Archive for nigeriang

‘FELA!’ opens 2011 Lagos Black Heritage Festival

‘FELA!’ opens 2011 Lagos Black Heritage Festival

The 2011 Lagos
Black Heritage Week will start tomorrow with ‘FELA! in Lagos’, the
acclaimed Broadway musical making its debut in Nigeria.

Unlike last year’s
festival, which was held on a grand scale, the 2011 event themed
‘Animating Heritage’ will be a mini-festival because of the ongoing
elections.

“The 2011 Black
Heritage Festival was confronted by a formidable challenge from another
aspiring ‘festival’ – the Nigerian Festival of Democracy 2011 – at
least as eternally hoped by the Nigerian populace and outside democracy
watchers. Both performances falling within the same week, the
unpredictable nature of encroachments by the aspiring ‘festival’ nearly
caused a cancellation of the creative original. In the end, however,
the Heritage Festival’s commitment to a calendar regularity won the
day, and a final decision was taken to stage ‘Heritage’, albeit on a
much reduced scale. Perhaps the ‘Festival of Democracy’ will extract
some useful lessons from the humanistic order of its unintended rival,”
explained the festival consultant, Wole Soyinka.

Though the event
will take place on a much smaller scale, it will not be devoid of its
basic components. The opening ceremony of ‘FELA! in Lagos’ will start
at 5pm tomorrow at the Eko Hotel on Victoria Island, while the 2011
festival exhibition featuring artists Tola Wewe and Nike
Davies-Okundaye will start on April 22 at 9am at Freedom Park, Lagos
Island. It will run until April 29.

The children’s
heritage village, featuring games, adventures and creativity, will also
hold in Freedom Park on Friday with the renowned Uncle Jimi Solanke
anchoring the proceedings. There will be a special video feature by
Henrietta Fagbo and guest appearances by some public figures whose
identities are being kept secret, as a surprise for the children.

Drama and music

The festival
symposium themed ‘Animating Heritage – The Lagos Experience’ will hold
at Terra Kulture, on Tiamiyu Savage Street, Victoria Island, on April
27 at 10am while drama follows later in the day. “The Drama section is
especially pleased to be able to feature Sefi Atta, 2005 winner of the
Noma Publishers Literary Award and the 2006 Wole Soyinka Award for
African Literature. She partners Wole Oguntokun in a double
presentation bill aptly described as ‘Two Parables for Naija’, a pair
of thought-provoking plays that should complete any process of
reflection that may have been missed out in the Easter season of
professing Christians! No less thought-provoking is Bode Sowande’s
play, ‘Ajantala -Pinocchio’, an indictment of adult neglect of the
future as represented by children,” noted a release from organisers.

The painting
competition, an open event themed ‘Walls of Prison to Fields of
Freedom’, will hold at Freedom Park, the former site of Broadstreet
Prison, on April 28 and will culminate with an awards night on May 2,
the last day of the festival.

The Heritage Week
2011 festival will also feature a musical segment, apart from drama and
painting. Veteran highlife musician, Tunji Oyelana, will dish out
evergreen old school tunes every night at Freedom Park from April 27 to
May 2.

Lagos Carnival
2011, a key component of the fiesta, will take place on April 30
beginning at 9am, along a designated route that begins along Awolowo
Road and ends at Tafawa Balewa Square. “The public is assured that the
lessons of last year’s festival have been absorbed, and traffic control
agencies primed to a new awareness of the controls that should be put
in place to ensure that minimal interference with normal traffic takes
place,” the organisers assured in reference to hitches recorded during
last year’s carnival.

The boat regatta
will hold on May 1 at the Lagos Lagoon along Ozumba Mbadiwe and will
feature about 15 participating yatch clubs and boating associations.

The ‘fitila’
procession, a reminder of Africa’s tragic history of the slave era, and
the triumph of resilience and survival, takes place in Badagry also on
May 1.

Works by filmmaker, Tunde Kelani, will be screened at Freedom Park before the festival ends on May 2.

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A celluloid tango in Lagos

A celluloid tango in Lagos

Mahmood Ali-Balogun
has embraced celluloid at a time when other filmmakers are giving it a
wide berth. His latest feature, Tango With Me, is shot on celluloid.
But was this necessary?

“As a filmmaker and
somebody who studied film, it is always one’s dream to shoot on the
best format. More so, there has been much noise about Nigeria where
it’s only video that we work on,” he says in his Surulere, Lagos office.

“This movie
attempts to correct that impression, in the sense that we started
shooting movies in this country on celluloid and we will continue to
shoot on celluloid though the digital format has come to stay. For us
film buffs, we believe that it’s the best format; it avails you wider
horizon in terms of exposure and acceptance. Once people know that you
shot on 35mm, they tend to respect that gesture. They believe you can’t
be investing so much money if you don’t have something worthwhile to
tell people. It’s to express myself in the format that I believe will
give best expression to my movie.”

Ali-Balogun’s
choice is also a personal statement. “There has been so much talk about
the quality of what we churn out in Nollywood – that we don’t shoot on
any other format. They are also saying we lack the discipline to work
on celluloid and I try to say within Nollywood we have that discipline.
We have that skill, we have that capacity, we have what it will take to
work on 35mm.”

Tough going

Shooting on
celluloid is far from easy and Ali-Balogun speaks from experience as he
admits, “It’s a format where you need a lot of discipline. Yes, it was
tough but if you know your onions, you can overcome these challenges.
We had problems, especially because people have not worked on that
format for a long time, and I used a mix of Nigerian crew and a few
people who came from Hollywood. It was tough, but we were able to
surmount most of the challenges. I knew what I was doing so I was
prepared for it and had the answers ready.”

Having the answers
ready, however, didn’t stop him spending about five years on the
project. He conceived the project in 2005, finalised the script in 2007
but waited until 2009 to start principal photography while he sourced
for funds and grappled with other pre-production issues.

Post production,
which had its own hitches, took place in his studio in Lagos, South
Africa, Dubai and Bulgaria. After working on the sound in South Africa,
he took the production to Bulgaria. “Getting there, I realised we had
difficulties with the sound so I commissioned the sound [to be] redone
in Sofia. I came back to Lagos again, did some more work before I took
the materials back to Bulgaria, before I got the final print about
three weeks ago.”

He went to much
trouble for the movie, but Ali-Balogun doesn’t see this as any big
deal. “That’s how it’s done,” he says. “It’s just that we don’t have
some of the support system here locally, so I had to go to these places
for a cheaper alternative. That’s why I went to Eastern Europe. I went
to Dubai on the recommendation of Kodak Motion Picture Film that
partnered with me. They advised that I work in those places; that it
won’t cost me as much as it would if I went to South Africa, England or
the US.” He also talks about how he bankrolled the production. “Funding
was essentially my funds, with support of few friends. This was not
necessarily in terms of cash but support in kind – using their homes
and other facilities. Eventually, I got the support of MTN, but it was
after I had finished shooting.”

A filmmaker who
decides to shoot on 35mm must have contemplated if the required
expertise is available in Nigeria before making his choice. Did
Ali-Balogun feel there was enough expertise in Nigeria to do what he
needed?

“I will say yes and
no. In terms of expertise, we have some old hands in Nigeria who had
worked on film before but technology has changed a great deal. A lot of
them don’t even have an understanding of the kind of film stock
available. There are improved film stocks that people are not used to.
It’s not that we don’t have the people but people with [up-to-date]
experience were lacking, so I had to bring in the camera crew from LA
and the camera itself. I used a Harry 535 brought from The Camera House
in Los Angeles and a three-man crew came with it. The other support
crew was from Nigeria. Most of the grip equipment is from Jungle Film
Works and some from Cinecraft. That’s why I said I got the support in
kind.”

Known and upcoming

Tango With Me
features big names including Genevieve Nnaji, Joke Silva, Tina Mba and
Ahmed Yerima, all of whom the producer is happy to have in the cast.
“That’s why I went for them anyway. I knew they would be able to
interpret the roles effectively and in that light, bring out the vision
I have. I did the casting myself and I wanted a mix of known and
unknown [actors],” he says. Though some would consider the casting of
newcomer, Joseph Benjamin, opposite Genevieve a risk, Ali-Balogun
doesn’t see it that way. “I felt that what I needed from the actor was
potential. I saw the potential in him and I was able to groom him to do
exactly what I wanted. To a large extent he was able to interpret the
role the way I wanted. One of the reasons why I went for him was the
fact that we must begin to build new stars. There is nothing wrong in
using the same faces all over but part of my contribution is to help
raise new people that can become the stars of tomorrow. That’s why I
had a mix of people known and who are upcoming.”

Projecting Lagos

Ali-Balogun also
explains why Lagos is prominently depicted in the movie. “It’s a
deliberate projection of my country, particularly Lagos because movie
is a tool we can use to project ourselves. A lot of transformation is
going on in Nigeria, in Lagos where I live, and one could not but
appreciate and support the federal and state governments in
transforming the nation. There are still issues that we need to solve
but there are certain aspects that are working. Why don’t we extol
those aspects rather than show negatives all the time? It is not
propaganda material, it’s a creative thing; but in the process. I
infused some of the good things happening. It’s my own way of using
film to project Nigeria and Lagos.”

Lead actress Genevieve Nnaji, plays a ballet teacher in Tango With Me but is ballet that popular in Nigeria?

“The ballet dance
is used as a metaphor. Tango is a dance that involves two people and
marriage or any relationship involves two or more people. The title in
that regard is a metaphor for marriage,” says Ali-Balogun.

Appreciative producer

Tango With Me had
six nominations at this year’s Africa Movie Academy Awards but didn’t
win in any of the categories. How does the director feel about it?

“Anyone nominated
for anything, particularly awards, is as good as winning. The
nomination is good for the film in the sense that it shows that it is
above average, it shows that it could have won but the films that won
just have some slight edge over it. In a situation where there were
over 360 entries and you are in the last five, that’s great. Anybody
could have won but I’m sure individual preferences would come in
because I’ve been on juries at film festivals and individual
preferences would come. I appreciate the nomination and I’m sure maybe
next time we will win something. It’s a great honour to have been
nominated at all. That you are nominated does not mean you must win,
the nomination shows that one has done a good job,” says Ali-Balogun.
He adds that he is currently working on ensuring that the movie is well
distributed; and that he gets a good return on his investment.

Tango With Me premieres today at the Silverbird Galleria, Lagos, at 6pm.

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Writer at the crossroads

Writer at the crossroads

We are seated on a day bed of patchwork upholstery, one of the innumerable proofs of Peju Alatise’s artistic ingenuity.

The multi-faceted
artist and writer says she is usually referred to as an old soul and it
is easy to see why. She speaks like one who has lived many lifetimes
and her debut novel ‘Orita Meta’ (2006) is what she terms her attempt
at understanding what life is really about.

‘Orita Meta’ looks
at three generations of women and the challenges of being an African
woman; and borrows a lot from Yoruba philosophy and folklore. The
writer says that her Yoruba heritage is an immutable part of who she
is. “It’s a part of me. Some of the stories in the book were stories my
mum had told me when I was young; and my grandmother too,” she says.

The book’s prologue
is profound in that it goes deep into the Yoruba philosophy of the
spiritual and its influence on the destiny of man. “A lot of people
have told me they found the prologue poetic, some have said esoteric,”
she says of the segment, which depicts how a woman meets with the devil
of the crossroads, who then attempts to read her palm.

On feminism

Alatise may come
across as a feminist because her art often dwells on the female as
subject matter and ‘Orita Meta’ tells stories of women, but she is wary
of the term. “I do not think ‘Orita Meta’ is a book meant for women
(simply) because it’s about women,” she says. “It’s not about fighting
and burning the bras. If I define feminism, I see that it is about
equal rights. If a man has the right to eat, can’t a woman have the
same right? Fighting for my right to be human is ridiculous. For as
long as feminism means a woman can make her own choices, then you can
call me a feminist. If feminism says I have the right to live, then I
am.”

Starting to write

Unlike many writers
who profess an awareness of their abilities from a young age, Alatise
never knew she could write. “I am talkative, I like to tell stories and
I have a strange imagination but I was not a writer,” she insists.

According to her,
it all began with painting. She did a couple of artworks for a close
friend and he told her to write short stories about each of the works.
“It was interesting writing about all the short stories,” she says.

Before long,
writing became a part of her. “I did a lot of faces and wrote stories
behind the faces,” she adds. At her studio, she would print out the
stories and lay them out on a table and people visiting the studio
would read them. However, “my closest friend lost her husband and it
was a painful loss for her and I felt for her. That was when I began
writing ‘Orita Meta’,” she says.

‘Orita Meta’

The process of
writing the book was mostly about her asking questions about existence.
“Why do [we] cry when people die? It could be for different reasons;
lose of income, security and survival,” she says. “For some, it could
be for loss of friendship and companionship. It was about being able to
create fictional characters that were influenced by various people I
had encountered. The challenges of these characters were some of the
answers to my questions about life.”

Alatise admits to
having enjoyed the whole process of writing, getting published and
finally holding the book in her hands, in spite of the challenges of
getting a publisher in Nigeria. She reveals that she got a lot of
rejections, with varying reasons given. “I had one who said that I
should come back after five years because good books are written after
five years. I got crazy responses,” she reveals with some amusement.

Undeterred, she
sent off the manuscript to a friend in South Africa who was working
with magazine. “He showed it to his editor and they thought it was
fantastic.” She left for South Africa almost immediately and had to pay
for an editor. It was eventually published in South Africa, but Alatise
admits that it was basically a self-published work.

While Alatise began
writing ‘Orita Meta’ out of a need to understand the essence of being,
the novel has taken on a life of its own way beyond the author’s
initial intention. It was nominated for the ANA/Flora Nwapa Prize for
Women’s Writing. Alatise, who enjoys collecting books, also loves to
read and in recent times has found herself reading and being fascinated
by Magical Realism.

Rhythmic Prose

“I was recently
introduced to the works of Latin American writer, Eduardo Galeano. I
find him humorous, very philosophical and witty. He writes like he is
dreaming,” she says. Chinua Achebe and Brazilian writer, Paulo Coelho
are also favourites, whose works have influenced her craft including
‘Orita Meta’, which she terms ‘Rhythmic Prose’. “I am fascinated by
Achebe’s use of language in writing and also the fact that he writes
from the perspective of an old soul… Reading Coelho, I asked myself
‘Are you really allowed to do this?” says Alatise, thrilled by the
freedom of imagination and possibilities which Magical Realism affords.

With a children’s
story book and a play already in the works, this 36-year-old graduate
of Architecture proves that her foray into writing is not a fluke.
Having made a success of her career as a visual artist, it will not be
a surprise to see her do the same as an author, especially as her first
steps have yielded noticeable results.

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EMAIL FROM AMERICA: Waiting for Savon

EMAIL FROM AMERICA: Waiting for Savon

I enjoyed reading
‘Waiting for Savon’ by Isaac Attah Ogezi. I love plays but I rarely get
the texts from Nigeria these days. Does anyone of my lovely readers
have any recommended plays from home? I can send my friends and
relatives to get them from the bookstores, along with my Nescafe and
groundnuts. ‘Waiting for Savon’ features a rollicking discussion about
political and ethnic tensions, using three main characters, each
representing Nigeria’s main groups. It is an interesting play on the
tensile anxieties among the three major ethnicities. I enjoyed the play
for it questions the reader’s ideals, the notion of the nation-state,
and one’s sense of the reality on the ground. The reader is forced to
reconcile all that with the rank irresponsibility of our leaders who
see us through linear lenses. And of course today, there is the reality
of blurred boundaries. I am quite fascinated by the burden of the
play’s anxieties. It is a simple play; there are no silly flourishes
with the language. I liked that because it freed me to follow the plot.
The dialogue is insistent, throbbing gently with an urgent message. It
folded itself into my pocket and followed me everywhere; it would reach
out and ask to read to me.

Plays are tricky
because the playwright is bringing together every trick of the writing
trade and you are talking dialogue; you can be easily shamed by an
audience looking for good quality dialogue because dialogue is life and
life is dialogue. Ogezi’s play is mostly dialogue; in my day, before
the Internet became everything, it would have made for a good radio
play. I hope Ogezi continues to work on his craft. I actually loved the
work’s simple trick of disembodying the three ethnic representatives,
as they were, from the people. The reader is focused on them and
fascinated by how seemingly disconnected they are from the reality on
the ground. Or are they? Ogezi provides the lots of food for thought.
This is no mean feat.

‘Waiting for
Savon’ made me nostalgic for my youth, when I used to prance around on
stage. Ogezi’s drama text made me hungry for Wole Soyinka’s ‘Jero’
plays, which I love. Soyinka is a world class playwright, genius flows
from him when he does plays. However, Ola Rotimi’s ‘The Gods Are Not To
Blame’ is my all-time favourite. I enjoyed playing Alaka the drunken
old man when I was young. The work is remarkable in how it takes a
Greek tragedy, ‘Oedipus Rex’, and adapts it into true Yoruba mythology.
Please read ‘The Gods Are Not To Blame’, if you have not done so
already. Like Chinua Achebe, Rotimi was a very confident wordsmith; the
English language did not intimidate him. He deployed English as if he
was using an indigenous language. And it shows in the play’s flow.

If I had to advise
any aspiring playwright, I would say, travel around and listen to any
and everybody. The plays are on the streets. And read, read, read the
masters. Talking about listening, my dad Papalolo taught me to listen
closely to people, to interactions, to the poetry of dialogue, to how
people really communicate. He would take me to our ancestral village
and we would visit folks in the most rugged of places and he would say
to me, “Ikhide, listen, just listen.” My dad was born with a good ear
for the poetry of living. He saw music and poetry in words and he would
say to me, all excited, “Did you hear that? Tell me, what do you think
they were really telling you?” In those days, we both hung around some
rugged places and drank several rounds of palmwine together, listening
to some great oral poets.

We both read
together voraciously. Achebe’s ‘A Man of the People’ is my dad’s
all-time favourite book. If he knew about the Nobel he would probably
say that Achebe should get the laurel every year on the strength of
that novel alone. He loved the character, Chief MP Nanga, and he used
to swagger around our parlour imitating that man. I loved the main
character, the idealistic Odili. My dad loved all the works of T.M.
Aluko and he bought them all, ‘One Man One Matchet’ and so on. He
adored ‘One Man, One Wife’ and he would read long passages aloud, to my
mother’s irritation.

My dad was an armful in his young days. But he was a warrior, who
defied the odds in that place called Nigeria. He taught himself what
the society would not teach him. As a result he got in trouble a lot,
but he taught me how to use charm and street smarts to get out of
trouble. Reading and writing and life-long learning were part of the
tricks of his trade. Growing up, my dad was a one man play, a
triumphant celebration of life. I thank Ogezi for making me remember my
dad.

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Sunmonu to mediate in labour, government feud

Sunmonu to mediate in labour, government feud

The
federal government yesterday named a former leader of the Nigeria Labour
Congress (NLC), Hassan Sunmonu, as Chief Negotiator/Conciliator over
the lingering feud between it and the organised labour over unresolved
issues concerning the attempt to fully privatise the Power Holding
Company of Nigeria (PHCN).

The
appointment of the respected labour leader appears a major move to
forestall a possible negative impact the nationwide industrial action
proposed by the umbrella workers group might have on the country’s
economy if allowed to go ahead come May 1.

The
organised labour, under the aegis of National Union of Electricity
Employees (NUEE) and Senior Staff Association of Electricity and Allied
Companies (SSAEAC), has already issued a threat to plunge the nation
into darkness from next month if government fails to release the White
Paper on the report of the House Committee on Power, which investigated
the $16 billion scam involving the National Integrated Power Projects
(NIPP).

The
unions, which gave a 14-day ultimatum, had also asked government to
immediately respond to a number of issues affecting their members’
welfare with regard to the ongoing privatisation of the Power Holding
Company of Nigeria (PHCN).

Government acts

However,
presidency sources said yesterday that government was compelled to move
swiftly to avert any crisis capable of frustrating the run-up to
peaceful inauguration ceremonies of the new administration later next
month.

Head,
public communications, Bureau of Public Enterprises (BPE), Chukwuma
Nwokoh, said in Abuja yesterday that Mr. Sunmonu’s appointment was to
ensure that all unions affiliated to the NLC are carried along in the
power sector reform process towards a peaceful and speedy resolution of
all labour-related issues affecting the privatisation exercise.

Mr.
Sunmonu, who is currently the secretary general of the Organisation of
African Trade Union Unity (OATUU), said he had accepted the appointment,
in spite of his busy schedule, “because of the strategic importance of
the power sector on the socio-economic development of Nigeria.”

The
former NLC boss, who is currently based in Accra, Ghana, is expected
back in Nigeria early this week to meet with all the stakeholders, to
discuss details and modalities of his assignment, as well as work out
the plan to achieve its mandate.

Following
allegations that government was determined to go ahead to wind down the
company when issues concerning the workers’ entitlement were yet to be
resolved, the aggrieved PHCN staff, on January 7 this year, decided to
take their case before the Federal High Court in Abuja, accusing the
Attorney General of the Federation (AGF), Mohammed Adoke, of gross
insensitivity and negligence.

In
the suit filed on their behalf by 16 plaintiffs through their legal
Counsel, Bamidele Aturu, the workers sought the determination of four
key issues, namely an order of perpetual injunction restraining the
“defendant whether by himself, privies, agents, subordinates or
otherwise howsoever, or by whomsoever, from privatising the successor
companies to the Power Holding Company of Nigeria, or otherwise
divesting the shares in those successor companies held on behalf of all
Nigerians.”

Similarly, the workers also asked the court to grant a perpetual
injunction restraining the government, through the AGF, from
transferring workers and members of the PHCN to the successor companies
created under Section 8 of the same Act without the consent of the
workers, amongst five other declarative reliefs.

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Consumers owe electricity firm N2.5b

Consumers owe electricity firm N2.5b

The Power Holding
Company of Nigeria (PHCN), Baboko Business Unit, Ilorin, Kwara State,
has said it is being owed an estimated N2, 586,784,870.90 as at April
this year.

This was disclosed by its business manager, Shina Ayandokun, in Ilorin, during the unit’s first consultative council meeting.

According to him,
the debt was being owed by government, companies, and individuals. The
breakdown of the debt as at March are as follows: Private
N2,145,073,405.82; Police N1,976,7l2.30; Customs N284,368.50; Prison
N244,170.28; state government NI8,30,997.17.

Others are local
governments N1, 873,435.36; Nigerian Army N336, 237,628.72; Air Force
N82, 794,152.65, all amounting to N2, 586, 784,870.80.

How to pay

The business
manager, who was represented by technical engineer, Bashir Osho,
explained that “while customers are encouraged to settle their bills
through all the designated banks, the service units are also equipped
with cash receipting machines to facilitate prompt bill settlement by
customers. With that, customers can now pay at any bank or service unit
nearest to them.”

“The customer care
centre, located within the business unit, is fully equipped with capable
staff and facilities to render prompt services and assistance to
customers who may be faced with one challenge or the other,” he added.

The chairman,
Customer Consultative Council (CCC), Hameed Ajimati, advised consumers
to always pay their bills regularly to enhance productivity and
profitability. He, however, urged all stakeholders to cultivate the
habit of protecting properties belonging to PHCN, stressing the need to
guide against vandalism.

“I appeal to individual, groups, and association to stop tampering
with PHCN properties; it is against the law. Any erring offender caught
violating the rules guiding the operations of PHCN would be arrested
and handed over to the law enforcement agents for prompt prosecution,”
Mr. Ajimati said.

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Speculations on naira to shrink

Speculations on naira to shrink

Respite is in view
for the naira which has suffered consistent weakening due to elections
triggered speculations over the months.

With the
presidential elections behind, the naira is expected to appreciate over
the next few weeks and foreign portfolio inflows are expected from
multinational companies who may have otherwise been reluctant to sell
off the coveted dollar at the forex market due to elections anxiety.

“The considerable
increase in Forex demand over the past two months was mainly of a
speculative nature, notably if one factors in the surge in demand from
the Bureaux de Change,” Samir Gadio, emerging Market Strategist,
Standard Bank Plc, said.

“As a result, we
expect the naira (which is currently trading at 154.9 to a dollar) to
appreciate over the next fortnight, as domestic investors somewhat
unwind their long dollar positions and foreign portfolio inflows
progressively resume, coupled with the usual end-month Forex sales by
oil companies,” Mr. Gadio said, adding that the forecast is based on the
assumption that the current disturbances in the north do not escalate.

He said that this
trend will also be reinforced by the Central Bank’s desire to maintain
exchange rate stability and possibly by some fiscal restraint in the
post-electoral period, if the government is able to reverse the upward
revision in spending recently put forth by the National Assembly.

“Although local
currency bond and T-bill rates are driven by endogenous macroeconomic
fundamentals and supply-demand dynamics (even as foreign participation
remains marginal), the positive offshore sentiment and expectations have
already translated into a rally in the Nigerian Eurobond whose yield
fell 65 basis points to a record low of 6.29 per cent on 18 April, from
6.94% on 25 March.

“In practical terms,
we see further upside potential for the Nigerian Stock Exchange, which
rallied 1.6 per cent today as local sentiment improves and also because
international investors had reduced their exposure to the country in
recent weeks,” Mr. Gadio said.

However, Renaissance
Capital, an investment bank, says, “In our view, investors can enhance
their returns by picking up banking stocks that are still trading cum
dividend, as we expect these counters to retrace most of the dividend
mark-down loss in the short term.”

Renewed optimism anticipated

Afrinvest, a
finance, research, and investment advisory firm, says it expects renewed
optimism to positively impact on the direction of the market, following
the successful conduct of the presidential elections.

It, however, says early profit booking might negatively impact market momentum this week.

“As political
uncertainties wane in the aftermath of the concluded presidential
elections, we do not expect strong demand for the dollar in the coming
week.

“We foresee an
increased level of supply of the greenback by multinationals for
month-end transactions; hence a mild appreciation in the value of the
naira is anticipated in that segment of the market. We expect increased
activity in the market this week, hence a decline in yields, on the back
of renewed political optimism,” the firm said.

The firm said the
DMO bond auction for April should also buoy activities in the primary
segment of the market, just as the release of March inflation figures
this week is expected to shape the direction of the market in the short
term.

Last week, valid
dollar demand was 44.5 per cent above the amount sold by the Central
Bank, higher than the excess demand of 36.3 per cent recorded in the
previous week.

The naira subsequently weakened at the interbank market owing to
reduced dollar supply by multinationals and the regulatory body, which
exerted an upward pressure on the naira-dollar rates.

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Nigeria’s electoral crisis may affect investors’ interest

Nigeria’s electoral crisis may affect investors’ interest

The recent chaos and
post election violence in some parts of the north have been described
as a bad signal to investors and the international community.

Assessing the impact
and the implications of the crises, finance experts and industry
analysts said how it affects the economy and the confidence of investors
who may want to invest in the country depends on how the government
handles the situation.

Pockets of violence
had on Monday broken out in some cities in the northern part of the
country following the declaration of the April 16 presidential election
results.

”The next two to
three days are very important days for Nigeria,” Bismarck Rewane,
managing director, Financial Derivatives Company, a finance research and
analysis firm, said yesterday.

According to him,
nothing much is expected to change with the emergence of Goodluck
Jonathan as president-elect because he is expected to continue with his
ongoing policies.

”I don’t expect any
change in economic and government policy. We already have an idea of the
things he would be doing and the things he would not do,” Mr. Rewane
added.

He said there was
really no cause for alarm or anxiety, if every other factor was normal.
“If oil production remains high, and oil prices are high, the economy
would be relatively stable. However, I think it is still too early to
place assumptions and forecast. The next few days, we would be in a
better position to estimate and forecast on various economic variables
and on the economy,” he further said.

The president is
expected, among other things, to reform the power sector, sign the
Petroleum Industry Bill, restructure the Nigerian National Petroleum
Corporation, constitutionally preserve an oil-price based fiscal savings
programme, boost infrastructure development, and improve execution of
public affairs.

Investment implications

Samir Gadio,
emerging market strategist, Standard Bank Plc, said, “In terms of
political risk, we are less worried about who is the president and more
concerned about whether he can muster enough political muscle to deal
with Nigeria’s pressing reform issues. While Nigeria has substantial
natural resources, the authorities have struggled to unlock the
country’s potential over the past decades because of key structural
constraints.”

According to him,
this year’s presidential contest unfolded without any major
irregularities that could undermine the credibility of the vote and the
process appears to have been transparent.

“While some protests
broke out in the northern parts of the country and the Congress for
Progressive Change has rejected the poll results, we do not, however,
foresee a drastic spike in violence across Nigeria in the coming days
and weeks, even if the opposition disputes the outcome of the vote in
court (as it did in 2003 and 2007).

“In our view, the
relatively smooth electoral cycle in most of the country will be
positively perceived by international investors, with the potential to
mitigate previous concerns over Nigeria’s short-term political outlook.
We think Jonathan’s decisive win will ease investor concerns, both
domestically and Internationally,” Mr. Gadio said.

He added that the
transparent presidential election will boost Nigeria’s institutional and
democratic credentials, but the key test will be the extent to which
Mr. Jonathan’s administration is able to reform the power sector and
other critical areas.

“Such policy steps are urgently needed to unlock the country’s significant investment and economic potential,” he said.

Since May 2010 that
Mr. Jonathan has been the nation’s president, he has embarked on a few
policies which include the series of power reforms, and the recently
launched gas revolution which would require millions of dollars as
foreign direct investment.

Nigeria’s Eurobond was also launched under his government and the
Sovereign Wealth Fund, for ‘economic restoration’. It is anticipated
that he would be able to accomplish the policies he started before the
end of his tenure, when he is eventually sworn-in this quarter.

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Eurobond success good for Nigeria

Eurobond success good for Nigeria

The successful issuance of the $500 million Eurobond in January has improved Nigeria’s path towards being regarded as an emerging market economy.

The director general of the Debt Management Office (DMO), Abraham Nwankwo, in his keynote address at the two-day workshop on ‘Investments in Bonds and Securities in Emerging Economies’ organised by the Chartered Institute of Bankers of Nigeria in Lagos yesterday, said the debut sovereign bond has created visibility for Nigeria in the international capital market and would provide support for the attainment of Vision 20: 2020 and FSS (Financial System Strategy) 2020.

Both development plans aim to position Nigeria and the financial sector to be among the top 20 globally by the year 2020.

“One of the benefits of this for the country is that it has helped to develop an investor base in the international capital market for securities, including equities to be issued out of Nigeria,” Mr. Nwankwo added.

On January 21, Nigeria issued a 10-year $500 million Eurobond with 7.0 per cent yield which was 2.5 times oversubscribed by investors from 18 countries spanning Europe, the United States, Asia, and Africa.

Global map

Minister for finance, Olusegun Aganga, at the conclusion of the issue, said its success would drive investment into Nigeria.

“This transaction clearly puts Nigeria on the global map. We now have a transparent and internationally observable benchmark against which international investors can accurately price risk,” Mr. Aganga said.

Four emerging economies, namely Brazil, Russia, India, and China are regarded as the next world economic powers, with 11 others namely Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey, and Vietnam are considered the next emerging economic giants and could be important source of growth and opportunity.

According to Mr. Nwankwo, emerging economies have become significant to the world economy and may become even more relevant in future.

“Securities issued by emerging economies will continue to offer superior returns due to their higher risk levels. The margins may narrow as some of the countries in this category become stronger and demand for securities from emerging economies increase,” Mr. Nwankwo said.

He said growing prominence of local bond issuance relative to borrowing from external sources in various forms has led to rapid development of domestic bond markets. This, he said, has helped to encourage development of domestic savings and investment behaviour.

In the nine years between 1999 to 2007, nine corporate issues worth N33.75 billion, averaging N3.75 per annum, was floated while from 2008 and last year, eight issues were concluded worth N92.58 billion, average of N30.86 billion per annum.

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FINANCIAL MATTERS: An agenda for the next term

FINANCIAL MATTERS: An agenda for the next term

Now that we have
chosen our president for the next four years, we will do well to think
through what we can expect to feature on his to-do list, every day,
until this stage is reached again at the start of the next election
cycle. Ordinarily, it would help to start with the different planks on
the party platform of our preferred candidate. Trouble is, even when
these were bruited about on the campaign trail, they did not amount to
much. Even as sound bites, these policy platforms always sounded
hollow. Apparently, all the candidates were sure that no section of the
electorate was going to interrogate their manifestoes (and the numbers
behind them) too seriously.

Still, there are
reasons why any election pledge in this country should be taken with a
liberal dollop of salt. Across sectors, the economy’s need is so
substantial and so fundamental. Especially with infrastructure, where
promises to remedy the dearth must contend with the 48 months lag
between the contract award ceremonies and when the projects come on
stream. In the absence of low-intensity, high-impact solutions, it thus
means that any genuine investment today, will only begin to yield
fruits after the first four-year term. This is one of the more perverse
incentives of representative democracy: it forces executive focus on
near-term upside gains with medium-term downside consequences.

This does not,
however, obviate the need for such investment, or the equally important
need for the incoming government to deliver on a few low-hanging
fruits. The Petroleum Industry and Nigerian Sovereign Investment
Authority bills are two versions of the latter type of investment.
Because of the unconscionable delay in passing the former bill,
investment in the upstream sector of the oil and gas industry has
tailed off considerably. Desirable though it might be to cap the oil
wells as part of a radical response to the failure of our fiscal
federalism, we cannot run away from the size of hydrocarbon export
revenues’ contribution to the national budget.

Prompt passage of
the bill is also consistent with acknowledging what the International
Monetary Fund (IMF) describes in its latest comments on the global
economy, as “long implementation lags for discovery, exploration, and
capital investment in minerals industries”. In addition, there are
significant gains to be had in the current environment. The signals
from current elevated market prices for crude oil would seem to
indicate that, along with the pressures from new demand from newly
industrialising economies in Asia, there have been significant
“downshifts in trend (crude oil) supply growth”.

Moreover,
macroeconomic policy has fallen behind the curve over the last two
years. Despite strong terms-of-trade gains, as commodity prices firmed,
we have not accumulated reserves as rapidly as would have been
expected. Instead, the central bank has run down these inflows in
support of an inflexible exchange rate regime. Has this moderation of
domestic exchange rate movement been beneficial to strengthening
domestic demand? Another question touched by the domestic demand worry
is, “What is holding back private investment in this economy?” Soft
final domestic demand is one answer. But there’s another argument. If
our policy is to support the growth of private investment, shouldn’t it
aim to boost net capital formation within the economy, while reducing
the domestic cost of doing business?

The needed
structural reforms go further than this though. The central bank’s
quasi-fiscal interventions in the economy in the last two years have
been anomalous. Returning the funds on to the public balance sheet is
essential for fiscal transparency and in order to clean up the balance
sheet of the Central Bank of Nigeria (CBN). The trouble with this
course of action is that the public debt profile is rising. Adding
debits from the CBN’s balance sheet would further reduce government’s
room for fiscal manoeuvre. Nonetheless, fiscal consolidation is key to
the economy’s medium-term fiscal outlook. Rising inflation is one (but
scarcely the only) reason. Fiscal support was necessary to keep the
banks from going under and to a lesser extent to keep domestic demand
ticking away despite second-round pressures from the global financial
and economic crisis.

But the banks have begun to post healthy results. And it is doubtful
(because of the infrastructure constraints) that domestic demand did
indeed respond to the fiscal stimulus. Thus, it is important for a
positive medium-term fiscal outlook to return immediately to the oil
price-based fiscal policy rule!

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