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Business News

CBN’s takeover of National Art Theatre is a breach of contract – Jadeas Trust Consortium 

Prince Chris Ogan has described the proposed takeover of the National Art Theatre by the CBN and the Bankers Committee, as a breach of contract. 

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CBN to fight piracy in Creative Industry, CBN’s takeover of National Art Theatre is a breach of contract - Jadeas Trust Consortium 

Prince Chris Ogan, a partner at Jadeas Trust Consortium, managing the National Art Theatre, has described the proposed takeover of the National Art Theatre by the Central Bank of Nigeria (CBN) and the Bankers Committee, as a breach of contract.

Ogan said the decision breaches due process. According to him, the conclusion of the Presidency on the takeover came as a surprise because the government was involved in the mediation that resulted in the Memorandum of Understanding between the bidders for the National Art Theatre.

Nairametrics had reported that the Federal Government gave approval to the CBN and the Bankers Committee to reconstruct the National Theatre, Iganmu, Lagos, into a world-class convention centre. The development is meant to boost the growth of the creative sector in diverse areas like entertainment, movie, music, fashion, and ICT.

CBN to fight piracy in Creative Industry

CBN defended FG’s decision: After the Presidency’s approval, the Governor of CBN, Godwin Emefiele, said under the CBN Creative Industry Financing Initiative, the National Art Theatre would be 10 times the size of the Convention Center in Peru when fully developed.

Clause and contract breach: In an interview with The Nation, Ogan said the only clause is if the consortium is unable to fund the project after two years of signing the concession agreement. But this takeover implies the government and CBN are trampling over the laudable outcome.

“The Federal Government agencies responsible for the privatisation/concessioning of Federal Government assets are the BPE and ICRC, under the supervision of the National Council on Privatisation, chaired by the Vice President. 

“None of these agencies and even the Ministry of Culture and Board of the National Theatre are aware of the purported takeover of the asset by the CBN. The only clause is if the consortium is unable to fund the project after two years of signing the concession agreement. What the CBN Governor is purporting to do under the guise of “ the Presidency “ is a breach of due process and particularly surprising given the stance of the Presidency on respect for probity and rule of law. 

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“Given that the Presidency was responsible for the mediation that resulted in the MoU between the two preferred bidders, we do not believe they will in good conscience trample over the laudable outcome of a process which they were instrumental in midwifing,” Ogan said.

[READ MORE: Customers’ complaints : Banks refund N3.61 billion – CBN]

No money problem: Ogan highlighted the effort to raise fund, stating that even the World Bank awarded a grant to support business development.

“One of the consortiums which enjoy an internationally recognised expertise in providing innovative platforms for the creative and digital industries, received a grant from the World Bank to provide business development support to the over 60 SMEs in the creative industries that work out of the Artists Village of the NCAC. Meanwhile, the other has been able to raise over $2b for the project.”

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Business

FG explains why Lagos-Ibadan rail line was not linked to the sea

The government in its explanation said that the delay was due to disruption by trucks going in and out of the port complex.

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FG needs $656 million to complete Lagos-Ibadan railway project – Amaechi, Nigeria loses N150 billion annually to shipping tariffs, Ibadan to Kano rail construction

The Federal Government has stated why the China Civil Engineering Construction Company (CCECC) Nigeria Limited could not link the final part of the Lagos-Ibadan rail line to the sea.

The government in its explanation said that it was due to disruption by trucks going in and out of the port complex.

According to a press statement signed by the Director, Press and Public Relations of the Federal Ministry of Transportation, Eric Ojiekwe, this disclosure was made by the Minister of Transportation, Rotimi Amaechi, while on a routine tour of the Lagos-Ibadan rail line project on Saturday, April 10, 2021.

The Minister pointed out that the original blueprint for the Lagos-Ibadan rail line project was not adhered to by CCECC Nigeria Limited and TEAM consortium and therefore warned that the master plan of the soon to commence Ibadan-Kano rail line project should not be changed.

The statement from the ministry partly reads, “The Nigerian Government has restated its commitment to connect the whole country by rail with the soon to commence Ibadan-Kano Standard Gauge Rail project.”

Amaechi forewarned that the master plan of the soon to commence project should not be changed as the original blueprint for the Lagos-Ibadan wasn’t adhered to by Messrs CCECC Nigeria and TEAM consortium. The Minister who rode the train from Ebute-Meta to the 8.72 km Apapa Port Spur line, informed the media that the inability of Messrs CCECC Nigeria to link the final part of the rail line down to the sea is rather due to disruption by trucks going in and out of the port complex.’’

The Minister had noted that the Federal Government has paid its share of the counterpart funding of the Ibadan-Kano rail line project and is waiting for China-Exim bank to ratify its side of the agreement for the project to commence.

He also advised the Nigerian Railway Corporation (NRC) to acquire more land around the train stations and the rail tracks for future development adding that this will be near impossible to do in the future as whatever space available now would have been taken over by businesses attracted to the rail line.

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In case you missed it

It can be recalled that full commercial train services commenced on the Lagos-Ibadan rail line after train operations commenced on December 7, 2020, with only Lagos, Ibadan and Abeokuta residents enjoying the train services.

This is because other minor and major stations along that route were yet to be completed.

 

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Manufacturing

Industrial Index loses -12.39 points, as BUA and Lafarge Cement shares top losers list

The NSE Industrials index lost 12.39 index points in the first trading week in the month of April.

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Manufacturing: Activity levels pick up albeit readings still below water

The Nigerian Stock Exchange Industrial Index at the close of trading activities for the first week in the month of April closed on a bearish note, following a 0.66% decrease in the shares of BUA CEMENT and Lafarge.

At the close of trading activities on the Nigerian Stock Exchange on the 9th of April 2021, the industrial index depreciated by 55.01 index points, to close lower at 1,928.18 index points for the week.

When compared to the overall performance of the market, the NSE Industrial index underperformed, noting that the NSE All-Share Index and Market Capitalization depreciated by 0.66% to close the week at 38,866.39 and N20.3350 trillion respectively.

READ: COVID-19, VAT, FX scarcity adversely impacted our operations in 2020 – Nigerian Breweries boss says

What you should know

The NSE Industrial Index was designed to provide an investable benchmark to capture the performance of the Industrial Sector. It comprises the most capitalized and liquid companies in the industrial sector and is based on the market capitalization methodology.

The index tracks the performance of ten industrial companies on the Nigerian Stock Exchange which includes Dangote, BUA, and Lafarge Cement.

The overall performance of the companies for the week was bearish, as the index closed on a negative note driven by the decrease in the share price of BUA Cement and Lafarge.

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MEYER (19.51) was the only gainer for the week, while BUACEMENT (-1.09%) and LAFARGE WAPCO (-3.00%) were the only losers for the week.

GAINER

  • MEYER up by19.51% to close at N0.49.

LOSER

  • WAPCO down by -3.00% to close at N21.00.
  • BUACEMENT down by -1.09% to close at N72.70.

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