Showing posts with label Japan. Show all posts
Showing posts with label Japan. Show all posts

Sunday, April 24, 2022

The Renaissance Man, Ekenyerengozi Michael Chima

The Renaissance Man
Ekenyerengozi Michael Chima

I stopped working for salaries in 2000 and registered my own company, King of Kings Books International .

After working as the youngest professional script writer.in Africa for the NIgerian Television Authority (NTA) Channel 10 at 18.

Art and Features Editor for Kiddies World magazine of Hon. Babatunde Ereola at 24-25;

National Program Consultant for the UNICEF in Nigeria at 25;

IEC Field Officer for the Center for Education, Population, AIDS and Drug Abuse (CEPADA) at 32;

Production Manager of "Money Wise" on DBN TV in Lagos at 35 and left after two  years to start my indie publishing company at 37.

Already a national celebrity at 13 when I won the first prize in the national essay competition on "What I Like Best About NIgeria".

Represented Nigeria at two international book fairs for children's books in Japan for my illustrations on traditional farming tools in Nigeria when I was 20 and the youngest participant and ten years later, I curated one of the most successful and sold out group art exhibitions in Nigeria on Arts against AIDS for the celebration of the World AIDS Day in 1993 organized by NNNGO of Nigeria at the National Museum in Onikan and National Arts Theatre in Iganmu, Lagos. My oil  paintings, "Eruption of the Love Virus" and "Metamorphosis of the HIV in the T-Cell" were the first artworks to be sold. 

Then I directed my second stage drama, "Sleepless Night" on the June 12 political crisis at the French Cultural Centre in Ikoyi in 2002 cosponsored by my United Artists for Human Development (UAHD), French Cultural Centre and Otunba Dele Momodu, Founder and Publisher of the popular OVATION lifestyle and high society magazine. Then later founded and incorporated my second company, International Digital Post Network Limited, Publisher of the NOLLYWOOD MIRROR® Series, the first book series on Nollywood and the Nigerian film industry since 2013. This digital media company is developing the most advanced mobile video app in Africa that will be for news, entertainment, eCommerce and fintech combined. My ultimate goal is for the mobile video app to be used for wealth creation and distribution for the reduction of poverty by 80 percent.



Monday, August 30, 2021

Happy Birthday Prof. Bruce Onobrakpeya

Happy Birthday great man of the arts.

I am happy for you with all the thanksgivings to Almighty God for blessing you with long life and prosperity.

Prof. Bruce Onobrakpeya is one of the greatest artists of all time.

I am proud to have been tutored by him and I made him proud by representing Nigeria as an illustrator at two international book fairs cosponsored by the UNESCO in Japan in 1983. I was the youngest participant among lecturers, including professors. Then in 1993, I had the honour as a curator to include his unique artworks in the 1993 World AIDS Day Art Exhibitions at the National Museum and National Arts Theatre in Lagos, Nigeria. If there was a Nobel Prize for fine arts, he would have won it.

He is also the most published African artist in contemporary modern art.


Friday, July 23, 2021

Integral Secures Olympic Games Tokyo 2020 Exclusive Free to Air Media Rights Package from Infront

PRESS RELEASE

Integral Secures Olympic Games Tokyo 2020 Exclusive Free to Air Media Rights Package from Infront

Integral will once again work with Nigeria's most popular broadcaster the NTA Network, to deliver all content on its free-to-air-platform

LAGOS, Nigeria, July 23, 2021/ -- Integral (www.Integralsande.com), Nigeria’s leading sports marketing and management company, has secured the exclusive rights to broadcast the Olympic Games Tokyo 2020 on free-to-air television.


This sub-license deal from Infront, a Wanda Sports Group company and the IOC's exclusive rights holder for free-to-air distribution rights in Sub-Saharan Africa, is in addition to Integral’s existing Premier League sub-license free-to-air media rights agreement on NTA.


The exclusive package includes TV broadcast of live events as well as repeats and highlights from the Olympics. Integral will once again work with Nigeria's most popular broadcaster the NTA Network, to deliver all content on its free-to-air-platform.

Over 200 hours of content will be available on the NTA Network with 6 to 9 hours of daily content throughout the period of the Games from July 23rd to August 8th, 2021

Christophe Van Rothem, Infront Associate Director Media rights said: “Our objective is to maximize the reach of the Olympic Games 2020 and this partnership with our trusted partner Integral, will ensure we are able to bring this unique and thrilling event to millions of households in Nigeria.”

Speaking on the deal, the Managing Director of Integral Abimbola Ilo: “Following our partnership for the Premier League free-to-air rights, we are pleased to be working with Infront again to deliver high-quality sports moments to Nigerians. This is an important avenue to showcase the talents and tell the stories of exceptional athletes as they compete on the world’s biggest stage in Tokyo”.

Also speaking on the deal, Mallam Yakubu Ibn Mohammed, the Director General of NTA stated: “As Nigeria’s most popular broadcaster, we are committed to delivering quality content to our viewers and proud to be partnering with Integral again on what promises to be yet another exciting sports event. With this partnership, we will once again be bringing the best of premium sports to the widest distribution in Nigeria”.

Chichi Nwoko Integral’s Associate Director, Sports Rights and Media Partnership added: “We are happy to partner with Infront to bring another exciting major sports event to passionate Nigerian fans. As we add to our growing media rights catalogue, Integral is delighted to be at the centre of delivering live sports content to Nigerians yet again”.

Distributed by APO Group on behalf of Integral.

For more information, please contact:

Deolu Lamikanra

deolu@integralsande.com


About Integral:

Integral, based in Lagos, Nigeria, is a leading sports marketing and management practice. Known for its high standards of delivery, the company has varied expertise and works in all aspects of the industry – events, corporate hospitality, sponsorships, media rights and athlete representation. Integral’s track record includes hospitality experience specific to the 2010 FIFA World Cup™, 2014 FIFA World Cup™ and more recently, as exclusive sales agent in Nigeria of the 2018 FIFA World Cup Russia™ and the FIFA Women’s World Cup France 2019 ™ Official Hospitality Programme delivering first class solutions to a variety of individuals and blue-chip companies in Nigeria. Integral is the current rights holder of the Premier League sub-license free-to-air media rights in Nigeria.


About Infront:

Connecting fans and consumers to the greatest sports events, Infront, a Wanda Sports Group company, offers everything an event or commercial partner needs to be successful. With a team of over 1,000 experts working from 45 offices across more than 16 countries around the world, Infront is equipped to tackle any challenge – be it innovative digital solutions, world-class event operations, international media rights distribution, sponsorship sales and activations or cutting-edge media production. Headquartered in Switzerland, Infront is passionate and AllAboutSports. @infrontsports www.infront.sport.

SOURCE

Integral


Wednesday, August 10, 2011

Japan gives more Assistance to Peacekeeping Training Centers in Nigeria and other African countries

9 Aug 2011 15:12 Africa/Lagos


Japan's Additional Assistance to Peacekeeping Training Centers in Africa

TOKYO, August 9, 2011/African Press Organization (APO)/ -- On Tuesday, August 9, the Government of Japan has provided additional assistance to Peacekeeping Training Centers in Africa, amounting to 2.7 million US dollars (240.3 million yen). Out of this assistance, 500,000 US dollars will be additionally provided to the Kofi Annan International Peacekeeping Training Centre (KAIPTC) in Ghana and the Cairo Center for Conflict Resolution and Peacekeeping in Africa (CCCPA) in Egypt respectively, 800,000 US dollars additionally to the International Peace Support Training Center (IPSTC) in Kenya, as well as 900,000 US dollars newly to the ISS Peace Academy (ISSPA) in Ethiopia.


Although a number of conflicts and civil wars are being settled in Africa, there remain volatile countries and regions and six UN peacekeeping operations (one of which is an AU [African Union] / UN hybrid operation) and one peacekeeping mission of the AU are in operation on the continent. Japan, recognizing that training of personnel is essential in implementing effective peacekeeping operations, has been providing assistance to peacekeeping training centers throughout Africa for the promotion of the capacity of African countries in peacekeeping. Japan intends to continue effective assistance, including the dispatch of lecturers.

[Note] Japan's cooperation to peacekeeping training centers in Africa


The Government of Japan provided assistance amounting to approximately 14.5 million US dollars in total in 2008 to five peacekeeping training centers in Africa (in Egypt, Ghana, Kenya, Mali and Rwanda) for the construction and rehabilitation of facilities, provision of equipment such as computers and the conduct of training courses, among other forms of assistance. In the fiscal year of 2009, Japan extended its assistance to three more centers (in Benin, Nigeria and South Africa), which amounted to approximately 4 million US dollars in total, and in 2010 (fiscal year), it provided additional assistance to three centers (in Egypt, Ghana and Mali) and new assistance to one center in Cameroon (approximately 2.52 million US dollars in total). Japan has up to now sent 18 Japanese lecturers (7 Self-Defense-Force personnel and 11 civilians) to four centers. More than 1,800 military, police and civilian personnel have been trained through Japan's assistance to date. The Government of Japan has transmitted 2.7 million US dollars, the assistance to Peacekeeping Training Centers for the fiscal year of 2011, to the United Nations Development Programme (UNDP). Each center will receive the assistance through the UNDP.


Source: Japan - Ministry of Foreign Affairs





Tuesday, August 2, 2011

Re : Russia woos Nigeria on nuclear power plant


The nuclear accident that occurred on 26 April 1986 at the Chernobyl Nuclear Power Plant in Ukraine?


Re : Russia woos Nigeria on nuclear power plant

The Guardian newspaper of Nigeria reported on Monday, 01 August 2011 that Russia is bidding to build Nigeria’s first nuclear plant. It is the most unfortunate thing that will happen to this country. Yes it works in the developed countries, but they have actually been challenged by the difficulties to manage their various nuclear plants and at a great cost too.

We don’t have the technological advancement to handle it. We can’t even maintain our roads, railways, no national carrier, etc. Look at the white elephant project at Ajaokuta and the mismanaged Delta Steel project which was almost taken over by the son of one of Nigeria’s former rulers.

Our tertiary institutions cannot be upgraded where you see our beautiful daughters going to toilet with polythene bags while those who have ruled this country instead of upgrading them have established their own private universities and even boasting that they pay their lecturers in dollars.

Nigerian legislators are earning more than lawmakers in America and Britain and even more than the U.S. President, the most powerful leader in the world today.

The recent Fukushima Daiichi nuclear disaster, the largest of the 2011 Japanese nuclear accidents after the Tōhoku earthquake and tsunami, was an eye opener that even Venezuela abandoned the idea of having a nuclear plant. Japan was able to handle their catastrophe, because of their technological expertise as a super power. They started by using robots before it was safe for any human to get into the nuclear plant complex.

Have we forgotten the Chernobyl disaster? The nuclear accident that occurred on 26 April 1986 at the Chernobyl Nuclear Power Plant in Ukraine?

Think of Nigeria of today, with the madness of terrorist bomb explosions by Niger Delta militants, Boko Haram and other errant groups. I am not talking of corruption that is our religion and indiscipline that is now our culture. How can we cope with a nuclear plant? There is this African adage; if a rotten egg breaks in your hands you will need more water to wash it off. Can we handle the emergencies of nuclear plant accidents?

If the country is serious on how to handle the issue of power supply, there are safer options readily available to be explored.

Solar energy is cheaper and safer to handle which some Europeans and American companies have been using successfully.

The northern parts of this country have vast land mass and sunlight most period of the year. We have been lamenting about desert encroachment, but the Chad basin can be utilized to use solar panels that can generate light for the arid regions.
The coastal littoral states of Niger Delta, including the Cross Rivers and Lagos are all good for wind mills that we have all seen in some European countries. If some street lights in Lagos are using solar panels to operate, then why can’t the government explore that means to take care of our lingering problem of inadequate power supply?

The use of coal will also play a very important role in getting Nigeria light.
The gas being flared before I was born can be converted for energy. How many oil producing countries in the world today still flare gas?

The Russians who laid gas pipelines through Ukraine to other parts of Europe should advise us on how to stop gas flaring and use the surplus liquefied natural gas to supply power in Nigeria instead of exporting it to the developed countries.

To be honest, we cannot maintain a nuclear plant and if Russians build it, how long are they going to stay to keep operating it for us or is this going to be another kind of enslavement which I believe the western world will always want projects that will keep the developing world perpetually under their apron strings in another kind neo colonization.

We launched our communications satellite NigeriaSat-1 into orbit, but of what value is it today? Is it still there since it was even reported missing sometime ago?
For nuclear plant, the answer is capital NO!

We can’t handle it, otherwise one day all of us will be killed due to lack of maintenance and greed.

Our people, animals, farmlands and water will be polluted one day. Remember it is odourless and tasteless. How can we dictate that there is problem?

The cost of taking care of a nuclear accident is costlier than installing it.

Our children will not forgive us for bringing in a rotten egg that we will need more water to wash our hands.
A stubborn fly always follows the corpse to the grave”

~ By Obi Ikeoku.




Saturday, June 18, 2011

Nigeria donates to Japan Earthquake Relief Fund

17 Jun 2011 21:57 Africa/Lagos


Courtesy Call on Ms. Makiko Kikuta, Japan' Parliamentary Vice-Minister for Foreign Affairs, by H.E. Mr. Godwin Nsude Agbo, Ambassador of the Federal Republic of Nigeria to Japan (Donation of Relief Money from the Federal Republic of Nigeria)

TOKYO, June 17, 2011/African Press Organization (APO)/ -- On Wednesday, June 15, Ms. Makiko Kikuta, Parliamentary Vice-Minister for Foreign Affairs, received a courtesy call from H.E. Mr. Godwin Nsude Agbo, Ambassador of the Federal Republic of Nigeria to Japan.

Ms. Kikuta expressed her appreciation for the daily commitment of Ambassador Agbo to strengthening the partnership between Japan and Nigeria, and the donation of relief money (394,592,725 yen) for the Great East Japan Earthquake from the Government of the Federal Republic of Nigeria. Ms. Kikuta then stated that she regarded this assistance as a proof of friendship and solidarity between Japan and Nigeria, and she would like to make efforts toward recovery and reconstruction of the country.


Ambassador Agbo expressed his condolences to the victims of the Great East Japan Earthquake. He also stated that the donated relief money to the Japanese Government from the Government of the Federal Republic of Nigeria shows appreciation for the welcomes from Japan which Nigerian nationals and Nigerian private companies in Japan have been received, under the difficult circumstances which Japan is facing, and further mentioned that it is also the expression of gratitude for the assistance of Japan to Nigeria through TICAD Follow-up Process as well as the proof of friendship between Japan and Nigeria.


In response, Ms. Kikuta stated that the relief money from the people of Nigeria will definitely be reached to disaster victims and said she would like to continue to cooperate with Ambassador Agbo to enforce the bilateral relations in a wide range of areas including the cooperation in the international arena.

Source: Japan - Ministry of Foreign Affairs



Friday, May 27, 2011

Lest you forget, my father fought in Burma


An African soldier during World War 2
The following true story is for Memorial Day and is published on the Red Room.

Lest you forget, my father fought in Burma

~ by Chima Michael Ekenyerengozi

May 26, 2011, 3:41 pm

(In memory of my father Sunday Eke, who fought and survived the World War II in Burma)

I have kept my father's identity card of Royal West African Frontier Force (RWAFF). But I have forgotten everything he told me about the role he and other thousands of Nigerians played as soldiers who fought for the British Empire and the allies in World War II. I do not know if my father won the coveted Burma Star. Marshall Kebby wrote about their exploits in Burma before he passed away over a decade ago. My father never kept a diary and it was after he died on November 19, 1983, that I knew that keeping a diary like Mr. Kebby would have helped me to know more about his past life as a soldier and ambulance driver before I was born.


African soldiers of the Royal West African Frontier Force (RWAFF) during World War 2

Every Memorial Day or V-J Day reminds me of my father and the other unsung African heroes of the Whiteman's war that the Blackman was forced to fight against Adolf Hitler's Germany and Japan. No war film on World War Two has ever included them, except in 2009 when the BBC News reported about a documentary that revealed that only two in 10 of the soldiers who fought in Burma were white!


Click here to read the complete story.

Releases displayed in Africa/Lagos time 27 May 2011



26 May 2011







25 May 2011


Thursday, February 5, 2009

The Meltdown of the Nigerian Capital Market: Causes and Consequences


The Nigerian Stock Exchange

The Meltdown of the Nigerian Capital Market: Causes and Consequences

By A.G. Olisaemeka


The current crash of the Nigerian Capital Market as been
unprecedented in its historic evolution since 1960 to date. Its market capitalization has nose-dived from an all time high of N13.5 trillion in March 2008 to less than N4.6 trillion by the second week of January 2009. Besides, the All-Share Index (a measure of the magnitude and direction of general price movement) has also plummeted from about 66000 basis points to less than 22000 points in the same period. The stock prices have experienced a free-for-all downward movement regime with more than 60% of slightly above 300 quoted securities on constant
offer (supply exceeding demand) on a continuous basis. Consequently many of the quoted stocks lack liquidity as their holders are trapped, not being able to convert them to cash to meet their domestic and other investment needs. On the other hand, fresh investors are cautious of jumping into a vehicle that does not seem to have a brake should they wish to disembark.




A number of factors have been blamed for this sorry state of affairs and they include:

1. A Global Phenomenon
The present seeming collapse of the world economy has not excused that of Nigeria. Many stock markets of countries, from USA to Britain, from China to Japan, Russia, France and others are in serious trouble. The world is indeed a global village and the interrelatedness of world economies is very evident that any development in any part of the world affects other parts as well. Consequently, the Nigerian capital
market is not insulated from this global malignant cancer.

2. Pull-Out of Various Foreign Investors
This is another factor believed to have contributed to the continuous fall of the Nigerian stock market. Many foreign investors that already have troubles in their home economies have pulled out of the Nigerian stock market leading to dumping of shares beyond the ability of domestic investors to contain. Supply of equities has, in consequence of this, overwhelmed demand, leading to price fall. According to the Director-General of the Nigerian Stock Exchange, Prof. Ndi Okereke-Onyiuke, "…available statistics shows purchase by foreign investors during 2008 to be in excess of N150.135 billion representing 6.3% of the aggregate turnover. This is a decline when compared with the N256 billion recorded in 2007. Concurrently, total sales during the year were in excess of N556.93 billion, culminating in a net outflow of about N406.8 billion."

3. Lack of Infrastructure and High Production Costs

The cost of doing business is high in Nigeria. Basic infrastructures like good roads, power supply are lacking, leading to high cost of doing business. Many quoted and unquoted companies like Dunlop Nigeria Plc and Michelin Nigeria have closed down shops. Most of the textile industries have also stopped production, leading to the crash of their share prices. The shares of Dunlop Nigeria Plc that sold above N6 per
share a few months ago now trade below N0.6 per share. Evidently, high production costs reduce profitability or increase loses which also impact negatively on the share prices.


4. Impact of Commercial Banks
Following the forced capitalization of banks to a minimum of N25 billion, almost all banks utilized and accessed the capital market to raise funds. Within two years plus, many of the banks besieged the capital market more than once, falling over one another in raising funds through mega offers in a single tranche. The banks competed to suck every liquidity from the Nigerian financial system, thus overheating it. Through enticing marketing strategies, the banks succeeded in their various offers, but left the capital market place bleeding and gasping for breath. The primary market seemed to experience a boom while the secondary market was sucked dry as many investors dumped their shares in the secondary market, in favour of
the primary market offers achieved through bewitching marketing efforts of banks. A total of N2.2 trillion was raised through various public offers dominated by the banks in 2008. Much of this came through disposal of shares in the secondary market.


5. Avalanche of Private Placement Offers

A number of private companies did private placement of their shares at lower prices while they sought or intended to seek quotation of their shares at higher values on the Nigerian Stock Exchange, thus making such private placements very attractive. This lured investors to dispose or dump their shares in the secondary market, purchase the private placements and dispose of same immediately after their listing
on the Stock Exchange at higher prices. The Nigerian capital market thus became a battleground as private companies were falling on each other through avalanche of offers. The regulating bodies were impotent as the Investment and Securities Act, 2007, does not place private companies under their control. A number of companies that did private placements to suck liquidity from the Nigerian capital market,
include: Investment and Allied Plc, Globe Reinsurance Plc, Multiverse Ltd, Swap Technologies Ltd, Starcomms Ltd, Equity Assurance Plc, Oasis Assurance Plc, IHS Ltd, Indomie Nigeria Ltd, Tetrazzini Ltd, Food Concepts Ltd, Geolfluids Ltd, Goldlink Insurance Ltd, Universal Insurance Ltd, Chams Plc, Fidson Health Care Plc, Reltel Wireless Ltd, MTN Ltd, etc. Thus so much liquidity was sucked from the Nigerian
capital market in favour of private placements of private companies, many of which remain unquoted till date, leading to the crash of the Nigerian capital market.

The Director-General of the Nigerian Stock Exchange, Prof. Ndi Okereke-Onyiuke admitted this fact in her review of the performance of the Nigerian capital market when she observed inter alia "…a significant portion of funds that left the stock market for private placement market are still locked-in as many of the issues have not applied to the Nigerian Stock Exchange for listing…."


6. Banks Short-Term Orientation Imposed on Long-Term Capital Market

At a time, banks were financing about 65% of the Nigerian capital market through margin facilities granted to investors and stock broking firms. Many banks abandoned or sidelined their core operation of providing credit to the real sector in favour of "playing" the capital market for short-term speculative activities that seemed to pay off up to March 2008 before the cancer that afflicted the market set in. It is estimated that the total exposure of banks to the capital market in terms of trapped funds is in excess of N1 trillion. Thus, the capital market place became overheated with so much speculative activities of banks that by the time the market caved in,
it became difficult for them to exit through the narrow door as there were no mega investors to "check them out". The Nigerian capital market was no longer seen as a market for long-term funds, but that of a short one. The banks embarked on unguarded short term treasure hunting spree from the capital market as their speculative activities soon overheated the capital market.


7. Inability of the Federal Government to Plot a Bailout Option

There were blunt statements from the Federal Government that it will not intervene directly in the capital market which it sees as a purely private affair. The government lacked the wisdom to examine the socio-economic implications and chain effects of a failed capital market. It therefore became impotent of hatching a bailout plan for its beleaguered capital market unlike the governments of USA, Britain, France and so on, playing politics with such a sensitive issue that borders on "life and death". Thus the government outright refusal to intervene directly in the crashing stock market has depleted any hope of a possible market rebound leading to further loss of confidence among investors. This has sparked off supply of shares by desperate investors who, having seen no hope in the horizon, wish to cut their losses short by rushing to sell at any price.

8. Structural Deficiencies of the Nigerian Stock Market

There appears to be some inadequacies of the Nigerian capital market, especially the absence of market makers. As at third week of January 2009, the Nigerian Securities and Exchange Commission (SEC) has licensed five market makers, but the Nigerian Stock Exchange was yet to also license them due to avoidable administrative bottlenecks. Thus, there are no functional market makers that can provide exit windows for investors who wish to check out.


9. Regulating Inconsistencies and Pronouncements

The apex regulator of the Nigerian stock market, the Securities and Exchange Commission, prior to the crash of the market had alleged publicly that stock market prices were being manipulated and it announced that it was probing some quoted companies, such as Dunlop Nig. Plc, Eternal Oil Plc, Capital Oil Plc, and so on. Following the publication, investors became afraid that such statements coming from
the principal regulator evidenced the existence of unrealistic prices of all stocks, thus provoking panic selling of stocks among investors. This contributed to the crash of the market. Unfortunately till date, not much has been heard of the outcome of the SEC investigation that transmitted shockwaves down the spines of investors.

Opportunities of the Capital Market Meltdown

The current meltdown of the Nigerian capital market has provided excellent opportunities for both local and foreign investors to grab the shares at rock-bottom prices with the greed of a hungry lion. There appears to be no better time to buy the shares in the Nigerian capital market than now. The fundamentals of the Nigerian capital market are still very strong- high earnings per share, high dividends per share, high earning yields, high dividend yields, good bonuses and low price earning ratios. With the complete internationalization of the Nigerian capital market, foreign investors can acquire up to 100% of Nigerian companies and exercise full control. It is believed that the acquisition opportunities offered by the current capital market meltdown in Nigeria can only come, but once-now! Corporate hawks
should be on the prowl now.

10. Pressure from Banks
Following the more than N1 trillion of banks’ funds tapped in the capital market, the banks have become violent on the borrowers of funds (investors and stock broking firms) used to acquire shares. Currently these banks have brought suicidal pressure to bear on these borrowers, compelling them to sell their shares at any price, just to have a moment of respite. This has further increased the supply of shares at ridiculous prices, leading to greater market crash.



Consequences of the Market Melt doom.

The meltdown of the Nigerian capital market characterized by the crash of the market capitalization from a record high of N13.5 million in early 2008 to less than N4.5 trillion in the corresponding period of 2009 has manifested the under listed costs and consequences.

1. Loss of confidence in the Nigeria economy, as many investors prefer to convert their naira to foreign currencies, especially the dollar and hold them through their domiciliary accounts. This has in part led to worsening exchange rate against the naira.

2. Mega losses by investors in the capital market whose total losses are not below 2/3 of their investment before the meltdown. In other words, investors now have less than one third of the value of their investments before the free-for-all fall.

3. Trillions of naira – what remains of the capitalization – tied down in unsaleable stocks. Most of the securities are on serious offer – an indication that there are no willing buyers to check out any investors who wishes to do so. Here investors not only contend with their losses to date, they also contend with a supply glut that they seem trapped with the remaining securities in their sad possession.

4. Over exposure of investors and stock broking firms to banks. Before the meltdown, banks engaged in lending frenzy through margin account. Borrowers were required to contribute 30% while the banks contributed 70% and the entire 100% was used for stock speculation. Currently the market meltdown has wiped out the investors 30% contribution, while half of the banks 70% have also been wiped out. Notwithstanding this scenario, the banks are still calculating interest on daily basis and posting to the debit of the borrowers account investors and stock broking firms, thus to sting perpetual liabilities on the borrowers which only Divine intervention can save these borrower from the hangman – the banks.

5. The market meltdown has also led to credit crunch in the economy as banks do not have enough to lend to the productive sector leading to high interest rate. Given that interest rate – cost of fund to manufacturers is a very significant component of cost of production, this translates to higher prices of goods and services, leading to inflation.

6. The meltdown has also led to the loss of confidence of banks and other lenders on shares as collateral for loan facilities. Shares which were before now readily accepted by banks as collateral are now shunned by them. The few of them that dare to touch them for this purpose only do so with a hundred meter pole, at ridiculous discounts as some of them seek up to 300% cover.

7. The market meltdown has led to loss of depositors funds with the banks. It is estimated that banks are exposed to the capital market in excess of N1 trillion through loss in the value of securities for which margin facilities were granted investors in Nigeria. This has significantly increased the quantum of banks non-performing assets – Toxic assets.

8. The market meltdown has also induced massive withdrawal of foreign investors from the Nigerian financial system, damping the remaining source of hope for possible market recovery.

9. Loss of value of pension Asset. Following the passage of the Pension Reform Act, 2004, pension assets are now privately managed. Under the Act, every employer, whether in the private or in the public sector is obligated to deduct 71/2% of every employee’s emolument, then add another 71/2% totaling 15%. This is remitted on monthly basis to a pension asset custodian under the superintendence of a pension fund administrator. The PFAs manage the pension assets by investing in a variety of instruments including equities. The PFAs also maintain retirement savings account for employees showing the monthly deductions remitted on their behalf as well as the profits or losses arising from their investments. It is estimated that more than N2 Trillion of pension assets has gone down the drain casting doubts on the ability of PFAs to repay retirees their pension and gratuities.


10. Inability of stock broking firms to settle their clients for securities sold. With the current meltdown, many stock broking firms cannot discharge their obligation to their clients. Proceed of shares sold by these stockbrokers for their clients are greedily seized by the banks to whom the stock broking firms are owing billions of naira through margin accounts. Incoming credits or debits arising from sale of securities or purchase of securities can only be settled through the appointed settlement banks. This gives the banks the opportunities to absorb any incoming credits to service huge margin facilities granted to stockbrokers. Thus many stock broking firms rejects sale orders as they know that the banks will seize the credits, leading them to contend with their clients.

11. Loss of Confidence in the regulatory bodies.
There appears to be a loss of confidence on the regulatory bodies of the Nigerian Stock Exchange as well as the Securities & Exchange Commission whose regulatory impotence has been largely blamed for the present woes of the capital market and whose principal officers appear to have exhausted all they know and all they can offer to change the fortunes of the market. Many market analysts believe that they ought to have thrown in the towel instead of trying to stay put and superintend the "funeral mass' of the market as they have nothing again to offer.

12. On a positive note, the Nigerian Capital Market meltdown has compelled investment diversification to other assets, especially real estate and government bonds. Investors now scamper for safety rather than high returns at the expense of possible huge or near total losses which equity investment symbolizes –where the investor either enjoys too much or suffers too much.

The market meltdown: The Way out

Only physical injection of funds can change the direction of the market. No amount of grammar from "this-ism" to 'that-ism" will avail. With the present liquidity crunch and investors loss of confidence, it is not reasonable to expect salvation from individual and institutional investors. A strong government bail-out as obtains in USA, Russia, Britain and Singapore, is the magic wand needed to be waived in the four corners of the market. The issues of government intervention should not be politicized. The Nigerian Capital Market is not a southern affair. Already the effect of its meltdown may give rise to the collapse of many banks whose hundreds of billions of naira are trapped unless urgent government intervention is articulated and hurriedly implemented.

© Nigerians Report 2009.All rights reserved.

~ A.G. Olisaemeka is a chartered stock broker and consultant on financial matters on doing business in Nigeria. He is the Author/Editor of Scientists Discover Hell: As Astronauts Find Heaven distributed by Amazon.