Nigeria Financial Markets: People continue to rise above the system

Dear Readers:

                       

                    Oando has been in the news negatively of recent.  The Securities & Exchange Commission of Nigeria (SEC) issued a directive that a forensic audit be carried out on Oando in October.  A directive of this nature had never been issued by the SEC to a listed company.  When we suddenly cross our fingers (prematurely) and hope that Nigeria may be turning a new tide, the Minister of Finance (a politically exposed person) suspends the Director-General of the SEC: Mounir Gwarzo for malfeasance approximately a month after he directed a forensic audit and the suspension of trading in Oando's shares.  

Suddenly, Oando became more emboldened in an air of perceived innocence and defiance granted it by the suspension of Mounir Gwarzo by Mrs. Kemi Adeosun, and has been writing long letters to the investing public and filing suits in every and any court in its quest to stop the ongoing forensic audit. We learnt in grade school that clear consciences fear no accusers.  I remember analyzing Oando some years back from an investment perspective and I wrote "this company is being run by management, for management, with management interests as its number one priority."  Its actions thus far, have further reinforced my aged comment.  

The key observation here is: The head of a key regulatory body in the financial services industry gets taken out when he does something not done before that shouts vociferously at the systemic cesspit of corruption in the Nigerian financial markets and aims to potentially take down the 'untouchables.'

Stanbic IBTC was in the news negatively in October 2015 for falsifying its fiscal year 2013 and 2014 financials according to the investigation carried out by the Financial Reporting Council of Nigeria (FRCN).  This is similar to the Public Company Accounting Oversight Board in the USA.   FRCN directed Stanbic IBTC to withdraw its fiscal year 203 & 2014 results as they were deemed to be misleading and restate them.  Stanbic IBTC refused to comply with the directive and also went to every and any court to overturn the directive.  Suddenly, in January 2017, Jim Obazee was fired by the Presidency and Stanbic IBTC goes ahead to release its fiscal year 2015 and 2016 financials largely as is, while getting rid of everybody implicated in the scandal and watching its stock price rise by about 200% in 2017 and now happily touting itself as a billion dollar bank by market value.   

The key observation here once again is: The head of a key regulatory body in the financial services industry gets taken out when he does something not done before that shouts vociferously at the systemic cesspit of corruption in the Nigerian financial markets and aims to potentially take down the 'untouchables.'

Access Bank is now using a letter dated after the head of a presidential investigation panel on the recovery of public property was asked to cease his duties and the future of the panel now in limbo in defense of its decision as a bank not to obey the Independent Corrupt Practices Commission's (ICPC) request to lift a "Post No Debit" order on the accounts of Blaid Properties and Blaid Construction Limited.  

I am in no way saying that the personal accusations against these men as heads of these regulatory bodies are true or untrue.  This is about people being taken out just when they dare to START to right the wrong in Nigeria's financial services industry and expose the high and mighty.   

The system of influential people are fighting (and have been fighting since time immemorial) back to preserve into perpetuity the cesspit of corruption, deceit and opaqueness that permeates the financial services landscape in Nigeria.  

The Stanbic IBTC issue was transformed into an attack against the founder: Atedo Peterside.  

The Oando issue is now transformed into an attack against the person of Wale Tinubu and his relation Bola Tinubu as a consequence.  

The Access Bank issue will be transformed into a personal attack against Aigboje and Herbert instead of focusing on the wrongdoing as stated by the ICPC.  

If I write an op-ed about Dangote Industry's trucks killing and maiming people in Nigeria (on an almost daily basis) without nothing of note being done to right the wrongs; the issue will be transformed into a personal attack on Aliko Dangote by Jude Fejokwu and his army of sycophants will go on the offensive while families weep for loved ones deemed not worth a penny.  

All these companies have a case to answer; the system that protects the wrong, high and mighty will never allow their owners to answer for it.  

Money is NOT made in Nigeria and in most countries globally by having values; the deeper down in the recesses of the earth you can bury values, the higher your wealth will rise exponentially.  Integrity and fiduciary responsibility speeches are for symposiums, conferences and seminars only. It is all about perception and not reality.  Telling the truth does not put food on the table.  

Tomorrow is a new day; we await what it will bring.  None of us truly knows; so, do not get too comfortable.    

I need to go now.  I was just passing through,