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Obey and Sunny prepare for historic concert

Obey and Sunny prepare for historic concert

Juju music icons,
Ebenezer Obey and King Sunny Ade (KSA), have disclosed that they are
game for the forthcoming ‘One Nite Stand’ featuring them with the same
band on a stage for the first time ever. The show, scheduled for the
New Eko Expo Hall, Eko Hotels, Victoria Island, Lagos from 4pm on
Sunday, November 7 is being packaged by GrandFaaji Concepts Limited.

Obey and Sunny
spoke about the concert at a press conference held at Airport Hotel,
Ikeja, on Tuesday, October 19. Welcoming reporters to the event, chief
executive of GrandFaaji Concepts Limited, Azuka Jebose Molokwu, said
the Juju legends were there “to imprint on our minds the essence of
this concert.”

The show, he
added, “is unlike any other in the history of Nigerian music. Many may
have thought that the so-called rivalry that existed between the two
musicians would never have made this possible. But, as it is evident
here: these are two brothers and friends. And, they are gearing up to
show what two will do, when they are agreed.” The former entertainment
journalist now based in the US noted that “It is also going to be an
evening of soul-gratifying melodies.”

President,
Performing Musicians Association of Nigeria (PMAN), Dele Abiodun,
thanked organisers of the concert for coming up with the idea. Abiodun,
who recalled the duo’s efforts to popularise Juju music, reiterated
that nobody would have believed the two role models would ever perform
together. “Thank you sirs, we are very proud of you and will continue
to be proud of you,” he ended.

We are brothers

Obey expressed
happiness at the opportunity to talk about the show. Baba Commander, as
some of his fans call him, said Abiodun and others saw him and KSA as
role models because God made it so. “What happened is not coincidental;
God brought us together to come into the music scene. We both prayed to
be successful musicians and God answered,” Obey said of their musical
beginnings. The duo, he added, have their strengths but “God brought us
to release messages to the world, to calm people. Both of us were there
and became a source of encouragement to each other.” Continuing on
their early years, Obey said it was a rarity in the history of Nigerian
music for two icons to reign together but that they did until he became
a minister of God nearly 20 years ago.

But he almost
backed out of the show. Though he had agreed with the organisers and
even concurred on KSA’s behalf, elders of his church saw the concert in
a different light. They thought people would perceive it as rekindling
the perceived rivalry between them. Obey said Molokwu explained the
whole concept again but he wasn’t ready to go against the wishes of the
elders. Molokwu eventually contacted Obey’s son, Folarin, who persuaded
the elders.

Obey said the
concert which is keyed into the 50th Independence anniversary, couldn’t
have come at a better time because God has helped them to contribute
their quota to the nation. Though he confessed he wouldn’t have ever
imagined the two of them on the stage, he noted that “With God all
things are possible. We are not enemies as people are thinking. We are
brothers.”

Who is fooling who?

Also dispelling
notions of a rivalry, KSA said even at the height of the so-called
enmity, he used to visit Obey in his house for discussions. “We have
cause to thank God because we are blessed. I am lucky to have him as a
brother who understood, understands and continues to understand,” KSA
said before narrating an incident involving the late celebrity
journalist, Olabisi Ajala.

He disclosed that
Ajala happened on him and Obey in his house and demanded that they open
the door. They had agreed to do so when Ajala’s next comment stopped
them. Ajala said, “You guys are sitting together and we are fighting
for you. You better open the door now or you will find your story in
the Evening Times today.” The journalist was true to his word as he
wrote a story titled ‘Who is fooling who?’ that same evening. Ajala, he
disclosed, always knew whenever Obey came to his house and was always
lying in wait for them.

KSA reiterated
that there was never any rivalry between them even when people assumed
so. He recalled why they had to change the day of their gigs when they
both had their joints on Olonade Street, Yaba, Lagos. KSA said there
was no problem when they started playing on Wednesdays until they
started having crowd trouble at their respective joints. He disclosed
that they amicably resolved the problem by tossing a coin with Obey
settling for Thursdays, even though his fans didn’t like it. That was
not the only measure they devised to manage their feuding fans; KSA
said they both agreed and instructed their managers not to book them
for the same event.

“Both of us are
working together to make this project what you think it will be.
Nigeria is 50 and this is the first time ever that the two of us are
meeting on the stage. We intentionally agreed not to meet together on
the stage but I want to assure you, we are going to have a good show, a
remarkable show. It will be even difficult for you to allow anybody
stand in front of you while you are watching the stage,” KSA promised.

Rare privilege

Veteran producer,
Laolu Akins, who is also involved the show, highlighted its uniqueness.
He said though it has never been attempted before, the organisers will
do “everything possible to ensure people have a wonderful time.” Apart
from Akins, the renowned Eddie Lawani is involved as the stage manager
while US-based broadcaster, Olusesan Ekisola, will anchor the show. All
female singing group, Nefeetiti and singer, Stella Monye, will also
perform as part of the bill. “It is a rare privilege to be playing with
these two giants. The opportunity just fell on my laps and I will be
the help to these two giants,” Monye said at the briefing.

Commenting on the
show, photographer and NEXT columnist, Tam Fiofori described Obey and
KSA as role models and trail blazers. He disclosed that Obey bought
beetle cars for all his band members and succeeded in raising their
social status at a time musicians were disparaged, while KSA was
equally benevolent and innovative.

Tickets for the
show which comes at N10, 000, N25, 000 and N100, 000 are already on
sale at various points across Lagos, emcee, Taiwo Obe, informed the
gathering.

Responding to
whether they will produce an album together after the show, KSA said it
is under consideration but that they will discuss further with the
organisers in that regard.

Asked to disclose the strengths of each other, Obey described KSA as
a master guitarist and excellent showman; KSA said it is Obey’s
melodious voice and perseverance on stage. The duo gave an insight to
what to expect at the concert when they sang ‘Ara mi e se pelepele’ by
Obey and KSA’s ‘Aimasiko’. “E fi yen le (leave that), e don dey sweet
una. Wait for the concert,” KSA said as photographers jostled to
capture the scene and reporters sang along.

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Play Africa again, Salif Keita

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.

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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.

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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.

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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

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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.

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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.

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‘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.

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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.

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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.

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