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Play Africa again, Salif Keita

South Africa is a
country of songs, and those who can belt out great tunes are adored by
millions. We saw a demonstration of this during the Divas Concert at
the Performing Arts Centre for the Free State (PACOFS) in Bloemfontein,
South Africa, on October 8.

PACOFS is a massive, luxuriously fitted and
well maintained art infrastructure that sparked off debate among
Nigerian journalists present about the dearth of similar venues in our
country. Within the complex, the Sand du Plessis Theatre was packed the
people of all ages, a large percentage of whom were in their 20s, the
kind of demographic that would only turn up for a gig in Nigeria if the
programme is chock-full of hip-hop acts. Yet, here were young people
going wild for real musicians, and singing along at the top of their
voices to old favourites like ‘Paradise Road’, ‘Leave Me Alone’ and
‘Too Late For Mama’. The privileging of songs was hardly surprising,
perhaps, for the nation that gave us Miriam Makeba, Yvonne Chaka Chaka
and Brenda Fassie.

A rising stars of
South African music, is the Afro-Soul singer, Lira. A headliner for the
Divas Concert, she also featured in the Main Jazz programme of the
annual Mangaung African Cultural Festival (MACUFE), held on October 9
inthe Loch Logan Rose Garden. Making our way to the open-air jazz
festival, the size and beauty of the venue, incorporating a scenic
lake, told their own story of the sheer scale of the musical jamboree.
A thick, queue of people waiting to get in, seemed never ending, and
recalled scenes of great British summer festivals like Glastonbury.
Concert-goers had brought their own coolers of food and drinks; many
also brought their own deck chairs to sit in the crowd space that
stretched on and on in from the stage. At Mr Price, a popular store
chain in South Africa, the fastest selling items are these chairs, as
they are in constant demand for the Braais that bring people in
Madiba’s country together over roasted meat and drinks. The chairs also
come in handy for festivals like MACUFE; and the coolers, we would
later discover, doubled as seats too.

Again, one
wondered: can a mammoth crowd of this size come out in Nigeria for
anything other than a Gospel concert? A stadium-sized audience was
already enjoying the performances as we looked around. There are a
number of hospitality packages that bring people across South Africa to
Bloemfontein for MACUFE. We had come on the Premier Classe train from
Johannesburg to Bloemfontein, which entitled us to VIP tickets to the
Main Jazz Festival. A short walk across a bridge over the lake, led
from the main festival grounds to the VIP Village, where, in the large,
air-conditioned Premier Classe tent, we could watch the performances on
a large screen. Over a continuous flow of food and drinks, we watched
Lira on the screen; and considered whether the lilac-toned separates
she wore were too casual for this high profile gig.

Jonathan Butler

MACUFE is a truly
international festival, and of particular interest this year was the
scheduled appearance of ‘Africa’s Golden Voice’, the great Malian
singer, Salif Keita. This edition also promised the return home of
South Africa’s son for whom America has been home for many decades,
Jonathan Butler. The beginning of his set got several of us to venture
out of the Village for the immediate festival experience side-stage,
alongside the crowds. Playing in the same set was American Jazz
saxophonist, Gerald Albright. Introducing one track, Albright said, “I
borrowed it from a friend who’s no longer with us but left a great
legacy of music. He travelled the world by one name, and it’s Luther.”
The crowd roared and many rose for ‘So Amazing’ – and sang Luther
Vandross’ lyrics to Albright’s instrumental rendition. Things got
better with the next track, ‘My My My’, originally sung by Johnny Gill.
“You know the words to it, let me hear you sing it” – encouraged the
jazzman, and the crowd obliged.

With a fine head of
short, grey hair, Jonathan Butler is a far cry from the youthful singer
with the flat-topped haircut who scored an international hit with
‘Lies’ over two decades ago. The guitar remains a constant feature, and
the gospel-infused soulfulness of his voice has lost none of its power.
“It’s good to be back home. So many memories here, this town,” he told
the audience. The following day, October 10, was Butler’s 49th
birthday, so he sang them a medley including ‘Take Good Care of Me’,
because – by his explanation – he wanted them to remember what old age
may cause him to forget. The singer-songwriter’s backing vocalist was
his daughter, Jody, who partnered him on a duet onstage, ‘Be Here With
You’.

“Jody Butler’s not
bad, wha’you think?” he asked the audience. The emotional high of the
concert thus far, came when Jody asked the MACUFE thousands to help
sing ‘Happy Birthday’ to her dad.

Tsepo Tshola

Expectations were
high for Salif Keita’s appearance, but there were memorable
performances meanwhile, including one by Ringo Madlingozi. After
another short dash for refreshments and discussions in the Village, and
we were back side-stage for a rousing performance by the much loved
Tsepo Tshola, a kind of ‘musical father of the nation’. A great moment
it was on ‘Ho Lokile’, when it seemed the whole country was singing in
unison with Tshola.

As an ecstatic
dancer nearby explained, the song’s title means ‘We Are Fine’. She also
gave some insight into the appeal of the man responsible for many
“beautiful, traditional” songs: “He is like the father of Soul in South
Africa. Every single South African knows who Tsepo Tshola is.” It is
also a public image shaped by suffering and human fallibility. “He used
to be a drug addict. While he was singing all these beautiful,
traditional songs, he was hooked on cocaine. Then he came out and said,
‘I’m hooked on cocaine. I’m going into rehab.” The admission further
endeared Tshola to South Africans, especially as it was seen as a show
of solidarity with Hugh Masekela and the late Brenda Fassie, who had
fought public battles with addiction.

Salif Keita

We relaxed in the
Village during other performances, while we awaited Salif Keita. When
as if by magic he appeared on the screens close to midnight, a whole
band of us headed across the bridge to be closer to the famed ‘soaring
voice’. But it was not to be. Crowd concerns had led security men to
shut the gates between the VIP Village and the concert. We could not
get through. On many screens around the Loch Logan Rose Garden, Salif
Keita played on. Like Moses and the promised land; so near and yet so
far. Downtrodden, we headed back to the Village, where in what seemed
like the town square, scores of fans gathered to watch the performance
on a giant screen. Keita wore a slim-fitting white shirt and trousers
with matching cap. His two backing vocalists, complete with elegant
headscarves, were the best presented back-up singers all day. The beat
over which Keita’s voice rang out, was a mellifluous blend in which
traditional Malian instruments, chief among them the Kora, stood out.

Many were soon
getting jiggy with it as the magic of Keita’s sound spread through the
gathering. How must it have been in the concert across the lake? One
could only wonder. It was poignant that, among a group of trendy young
women who danced energetically to Keita music nearby, was an albino,
like the musician himself. Keita’s latest album, ‘La Difference’ calls
for compassion on the plight of albinos, who are killed in many parts
of Africa for ritual purposes.

When the irresistible, ‘Africa’ from Keita’s 1995 album, ‘Folon’
came on, there were jubilatory scenes in the MACUFE village, as most
danced with abandon, singing to Africa. Not just concert attendees or
VIPs but waitresses and bouncers, danced and sang along. The track
ended, only for Salif Keita and band to strike it up again, perhaps at
the behest of the crowd across the lake. Cue even more joyous dancing.

The musician’s 45-minute set came to an end and he exited the stage
with his band. But they must have been calling for more and Keita,
astonishingly, came back out and sang ‘Africa’ for a third and last
time. The disappointment of earlier was nearly forgotten as we left the
venue. We could not see Salif Keita up close as we had wished, but a
memorable experience was had all the same.

Lagos Jazz Series: Three days in November

Lagos Jazz Series: Three days in November

The inaugural Lagos
Jazz Series, an extravaganza created to bolster the prospects of the
music genre in the city, kicks off next month. Organisers say the event
is an opportunity for jazz connoisseurs and buffs alike to enjoy first
rate concerts by international performers without having to leave
Nigeria. It is billed as the ultimate lifestyle event right in the
heart of Lagos, where previously Jazz enthusiasts had to travel to New
York, Paris, London and Cape Town to see live performances.

Events in the
series will be held at choice Lagos locations. “Jazz enthusiasts will
have the opportunity of listening to the best of Jazz music in the
garden, on the creek and on the waterfront,” says a press release by
the organisers. LJS begins in the Japanese Garden of the Sofitel
Morehouse Hotel, Ikoyi, on November 5. Other venues are The Federal
Palace Hotel waterfront and the Muri Okunola Park, which is fast
becoming an open-air arts venue in Lagos.

Major Jazz artists
from Europe, America and the African continent will take centre stage
during the first LJS. Among these are: Randy Weston, Karen Petterson,
Simone (daughter of Nina Simone); Nneka, Morrie Lode, Mike Aremu, Bez,
Aiyetoro and Femi Kuti. More performers are expected to be added to the
playbill.

The event’s
founder, Oti Bazunu, said, “The Lagos Jazz series is a singular
experience. We’re inviting some of our favourite Jazz musicians from
all over the world to come and play for us, in intimate and exciting
venues. Since they’re coming, we might as well put on a bit of a show
and invite all our favourite people to attend… The show is coming
together and it’s going to be wonderful.”

Bazunu acknowledged the support of the Lagos State government (which
sanctioned the use of Muri Okunola Park), Lufthansa Airlines, Sofitel
Morehouse and other groups in ensuring the success of the events.

D’Banj reigns supreme at Felabration

D’Banj reigns supreme at Felabration

After a packed week
of events including debates, lectures, book readings and gigs featuring
a wide range of musicians who identify with the Fela Anikulapo-Kuti
legacy, this year’s Felabration came to a close with a bang at the New
Afrika Shrine in Ikeja, Lagos, on Sunday, October 17.

There were
unbelievable scenes outside the New Afrika Shrine on the night, with
hundreds of people milling about on the street, hoping to get in or
just soaking up the atmosphere. And what an atmosphere it was. It was
night time, yet a bustling ‘market’ was in place, with rows of traders
selling liquor in small bottles and sachets. Food and stick-meat were
also on sale. Hardly surprising, for the grand finale of the
celebration of a man known for his use of marijuana, it was an
igbo-drenched night, as music boomed out from the Shrine.

Cars had to
negotiate a tight passage through the largely male crowd and the
‘market’ that had claimed most of the road. Those seeking to enter, had
formed a long queue. Security was tight, and crowd control measures and
stoppers that allow entrance only one-at-a-time, prevented any kind of
stampede. “From one chicken point to another,” remarked one punter, as
we waited to clear the final hurdle into the inner compound that
surrounds the concert ‘main bowl’ that is the Shrine.

The last tribute

Inside, the venue
was an impressive, well fitted one, and it seemed a shame that more
concerts do not currently hold there. At the height of the Felabration
finale, the Shrine’s ‘The Last Tribute’, commemorative images streamed
on large screens above the stage on both sides, paid homage to Fela,
showing photographs from his life, including shots of his mother,
Funmilayo Ransome-Kuti. Alternating with Fela were images of Dagrin,
whose untimely death from a motor accident earlier this year served to
take his fame through the stratosphere. Like Fela, Dagrin is bigger in
death. The tribute was also a well judged emotive factor with many in
the crowd, the generation that adores Dagrin.

Comedian Omobaba
pepped up the audience with jokes while introducing new acts onto the
stage. The batik-clad Gangbe Brass Band came on with an array of
instruments, including a stand-out tuba, borne by its player. “My
English is not so good,” said the jovial bandleader, who nonetheless
found another common ground with many in the audience, greeting them in
Yoruba, which is also spoken in Benin. The group played several numbers
in Yoruba and French, before bringing out a real crowd-pleaser, Fela’s
son, Femi Kuti. He had been on the bill, but no one expected him to
take the stage so early in the programme. Clad in a Fela T-shirt under
unbuttoned orange batik shirt and matching trousers, Femi launched into
a blistering performance on his saxophone, bringing the audience to its
feet. He wore neon-yellow plastic ‘clown’ glass-less eye-wear,
underscoring the ‘fun’ factor of Felabration (his sister, Yeni, would
later be seen in the crowd with similar ‘glasses’ in orange).

Femi carried on
blaring the sax for several minutes and the crowd whooped in
excitement. Stage smoke billowed onto the stage and photographers
crouched to the left and right of Femi to catch the best shots, adding
to the spectacle. That Femi came on so early, confirmed the agreement
of all that the headliner of the night was a man that would not make an
appearance for a while: D’Banj.

After Femi and the
Gangbe Brass Band came a succession of multi-genre acts. Mallam Spicy,
his stage show accompanied by two female dancers who jiggled
frenetically to the Dancehall star’s ‘Free Cure’. Solid Star, sporting
a Mohawk, followed close behind. Then came Tunde and Wunmi Obe, better
known as TWO, who performed an exuberant set with their band. Dressed
in white and black, the clean-cut duo got great reactions from the
crowd as they rendered ‘old school’ hits before performing their own
material, including ‘Fine Bara’ and ‘Mo Gbo, Mo Ya’. A juju band began
and ended their set by singing humorous lines from Saint Janet’s
notorious album, ‘Olope Plus’. In-between, the band played Yoruba dance
music in praise of the Egbas, the Yoruba sub-group of the
Ransome-Kutis.

Mo’Hits Crew

It was a well
behaved crowd, and there was evidence of swift action by staff to eject
troublemakers. Anticipation reached fever pitch with Omobaba’s
announcement of Wande Coal, Don Jazzy and D’Banj onto the stage. D’Banj
didn’t show, but a number of Mo’Hits Crew stars stormed the stage,
including D’Prince (‘Who am I?’ he asked, and the crowd chorused: ‘Omo
Oba’). The set was mostly dominated by Coal who performed his highly
popular hits.

The audience was
going to have to wait a bit longer for D’Banj, but no one seemed to
mind. All the high energy of Wande Coal and others slowly dawned as
mime acts to the detached observer – no instruments played, no backing
band. Was this to be the extent of musicianship on displayed at the
climax of this show? Surely D’Banj would have to do more than this? It
was not long to wonder, for just as the Mo’Hits bravura started to grow
a bit thin, the real deal came.

Superstar

To behold the
spectacle of D’Banj’s arrival onstage, was quite something. Watching
from the raised VIP balcony, the eyes swept over the two thousand
strong audience as D’Banj emerged, clad in white, his tight trousers
reminiscent of the style favoured by Fela. There were unbelievable
scenes as, with Fela’s signature two-fisted Black Power salute, the
singer soaked up the adulation of his fans, as heraldic music wailed a
crescendo. This was the most important performer of the final night of
Felabration, the star attraction, and everyone knew it.

Much earlier in the
evening, posters of D’Banj had been distributed free through the crowd.
Then, minutes before his arrival onstage, he signalled a departure from
his Mo’Hits contemporaries’ performance mode, as his band took up
positions behind musical instruments onstage. After several minutes of
star-worship, D’Banj playfully lifted his ubiquitous shades to take a
playful peek at his adoring fans. Then the band struck up the beat, to
which he sang live.

To watch him was to
observe a star at the height of his powers. With D’Banj’s incredible
stage presence, there were echoes of Elvis Presley at the crest of his
fame. When someone brought D’Banj a face towel – white to match the
outfit, of course – one thought a James Brown cape-drama was in the
offing. D’Banj just needed to wipe the sweat off his face now and then,
and the towel also became part of the showmanship, flicked from time to
time as traditional dancers do with their handkerchiefs. He didn’t have
to do much; wowing the crowd effortlessly. There were no sexy dancers,
no gimmicks; and Wande Coal deferred to a bigger star, singing backing
vocals for D’Banj. There were Fela touches here and there in the
movement, as D’Banj sang his own hits and played the crowd, who lapped
up everything he said or did. “I said it before; I’ll say it again,” he
half-sang, about God-knows-what. He can say it anytime he wants: a star
is born.

There was some talk recently about D’Banj possibly playing Fela in
the hit Broadway musical, and it seemed he came onstage determined to
settle the argument. Anyone resistant to the idea of D’Banj as Fela,
would have had a rethink, seeing his reign at the Shrine. By now it was
1.30am – thousands were inside, many more outside. We decided to leave
in the middle of D’Banj’s set, regrettably, to avoid the crush of the
crowd at the end. As we exited the New Afrika Shrine, D’Banj said over
the loudspeakers, “We all know why we’re here.” Then from the street,
we heard as he launched into Fela’s songs proper, a fitting conclusion
to the evening.

Line-up for Lagos Jazz Series

Line-up for Lagos Jazz Series

Full artists’ line-up, venues and dates:

November 5 -Sofitel Moorhouse Hotel:

Karen Patterson

Chinaza

Morrie Louden

Randy Weston

November 5 – Federal Palace Hotel:

Mike Aremu

Morrie Louden

Simone

Somi

Randy Weston

November 7 – German Consulate (Sunday jazz breakfast):

Karen Patterson

Chinaza

Nneka

November 7 – Muri Okunola Park:

Bez

Ayetoro

Nneka

Somi

Simone

Femi Kuti

FINANCIAL MATTERS: Options for economic growth

FINANCIAL MATTERS: Options for economic growth

It is nearly
impossible, discussing options for rapidly growing this economy without
encountering the link between growth and poverty alleviation. Often,
however, this connection is made in less than direct ways. Three
important documents on the prospects for frontier economies on the
sub-continent make this point differently. The Commission for Africa
Report quotes US President John F. Kennedy (“If a free society cannot
help the many who are poor, it cannot save the few who are rich”) in
making its point that “reductions in poverty do not come without
economic growth”. The NEEDS paper sought to “lay a solid foundation”
for the domestic economy on a platform that combined “sustainable
poverty reduction, employment generation, wealth creation, and value
reorientation”. On the other hand, the NEPAD Framework Document argued
for the design of “effective poverty reduction programmes” because
there is nothing inherent in the process of global growth “that
automatically reduces poverty and inequality”.

New background

These
sub-narratives have become important as we prepare to choose leaders
across the country for the next four years. Besides, there’s new
background to the discourse. China snuck in on the world. Several years
after Deng Xiaoping took their collective foot off that economy’s gas
pedal, most references still described the Chinese achievements as
miraculous. India, almost 20 years after its government began
dismantling the “licence Raj”, proves this lie. There is something done
well by governments that changes permanently the lives of their people.

In our case, it is
increasingly looking like the question to answer is “How do we put
money in the pockets of our people?” In its October 2010 World Economic
Outlook, the IMF argued that the world economy can only move down the
recovery trajectory on the back of “two fundamental and difficult
economic rebalancing acts”. One of the legs of this high-wire act
requires “Many emerging market economies, most notably China, which
relied excessively on net exports” to “now rely more on domestic
demand”.

In the domestic
instance, positive trade balances provide plenty of room for this
rebalancing. The central deliverable is to move spending away from the
external sector and the traditional emphasis on oil exports in favour
of increased spending on final consumption. How? The easiest way is to
do this, as is attested to by just about every “expert” on this economy
is to remove infrastructure constraints. This way, capacity increases
in manufacturing, for example, could drive new labour needs, and the
necessary growth in consumer spending. But here, there is a further
problem! No matter how competent and well meant, any investment in
physical infrastructure will require considerable lead-times before the
final projects come on stream. And a further lag between then, and when
industry begins to build inventory, as the prospects of new capacity
become real. Add to this China’s obvious dominance of production in the
real sector. It apparently has all the comparative advantage now, which
might argue against any prospects of real immediate gain from investing
in these sectors. So, rebuilding physical infrastructure is a
medium-term agenda: way beyond the ken of the four-year electoral cycle.

Resolving the dilemma

Where, then, may we
find the low-hanging fruits, and the quick-wins that can be delivered
over the next four years? It is important we do this, because only then
can we hold the next administration to a clear set of time-bound
deliverables. One way towards resolving this dilemma would be to
respond to the question: “Could reforms to our social infrastructure
(removing archaic laws, improving the criminal justice system, etc.)
help kick-start a transition from the agrarian foundations of the
economy to a service-based economy?” We would obviously have to by-pass
the manufacturing stage (where China currently has such a compelling
dominance).

Alas, there is nothing by the way of tested answers to most of these
questions. But that reforms along these lines are necessary, no one can
deny. Nor can anyone contest the urgent need for their implementation.
Similarly, neither import restrictions designed to protect “domestic
industries”, export promotion initiatives to advance the interests of
the latter, nor import waivers (from arcane rules) granted to political
cronies would do. Government has proved inept at these tasks since
independence, and more so in the last four years.

Money

Stock market players to check rogue brokers

Stock market players to check rogue brokers

One
menace that investors in the Nigeria capital market have had to contend
with over the years is fraudulent stockbrokers. Many shareholders have
been victims of share sales without authorisation, share price
manipulation and failure to execute orders among others.

The
2003 case which became known as the Bonkolans Scam, involving Lawrence
Okwufulueze and his co travellers, readily comes to mind. Mr
Okwufulueze, then dealing clerk of Bonkolans Investment Limited, cloned
over 3.1 million units of Nestle shares worth over N314 million which
was sold to unsuspecting public. Since then, the major culprit has been
on the run. A more recent case was in 2005 when Kingsley Ikpe, chief
executive officer of Thomas Kinsley Securities Limited collected N135
million from Tony Ezenna, CEO of Orange Drugs Limited for the purchase
of shares of Nigerian Breweries which was not executed. Mr Ezenna
reported the case to the Securities and Exchange Commission (SEC) when
his stockbroker could not provide evidence that his buy-orders were
executed. Mr Ikpe was eventually jailed for 165 years.

Complaints against stockbrokers

Arunmah
Oteh, director general of SEC said recently that as at June, the
commission had received 220 new complaints against stockbrokers which
ranged from unauthorised/fraudulent sale and purchase of shares, to
falsification of clients’ accounts. The drive to mitigate investor risk
prompted the commission to propose the Straight through Processing
(STP), by which transactions in the stock market will be fully
automated and thus eliminate any incident of direct monetary
transaction between the client and the stockbroking firm. This is
designed to get rid of settlement risk and ensure that all trades
settles cash versus securities and will help restore investor
confidence and create a more efficient market. The Central Securities
Clearing System (CSCS), the clearing house of the stock market will
play a more prominent role under the proposed arrangement. The process
is being fine-tuned before its eventual unveiling.

Victor
Ogiemwonyi, managing director of Partnership Investment Plc, an issuing
house and stockbroking firm, said with the proposal, there will be no
failed trade and all trades ideally will settle same day. “The most
important feature of this will be that all cash settlement will go
straight to Investor bank accounts, thus eliminating once and for all,
the nagging issues of rogue brokers, who sell their client’s shares
without authorisation.” Mr Ogiemwonyi said the activities of a few
rogue brokers has created credibility and confidence issues in the
capital market community, “and has contributed to labeling all brokers
as fraudulent even though, the records show that the brokers involved
in these condemnable acts are few and far between,” he added. He said
the fact that this can happen at all, is reason why a solution like
this is desirable.

Improving market efficiency

Joshua
Omo-Kehinde, managing director of Marimpex Finance and Investment
Limited, a stock broking firm said investors under the new platform,
will now be required to open bank accounts which would be one of the
requirements before share accounts are opened for them. “This will
create a custodial so that once shares are sold on behalf of clients,
it would be paid directly to the client’s bank account.” He said this
new approach would go a long way in improving market efficiency.

According
to Mr Ogiemwonyi, the requirement for Investor bank accounts that will
be tied to a CSCS account for every investor will enhance the ‘Know
Your Customer’ ( KYC) rule, as it will be another check for knowing who
the account holder is. “It will eliminate mystery investors who launder
money through the stock market, since all bank accounts receiving money
from stock market trading can be traced to match CSCS accounts of
owners.” He said the implementation will have minimum disruption, since
all that will be required will be for clients to submit their bank
accounts to their brokers who will cross check their validity with the
banks.

The
Chairman, Association of Stockbroking Houses of Nigeria (ASHON),
Rasheed Yussuf, said the issue which dominated discussions at
conference of the Chartered Institute of Stockbrokers which ended in
Abuja at the weekend. According to him, the advantages of such a
venture are enormous. “It will bring us in line with the rest of the
world. It will increase liquidity and confidence and will reduce cost
for stockbrokers.” He said since the brokers were unanimous in
endorsing the new arrangement, it is left for the regulators to
implement it as soon as possible.

David Adonri, managing director of Lambeth Investment and Trust
Limited believes that when the new method is implemented, it will
elevate the Nigerian capital market to world standard. He said a lot of
problems in the market such as buying shares for clients when they have
not paid, or when brokers sell on behalf of their clients and do not
pay or under pay will be discouraged. “Through this method, it will
overcome all the malpractices and crude methods of doing things,” he
said.

Money

‘Nigeria has done more than it is being credited for’

‘Nigeria has done more than it is being credited for’

The 16th Nigeria Economic Summit (NES 16) ended on a high last Thursday. Participants from across all sectors of the economy, private and public, converged on the Federal Capital Territory (FCT), Abuja for to discuss a common national concern: “Nigeria at 50: The Challenge of Visionary Leadership and Good Governance”.

Specifically, the summit was to help identify the connection between politics and economy, and how it affects Nigeria’s attempt to emerge as a strong, prosperous nation; encourage debate on the country’s leadership challenge and set an agenda for transformation and change; develop ways to realise the vision of becoming one of the world’s 20 leading economies by 2020, as well as awaken the consciousness of the people to their responsibility as good citizens.

At the presidential policy dialogue session, President Goodluck Jonathan identified greed as the greatest challenge the country is facing, pointing out that his dream is “to build a system where people would be less greedy” and “a nation that all Nigerians would be proud of”.

No youth, No vision 20-2020

At the Emerging Leaders forum, the consensus emerged that Nigeria cannot achieve its Vision 20-2020 objectives if the youth are not encouraged to be involved in productive work, and to build their character and value system on trust and sound moral principle.

For youth to dream audacious dream, participants emphasised the significance of role models in the present leadership. People who are expected to lead by example as well as ensure that they bequeath to the next generation and educational system that will enable them drive and live their dreams.

The submission of most of the discussants was that the current 6-3-3-4 educational system should be reviewed and that a reliable electoral system should be established, and corruption tackle. Most discussants also said the rule of law should be promoted.

“To inspire the youth to dream audaciously and come to terms with reality, meritocracy should be the principle in our educational system by ensuring that only the best and brightest excel, while entrepreneurship should be included in the nation’s educational curriculum. Building strong men without strong institutions will not lead the country anywhere. We should address the values among the youth by cultivating in them a sense of dignity in labour,” Fela Durotoye said.

Sector leaders appraise performance

At the oil and gas dialogue, stakeholders expressed concern that the delay in the passage of the Petroleum Industry Bill (PIB) as a result of disagreements on the provisions between the Nigerian National Petroleum Corporation (NNPC) and multinational oil companies was taking a negative tolls on the economy, with oil production declining from an average of 4-5 per cent in 2004 to about 2per cent at the present.

The consensus was that there will be no new investment in the industry unless there is stability and certainty in the investment terms contained in the proposed petroleum law.

The way forwards was that all stakeholders must resolve to come together and dialogue on areas of conflict in the PIB to ensure that the final document will serve the general interest of stakeholders.

No credit for job done

At the financial regulators forum, the Central Bank of Nigeria (CBN) governor, Sanusi Lamiso Sanusi, observed that Nigeria has done more, in terms of enforcement of guidelines and regulation among operators of the financial system, than it has been credited for. He noted that though most advanced countries lost huge sums of money as a result of the manipulation of the system, no culprit has been sent to jail.

“We have removed eight executives of banks. We have put one of them in jail. We are going to (get) more of them in jail. We have 260 people before Investments and Securities Tribunal. Nigeria has done more to hold people individually accountable than any country in the world,” he said.

World class capital market

The Director General, Securities and Exchange Commission (SEC), Arunma Oteh, acknowledged that the capital market is an enabler for any economy, and that the challenge is to build a world class capital market which has the highest level of integrity – one in which investors will feel confident and protected.

Mrs Oteh said the Commission is committed to building a capital market where investors will know that their decisions or consequences of their decisions are not based on issues of market abuse, and that investors are protected against anything that happens, whether it be global financial crisis.

Helping people accumulate resources

For Muhammad Ahmad, the Director General, National Pension Commission (PENCOM), the focus has been to help the people accumulate resources, so that they will have some savings, which they will have access to when they retire. He said as at the end of September, 2010, about $14billion has been accumulated by contributors in the last three to four years for that purpose.

At the close of the summit, Director General, NESG, Frank Nweke, said participant identified lack of clear political ideology, vision and will of successive governments as reflected in inconsistent policies, and disjointed planning in the last 50 years of the country’s independence as bane to national development and growth.

He said apart from the existence of a disconnection between leaders and the people, there exists a culture of impunity in the polity, gross abuse of the rule of law as well as high level of incompetence as a result of lack of preparedness by successive leaders for the challenges of the positions.

Call for credible leadership

The majority of participants at the summit said inorder for the country to have credible leadership, the three tiers of government should uphold the rule of law, and that judicial procedures should be simplified to guarantee speedy administration of justice.

“Government must create a rallying point for citizens to buy into the Vision 20-2020; deliver set targets in the next 12 months in the areas of power generation, deregulation of the downstream sector of the petroleum industry, commence education reform process; ensure sustained economic growth to create employment; address the security challenge and conduct credible elections in 2011,” participants said.

At the close of the summit, President Jonathan, who was represented by the Minister of Finance, Segun Aganga, reminded participants that all Nigerians are leaders, irrespective of whether they are in government or not.

“It is our country; it is our economy. We have a shared responsibility for the failures of the past. When we talk about failure of leadership, all Nigerians have failed. It is time we took action. Government will provide the enabling environment, but the private sector has to take leadership,” he said.

Money

G20 inks pact to avert trade war

G20 inks pact to avert trade war

The group of 20 major economies agreed on Saturday to shun competitive currency devaluations, but stopped short of setting targets to reduce trade imbalances that are clouding global growth prospects.

At a meeting in South Korea, G20 finance ministers recognized the quickening shift in economic power away from Western industrial nations by striking a surprise deal to give emerging nations a bigger voice in the International Monetary Fund. A closing communique contained no major policy initiative after a U.S. proposal to limit current account imbalances to 4 percent of gross domestic product, a measure aimed squarely at shrinking China’s surplus, failed to win broad enough backing. Indeed, the United States itself came under fire from Germany and China for the super-loose monetary policy stance it has adopted to try to breathe life into the sluggish U.S. economy. German Economy Minister, Rainer Bruederle, said he had made clear that easing was the wrong way to go. “An excessive, permanent increase in money is, in my view, an indirect manipulation of the (foreign exchange) rate,” he said.

Heading for China

The main aim of the two days of talks, which precede a G20 summit in Seoul on November 11-12, was to ease currency strains that some economists feared could escalate into trade wars. Developing countries are worried that Washington, by flooding the U.S. banking system with cash, is pumping up their asset prices and exchange rates, thus undermining the competitiveness of the export industries on which they rely for growth. China, among others, frets that the U.S. policy stance will debase the dollar, the lynchpin of the global economy.

Money

PERSONAL FINANCE: The challenge of unclaimed dividends

PERSONAL FINANCE: The challenge of unclaimed dividends

The issue of unclaimed dividends is one
that operators continue to grapple with in the Nigerian stock market.
Dividends are classified as “unclaimed” if they remain so 15 months
after being declared. After this period, the dividend is returned to
the issuing company. Security and Exchange Commission regulations
stipulate that an investor can still make a claim for up to 12 years
after which they will be deemed to have forfeited the dividend.

Unclaimed dividend trust fund

The proposed Unclaimed Dividend Trust
Fund that was opposed by capital market operators and eventually
rejected by the National Assembly in 2005 is being looked at again. The
Senate Committee on Capital Market is currently scrutinising a bill
that seeks to establish a government agency that will be responsible
for managing the billions of naira from unclaimed dividends of listed
companies quoted on the stock exchange.

There is much mistrust from people who
are not convinced that a government agency can efficiently manage and
account for what according to the Securities and Exchange Commission
now stands at well over N20 billion in unclaimed dividends and they are
determined to fight against the passing of the bill. Dividends remain
unclaimed for several reasons including the following:

No bank account

Operating a current account is a basic
prerequisite for cashing dividend warrants, yet some investors such as
students and low-income earners do not have bank accounts; whilst it
may be possible for a shareholder to endorse a dividend warrant to a
current account holder who can then release the cash but this is not
ideal.

Lost in transit

As shareholders addresses change they
often fail to notify the company registrars. In addition, due to
inefficiencies within the postal system and non-functional post office
boxes, some dividend warrants do not get to their destinations within
their validity period. All this contributes to the late or non-receipt
of dividend warrants.

Too meagre to cash

Often, investors ignore their dividend
warrants because they believe that the tiny amounts involved, are not
worth the effort of cashing. Yet it is the sum of thousands of such
warrants that have accumulated to the billions of naira outstanding
today.

Deceased shareholders

A vast number of unclaimed dividends
belong to shareholders who have died. Indeed millions of family members
are unaware that they are entitled to collect unclaimed assets of
deceased relatives who died intestate or without leaving updated
financial records.

In the event of the death of a
shareholder, if he has not referred to his shares in a will or has died
intestate, shares and dividends may be lost. Even when this information
has been provided, the somewhat cumbersome processes involved in making
the claims, are sometimes a deterrent. Several cases exist where
protracted legal battle over the administration of the estate of a
deceased shareholder has resulted in dividends remaining unclaimed for
several years.

Stale cheques

A dividend warrant, like a normal
cheque is valid for period of six months. A stale dividend warrant can
be revalidated by the registrar by issuing another dividend warrant
where the beneficiary meets some basic requirements such as providing
some proof of identity or making a physical appearance at the
registrar’s office.

Some have advocated that dividend
warrants should be regarded as special cheques which should be exempt
from the stipulated six-month period for cheque expiration; this could
reduce the incidence of unclaimed dividends.

Embrace e-dividends

In the wake of increasing complaints
arising from the issue of unclaimed dividends in the Nigerian stock
market, in February 2008 SEC launched the e-dividend payment system. It
has urged investors to embrace this system as one of the ways of
finding a lasting solution to the problem. Through this system,
dividends are credited directly into shareholders bank accounts within
24 hours of their being declared and approved. It saves investors much
time and energy spent depositing physical cheques into their bank
accounts and from bottlenecks in the postal system.

What do you have to do?

All that you need to do is to complete
an e-dividend form with your bank account details and forward this to
the respective registrars to facilitate payment of dividends into your
account when they are due. It is a very useful mechanism with which you
can manage your dividends, but be sure to complete the form properly
with your bank account details recorded correctly and legibly.

Take responsibility for your investments

It is useful to have a general idea of
the dividend history of the companies in which you hold shares
particularly those that you intend to keep for the long term. The
websites of the NSE, the various registrars and quoted companies are a
repository of information on corporate events such as the declaration
of dividends and bonus shares. This way you can forecast the likely
period of payment and look out for the credit to your CSCS account and
thus plan ahead for this income.

Take an interest and try to improve
your general knowledge of investing by browsing through finance columns
of daily newspapers and the electronic media. You have worked hard to
build your wealth and it is your responsibility to be more engaged and
monitor your investments to a degree. Unless you are a significant
investor, no one will do this for you.

The e-payment system has been pivotal to the development,
strengthening and deepening of Nigeria’s capital market. If fully
embraced by all, it should enhance the ability of shareholders to
immediately enjoy access to the proceeds of their investments. This
should provide a much required boost in investor trust and confidence
that the Nigerian capital market so badly needs.

Money

Discounted duty certificate as incentive for corruption

Discounted duty certificate as incentive for corruption

The Nigerian
Customs Service (NCS) appears pitched against the inter-ministerial
committee on the implementation of the Export Expansion Grant (EEG) for
the country’s trade facilitation.

The Manufacturers
Association of Nigeria (MAN) recently raised alarm that the NCS was
sabotaging the Federal Government’s efforts to promote the country’s
non-oil exports after the agency expressed concerns about the negative
impact the use of the Negotiable Duty Credit Certificate (NDCC) by
manufacturers, agricultural producers, and exporters for settlement of
custom duties has on its revenue generation capacity.

Other members of
the committee, consisting Central Bank of Nigeria (CBN), Nigeria Export
Promotion Council (NEPC), federal ministries of finance, commerce and
industry as well as the Special Adviser to the President (Manufacturers
and Private Sector), are accusing the NCS of issuing directives
countering the EGG guidelines capable of frustrating government’s
efforts to grow the country’s non-oil export base.

The certificate,
which serves as alternative to cash payment on export incentive claims
under the Manufacturer-In-Bond Scheme, could either be used by the
beneficiary recommended by the inter-ministerial committee, or
transferred by special negotiated endorsement to a third party,
subject, however, to three transfers.

Though Abdullahi
Dikko, the Comptroller General, said recently that the NCS is not
opposed to the use of NDCC as an instrument of trade facilitation in
the country, he added that the agency is not comfortable with any
arrangement that would not allow it realise its revenue targets.

As a self-funding
agency, Mr. Dikko said its survival depends on the revenue it generates
on a monthly basis, out of which it earns seven percent as cost of
collection to take care of its operations, including remuneration
packages and allowances to cater for the welfare of its staff, whose
take home pay was recently reviewed by 100 per cent as an incentive for
better performance.

Yearly, the
inter-ministerial committee, on behalf of the Federal Government,
considers and recommends some companies in manufacturing and
agricultural produce sectors for incentive in the form of discounted
duty certificates used exclusively for duty payment on in-puts to their
operations when they cannot be sourced locally.

The convertible
certificate, which is issued based on export performance, comes in
various denominations, ranging from N50,000, N100,000 and N1milion to
N5million, N10million, N100million and above, to be tendered in
exchange with the collecting agencies in lieu of duty charges on
imported in-puts in the form of machineries and accessories.

The Federal
Government is said to have allocated N50billion for discounted duty
certificates for the first quarter of this year.

Under the EEG, the
criteria for selection of eligible beneficiaries include the company
possessing products exports capacity of a minimum of N5billion per
annum, apart from its capacity to keep a minimum of 500 Nigerians on
its employment, promotion of export growth, capital investment and
local content.

The support is crucial

Immediate past
President of the Manufacturers Association of Nigeria (MAN), Bashir
Borodo, recently said that exporters of local goods cannot survive
without government support.

Statistics from the
Central Bank shows that since the introduction of the EEG in 2006, the
country’s non-oil sector, as reflected in the total annual repatriated
value of exports, grew from $1.3billion in 2007; $1.8billion in 2008,
and $1.9billion last year, owing to increased trade facilitation.

Mr. Borodo added
that the certificate was supposed to be for the settlement of duties on
imported raw materials, pointing out that considering that the bulk of
the exporters’ business depends on raw materials sourced within the
country, the percentage of the foreign raw materials to the total value
addition in their production process is minimal, beneficiaries often
discount their allocations to other importers.

Ordinarily, the
NDCC is supposed to facilitate the exportation of products from
Nigeria, by saving beneficiaries the agony of sourcing for foreign
exchange from the open market to facilitate importation of in-puts
(machineries, pesticides, chemicals, etc.) that would help improve the
local production process.

But the practice is
for beneficiaries to transfer their allocations at discounted rates to
third parties, who are hardly in the manufacturing and agricultural
produce sectors of the economy, and they in turn use it to pay for
duties on imported luxury items, like cars, electronics, household
furniture and office equipment, that have nothing to do with their line
of production.

Reluctance generates controversy

However, the
reluctance by the Customs to accept the convertible certificate in lieu
of payment for duties on certain imported goods by beneficiaries has
triggered a controversy that has brought it at daggers drawn with other
members of the inter-ministerial committee.

According to the
NCS boss, the problem in accepting NDCC in lieu of the duties its
agency should have collected on imported items is not only with losing
a sizeable percentage of revenue that could have accrued in the
federation account, but also because the certificate is a negotiable
instrument that could be discounted and transferred to a third party.

Besides, the EEG
implementation guideline is fraught with loopholes that beneficiaries
have been exploiting to the disadvantage of the government, as there is
no specification about the kind of goods a beneficiary can use the NDCC
for import duty payment; neither is there any timeframe or expiry
period for its utilization. It does not attract any tax also.

Though import duty
belongs to items that form the federation account, allocation for NDCC
is not captured as part revenue generated into it, neither is it given
out with the consent of the other tiers of government in line with the
provisions of the country’s constitution concerning the management.

The Customs’
argument has been that, as a self-funding revenue generating agency, it
should be allowed to collect duty on all imported items, and all
earnings from such collections paid into the federation account, from
where government can draw any incentive it considers necessary for any
group to promote export activities, for accountability purposes.

On the other hand,
the agency is arguing that if convertible certificate must be given to
any category of operators in the economy, government should make it a
non-negotiable instrument issued to specific beneficiaries, who cannot
transfer it to any third party for any purpose, while specific items
that the instrument can be used to pay for import duties should be
expressly stated, and subject to an established expiry period, to avoid
abuse.

But a senior
official of the Nigerian Export Promotion Council (NEPC), who asked not
to be named, said in Abuja that the government cannot do anything to
remedy the anomaly, irrespective of what the NCS is claiming.

“The NCS is a
member of the seven member EEG implementation committee, including
representatives of the ministry of agriculture. It is improper for it
to issue any other guideline on NDCC usage without the consent of other
members. The issuance of NDCC cannot be restricted to the importation
of machineries, because most companies do not retool or overhaul its
machinery in several years,” he argued.

It was gathered
that a recent meeting of the committee presided over by Yabawa Wali,
the minister of state for finance, had asked the NCS to withdraw its
directive that commands should reject discounted certificates. But it
was gathered that the issues raised by the NCS were not addressed at
the EEG inter-ministerial committee meeting a fortnight ago.