Transcorp, IPPs and the Stock Exchange

By

Abdullah Musa

kigongabas@yahoo.com

We are reading nowadays about an issue called emotional intelligence. This aspect of human personality is supposed to be managed according to the writers on this ‘new’ field of study. There used to be periods of time in the North, when fraudsters used to play on the emotional intelligence of cinema goers. One Cinema house in Kano caught fire long back, and many lost their lives due to the fire, smoke, or the stampede that ensued.

With mental roadmap firmly planted in the minds of cinema goers, the fraudsters would choose a time within the period when film is being shown, and shout, fire! The un-initiated would join the stampede, and in the process be pick-pocketed by the fraudsters.

When Transcorp came into existence, it was given ‘naming ceremonies’ via the launch of private placement which took place only in Lagos and Kano. I heard the invitation to the public via the radio and I attended. At the occasion which was graced by the Managing Director of First Bank, and a host of Kano’s senior citizens. We were given a very sophisticated presentation of what Transcorp was set out to achieve. In a nutshell, we were told that the coastal areas of Nigeria were to be the industrial areas, and as for places like Kano, we were to serve as depots for the goods produced in the South. This was explained away as inevitable, for all the factors necessary for the setting up of industries favored the South: Ports, Gas, educated elites, and even faster link to the coastal States of West Africa, and the rest of the world.

I left the venue before closure of the ceremony, highly perturbed that a strategy was being hatched, initiated by the President of our country, (then Chief Olusegun Obasanjo) to perpetually make me a trader, while others are the producers, and their children the workers. I shared my fears later with a friend who is a university don. He listened, and with equanimity showed that he was not bothered in the least. It was not that he knew Transcorp was born a leprous child. He was of the opinion that he learned to be bothered only by things he could do something about. He was not in a position to do anything to stop the initiative of Transcorp, and as such he concentrated his attention pursuing his own programs.

I have obsessed myself with public affairs while I am neither a journalist nor an active politician. If I were to take lesson from my friend, I would find a way to make money, (since I do need some of it) and leave the management of Nigeria’s political and economic life to those who have received the mandate to handle it. Yet I choose to give unsolicited advice, in deference to an internal prompting, knowing fully well it will be ignored. I am however sharpening my intellect. One day I would be in a position to implement my ideas, and the writing would have helped to crystallize the vision.

I wrote a proposal to the Senate President, and is wont with Nigeria’s institutions, the proposal was un-responded to; even though an e-mail address was provided that could afford them the chance to reply me at no extra cost.

The main thrust of my proposal centered on PHCN, its arbitrary billing system, and the planned independent power production for the country. Therein I drew the attention of the distinguished Senator to the fact that with independent power producers, electricity tariff was bound to rise, possibly beyond the reach of the common man. Of relevance to this discourse however, is the realization that so many States are scrambling to produce their own power. There is no synergy as to choice of technology, or even the type of power plant: hydro, gas-powered, coal-fired and so on. I even mentioned the issue of finance. Former NEPA failed because it belonged to the government. With State governments as the new owners of power plants, you cannot rule out appointments based on political patronage; lack of maintenance due to desire of the appointee to make money; and before you know it we would be saddled with numerous power plants with no power supply.

To avoid this, right from the onset, let these upcoming power plants be in private hands. State governments may help in the capital structure by taking up debentures which are convertible to equity. The essence of the convertibility being that at a suitable date, they can convert and sell to their own citizens. Transcorp, though leprous at birth, may make an initiative to raise the necessary capital to finance the numerous planned power stations. President Yar’Adua is surrounded by pro-government die-hards, and would hardly want to tow this line. Well may be he does not want to succeed in the power delivery promise. He may succeed only for one term of office, and after him, we find that we are back to square one.

The banks with their newly acquired billions, (Soludo may convert them to hundreds of thousands) should explore deeply the opportunities in the power sector. I am of the opinion that electric power is going to be costly. It is in the interest of Nigerians that they own the stock of power companies, so that they can offset the costs through dividends and stock appreciation.

Is there any cogent reason why MTN is not quoted on Nigeria’s stock exchange? Should Nigerians not benefit from their own folly of opening their mouths too wide, sending, as a result, billions of dollars to South Africa?