First Bank joins Access, GT Banks adopt IFRS

Two Nigerian banks, First Bank Nigeria Plc and Access Bank on Wednesday adopted… continues here.

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WHEN FIRST REGISTRARS REJECTED FIRST BANK’S CONFIRMATION

But for strident protestation, the management of the Securities and Exchange Commission might have insisted on the January 2009 deadline for the dematerialization of share certificates in Nigeria. Some investors believe this is yet a tall dream for both the SEC and investors especially in consideration of the inadequacy of the Registrars.

Because of lack of appropriate recording system, most registrars have had an automatic recourse to demanding that any investor that wished to dematerialize his or her shares certificate to first go get a bankers confirmation of his/her signature. This attestation, according to the registrars helps ascertain the authenticity of the signature.

The banks had made the confirmation requirement a money making venture, some demand for N5000 for each confirmation. However, an investor informed Fortune&Class Weekly of the shame of the process.

“I have 50,000 units of FirstBank Plc and because of the January 2009 deadline to dematerialize shares certificates I went to my bank which incidentally is FirstBank. After collecting the confirmation, I went to the office of First Registrars where I tendered the banker’s confirmation but I was shocked when officials of First Registrars rejected the banker’s confirmation from FirstBank. Seriously, I am considering writing a protest letter to the Managing Director of FirstBank,” the investor said.

SUNDAY AKINTOLA: HOW MUSHIN HOME BOY GREW MULTI-MILLION NAIRA BUSINESSES IN MUSHIN, LAGOS

SUNDAY AKINTOLA is specially proud of beating all the odds as a home boy growing up in the densely populated Mushin area of Lagos State to become a successful owner of business chains that span micro finance and telecommunications. In this interview with GOKE OLUWOLE, and TAI ADEWALE SHOFELA, Chairman of Sovereign Micro Finance Bank, AKINTOLA shares his journey to conquering the litany of challenges that littered his path to business success.

How would you describe yourself?

Yes, by His grace, I am Sunday Akintola, a gentleman who happens to be one of the lucky entrepreneurs whose company is positively impacting on Nigeria in the area of poverty alleviation. I am the Chairman of the Board of three companies; Covenant Perazim Investment Limited, a multi-facetted company established to operate in the Oil, Gas and Agriculture sectors, Sufi Enterprises Limited, which is a company involved in the sale and distribution of GSM companies recharge cards, and Sovereign Micro-Finance Bank. I am a graduate of Accounting from the University of Lagos. I am also an ex-banker having worked with one of Nigeria’s fastest growing banks Zenith Bank Plc.

Briefly, can you tell us the background to how you grew this multi million naira business empire?

Most big businesses always start in small ways. This multi-million business concern, like you rightly said, is a business that was registered first as Covenant Perazim Investment Limited in November, 2003 while I was still in service with Zenith Bank. It was then the thought occurred to me on what I could do to change my life and touch the lives of other people around me. I thereafter initiated the venture, but we started operation with four staff which included my wife and my brother in-law in a shop here in Mushin from where we sold telecoms recharge cards.

I resigned from my banking job six months after we commenced operations, to be precise, July 1, 2004, two days after securing the NCC dealership licence. In fact, I got my licence on a Sunday and I put in my resignation the following Tuesday, and by August, 2004, I was already able to raise the mandatory N5 million to join the recharge card dealership community of the then V-Mobile Network with Sufi Enterprises Ltd.

All these while, my colleagues, some in the banking halls and some from other companies like Chevron, Exxon-Mobil and other multi-nationals, were greatly disturbed about my decision to go into business; they asked if something was wrong with me and how could I leave certainty for uncertainty; leaving the bank to go and sell recharge card. For them, it sounded absurd. But I told them I wanted to go and develop my business.

Things started to crystallize for us because all we were doing then was to get some money to buy and sell recharge cards until we had our breakthrough when in 2006 the V-Mobile Network started seeing us as a serious business entity, and in 2007, we won the best dealers award of the V-Mobile Network. That same 2007, we were among the 25 dealers selected in Lagos and promoted to the status of big dealers. However, as part of the requirements of that new status back then, we were also expected to have our own building as office complex. On the back of this, we decided to build our own building. Thankfully, by the end of 2007 we were able to build our own office complex.

Personally, how had your background influenced the development of your business?

I am a proper Mushin boy, born and bred in this community where people have the notion that nothing good can come out of the community. While we were in the secondary school, those of us from Mushin were seen as boys from homes of hooligans and thugs but to God be the glory, we came out very disciplined, because I am fortunate to have very responsible parents who gave us good up bringing.

Can you believe that as far back as 1963, my Dad refused all discouragement from others not to send my elder sister to school; he sent her to the only private boarding school then in Abeokuta, the Baptist Private School, Idi-Aba, Abeokuta. People were laughing at our parents for sending my sister to the boarding school. Ironically, I had to attend a public school, Odo Abore Primary School in Mushin. I guess my brilliance then impressed the school management such that they made me the school’s senior prefect.

After finishing at Odo Abore, my parents preferred that I schooled out of Lagos State, they rejected my preference for the Nigerian Model College at Idi-Oro, a suburb of Mushin. They sent me to Baptist High School, Saki, in Oyo State. From Saki I proceed to the Lagos State College of Education, and later, to the University of Lagos where I studied Accounting. I also taught in a primary school for two years before I joined Zenith Bank in 1993 where I spent 11 years before quitting in 2004.

Though my parents were not rich, I remember that they always struggled to pay our school fees then. They thought us about God and, my mother, especially, taught us the principle of prudence and wealth creation. All these contributed to my success today, but the secret to my business success is God. There is nothing we do in this office that we don’t ask for God’s favour, He is our Alpha and Omega. In this office there is nothing we do that we don’t tell God; we pray in the morning and we pray to close each of our day’s operations.

As a major player in the telecoms recharge card distribution and marketing sub sector, how would you describe the industry?

Yes, the industry is full of illiterate and semi illiterate people, but with the new policies from all the companies, I expect that the situation will finally change. I believe that there will be a lot of changes because it is only in the telecoms sector that some illiterate people will buy something at the rate of N400 and sell it for N250, that is about 80 per cent less than the cost price. But now, the business is getting more exciting, interesting, and rewarding than what it used to be.

What prompted your interest in establishing a microfinance bank, which is seen as very risky commercial engagements, or do we reason that you preferred this because of your banking background?

It wasn’t my background in banking that inspired me to establish Sovereign Micro Finance Bank, rather, it was due to my interaction with the people at the grass-roots of my immediate community here in Mushin while I was operating the telecoms business. The economic plight of these people rekindled my interest in empowering the people in my immediate community. You know when we were doing the telecoms business a lot of people always came to us for financial aids in form of soft loans, but there was no way we could be able to solve all these needs, so we now saw the opportunity to serve and empower our people when the CBN came out with the guideline and licensing procedures for establishing micro finance bank, that was the vision.

Again, there was this experience I once had while I was trying to establish a friend in the recharge card business in Abeokuta. I then realized that what most people need is micro-credit, soft loan, when you don’t help people within your neighborhood they will be the same set of people that will make life difficult for you. Do you know some of those my friends who thought something was wrong with me when I left Zenith Bank today are now begging us to be part of what we are doing. But we shall adopt them provided CBN reviews its policy on the board membership; we are also looking for a way to involve them through our forthcoming private placement.

Don’t you think it is easy for Nigerians to abuse the concept of micro finance banking just like the earlier banking and finances houses of the past?

The establishment of microfinance banks and transformation of community banks is a thought in the right direction by the government, it shows the government knows what the needs of the people are; forget about the bastardization of the earlier finance houses, I can tell you the impact of the micro finance bank vision is already showing on our economy. As I am talking to you now, we are highly regulated, every MFB has a CBN supervisor attached to it and every bank is mandated to do a monthly return to CBN. They will trace and check all the loans you disbursed that month, so there is no way you can give all the loans to your family like in the era of finance houses and commercial banks of the past.

You can log on to the CBN’s website and check the full list of the MFBs as they are arranged alphabetically, this is also part of the effort to showcase them (micro finance banks) and for you to know the ones you can deal with, I can assure you there is no MFB that will like to go under because there are lots of opportunities in the micro financing business

Of all the MFBs in Lagos what do you think stands your Sovereign Micro Finance Bank out from the rest?

We believe so much in God, and this is the anchor of our own business philosophy… to be the fulcrum of creating financial independence for the people. You see, all these area boys, some of them have great talents but what they mainly want is financial empowerment. One of them approached us about three months ago that he wanted to have his own bus and I told him to go and start saving, that if he can save N50,000 out of the N450,000 he needed to buy a Faragon Volkswagen Bus, we will fund it.

He jumped at the offer and each day, he deposited N1500 with us out of the N3000 of his daily income from the transport business. We also work with other professional groups on how to empower their members. All these are parts of the ways to eliminate criminality from their minds because if someone has a wife and kids and a job, his approach to life will be different. He will not be thinking that he wants to die because he already knows he has a stake in this world.

What gave you the impression that Mushin people deserve another micro finance bank despite all the commercial bank branches that populate the roads?

I don’t think there is any other community that I will want to serve than the Mushin community; these are the people that deserve to be uplifted and empowered financially. It is the rural people who need micro-credit or micro-funding; our vision in Sovereign MFB is to empower all these so called area boys, and since I grew up in this area, I understand the economic philosophy and psychology of the people.

We’ve already started some collaboration with the professional groups’ trade and artisan associations on how to serve them better, and even the National Union of Road Transport Workers [NURTW]. We hope to set them up with financial backing of our bank.

Our operations here as telecoms recharge distributor had opened our eyes to many needs of the people. We are now able to understand the need of the people of this area, ask anybody here around Mushin, if they know Sufi Enterprises Limited, they’ll tell you that they know us very well, it is the goodwill we’ve created over time that is rubbing on the bank.

I have also realized that commercial banks are too big to recognize micro financing opportunities, they will not fund or support your business when you are small, it is always the big projects of billions and millions of big establishments that they will always be interested in funding while the man whose business need just N5, 000 to survive is left to wallow in abject poverty.

Which was the riskiest investment venture you had made?

The biggest investment risk I ever took was the outright sale of my entire investment portfolio when I couldn’t secure a loan to finance this MFB project. A friend at FirstBank just told me point blank that since my office complex didn’t have a certificate of occupancy, no bank will give me a loan and the best, he advised I did, was to liquidate my stock portfolio. That was how I sold all my stocks just as if I was been pushed by a spirit but to God be the glory, I was lucky enough to escape the stock market crash now being witnessed by investors. Up till today, my stockbroker still enquire from me how I was able to escape the downturn in the market.

There is no business that doesn’t have its own ups and downs, tell us the challenges being faced by operators of microfinance banks in Nigeria?

Our major challenge is commercial banks, they are becoming jealous of our achievements, which is why you see a lot of the country’s mega banks transforming into micro banks. They see us as threats, because they know we can go for clearing by statutory order and with this the commercial banks always stalemated us. At present, we have a serious battle with a commercial bank over a facility of N110million we got from a company which the company, the bank and us decided was supposed to be given to us but when the money was ready, they sat on it, denied us access to it because of our capital base. We need more money to service the micro needs of our people. What we devised now is that we have contacted about three to four banks for our clearing, one is in charge of the financing of Okada scheme, one for the NURTW scheme, while we also get another to manage our other schemes because it would be too risky to keep all our good eggs in one basket.

We are currently working with a commercial bank to provide us with an ATM which will soon be installed to serve the people of Mushin. We are going to table most of these problems before the Central Bank Governor at the next conference of MFBs in Nigeria. Maybe the Governor can help us caution the commercial banks.

Another major challenge we are facing, like every other business in Nigeria, is the problem of power supply. Large amount of our money goes to fuelling of generating sets, and mind you, we bought our own transformer at about N1.8million while our 100 KVA generator costs a whopping N2.9million and this we fuel with N8, 000 daily. If we plough these back into our business do you know the number of people that will benefit from our micro finance bank? The issue of multiple taxation, too, is another serious challenge to business in Lagos.

As an entrepreneur what will you say is your greatest achievement?

What I personally see as our achievement may not be too fantastic to you but for a company that started in a small shop five years ago on this street, selling recharge cards, now owns an edifice housing the headquarters of all our businesses which include banking, aquaculture, oil and gas, and telecoms; all these we can boast is valued to be above N100million.

We have about 60 well remunerated staff, with at least over eight brand new Toyota cars for our staff, and in the next three months, we are going to take delivery of another set of five new Toyota cars for our middle cadre officers. Some of our staffers who were employed some years ago with school certificates are now graduates while some are about completing their choice of courses in various higher institutions. While studying, we make sure they don’t lack anything. None of our staff has been involved in stealing and none had left us. We are still one united family five years after we started. Last December, we harvested our fish pond and the return from the investment yielded about N1.5miilion because it is safer to diversify to other businesses to expand our capital base and income sources.

What is your management style?

I am a hard working person, and all my staff members know this. I am always the first person to resume here and the last person to leave. Can you believe I live in Alagbado, yet I’m always very punctual at the office? You’ll see me resume here by 7.30a.m. everyday, I mentor my staff, they’ve all imbibed discipline from me. You know, I operate an open door policy here, all my staff are well remunerated. If a CEO is not disciplined, the staff will not be disciplined. Again, let me tell you that yesterday (Friday, 9 January) I was with one of my colleagues way back at Zenith Bank and he was reminding me how disciplined we were then while employed at Zenith Bank. He said it was I who once said that I dreamt that one day I would have my own bank, but we all did not believe it then because of the situation surrounding the licensing of commercial banks. But today, both of us are owners of full fledged micro finance banks; he owns Olive Microfinace Bank on Awolowo Way, Ikeja, Lagos, while my own is Sovereign Microfinance Bank, Mushin, Lagos. What we thought was impossible is now a reality in our lives. God has done it, it is easy now to grow a micro-finance bank into a commercial bank and that is our future because in the nearest future we hope to go public.

Finally! Arisekola takes control at FirstBank

Arisekola - a turban in the bank?

Arisekola - a turban in the bank?

As published in the Sept. 28, Issue 33. Uploaded by ol’Victor Ojelabi.

Public attention, especially in the investment and banking sectors, have been riveted on Mr. Sanusi Lamido Sanusi, FirstBank Plc’s Executive Director, Risk and Management Control, whose appointment as the Managing Director-designate of FirstBank Plc was announced about two weeks ago.

For insiders of the bank, however, the board’s ratification of the appointment of Sanusi may not be without the deft hand of business mogul, Alhaji Alao Arisekola. Top level insiders confided that the elevation of Sanusi, an economist turned banker, was in consequence of a balancing act necessitated by Arisekola’s desire to further his interest in the bank.

A respected source in the bank’s senior hierarchy observed that Arisekola who holds substantial interest in FirstBank may have, by rallying the support of members of the board for the appointment of Sanusi who takes over from Mr. Moyo Ajekigbe who retires as the bank’s Managing Director in December 2008, he (Ariskola) would have positioned Dr. Ayoola Oba Otudeko, currently a non-executive director of the bank to assume the influential office of the Chairman of the Bank’s Board of Directors.

“Though FirstBank is not inclined to consider issues in appointment or other decision making process on grounds of ethnic origin or affiliation, it is obvious that a bank with the shareholding character and size of FirstBank, creating geographic balance in official appointment and occupation, may be necessary once in a while,” a source in the bank, said.

“Of course, in the appointment of Salisu, he is highly exposed to the rudiments of modern banking and therefore deserving of his designated posting, but again, don’t forget that there are other highly skilled executives in the management cadre of the bank who could have been made the Managing Director, but it would not have been appropriate in the circumstance because Alhaji Umaru Mutallab, the current Chairman of the Board of the Bank, who is of Northern Nigerian extraction like Sanusi, would also be stepping down from that capacity as soon as he attains the age of 70,” Fortune and Class Weekly source, said.

According to our source, Arisekola, who is believed to be the name behind the large shareholding indirectly held by Oba Otudeko in the bank (Otudeko holds the largest shares of the bank, 2.46 per cent, indirectly, before the bank’s May-June 2007 public offer) decided to show his hands in who becomes who in the bank’s hierarchy.

“It is natural that if he wants his man (Otudeko) who hails from the Southwest to step into the shoes of Mutallab, the office of the bank’s Managing Director must, of course, go to the North,” Fortune and Class source, reasoned.

“It’s like taking control from behind the scene which I really don’t have any problem with. The Managing Director-designate is a superb professional and has shown himself to be a worthy scholar with an active mind on public and religious issues. I tell you, this may be the next level of evolution of CEOs of large private sector holdings like FirstBank. CEOs that are not just limited to their professional callings but are willing to contribute to the debate on developmental and other ancillary issues in the country, this, I believe from my reading of Mr. Salisu, is his inclination. On the other hand, If eventually Oba Otudeko assumes the office of the board’s chairman, I am assured of a well-heeled board room giant as the corporate governance face of the bank. Now, that is like benefitting from the best of two worlds,” another Fortune and Class Weekly source said.

Meanwhile, a statement from the bank has hailed the succession plan of the bank as being a furtherance of the bank’s corporate governance practice. The statement notes that Sanusi will be understudying Ajekigbe, with a view to assuming office in a seamless manner. “As is well known, the bank’s corporate governance posture has won it much respect and awards both locally and internationally, the appointment is expected to take effect from January 1 2009.”

The new managing director is coming from a background of championing remarkable developments in the bank’s enterprise, risk and management control mechanisms. He was General Manager at United Bank for Africa Plc (UBA), where he anchored the transformation of the previous Credit Risk Management Division into an Enterprise-Risk Management sector and spearheaded UBA’s Basel 2 focus by establishing the framework, policies, processes and systems necessary for compliance with the guidelines of the new capital accord.

Sanusi graduated with a B.Sc. in Economics from Ahmadu Bello University (ABU), Zaria in 1981 and was later in the M.Sc class and started his working career in academics, teaching undergraduate Economics (1983-1985) at the Ahmadu Bello University. He then proceeded to a banking career, first with ICON Limited (merchant bankers), where in a period of about seven years he gained wide experience in Issuing House activities, Financial Advisory Services, Privatization, Debt-Conversion and Credit and Marketing, before joining UBA.

Sanusi is expected to provide reinvigorated leadership taking the bank to the next level, drawing from the vast experience of Mr. Ajekigbe, an industry icon in his own right. The seamless transition will ensure that FirstBank remains focused and maintains its leadership position in the industry.

Mr. Ajekigbe is retiring at the impressive peak of an outstanding career with FirstBank, spanning over 30 consecutive years, the last six of which he is serving meritoriously as Managing Director/Chief Executive. He has been able to stabilize the bank from the crisis situation which he inherited on his appointment in 2002, thus reinforcing the confidence of the bank’s diverse stakeholders and the global financial public.

BANK MDs TROOP TO FIRST BANK FOR BAIL-OUT…FINANCIAL INSTITUTIONS REJECT SHARES AND PROPERTY AS COLLATERAL

First Bank of Nigeria might have become the unofficial lender of last resort for many banks currently experiencing liquidity problems. A bank is said to experience liquidity crisis when it can not support its short term obligation to its customers by itself. Thus to continue to serve the needs of its customers, the bank may have a recourse to another commercial bank which may lend it the short term fund, usually for a period of between seven days and 90 days.

Traditionally, the Central Bank of Nigeria is supposed to be the lender of last resort for banks and other financial institutions, but FORTUNE&CLASS cross checks in the banking industry showed that rather than many commercial banks approach the CBN to augment their liquidity position, most of the banks managing directors opted to seek the support of the management of First Bank to provide short term funding support for their operations.

“I can tell you that most of the banks managing directors, these even include so called first tier (banks that are supposed to have more than a billion dollar capital base) troop to First Bank to negotiate funding support.” A banking industry insider said.

The option of adopting First Bank in the rather unusual role of a lender of last resort might not be unconnected with many commercial banks efforts to shy away from the official channel of funding provided by the CBN so as not to be labeled as desperate to survive and consequently provide ammunition for the de-marketing campaigners that are going around the sector, insinuating the parlous state of health of some banks on account of their liquidity position.

“It is easy for bankers to know who is applying for what with the CBN.” A senior banker said. “But negotiating and securing funds from a colleague banking institution has all the trappings of confidentiality and utmost secrecy. So, I think, these other banks would rather prefer to relate with First Bank on the inter-bank lending platform. At least, there is nothing illegal about that and as far as they are concerned, other practitioners and the public are not privy to these negotiations.” The banker explained.

Though the inter-bank lending platform is an organic relationship channel in the banking industry, however, concerned members of the board of directors of the bank are becoming quite uneasy with the load of demands from other banks.

A source in First Bank informed that the bank is becoming more serious with risks control measures.

“This is not a recent development. First Bank has been experiencing a deluge of demands for lending from other banks over the last six to seven months. I think that at one of the board of directors meeting, board members directed the management team to be more circumspect about their lending to these other banks.” A First Bank insider revealed.

The irony of banks seeking out bridging funds for their operations is not limited to beseeching First Bank, the industry is already abuzzed with banks chasing after deposits from the banking public in preference to approaching the CBN. The unofficial explanation for this action has the same texture with the one given by insiders for the First Bank option. Banks, industry sources said, would rather prefer to go after deposits in the public domain than to approach the CBN where data of their application for funding could be used against them when the CBN make public such data.

On the whole, nerves are gradually getting on the edge in the banking industry as interest rates and other related data show an escalation that are, increasingly becoming alarming signals.

“Even the illiterate can read the signs.” Ori Adeyemo, a forensic accountant said. “These banks are chasing after deposits with tempting offers beyond the market rate, they are not bothered with the implication for the cost of funds both to their operations and to the borrowers. Of course, we know that they are only interested in making their liquidity position look good as their different year end draw to a close. Despite the figures the CBN make public, you won’t believe that interest rate and other charges for loan in many banks are adding to about 34 percent of the loan offered. And that is where the borrower is lucky to get a bank to provide the loan. The simple truth is that lending activities have reduced significantly. That is a fact.” Ori argued.

The general impact on the liquidity position may have been further indicated with the considerable increase in the Nigerian Inter Bank Offer Rate (NIBOR) (the NIBOR is the rate at which banks lend short term funds to each other) CBN data on the NIBOR as at the preceding week, released last week, showed that the 7-day NIBOR at the inter bank market transactions increased by 123 basis point to close at 18.14 percent from the week before figure of 16.92 percent.

The 90-day NIBOR also closed higher in the same period from 17.42 percent to 17.96 percent.

“Is it not clear that there is a situation in the banking industry if banks are lending to themselves at these high rates? You can imagine what rate they will lend to their customers. Even at that, it is becoming increasingly difficult for some banks to secure funds from the inter-bank lending platform because the strong banks are considering exposures to them as highly risky.” Bisi Iyaniwura, a lawyer with specialized practice in banking and corporate law said.

Meanwhile, it has been revealed that some financial institutions now reject collaterals in the form of shares and property and even treasury bills as securities for loans.

“FORTUNE&CLASS gathered that a second tier bank had approached a discount seeking its (discount house) assistance to secure a N150 million short term fund for its operations. However, after the discount house which is a subsidiary of a another first tier bank sought the position of its principal, the first tier bank rejected all the traditional forms of securities like shares, treasury bills and property the fund seeking bank was willing to provide.

“This, ultimately, foreclosed the funding negotiation.” A source privy to the negotiation informed that the discount house demanded for trading securities.

“They said they would prefer collateral that can be easily turned to cash like goods in warehouses and some other strange stuffs.” The source informed.

THEY SAY ADENUGA’S WISH TO SIGN OFF ETB SUFFERS SET BACK

Perhaps some ETB staff that were in the know of the negotiation of the acquisition of the bank by FirstBank were excited at the prospect of changing boss from the authority of Otunba (Dr.) Mike Adenuga to the structured management of FirstBank. Feelers from the bank owned by Adenuga indicated that some staff members were really perturbed when months after the very discreet discussion between ETB and FirtBank hit the dirt.

Background sourcing indicated that Adenuga is intent at concentrating on his money spinners, the telecom and oil and gas ventures in his vast business empire and considered the relinquishing what they claimed to be the troubles of running his ETB to the banking giant.

 Some of the staff considered this a momentary set back though.

Obama will be a good president

Head or tail, history made

Obama: Head or tail, history made

Away from our beleaguered stock market and the yet roiling global financial markets. At least, a little bit of sanity is returning to the Nigerian stock market though not by way of positive market activities, thankfully, the management of the Nigerian Stock Market has finally discerned the wisdom that informs free market activities by removing the one percent down limit on stocks price depreciation. Good enough, prices are stumbling; curiously, most hurt in the crashing prices are stocks of banks and insurance companies. The manufacturing sector is curiously holding steady, prices of UAC Nigeria, UAC Property and even those in the health sector; especially the pharmaceuticals have managed to hold their own at relative sliding rate. Does this tell a story?

 

I think it does, the power of any economy is a function of its real and active sector. Investors seem to have decidedly held faith with companies that are producing goods and products they can relate with and have turned their backs on the services of the financial sector with the average fall in price of stocks in that sector calculated at more than 50 percent. I guess it all about fears and negative sentiment. Yet, I can still dare to propose that in that sector lies the redeeming prospect of the market. Why?

Financial sector players understand the Nigerian economic market, perhaps, much more than any other sectoral player, and of course, they know how to get things done. They have been at the commanding height of the economy since the military inspired economic structural adjustment programme as influenced by the International Monetary Funds. Nigerian banks and bankers had survived much turbulence since 1993 when we first witnessed the first wholesale crash of the national banking sector and had returned stronger and better.

  So if First Bank is selling for less than 30 per cent of its peak price in 2008 at N20 plus and Access at less than 100 per cent of its high this year, I am tempted to go searching for value in the finance sector.

Please, excuse me, the stock market was not supposed to be in focus this week. I am very sure, the most discussed issue that would be discussed the whole of this week will be the USA presidential election while the most mentioned name any where in the corners of the globe this week will be Barrack Obama, that genteel, lithe figure that suddenly happened on the American political scene and had since captured the imagination of American across age, gender and other persuasion.

It’s natural to expect an opinionated African to canvass an Obama presidency, isn’t it natural? Of course, to my mind, this is the final resolution of the opposites that had defined relationship among people across the world, and for once, an indication that Africa, will, despite the interface of all morbid attributions in national leadership of countries across the black African continent, is where ultimate civilization and prosperity is headed. This may not be more than 50 years, I feel a reordering of the global economic space, an Obama USA presidency will be the beginning of the process.

Is this some fanciful thought? I don’t know, but it’s not every time that an individual, seemingly unqualified for a position just suddenly start marshalling the most effective strategies to beat political institutions in the United States.

The fact that Obama, a black-white man, or put properly, a white-black man (still wonder why they still primarily describe him as a black man as if the white gene and pigmentation of his mum were of no consequence) subsumed the Clintons and veteran John McCain in the opinion of people across the USA should convince anybody that Obama will be a good president.

No need to cajole logic and other persuasive argument about the worthiness of Obama, he has proved this by taking the battle to republican states and even competing on favourable numbers in McCain’s Arizona. And even more interesting, he turned the institution of the republican into a bleary eyed pumpkin mask only suitable to be laughed at during Halloween. Obama is that awesome.

So, can we be practical enough to stop all those talks of a McCain miraculous come as he had done before in those other elections into the senate. This is a different ball game; we are talking here about a phenomenon who is just being introduced to the world stage. Something tells me the world will not be the same after four years of Obama…but that will be if he survives the first term. Now, that’s talk for another day.