How many a time we’ve heard and read through various mass media about our honorable ministers, governors, commissioners, etc. making a wooing-foreign-investors-trips around the world. Oftentimes, we don’t take into cognizance that the investments of Nigerians in some of those countries are part of their enviable economic growth. We look down on Nigerian (indigenous) investors – treat them with utter impunity and neglect, and expecting foreigners/ or the Nigerians in diaspora to come and invest in Nigeria – abandoning a bird at hand and chasing the ones in the bush – wanting foreign investors to tread where the indigenous investors flee!
Too much is being spent on adverts by the Nigerian capital industries in all possible media, but the service/quality is poor and the structure dubious! Somebody wrote recently in one of the investment column of our dailies, if your Bank is not treating you well: #1 thing to do, #2 to do, #3 thing to do, #4 thing to do and on and on like that, and concluded that doing all those things doesn’t guarantee solution – what a truism! #1 thing to do will yield no result, thus necessitating #2, #2 will yield no result, thus necessitating #3……. What an unresponsive and irresponsible arm of the Nigerian economy!
With the bad investment climate in Nigeria and the crash of our currency, a lot has been said and is being said as fears or threats to potential investors in Nigeria, however, the truth is often being omitted. The Federal Government of Nigeria has through its various agencies and institutions warned against investing in illegal companies/ wonder banks, while promising to protect all legitimate investments/investors. Below is my bad experience as a Nigerian, and an investor in legal companies in Nigeria:
“A” is one of the largest and an award-winning bank (PLC) in Nigeria, duly licensed by the Nigerian apex bank, and a quoted company on the reputable, renowned, & globally-acclaimed platforms of both the Nigerian Stock Exchange & the London Stock Exchange.
“B” is a licensed stockbroking firm (LTD) with branches across Nigeria and a member of the Nigerian Stock Exchange.
“A” advertised a public offer of shares for sales in 2007; I applied for the purchase of 2,500 units of the offer through “B”. When I got the share certificate in 2011, I discovered that I was offered 1,000+ units. I reported the case promptly at the Stockbroker’s office who affirmed that he did purchase the units I applied for on my behalf and that I should contact “A” for my Return Money Warrant. I contacted “A” as advised, signed an Indemnity for Return Money (a ploy by ‘A’ to make the fraud rather technical, legal & perpetual), it was after I duly filled and returned the form that “A” requested from me an evidence for my purchase of 2,500 units for onward processing of my Return Money Warrant. I gladly presented the Broker’s official receipt clearly showing the amount I paid and 2,500 units applied for. However, I got stuck at this point as “A” said the Broker’s official receipt with me is untenable and insufficient to procure my Return Money Warrant and that I should collect from the Broker a Docket Sheet as the only valid document that could guarantee receiving my Return Money Warrant. I reported the matter at the Broker’s office and he said he doesn’t keep such document (i.e. Docket Sheet). And that I should return to “A” with his official receipt. The drama went on and on, with each passing the buck! Where else should I go from here? This is my predicament! I have spent over two hundred thousand naira since 2011 and suffered untold hardship and stress to get justice to no avail.
Suffice to say that the consistent rise of dollar against naira, market recapitalization, the crude oil bench mark, etc. are not a fear or threat to potential investors in Nigeria but the dubious and corrupt people/operators in the Nigerian capital industries. As a potential investor with the interest of my country at heart, I will not allow the rise/fall of dollar to debar me from investing in my country, however, a true stories of woes such as mine will not only debar foreign investors but also indigenous ones as the saying goes: information makes the world go round. In several fora where I’ve narrated this story, several Nigerians have had one story of woe or the other to tell. While there are still God-fearing – patriotic and loyal Nigerians in this sector, how will prospective investors distinguish them from so a numerous dubious people and companies with LEGAL cover? – This is the question coming to my mind each time I consider re-investing in Nigeria.
Since the duo (“A” and “B” companies) are not illegal organizations/wonder banks, for they are duly incorporated, registered with, and operate on the reputable platform of the Nigerian Stock Exchange (NSE) – the highest and statutory body in charge of stock exchange/capital market in Nigeria, and were duly certified by relevant regulatory and monitoring agencies/organizations, could this then be said to be an official, standardized, licensed or lawful fraud? An officially-sanctioned corruption? I am utterly confused!
The phrase “in line with the global best practices” is a popular song in the mouths of DGs, MDs, CEOs, of Nigerian capital industries, when describing their efficient/transparent services, however, I’m appalled at fast disappearance of the synergy that existed between an NSE quoted companies and chartered broker, prior to getting the investor’s money but fizzled out once the investor’s money get into their system, for the duo can’t proffer solution to my predicament for more than four years now – I dare say this can only happen in Nigeria!
The likes of “A” that can’t at the reception of my complaint, requested 24-48 hours, or even a month, and then get back to me with either of these:
- After a thorough check, our system showed that your broker purchased only the some of 1,000 units of shares on your behalf from us. OR
- Kindly pardon our error. Your Return Money Warrant will be processed and sent to you this month.
should not be listed among Nigerian banks if our economy is to make any meaningful progress. For if a system finds something like this impossible, then the motto, image, core-values, policy etc. of integrity, transparency and accountability being projected to the global community is a LIE! I personally found the practices in terms of actions and inactions of the duo as obnoxious insults to me as an investor that I won’t like any prospective investor in Nigeria to go through. That the duo have a working relationship and the approval of the time-tested and globally recognized Nigerian agencies like the NSE, etc. probably demean the age-long built credibility and reputation of the latter.
I am writing, and counting on the power of the media and the relevant agencies as the last resort capable of guaranteeing justice on this matter, and more importantly, to resound the popular slogan “buyers/investors beware” to prospective numerous investors in Nigeria.
I have all necessary documents and correspondence with me to substantiate my claims which shall be duly furnished and the identities of the duo divulged on request.
Thanks for being the loudest voice and strongest help of the voiceless and helpless masses.
–
Sunday Oye (Mr.)
Abattoir Area, Jos, Plateau State.
+234(0)8182063772
