easy for customers to buy; how advertising can kill your business; 50 per cent of something being better than 100 per cent of nothing, etc.

    Part four is conceptually summarised as “Your people”, and contains five chapters, that is, chapters 27 to 31. In chapter 27 based on how to get your employees to fall in love with your company, Sher says he has always stressed that your people are your greatest asset and one of the four critical ways you can gain a competitive advantage. In his words, “No one … can compete with individuals who actually enjoy their work, who have fun with customers, and who actually care about customers.”

    In chapters 28 to 31, Sher examines the concepts of how to hire the right people; getting good people, then holding on like Hell; frequent use of all your resources, including your entire brain pool; and the redundancy of one person if two people think the same way.

    Part five is generically christened “Your systems”, and contains nine chapters, that is, chapters 32 to 40. Chapter 32 is entitled “Why systems are so important”. “Systems are one of the four competitive advantages you have … Drawing on your experience, learning from trial and error, or using meticulous planning, you can use systems to maximise your efficiency and minimise waste,” submits Sher.

    In chapters 33 to 40, this author examines concepts, such as how to make the complex seem easy and sell your business quickly and easily; leverage as a word that makes people millionaires; focusing on money-making activities and delegating to others; tendency for problems to happen once; how to measure performance; the need for you not to gamble your profits away; the need for everyone to know your business, etc.

    Part six is conceptually woven together as “Things to remember”, and contains four chapters, that is, chapters 41 to 44. Chapter 41 is based on the need for you to realise that growing too quickly could mean getting too big for your boots. According to Sher here, “Although it’s fun and exciting to grow, growing too fast can also kill you …”

    In chapters 42 to 44, this author X-rays concepts, such as the possibility of the word Trust to be a four-letter word; the need not to go it alone; and the impossibility of creating successful people.

    The ideas offered in this book are very creative, effective and pervasive.  Stylistically, this book is a success. Sher includes boxed messages where he radiates powerful messages and recapitulates his major gist in every chapter. The use of black and grey colours on the outer cover of the book reinforces the subject matter. Black is for ignorance and grey for knowledge because “grey matter”means “intelligence” or “brain”.

    However, Sher should have used the coordinating conjunction “And” instead of the symbol “&” in the book’s title. Generally, this book is fantastic. If you want to get rich through knowledge of the secret of getting rich, you need to read this book.

  • Sovereign Wealth Fund ‘in nation’s interest’

    Sovereign Wealth Fund ‘in nation’s interest’

    Shortly after addressing the UN General Assembly yesterday in New York, President Goodluck Jonathan was “ambushed”  by The Nation correspondent Adeola Oladele-Fayehun, who interviewed him for about one minute.

    Do you think it’s OK to go ahead with the sovereign fund when the governors are in disagreement?

    Sovereign fund is for the interest of the nation, it’s not for the interest of Mr. President. Anybody who is disagreeing with the sovereign fund, doesn’t really appreciate how nations manage their resources. That is one thing we have done that all the professionals at the World Bank, IMF, and other institutions that manage finances appreciate that the government has a focus. And it has helped to give us a better focus in terms of the economic stability.

    So if anybody is going against it, it’s quite regrettable.

    But I don’t think the governors are against it anyway.

    But that’s why they took the issue to court. Is it democratic that they’re not for it and you’re going ahead?

    We did that with the consent of the states. The federal government did not impose it on the states’ no!

    What exactly are you doing to stop Boko Haram?

    We’re working very hard on that.

    How exactly sir?

    We’re working very hard.

    And 3,000 people have died?

    Maybe you need to update your statistics.

  • Stop celebrating ill-gotten wealth, Jonathan urges Nigerians

    Stop celebrating ill-gotten wealth, Jonathan urges Nigerians

    President Goodluck Jonathan has urged Nigerians to stop celebrating ill-gotten wealth to discourage corrupt practices.

    The President spoke yesterday at the 54th annual conference of the Nigeria Economic Society in Abuja.

    He said: “For us as a nation to bring corruption down in Nigeria, it’s not just blaming the government or blaming the police. But all individuals must frown at people who have what they are not supposed to have; those who live in houses they are not supposed to live in; those who drive cars they are not supposed to drive and wear suits more expensive than they can afford.”

    Until Nigerians are able to do this, Jonathan said, the nation’s journey to greatness would be hampered.

    He said: “Invariably, we are all rewarding corruption. And until we stop that, I don’t think we will get to where we want to go.

    “If a young man, who just started a job and within six months or a year comes up with a car of N7 million to N15 million and you clap for him, then you are rewarding corruption.”

    The President stressed that if Nigerians collectively refuse to reward corruption and frown at it, “people would not be attracted to corrupt practices; but when we all reward corruption, then of course we will be tempted to go in that direction”.

    Jonathan said he desired a Nigerian society “where all of us will frown against people who come up with what they are not supposed to have”.

    According to him, his administration’s approach to fighting corruption includes building institutions with the capacity to overcome corrupt influences. “This approach uses the rule of law as a framework to fight corruption,” he said.

    His administration, Jonathan said, has repositioned the leadership of the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences (ICPC) to ensure more effective, efficient and transparent ways of managing corruption and corrupt practices.

    The government’s effort at strengthening the capacity of state institutions at fighting corruption, the President said, “is not limited to granting independence to EFCC and other anti-corruption agencies”.

    He added: “It extends to developing affordable finance for housing, car ownership, among others, as we believe that taking measures to help realise aspirations to own their homes and fund those things that make life easier can also aid the fight against corruption.”

  • Panacea for wealth, happiness

    Panacea for wealth, happiness

    It is a reality that wealth and happiness are two of the great desires of human beings. In short, they often go together because most people that are financially wealthy often feel happy because of the attendant financial abundance. I am sure this realisation must have informed Jim Rohn’s decision to entitle his book “7 Strategies for Wealth & Happiness”. Rohn is America’s foremost business philosopher who has helped people of all walks to improve their lives.

    In this text, Rohn offers guide on how you can unlock the fountain of your prosperity inside of you. The author reveals the seven valuable strategies that are central to your achievement of success and enjoyment of happiness. According to Rohn, for you to realise your aspiration of enduring success and happiness, you need to unleash the power of goals; seek knowledge; learn the miracle of personal development; control your finances; master time; surround yourself with winners; and learn the art of living well.

    This text is segmented into seven strategies (parts) of 11 chapters. Rohn isolates chapter one from the strategic segmentation, thus grouping chapters two to 11 into seven strategies. In chapter one, he examines five key words.

    According to Rohn, all the ideas in this book stem from a group of key words. He adds that to understand this book, therefore, and get maximum value from its contents, it is essential that we examine these key words one after the other.

    These key words, according to Rohn, are “Fundamentals”, “Wealth”, “Happiness”, “Discipline” and “Success”. He says fundamentals refer to those basic principles on which all accomplishments are built. “Fundamentals form the beginning, the basis and the reality from which everything else flows,” he adds.

    As far as the second key word “Wealth” is concerned, Rohn submits that wealth is a controversial word because it brings to mind a wide variety of images and sometimes conflicting concepts. The author educates that to one person, wealth may mean having enough money to do whatever he or she wishes; and to another, it may mean freedom from debt, etc.

    As regards happiness, Rohn observes that happiness embraces the universal quest, a joy that usually accompanies positive activity. He says happiness is the skill of reacting to the offerings of life by perception and enjoyment. Rohn expatiates that it is achieved by both giving and receiving, reaping and bestowing.

    In his words, “It belongs to those who are in control of both their circumstances and their emotions. Happiness is also the freedom from the negative children of fear such as worry, low self-esteem, envy, greed, resentment, prejudice, and hatred.”

    As far as the last key word, that is, “Success” is concerned, the author educates that it, too, maintains elasticity of interpretation. Rohn adds that it is an elusive notion, a paradox as it is both a journey and a destination. “Success is both accomplishment and a wisdom that comes to those who understand the potential power of life,” reflects the author.

    Strategy one of this text is generically labelled “Unleash the power of goals”, and contains three chapters, that is, chapters two to four. In these chapters, Rohn examines the concepts of what motivates people as regards goals, how to set goals, as well as how to make goals work for you.

    In strategy two that is notionally christened “Seek knowledge”, and contains one chapter, that is, chapter five entitled: “The path to wisdom”, this great business philosopher says one of the fundamental strategies of living the good life is to know what information you need to achieve your aims. Rohn says once you know what you need to know, it is also helpful to know how to go about gathering that knowledge.

    Strategy three is labelled “Learn how to change”, and covers just a chapter, that is, chapter six, which is based on the miracle of personal development.

    In strategy four that is notionally summarised as “Control your finances”, and contains one chapter, that is, chapter seven, which is based on how to achieve financial freedom, Rohn emphasises the importance of taxpayment, the 70/30 Rule, charity, capital investment and savings to achieving financial freedom.

    Strategy five is tagged “Master time”, and covers just a chapter, that is, chapter eight, which is based on how to be an enlightened time manager, while strategy six is based on the need to surround yourself with winners.

    Strategy six covers chapter nine, which discusses the principle of association. “One of the major influences shaping the person you want to be is also one of the least understood. It is your association with others – the people you allow into your life…,” says Rohn. He adds that the influence of those around you is so powerful and subtle that you often do not realise how it can affect you.

    In the last strategy, that is, strategy seven which is tagged “Learn the art of living well”, and covers two chapters, that is, chapters 10 and eleven, he examines your road to richer lifestyle and the day that turns your life around. “Think of something you can do today to make you feel richer and better about your life…,” advises the author. Rohn says you should be happy with what you have while pursuing what you want.

    Stylistically, this text is a success. Apart from the simplicity of language, the presentation is also logical. Brilliant segmentation of the chapters into different strategies makes this text very reader-friendly. What’s more, to achieve conceptual reinforcement and ensure easy understanding on readers’ part, Rohn uses biblical allusions as well as autobiographical illustrations.

    However, “And”, the coordinating conjunction of adding should have been used instead of “&” in the title of the book to convey linguistic formality. Another error noticed in the book is, “I was yet to understand….” instead of the Standard British English version “I had yet to understand….” Please check any standard dictionary for confirmation of this standard usage.

    Generally, the text is a fantastic. If you aspire to be wealthy and happy in life, then it is a must-read for you. It is simply a must-read.

     

    PS: For those making inquiries about our ongoing Public Speaking and Business Presentation training programme, please visit the website indicated on this page for details. We are here to satisfy you. Till we meet on Monday.

  • ‘Nigeria’s wealth lies in agric’

    ‘Nigeria’s wealth lies in agric’

    Since the discovery of oil, Nigeria seems to have abandoned agriculture from which it used to generate revenue. With the threat of its oil drying up in a few years, is it not time for the country’s return to the land? Yes, it is, says Mr Biodun Onalaja, Chief Executive Officer, Hyst Global Business Ltd, in this interview with Daniel Essiet.

    How is the volatile food price impacting efforts to reduce hunger?

    There is a big problem, especially for the masses. I think the government needs to empower food producers to produce more food. We require some staples daily as productions are seasonal. Not only is production seasonal, it varies with the weather. Efforts to address food security must also focus on building the purchasing power of vulnerable people. Only a few Nigerians have adequate purchasing power.

    With very low stocks and dramatic fluctuations in price levels, the degree of insecurity is high. I expect prices to continue to rise due to supply shortfalls in some parts of the country because of flooding and other elements of climate change. We have to make improvements in food security. It is important to address price volatility.

    It makes small farmers and poor consumers vulnerable to poverty while short-term price changes could have long-term impacts on development. The Federal Government needs to put in place a transparent and predictable regulatory environment that promotes private investment and increase farm productivity. We need concerted efforts to boost investment in the entire value chain, especially, post-harvest processing. On the whole, management of our natural resources, forests and fisheries are critical for the food security.

    Is eradicating hunger by 2025 achievable? How can the government meet this target?

    Yes, of course! Government could put more efforts into agriculture, and encourage unemployed graduates to go into mechanised farming by providing free land, agricultural inputs, and funds for them to produce more food. In fairness to the government, there is a tremendous attempt to revamp agriculture to contribute more to food security and reduce hunger.

    Defeating hunger is an ambitious goal. We cannot end or eradicate hunger totally. What we can achieve is to improve our potential to feed more Nigerians by promoting intensive commercial and family farming. We must ensure quality food for public school pupils, open new markets and introduce the possibility of higher incomes for farmers and boost development in the rural areas. My concern however, is achieving a unification of the various agricultural productivity interventions with innovative social protection programmes. We want to see a situation where the programmes run by states and the FederalGovernment, irrespective of party affiliation enhance the opportunities for the poor to live well and for the unemployed to be engaged in food production.

    If we achieve unification of interventions, we can expect a situation where the research findings from the universities and specialised research institutes and efforts of private investors and corporate agric businesses can be harnessed to boost agricultural production. What Nigerians need is an enabling business environment, which supports income growth, and assurance of rewarding markets for small-scale producers.

    Government has to take all necessary measures to accelerate agricultural growth and strengthen the dynamism, resilience and inclusiveness of the farming industry. We should reposition agriculture to support wealth creation. We need all the legislative changes to institutionalise national action and commitment to hunger eradication. We must recognise that a large number of households continue to face food insecurity and malnutrition due to low food availability, low income, unemployment, risk and vulnerability, poor access to basic services, including health, water, sanitation and education.

    Government must work with stakeholders to ensure that bold, urgent, determined and concerted actions are taken to address agricultural development and food security challenges in a coordinated fashion. That is the only way we reduce hunger in this country. It required a multi-faceted frontal attack from all sides. Not only helping farmers to increase production and productivity, but also looking at access to food, and ensure that poor families have the means to buy their food. In line with this goal, I see the Federal Government making a significant progress and efforts toward eradicating hunger by 2025.The fight to end hunger and poverty must be raised up to the level of policy if lasting results are to be achieved. Government must promote and articulate various fronts for action.

    Are you confident that there is the political will by the government to eradicate hunger?

    Yes. I see a strong resolve by the leadership of the Federal Ministry of Agriculture and Rural Development. Such a positive response is important. We have the highest level of involvement from the Presidency. The ideas of the Minister of Agriculture are well received. The agric sector is experiencing an extremely positive period.

    The challenge of the government is how to transform agriculture to protect biological biodiversity and reverse its destructive capacity, without restricting its mission to feed a growing world population. What is your take?

    As we grow food, it is important we preserve our biological diversity. This is because it plays an important role in sustain in our communities. Biological diversity has contributed in many ways to the development of human culture, and mankind has in turn influenced biological diversity. We are talking about plants and animals, both wild and cultivated. They play a part in our complex and diverse agro ecosystems. On a broader level, there is relationship between agricultural biodiversity and the functions of agro-ecosystems at different spatial and temporal scales. To this end, the government should outline its policy reforms to sustain agricultural biodiversity and agro-ecosystem functions.

    In different ways, the government should try to deviate from monoculture agriculture, which drastically reduces the variety of plants in the respective ecosystem, since animals and insects are directly dependent on them. We want the government to transform agriculture into a good administrator of biodiversity and reverse its destructive capacity, without restricting its mission to feed a growing population. The agricultural transformation agenda should include concerns for the protection of biodiversity in order to be sustainable and make a positive change in the long run.

    Why the focus on rice production?

    Rice is one of the most important sources of dietary energy in sub-Saharan Africa. We are growing and eating more rice. The revolution is driving states into ambitious production programmes. Numerous investments have been made by governments to revamp the rice sector. It is difficult to capture all investments both at the state and local government levels. We are part of such efforts which will make a big difference.

    The rate of paddy rice production has shot up. It is crucial we maintain the trend because rice consumption is increasing. I would like to say that we are making remarkable progress in rice production. Within the next five years, we should double the current growth rate to satisfy increasing consumption. What is important to us as big time agro business concern, is that there is stability in the policy management process. This will result in stable food supplies and prices. This is crucial for credible and effective governance. We are working with the government to ensure Nigerians have access to adequate affordable food for themselves and their families. What the government is trying to achieve within the rice sector is not a panicked response. We are witnessing a longterm strategic planning effort. This is critical to food security. This strategy makes sense, because it is easier to stabilise domestic food prices using domestic production. On the balance, we see a policy designed to allow households have reliable and sustainable access to nutritious and healthy food.

    What are the prospects for the rice value chain?

    The emergence of an integrated local value chain constitutes a fundamental change in the rice sector. Investors are involved in the creation of new industrial and semi-industrial rice mills, capable of producing milled local rice of high quality. These mills enter into contractual relationships with out-growers, who receive seeds and inputs from the mill. The out-growers sell their rice production to the mill.

    This allows mills to secure a reliable supply of high quality paddy rice. This rice is then processed into milled rice of high quality that is sold through a network of shops. The industrial rice mill is fast becoming a leading actor in the rice market. On the balance, total local production has not led to reduction on imports. Steady demand for rice represents an opportunity for producers who are integrated to the market. Projects aiming to support rice production are all over the place.

    What trends do you see in financing food security?

    A number of agricultural development institutions are already involved in funding a variety of projects across the country. Efforts are focused on building a resilient and inclusive financial system that frees the credit ceiling for farmers. States through their agencies are working to foster a considerable increase in food production through financing input subsidy programmes. What we need however are specialised financial vehicles to expand investments in agriculture.

    Government needs to guarantee innovating enterprises a minimum market and thereby reduce the risk related to market failures. It is very critical that the financial system evolves credit models that cater for all levels of farmers. The annual budget allocation to agriculture is limited to address the current investment gap. Though public investment is necessary to build up a favourable environment and the required infrastructure, a large proportion of the required total investment should be made by private actors. Private investment is therefore key to agricultural development. We need an environment favorable to private investment .We need a special fund to support manufacturers of inputs or agricultural equipment.

    We have seen multinational commodities buyers financing smallholder farmers who are tightly integrated into sourcing value chains. These models have been successful, but they reach only a tiny portion of smallholder farmers. Companies such as Olam Nigeria is outstanding here. They are keen on expanding and protecting their value chains, improving quality, increasing productivity, and meeting sustainability commitments.

    One challenge, however, is that majority of small farmers lack access to finance for various reasons. One is lack of financial literacy. The cost of credit is high, especially the cost of longer-term credit appropriate for capital investments. Without access to credit, most farmers are confined to sub-optimal inputs and methods, and therefore to low productivity.

    In most states now, farmers belong to cooperatives and producer organisations. These days, farmers don’t use social lenders, I mean money lenders. The government advises farmers to join cooperatives. Through such groups they benefit from long-term finance. The market is growing as more farmers join producer organisations. Many multinational buyers have captive value chains organised around out-grower schemes that involve production contracts with farmers. Be that as it may, I think there is a need for better industry coordination to address the smallholder financing gap. Growing the industry requires innovation and investment. There is space for a multitude of actors, including banks, donors and multinational buyers, all of whom have different capabilities, timeframes, and risk-return appetites. Banks generally have not built a successful model for improving smallholder livelihoods through financing. As smallholder productivity and profits increase, livelihoods improve, and smallholders can escape the cycle of poverty.

    Which financing instruments have been most successful in helping food security?

    It depends on the type of investment. We see a broad range of financing instruments of financial institutions to take care of the needs of farmers and food producers.

    The major concern is the small farmer. They form a major part of the supply chain. A lot needs to be done to help them during pre and post-harvest activities.

    If the Central Bank of Nigeria (CBN) can compel financial institutions to lend at a low rate to value chains in agric sector, it will attract more people to agriculture, and in the long run boost inputs and outputs. One outstanding programme is the commercial agricultural scheme started by the CBN in 2009. It is one of the best so far. The CBN pumped N200 billion into the sector.

    What do you think of the role of NIRSAL in financing agriculture?

    We are still waiting for the CBN to roll the scheme out to see how commercial banks will embrace it. NISRAL is established to reduce banking risks by granting guarantee on loan portfolios.

    How about the Bank of Industry (BoI) and Bank of Agriculture (BoA)?

    They are trying, especially the BoI that is helping industries to grow with lower rate. The Bank of Agric could do better, if the Federal Government puts in more money as they did for the BoI to give to farmers because they are professionals when it comes to grassroots farming.

    Where are the opportunities to attract more investment in food security?

    Investing in agri-sector has become more economically and politically attractive and it has contributed substantially to food security. In particular, private investors have placed their focus in Africa due to the huge growth potential, increasing demand, and improved political situation in many African countries. You see foreign companies seeking opportunities to invest in Nigeria’s agric sector. This follows a holistic approach considering factors, such as economic, environmental and social. Private investment flocks to countries which have the best legal and political systems. Though we are on the right track in terms of trying to create an enabling environment for investors, but there is still room for improvement. Among leading African states, we have the highest growth potential in the agri-sector. What we need now are changes to improve governance, legal stability, and transparency and creating reliable tax systems.

    What can be done to improve food production?

    By providing an enabling environment for farmers, through financing which is the main problem farmers are going through in Nigeria. Right now there is a need to structure food value chains from farm to fork. There are large and fast growing urban markets in Lagos and other parts of the country, whose food needs must be supplied from the farms. We need incentives for farmers and others to invest in increasing their production.

    We can make large gains in food security if we improve in tackling high post-harvest losses. Meeting the growing demand for food will require that we double production. This will pose a major challenge, particularly for farmers; investments are required to support expansion in agricultural output. We are talking about investments in primary agriculture and necessary downstream services such as storage and processing facilities.

    Do you share the view that agric is still a remote sector for most Nigerians?

    Yes I do, until more elites see agriculture in this country as a good income earner more than the crude oil. Let us take Malaysia and Brazil as examples. They earn their income from agriculture. Nigeria, with her vast arable lands, can do better. We have a situation where a very large number of farmers is turning 65 every year. As people age, the industry is affected. We can’t expect very high growth when people are quitting the industry. There are windows of opportunities to explore. I want Nigerians to change their perception of agriculture. The real wealth of the nation is in agriculture. We should identify our comparative advantages. Agriculture is a natural source of exports. There are jobs in bringing in seeds and fertiliser, in water management. There are jobs in bringing the product from the farm. There are jobs in inspecting the quality of the product. The financial sector should support it. Agriculture generates a huge number of jobs, and it could generate even more if we emphasise that. Agriculture is nourished by its infrastructure. Government should build infrastructure.

    To what extent can issues such as climate change, fair trade practices, commodity pricing, and urbanisation impact on the livelihood of small farmers?

    With rapid climate change, it has become difficult for farmers to maximise production within that climate system. The climate is changing. With each passing year, the agricultural system is becoming more out of sync with the climate system. The climate is now in a constant state of flux, making it both unreliable and unpredictable for farmers worldwide. This affects agriculture in many ways. Weather scientists have told us to expect heavy rains to be more frequent and more intense. How we cope will determine the pace of our progress in providing adequate food security. Educating farmers to adapt to the effects of climate change is vital, as well as sound agricultural practices.

    Fair trade practices are the buzz word in international agric trade. There are regional efforts now to empower small farmers in value chains and market access and to strengthen their capacity to negotiate better prices for their products and better market regulation policy.

    How does cutting aid affect agricultural development projects?

    Agriculture is a bright spot in the growth platform. To the extent, it is been made aid oriented. It is important we seek aid to accomplish broad-based economic development through agriculture. But aids from all industrialised nations have plummeted. Advanced nations are becoming more strategic with their aid programmes. There are many ways of looking at foreign assistance. We can ask donors to train our famers and provide improved seeds. We can then leverage out limited resources to build indigenous skills and promote private initiative. We have to support our farmers to capture market share, teach them marketing, bring back cooperative banking. It will pay off manifold. We have to be serious about finding new markets, about creating new business opportunities for our farmers.

    What do future agribusiness leaders need to prosper? What are some of the challenges for agribusinesses?

    Development priorities are the needs of agricultural commerce and rural society. We expect continuing growth with new opportunities, and the consumer is changing, and demanding more from food producers. We have to position the sector to capitalise on such trends. There will be more opportunities for professionals to lead agribusinesses. They to learn about agribusiness and build leadership skills. There will be opportunities for people to work as food producers, farm and ranch managers, in crops, soils, plant, animal, food and nutritional sciences, horticulture, new product development, strategic planning, marketing, management, and other careers. They need to satisfy preferences in a changing world be open to new ideas. Industry leaders expect graduates to have several skills improve the ir farms and food processing businesses. Food and agribusiness companies look for in their new employees with the potential to become future leaders in their firms. The agricultural business economy needs and desires managers and leaders with a blending of education in applied agricultural science and business skills.

    All over the world, the best way of agric farming is to go mechanised farming.

    Let us talk about measuring performance in the agric sector.

    It is very important. Addressing food security is fruitless without measurement tools and benchmarks. The government needs to commission studies and use certain benchmarks to measure performance as it affect critical food security issues and make better informed decisions, develop collaborative partnerships and create effective local policies to address specific needs.

    What is the mission of your company in the agric sector?

    Our mission in Hyst Global Business Limited is to be one of the leading companies in Nigeria to make food get to the table of the average Nigerian at affordable rate, Also to reduce unemployment rate in our country by employing more people in our locality as the farm expand.

    Within your strategic framework, what are your major priorities for the next four years?

    My major priority for the next four years is to start processing our Paddy Rice to polished one for local consumption, and enter Nigeria market.

    What problems of small and medium sized enterprises are you aiming to solve?

    How to get low rate financing for our out growers scheme, and how to get them trained to do farming in a mechanised way to enable them earn more profits.

     

  • Sovereign Wealth Fund mulls monoline insurance to attract investors

    Sovereign Wealth Fund mulls monoline insurance to attract investors

    The Nigeria Sovereign Investment Authority (NSIA), statutory fund manager for Nigeria’ s sovereign wealth fund (SWF) is working out arrangements for a monoline insurance system that will enhance the credit worthiness of investments and the flows of foreign portfolio and direct investments into the country.

    Monoline insurance refers to provision of guarantees against defaults in a financial or investment transaction. It makes use of credit wraps to enhance the creditworthiness of an issuer or an investment project. Credit wrap, a form of financial guarantee, specifically insures a stated well-identified part of a transaction, thus the use of multiple credit wraps to cover as many parts of a transaction that may be required.

    Managing Director, Nigeria Sovereign Investment Authority (NSIA), Mr. Uche Orji, at the weekend disclosed that the sovereign fund manager was putting together a monoline insurance arrangement that could perform roles similar to credit guarantee and enhancement companies.

    He said while the law setting up NSIA does not allow it to perform the functions of credit enhancement, the sovereign fund manager is working around the statutory limitation through monoline insurance to enhance the attractiveness of Nigerian investment proposals being promoted by the NSIA to other sovereign wealth funds and fund managers.

    Credit enhancement generally refers to a process of reducing default risk or loss through a counterparty guarantee by an unrelated party or a related provision within the transaction. Credit enhancement provides comforts to most foreign investors against domestic risks, especially in emerging economies. This increases chances of fund raising and success for the transaction. Nigeria has neither a stand-alone monoline insurer nor a credit enhancement company.

    Orji said the NSIA combines the role of a sovereign fund manager with that of national investment promotion thus the need to put in place best practices that meet the stringent structural and procedural requirements of other sovereign wealth fund managers.

    He hinted that NSIA was discussing with other fund managers on some landmark investments in the country.

    He outlined that NSIA’s investments would in the meantime revolve around opportunities in housing, health care and transport sectors highlighting signal investments to possibly include toll roads and bridges.

    He pointed out that the development of credit guarantee would boost the development of the Nigerian capital market, which would have multiplier effects on all stakeholders.

     

  • Commerce, wealth and global  power

    Commerce, wealth and global  power

    At  the just  concluded  G8  summit  of the world’s  wealthiest  nations,  in Lough Erne N Ireland,  talks are  to begin on   a deal   said   to be worth 100  bn pounds  which is expected   to be the biggest trade deal the world has seen so far.  The deal  which is expected to take  off in two years time is expected to create 2m  jobs.  This  again   has  buttressed   the well known fact  of  history,  economic growth and development,  that  trade and commerce    are   the engine   of wealth  and prosperity   amongst  both individuals and nations. Adam Smith’s seminal book Wealth  of Nations come to mind in this regard  although in a different perspective. Today  I  look at wealth creation amongst individuals  and nations and its relationship with the acquisition of power and influence, as well as  the use of such wealth for the development  of society  and the world at large.

    Let  me first of all assert that I see the  mega  US – EU  deal  famously   called – 100bn  economic bonanza   as   a game of economic survival  in which   the western world  is trying its best not to play second fiddle globally   in commerce  to  the  robust  Chinese economy.  This  is a global   trade dragon  which is striking deals  all over the world looking for oil, minerals and products   and building airports, highways and   seaports it needs to  access and  open up the world economy  and get the resources  to  satisfy  the mammoth   consumption demands of   its  over  one billion people,   making  China,  the world’s largest economy   in terms  of population. In   addition   the South East Asian nations especially the Asian tigers   namely  S Korea, Japan, Taiwan, Malaysia,  Hong Kong, Singapore, Thailand –  seem  to have evolved an economic strategy  that made them immune to the ravages of the  2008 global melt  down – a situation   western nations have found embarrassing and unacceptable as they felt that they  taught   SE  Asians the market economics that Asian global companies have mastered so well and have used   so  profitably. Similarly,  the Latin American nations of S America   seem  to have  weathered  the global  melt down of 2008  admirably  to the chagrin of the west.  Brazil  bagged the hosting of two lucrative sporting events  based on its performing economy and national wealth  in a world  filled  with struggling economies which dared not bid for such hosting. But now that seem to have attracted the ire of its people who were demonstrating  this week  at the   FIFA Confederation Cup soccer venues in Brazil  and protesting that the wealth of Brazil has not trickled down to the masses  and is located amongst the rich or the soccer barons in Brazil . Which really is tragic,  given Brazillians well known love for soccer and the trouble former President  Lula Da Silva   went through  in getting both the 2014  World Cup  and 2016  Summer Olympics  Hosting Rights  for Brazil.

    Compare  this with  the news from neighboring Cameroon where the Chairman of the national football  association got  elected in an election he was not present at because he was in police custody on corruption  charges  based on his actions as the boss of the football  body. It was alleged that FIFA  told the Cameroon government that he must be allowed to contest and the government played ball because soccer is popular in Cameroon and of course Issa Hayatou, the long serving FIFA Vice Chairman is in support  and is calling the shots in muzzling his own government in  the fight against corruption in Cameroon. Which really shows the other side of the coin in the misuse of power  by the powerful and wealthy   against  the larger public good of society  and in the  pursuit of selfish  interests.

    Let  me also state here that wealthy individuals have a head start  in getting power and influence in any society  that is highly materialistic. Nigeria is of course   is such a society   in which successful business men in politics have superior advantage   over less endowed  political competitors  in getting elective offices through the use of their wealth.  In  the past this was not so as most Nigerians refused to take money to vote for the highest bidder. But that has since changed as politicians have asked their supporters to take money if  offered by their opponents  since it is stolen money but to still vote for the man of their choice. Which really is a sort of moral quandary.

    Wealthy  individuals  can also be target of  some governments in distress or dire economic straits. A  good example is that of the tax  fraud case involving Lionel  Messi in Spain. The  Argentine soccer star and his  dad have been arraigned this week for tax evasion  to the tune of  4m euros . This comes at a time when Spain is in financial crisis  and the rate of unemployment amongst youths is at its highest. It also comes at a time when  the Argentine government has nationalized Spain’s interest in the largest  oil company  in Argentina. Argentina also  has struck oil  and  is facing a better future  now than   Spain which during Argentina’s debt default crisis of   2001   bought  Argentine prized assets  for pittance. Spain  of course  was  the colonial  master  of Argentina and indeed  the whole of Latin America except Brazil. During  the  colonial era Spain used  the plantation system and pigmentisation to exploit and repress the local communities  which have now become wealthy nations unwilling to help Spain out of its present economic distress  after wasting  over  the years,  the huge wealth it acquired under colonialism. Today Spain  is one of the debtor nations of the EU called PIGS namely Portugal, Ireland. Greece  and Spain

    Similarly  in the comity of nations the vocal nations are the commercially successful ones. Never mind that when the tall leaders of the G8 stepped out for a walk this week  on CNN they easily outpaced German Chancellor Angela Merkel,  the only woman in their   midst  as she disappeared into the background. Germany   indeed is a  ringing voice of wealth and commerce  in the global  comity of trade and commerce, very well respected for its export of quality engines  and the tested skills of its companies  and their personnel. Also  aside from David Cameron, the   President  of Russia  Vladmir   Putin  glowed  with pride  at  the  G8  talks  for obvious reasons . Russia is awash with oil money as the largest producer  of oil in the  world   and together with China,  the largest  consumer,  it is building the longest pipeline in the world between their two nations. Similarly China’s new leader and his beautiful wife were given the red carpet treatment in the White House and the Kremlin recently  because China has become the sweet  bride of global business, commerce and politics. Undoubtedly Russia’s new found wealth has been translated into diplomatic mettle  and is being used to counter US policy in Syria successfully to keep Syria’s President Bashar Assad  in power against all  odds.

    I  look  at the new US –EU   deal  as an  economic innovation in the very best tradition  of Schumpeter’s theory that for  companies to survive they must continually improve and look for new ways of doing things.  The   same   applies  to  nations and this  is what this deal has revealed. The  western world has woken up from its arrogant slumber atop world trade and commerce and the WTO  wrangling and distraction and is now ready to compete   in a global market  whose structure  and substance have rendered its  present  trade and  economic strategies   obsolete  and redundant.  By  opening up borders  and removing trade barriers, the US  and EU  nations are opening up new frontiers just as the US opened up its wild, wild west in days of yore. The arrogance of limiting wealth  and commerce through extravagant control of competition should give way to  vibrant  and support  for innovation and innovative deals that  enrich the quality of life in the environment  and provide jobs and security for all  hard working people in as many companies and institutions as possible. This  is what ECOWAS should emulate in West Africa. Especially now that Ghana  our neighbor has struck oil.

    Politically Ghana seem to be ahead of Nigeria in  terms of respect for democratic values and a ruling party has lost power in an election   there   and there was no post election violence. But Ghana should not copy the way Nigeria has mismanaged its oil wealth whose distribution  of   oil wells have created individuals wealthier than some states. It  should  not allow a situation whereby oil theft  is tackled  by giving security contracts to former oil thieves and justifying that by insisting that oil revenues have increased as a result of such dubious policy. Ghana  must  not use the oil money  to develop non oil producing areas while ignoring the oil producing areas  which really are the goose that lays the golden egg. Also  Ghana  must from the onset use oil revenues to build schools, factories, create jobs and bridge social and economic iniquities  that  have created the likes  of Boko Haram in Nigeria’s north. Lastly  Ghana must police and secure its borders  with the Sahel for religious extremism which grows while those expected to contain it look the other way to justify increased security expenditure. That way Ghana will earn the respect of the international community   from its oil wealth , and not its scorn, as we have done so effortlessly with our oil wealth.

  • ‘Sovereign Wealth Fund to invest $850m’

    ‘Sovereign Wealth Fund to invest $850m’

    The investment arm of the Sovereign Wealth Fund (SWF) – the Nigeria Sovereign Investment Authority (NSIA) – has approved an investment allocation of $850 million for the three investment windows of the SWF.

    Managing Director/CEO of NSIA, Mr. Uche Orji, said the Future Generations Fund and the Nigeria Infrastructure Fund will each get $325 million or 32.5 per cent while the Stabilisation Fund will receive $200 million or 20 per cent. He spoke yesterday on the commencement of the operations of the NSIA

    The remaining 15 per cent of $150 million, he said “will be kept as unallocated for now, and used to top up each of the ring-fenced funds, as opportunities arise.”

    Orji said the plan “aims to balance the infrastructure need of the current generation and the need for savings for the future generation of Nigerians.”

    Investment in the Stabilisation Fund will start next month as the Future Generation Fund will continue till end of 2013 “because it is a more diversified portfolio with a more complicated process.”

    On Infrastructure Fund, Orji said: “a very detailed and thorough review of possible investment areas and projects is ongoing. The investments being considered with the infrastructure fund are housing, agriculture, power, water resources, transportation ,sports, aviation and health care.”

    The objective of the NSIA he explained, is to build returns above inflation, and the reporting currency will be the dollar.

    He said the Nigeria infrastructure fund has geographical restrictions the other two funds do not have geographical restrictions. The Nigeria infrastructure fund will focus only on Nigeria.

    We have done extensive work so far on some initial areas that form our initial focus, some of the areas we have assessed opportunity include

    These funds Orji said “will be managed in-house and the idea is to earn commercial returns a sub set of the fund should be devoted to social infrastructure.”

    As regards to when contributions will start flowing into the fund, Orji said “the Act is very clear as to the contributions to the fund, what it says is that revenue in excess of the benchmark rates less what is prescribed in the budget should be contributed to the NSIA account.”

    These excess revenue, he explained, “will be transferred monthly but again we need to be fully operational and ready for the new funds to come in so there is conversations on-going already and for the funds to be transferred. When the Act is fully followed, this will be an automatic process. We are ready to start investing.”

    When asked about the Excess Crude Account (ECA) Orji declined to speak, saying, “that is for minister of finance.”

    In terms of commitments to the infrastructure fund, the NSIA boss said “these are commercial infrastructure so we will charge for their use, we are investing with co investors some of them are other Sovereign Wealth funds some are private equity investors, it’s not a charity, if you look at infrastructure funds around the world most of them earn on the average six to seven per cent. We will invest in areas where there are commercial returns.”

    Future generation fund he said is a savings fund and not a pension fund where we invest for a pay out. The idea “is to grow a savings base to prepare the country in the event of a depletion of our hydrocarbon resources. The purpose of this fund is the savings for the future generation of Nigerians like other funds the benefits tend to come much later, at the minimum if this fund makes profit consistently for five years as we are hoping we will start to partake of the dividends to the three tiers of government.”

    He cautioned that “the earliest Nigeria will start to see any benefits will be through the return this savings fund will make in five years of consistent profitability before we start making repatriations to Nigerian people.”

    He said the NSIA is a self-sustaining enterprise with the three principles of financial sustainability, independence of decision making and transparency.

    He assured Nigerians that the Authority “will invest in areas where we will make returns that is why it is called Sovereign Wealth Fund. Other intervention programmes like the budget will be done with the budget, here we are investors, that is the difference between what we do and what other arms of Government do.”

     

  • The vanity of wealth

    In finance, we learn that money is anything that is generally acceptable as a medium of exchange. In the present world, this implies that there is virtually nothing anyone wants to do, that will not include money, even when one does not have it at hand. One always thinks or dreams of it.

    That is why some people are always in deep thought whenever they are in need of money; some become hypertensive while some commit suicide because they cannot make money to satisfy their personal and family needs.

    In the Scripture, God tells us that: “Money answereth all things, but the love of money is the root of all evil”. From this biblical verse, it is clear that money can make anybody that wants it and, at the same time, can destroy such a person.

    A novelist in the Unites States was also reported to have said: “Money is the root of all evil, yet it is such a useful root that we cannot get on without it anymore like we can without potatoes.” The power of money cannot be underestimated because it could be used to solve various problems in the home front and societal ills.

    In Nigeria, this is the case. Our leaders always throw money at any problem that threatens the unity of the country. This is ýwhy people in all parts of the nation have become obsessed with money so much so that it has bred corruption.

    Corruption has become endemic, especially among politicians and civil servants. Youth, students and teenagers are also affected by the malaise. The affluent and the poor want to get money at all cost.

    For poor students in the higher institutions, they always see their peers who come from wealthy homes as angels and wish to be like them, forgetting the fact that all fingers are not equal. Female undergraduates who cannot wait for their time engage in prostitution, going out with sugar daddies. The guys become cultists and notorious armed robbers to get money to impress their peers on campus.

    There are many example of corruption that will continue to ring in the psyches of Nigerians. We have the scandal involving a former Speaker of the House of Representatives, who was accused of contract inflation to the tune of N894 million by the Economic and Financial Crime Commission (EFCC).

    Another that keeps ringing a bell in the mind of the people is that of Hon. Farouq Lawan, a member of the House of Representatives, known as Mr Integrity. Lawan’s integrity was tainted when he allegedly collected a bribe from Mr Femi Otedola, a business man, whose oil company was part of the indicted firms that defaulted subsidy largesse.

    As I write this, the EFCC is still in court to prosecute the former governor of Ogun State, Otunba Gbenga Daniel, in a multi-billion corruption cases.

    All these instances indicate that money is the basis of evil. Everybody wants to have it. The rich want to get more of it to impress and oppress the poor, while the poor want to have to make the point that making money is not the exclusive preserve of the rich.

    In all, it should have been clear to us that all is vanity upon vanity. Where are the rich people of yesteryears? Where are their riches? Money has both the good and bad ends. We should all devote more time praying for our lives and the country so that God can intervene and stop the corruption cesspool into the nation has sunk.

     

    Muibat, recently finished from Mass Comm., MAPOLY