₦airaland Forum

''Operation Umaru Dikko'': International Dragnet targets James Ibori

Former Delta State Governor, James Ibori has unwittingly found himself in the middle of efforts by an international coalition to arrest and bring him to justice for orchestrating one of the most brazen and monumental cases of embezzlement and theft of public funds by any Nigerian State Chief Executive.


Amid the persistent feet-dragging by the Yar’adua administration which has continued to shield Ibori from the long arms of the law, and in what seems like an intent to insult and mock the collective sensibilities of law-abiding citizens the world over, the coalition involving anti-graft campaigners in Britain and the United States has resolved to arrest Ibori and transfer him to any jurisdiction across the western hemisphere, most likely, Britain, where he will be tried for corruption and money laundering.


Huhuonline.com has learnt from sources in the coalition that special operations units are now combing the streets of Nigerian cities with instructions to kidnap Ibori and transfer him to Britain or the United States. The dragnet, sources told Huhuonline.com has also been widen to China; the only country where Ibori now travels since any attempt to step foot in the western hemisphere spells doom for the former governor, who, of late has launched a massive media campaign to rehabilitate his hugely tarnished image; taking Nuhu Ribadu head-on in a bruising tit-for-tat media spat.


The uncharacteristic enterprise dubbed; “Operation Umaru Dikko,” after the audacious attempt by Israeli agents to kidnap and smuggle Umaru Dikko; former Nigerian Transport Minister out of London, is said to be masterminded by some past and present barons of the ruling PDP who feel relegated to the background after losing out in the power struggle that heralded Yar’adua’s ascent to the Presidency.


Huhuonline.com understands that James Ibori has become the most powerful and influential men in Nigeria today, having generously oiled the wheels of Yar’adua’s 2007 presidential campaign machinery. “Ibori is the kingmaker; all the noise about the so-called Kaduna and Katsina mafia is now history…Ibori is the boss,” a presidential source told Huhuonline.com, adding: “his tentacles stretch from the corridors of Aso Rock to the creeks in the Niger Delta. He is Yar’adua’s political Godfather and no Nigerian government official dare cross his path. The man is an untouchable.”


Sources have told Huhuonline.com that as soon as Yar’adua came into office, James Ibori put pressure on the President to remove Ribadu as EFCC boss. Ibori’s strategy was to buy time from prosecution by orchestrating the removal of Ribadu. The story was that Ribadu had messed up and lost respect among Nigerians for allowing former President Obasanjo to use him for political battles. If Yar’adua had to be taken seriously about fighting corruption, then Ribadu would have to go, Ibori reportedly told the President. Ibori had his way and Ribadu was not only fired and humiliated, but is now on self-imposed exile.


Many believe Ibori has an ally in Michael Aondoakaa, the Attorney-General and Minister of Justice. Aondoakaa’s attitude towards the fight against corruption is, perhaps, better understood against the background of his battle with the EFCC as one of the Counsel to the Benue State government in its action against the EFCC. The state government asked the court to declare the EFCC illegal body and that it had no right to investigate corruption cases against any Benue state official. That case was decided in favour of the EFCC.


To secure a second term, President Yar’adua must persuade state governors to stick together and back the ruling PDP again. That may be harder in 2011 than it was in the last two elections and it thus will amount to political suicide for Yar’adua to turn against Ibori in the countdown to 2011.


Huhuonline.com has learnt from impeccable presidential sources that the international anti-graft coalition has been mounting pressure on Yar’adua to make good his rule of law mantra by ending his protection of Ibori. Another important test of Yar’adua’s reform commitment loom: his willingness to sack the widely reviled AG Michael Aondoakaa in the coming reshuffle. That would remove one of James Ibori’s greatest cheerleaders in the government. Last month, three of Ibori’s female associates faced trial in London for laundering of funds stolen from the Delta State treasury. The outcome of this case will shape the future of Yar’adua’s presidency.


The accusations against Ibori are, indeed, grave and it would be a waste of time to catalogue the many crimes of James Ibori; rather it would be comforting to note that the noose is tightening around his neck as pressure continues to mount on Yar’adua to bring the former Delta State Governor to justice. Ibori is facing 103 counts of money laundering and corruption but the case is unlikely to ever go to trial let alone be resolved. Similar charges against him in the England brought by the London Metropolitan Police were dismissed after the Nigerian Attorney General; Michael Aondoakaa filed a petition that they be dropped.


James Ibori wields enormous influence and epitomizes everything that is wrong with the Nigerian character. James Ibori is no doubt fighting the battle of his life. Depending on how his luck holds, the next few months will determine whether he will remain the main power broker in the Yar’adua government as his enemies and detractors close up on him. Ibori is having sleepless nights, not only with the ongoing fight with Nuhu Ribadu, but he can no longer step foot outside the shores of Nigeria(Europe & America). But beyond all this, Ibori continues to play a game of survival by using his understanding of Nigeria’s political system to escape the law. Will he survive, will he sink? This is the question agitating the minds of political observers in and outside the corridors of power.

http://www.huhuonline.com/index.php?option=com_content&view=article&id=513:operation-umaru-dikko-international-dragnet-targets-james-ibori&catid=91:elibrary&Itemid=286

''Operation Umaru Dikko'': International Dragnet targets James Ibori

Former Delta State Governor, James Ibori has unwittingly found himself in the middle of efforts by an international coalition to arrest and bring him to justice for orchestrating one of the most brazen and monumental cases of embezzlement and theft of public funds by any Nigerian State Chief Executive.


Amid the persistent feet-dragging by the Yar’adua administration which has continued to shield Ibori from the long arms of the law, and in what seems like an intent to insult and mock the collective sensibilities of law-abiding citizens the world over, the coalition involving anti-graft campaigners in Britain and the United States has resolved to arrest Ibori and transfer him to any jurisdiction across the western hemisphere, most likely, Britain, where he will be tried for corruption and money laundering.


Huhuonline.com has learnt from sources in the coalition that special operations units are now combing the streets of Nigerian cities with instructions to kidnap Ibori and transfer him to Britain or the United States. The dragnet, sources told Huhuonline.com has also been widen to China; the only country where Ibori now travels since any attempt to step foot in the western hemisphere spells doom for the former governor, who, of late has launched a massive media campaign to rehabilitate his hugely tarnished image; taking Nuhu Ribadu head-on in a bruising tit-for-tat media spat.


The uncharacteristic enterprise dubbed; “Operation Umaru Dikko,” after the audacious attempt by Israeli agents to kidnap and smuggle Umaru Dikko; former Nigerian Transport Minister out of London, is said to be masterminded by some past and present barons of the ruling PDP who feel relegated to the background after losing out in the power struggle that heralded Yar’adua’s ascent to the Presidency.


Huhuonline.com understands that James Ibori has become the most powerful and influential men in Nigeria today, having generously oiled the wheels of Yar’adua’s 2007 presidential campaign machinery. “Ibori is the kingmaker; all the noise about the so-called Kaduna and Katsina mafia is now history…Ibori is the boss,” a presidential source told Huhuonline.com, adding: “his tentacles stretch from the corridors of Aso Rock to the creeks in the Niger Delta. He is Yar’adua’s political Godfather and no Nigerian government official dare cross his path. The man is an untouchable.”


Sources have told Huhuonline.com that as soon as Yar’adua came into office, James Ibori put pressure on the President to remove Ribadu as EFCC boss. Ibori’s strategy was to buy time from prosecution by orchestrating the removal of Ribadu. The story was that Ribadu had messed up and lost respect among Nigerians for allowing former President Obasanjo to use him for political battles. If Yar’adua had to be taken seriously about fighting corruption, then Ribadu would have to go, Ibori reportedly told the President. Ibori had his way and Ribadu was not only fired and humiliated, but is now on self-imposed exile.


Many believe Ibori has an ally in Michael Aondoakaa, the Attorney-General and Minister of Justice. Aondoakaa’s attitude towards the fight against corruption is, perhaps, better understood against the background of his battle with the EFCC as one of the Counsel to the Benue State government in its action against the EFCC. The state government asked the court to declare the EFCC illegal body and that it had no right to investigate corruption cases against any Benue state official. That case was decided in favour of the EFCC.


To secure a second term, President Yar’adua must persuade state governors to stick together and back the ruling PDP again. That may be harder in 2011 than it was in the last two elections and it thus will amount to political suicide for Yar’adua to turn against Ibori in the countdown to 2011.


Huhuonline.com has learnt from impeccable presidential sources that the international anti-graft coalition has been mounting pressure on Yar’adua to make good his rule of law mantra by ending his protection of Ibori. Another important test of Yar’adua’s reform commitment loom: his willingness to sack the widely reviled AG Michael Aondoakaa in the coming reshuffle. That would remove one of James Ibori’s greatest cheerleaders in the government. Last month, three of Ibori’s female associates faced trial in London for laundering of funds stolen from the Delta State treasury. The outcome of this case will shape the future of Yar’adua’s presidency.


The accusations against Ibori are, indeed, grave and it would be a waste of time to catalogue the many crimes of James Ibori; rather it would be comforting to note that the noose is tightening around his neck as pressure continues to mount on Yar’adua to bring the former Delta State Governor to justice. Ibori is facing 103 counts of money laundering and corruption but the case is unlikely to ever go to trial let alone be resolved. Similar charges against him in the England brought by the London Metropolitan Police were dismissed after the Nigerian Attorney General; Michael Aondoakaa filed a petition that they be dropped.


James Ibori wields enormous influence and epitomizes everything that is wrong with the Nigerian character. James Ibori is no doubt fighting the battle of his life. Depending on how his luck holds, the next few months will determine whether he will remain the main power broker in the Yar’adua government as his enemies and detractors close up on him. Ibori is having sleepless nights, not only with the ongoing fight with Nuhu Ribadu, but he can no longer step foot outside the shores of Nigeria(Europe & America). But beyond all this, Ibori continues to play a game of survival by using his understanding of Nigeria’s political system to escape the law. Will he survive, will he sink? This is the question agitating the minds of political observers in and outside the corridors of power.

http://www.huhuonline.com/index.php?option=com_content&view=article&id=513:operation-umaru-dikko-international-dragnet-targets-james-ibori&catid=91:elibrary&Itemid=286

@ Muki

Plz where can I find Arsenal Fan Thread: For Gunners Only

OMO IBO:
SMH @ Michael Aondoakaa

I thought Ibori is a fool now i know Michael Aondoakaa is an even bigger fool.

My broda I knew this a long time ago,Ibori is no fool;he's the criminal,the thief,the convict,the shop-lifter,the treasury looter,the murderer
Aondoakaa is the FOOL,he'll be used and dumped,soon enough,the shiit will hit the fan

''Operation Umaru Dikko'': International Dragnet targets James Ibori

Former Delta State Governor, James Ibori has unwittingly found himself in the middle of efforts by an international coalition to arrest and bring him to justice for orchestrating one of the most brazen and monumental cases of embezzlement and  theft of public funds by any Nigerian State Chief Executive.   


Amid the persistent feet-dragging by the Yar’adua administration which has continued to shield Ibori from the long arms of the law, and in what seems like an intent to insult and mock the collective sensibilities of law-abiding citizens the world over, the coalition involving anti-graft campaigners in Britain and the United States has resolved to arrest Ibori and transfer him to any jurisdiction across the western hemisphere, most likely, Britain, where he will be tried for corruption and money laundering.   


Huhuonline.com has learnt from sources in the coalition that special operations units are now combing the streets of Nigerian cities with instructions to kidnap Ibori and transfer him to Britain or the United States. The dragnet, sources told Huhuonline.com has also been widen to China; the only country where Ibori now travels since any attempt to step foot in the western hemisphere spells doom for the former governor, who, of late has launched a massive media campaign to rehabilitate his hugely tarnished image; taking Nuhu Ribadu head-on in a bruising tit-for-tat media spat.   


The uncharacteristic enterprise dubbed; “Operation Umaru Dikko,” after the audacious attempt by Israeli agents to kidnap and smuggle Umaru Dikko; former Nigerian Transport Minister out of London, is said to be masterminded by some past and present barons of the ruling PDP who feel relegated to the background after losing out in the power struggle that heralded Yar’adua’s ascent to the Presidency.   


Huhuonline.com understands that James Ibori has become the most powerful and influential men in Nigeria today, having generously oiled the wheels of Yar’adua’s 2007 presidential campaign machinery. “Ibori is the kingmaker; all the noise about the so-called Kaduna and Katsina mafia is now history…Ibori is the boss,” a presidential source told Huhuonline.com, adding: “his tentacles stretch from the corridors of Aso Rock to the creeks in the Niger Delta. He is Yar’adua’s political Godfather and no Nigerian government official dare cross his path. The man is an untouchable.”   


Sources have told Huhuonline.com that as soon as Yar’adua came into office, James Ibori put pressure on the President to remove Ribadu as EFCC boss. Ibori’s strategy was to buy time from prosecution by orchestrating the removal of Ribadu. The story was that Ribadu had messed up and lost respect among Nigerians for allowing former President Obasanjo to use him for political battles. If Yar’adua had to be taken seriously about fighting corruption, then Ribadu would have to go, Ibori reportedly told the President. Ibori had his way and Ribadu was not only fired and humiliated, but is now on self-imposed exile.   


Many believe Ibori has an ally in Michael Aondoakaa, the Attorney-General and Minister of Justice. Aondoakaa’s attitude towards the fight against corruption is, perhaps, better understood against the background of his battle with the EFCC as one of the Counsel to the Benue State government in its action against the EFCC. The state government asked the court to declare the EFCC illegal body and that it had no right to investigate corruption cases against any Benue state official. That case was decided in favour of the EFCC.   


To secure a second term, President Yar’adua must persuade state governors to stick together and back the ruling PDP again. That may be harder in 2011 than it was in the last two elections and it thus will amount to political suicide for Yar’adua to turn against Ibori in the countdown to 2011.     


Huhuonline.com has learnt from impeccable presidential sources that the international anti-graft coalition has been mounting pressure on Yar’adua to make good his rule of law mantra by ending his protection of Ibori. Another important test of Yar’adua’s reform commitment loom: his willingness to sack the widely reviled AG Michael Aondoakaa in the coming reshuffle. That would remove one of James Ibori’s greatest cheerleaders in the government. Last month, three of Ibori’s female associates faced trial in London for laundering of funds stolen from the Delta State treasury. The outcome of this case will shape the future of Yar’adua’s presidency.   


The accusations against Ibori are, indeed, grave and it would be a waste of time to catalogue the many crimes of James Ibori; rather it would be comforting to note that the noose is tightening around his neck as pressure continues to mount on Yar’adua to bring the former Delta State Governor to justice. Ibori is facing 103 counts of money laundering and corruption but the case is unlikely to ever go to trial let alone be resolved. Similar charges against him in the England brought by the London Metropolitan Police were dismissed after the Nigerian Attorney General; Michael Aondoakaa filed a petition that they be dropped.   


James Ibori wields enormous influence and epitomizes everything that is wrong with the Nigerian character. James Ibori is no doubt fighting the battle of his life. Depending on how his luck holds, the next few months will determine whether he will remain the main power broker in the Yar’adua government as his enemies and detractors close up on him. Ibori is having sleepless nights, not only with the ongoing fight with Nuhu Ribadu, but he can no longer step foot outside the shores of Nigeria(Europe & America). But beyond all this, Ibori continues to play a game of survival by using his understanding of Nigeria’s political system to escape the law. Will he survive, will he sink? This is the question agitating the minds of political observers in and outside the corridors of power.

http://www.huhuonline.com/index.php?option=com_content&view=article&id=513:operation-umaru-dikko-international-dragnet-targets-james-ibori&catid=91:elibrary&Itemid=286

''Operation Umaru Dikko'': International Dragnet targets James Ibori


Former Delta State Governor, James Ibori has unwittingly found himself in the middle of efforts by an international coalition to arrest and bring him to justice for orchestrating one of the most brazen and monumental cases of embezzlement and theft of public funds by any Nigerian State Chief Executive.


Amid the persistent feet-dragging by the Yar’adua administration which has continued to shield Ibori from the long arms of the law, and in what seems like an intent to insult and mock the collective sensibilities of law-abiding citizens the world over, the coalition involving anti-graft campaigners in Britain and the United States has resolved to arrest Ibori and transfer him to any jurisdiction across the western hemisphere, most likely, Britain, where he will be tried for corruption and money laundering.


Huhuonline.com has learnt from sources in the coalition that special operations units are now combing the streets of Nigerian cities with instructions to kidnap Ibori and transfer him to Britain or the United States. The dragnet, sources told Huhuonline.com has also been widen to China; the only country where Ibori now travels since any attempt to step foot in the western hemisphere spells doom for the former governor, who, of late has launched a massive media campaign to rehabilitate his hugely tarnished image; taking Nuhu Ribadu head-on in a bruising tit-for-tat media spat.


The uncharacteristic enterprise dubbed; “Operation Umaru Dikko,” after the audacious attempt by Israeli agents to kidnap and smuggle Umaru Dikko; former Nigerian Transport Minister out of London, is said to be masterminded by some past and present barons of the ruling PDP who feel relegated to the background after losing out in the power struggle that heralded Yar’adua’s ascent to the Presidency.


Huhuonline.com understands that James Ibori has become the most powerful and influential men in Nigeria today, having generously oiled the wheels of Yar’adua’s 2007 presidential campaign machinery. “Ibori is the kingmaker; all the noise about the so-called Kaduna and Katsina mafia is now history…Ibori is the boss,” a presidential source told Huhuonline.com, adding: “his tentacles stretch from the corridors of Aso Rock to the creeks in the Niger Delta. He is Yar’adua’s political Godfather and no Nigerian government official dare cross his path. The man is an untouchable.”


Sources have told Huhuonline.com that as soon as Yar’adua came into office, James Ibori put pressure on the President to remove Ribadu as EFCC boss. Ibori’s strategy was to buy time from prosecution by orchestrating the removal of Ribadu. The story was that Ribadu had messed up and lost respect among Nigerians for allowing former President Obasanjo to use him for political battles. If Yar’adua had to be taken seriously about fighting corruption, then Ribadu would have to go, Ibori reportedly told the President. Ibori had his way and Ribadu was not only fired and humiliated, but is now on self-imposed exile.


Many believe Ibori has an ally in Michael Aondoakaa, the Attorney-General and Minister of Justice. Aondoakaa’s attitude towards the fight against corruption is, perhaps, better understood against the background of his battle with the EFCC as one of the Counsel to the Benue State government in its action against the EFCC. The state government asked the court to declare the EFCC illegal body and that it had no right to investigate corruption cases against any Benue state official. That case was decided in favour of the EFCC.


To secure a second term, President Yar’adua must persuade state governors to stick together and back the ruling PDP again. That may be harder in 2011 than it was in the last two elections and it thus will amount to political suicide for Yar’adua to turn against Ibori in the countdown to 2011.


Huhuonline.com has learnt from impeccable presidential sources that the international anti-graft coalition has been mounting pressure on Yar’adua to make good his rule of law mantra by ending his protection of Ibori. Another important test of Yar’adua’s reform commitment loom: his willingness to sack the widely reviled AG Michael Aondoakaa in the coming reshuffle. That would remove one of James Ibori’s greatest cheerleaders in the government. Last month, three of Ibori’s female associates faced trial in London for laundering of funds stolen from the Delta State treasury. The outcome of this case will shape the future of Yar’adua’s presidency.


The accusations against Ibori are, indeed, grave and it would be a waste of time to catalogue the many crimes of James Ibori; rather it would be comforting to note that the noose is tightening around his neck as pressure continues to mount on Yar’adua to bring the former Delta State Governor to justice. Ibori is facing 103 counts of money laundering and corruption but the case is unlikely to ever go to trial let alone be resolved. Similar charges against him in the England brought by the London Metropolitan Police were dismissed after the Nigerian Attorney General; Michael Aondoakaa filed a petition that they be dropped.


James Ibori wields enormous influence and epitomizes everything that is wrong with the Nigerian character. James Ibori is no doubt fighting the battle of his life. Depending on how his luck holds, the next few months will determine whether he will remain the main power broker in the Yar’adua government as his enemies and detractors close up on him. Ibori is having sleepless nights, not only with the ongoing fight with Nuhu Ribadu, but he can no longer step foot outside the shores of Nigeria(Europe & America). But beyond all this, Ibori continues to play a game of survival by using his understanding of Nigeria’s political system to escape the law. Will he survive, will he sink? This is the question agitating the minds of political observers in and outside the corridors of power.


http://www.huhuonline.com/index.php?option=com_content&view=article&id=513:operation-umaru-dikko-international-dragnet-targets-james-ibori&catid=91:elibrary&Itemid=286

A-40:
Hehehe Flying Vultures

When would we accept that we are no longer a force in world footie and channel our attention to our local sports like ayo,drought(checkers or draft),ludo,monkey post,police and thief,ten ten e.t.c

Mind yourself o A-40,why you come dey make me dey laff so loud for nite,you wan wake my family  

All those who wagered on the eagles nicking this one,well all I can say is dohhhhhhhhhh

txxxed:
YOU ARE A VERY SICK PERSON, EVEN IF NIGERIA WINS HER 2 MATCHES, WHAT MAKES YOU THINK THAT TUNISIA WILL LOSE ANY MATCH,YOU THINK THEY ARE AS USELESS AS OUR PLAYERS?

No team on earth can have players as useless at the ones I've seen donning the Nigerian jerseys in recent times

txxxed:
I TOT NAIRALAND HAD ADMIN WHO SHOULD KNOW WHICH THREAD TO KEEP AND WHICH TO DISCARD.
PLEASE CLOSE THIS THREAD,ITS OFFENSIVE TO US.

Nooooo,the thread should be left alone till the world cup starts next year,I need to be able to refer to the earlier posts when I'll be posting so many,I TOLD YOU SO

chidexy:
with this kind of display, I need a reason to watch the game of the senior team this weekend

Better don't waste your time

bidemi12:
The more these guys lose the more fustrated boys will get, then serious questions will be asked about how football is run in the country.

The more the lawmakers,ministry and presidency officials recover from their heart attacks,the more they'll ensure heads roll in the NFF

But as for me,I'll keep rooting for Tunisia to pick the sole ticket for SA 2010 from the group and that the super fowls wont even make it to Brasil 2014

stillwater:
Yeah right.

Stillwater,truly I do not care,why this flyless eagles losses pained me was that I kind of had a little belief in them because of Siasia,but for the papa eagles,I'll pass

Infact

DOWN WITH GREEN EAGLES,DOWN WITH SUPER CHICKENS (I'm actually chuckling now even as I type),I've truly got over the super fowls

DOWN WITH NIGERIAN FOOTBALL,DOWN WITH GREEN EAGLES,AWAY WITH PAPA EAGLES,
You all (including your okpolor eyed coach) will watch SA 2010 on your TV screens or from the stands,useless buncha footballers

After watching the worst performance from a flying eagles team,Haruna and everybody in the team are useless jackasses

My prediction for the super eagles or super fowls game against mozambique is that I don't care whatever the outcome may be,but Tunisia will beat Kenya and I hope the eagles lose in Abuja

With this mindset, my blood pressure will stay normal during the match and I TRULY wish mozambique victory against the eagles

~Sauron~:
To be fair to Haruna, he was fouled and he fell down.
There was nothing he coulda done.

Haruna gave away the ball that resulted in the second equaliser for the Germans.He was just to awkward all-match

bboiabb:
This is the point that we will seperate the boys from the men. :

Boys = The wingless eagles of Nigeria

Men = The hard fighting Mozambiqans who will defeat the eagles in Abuja courtesy of 3 own goals from Yobo

Defeat to super chickens of Nigeria,victory for Mozambique.Yobe to score three own goals.Tunisia fpr SA 2010
Down with the luckless Yara dead government

For fucksakes,we fared better under the late tyrant Abacha

Niger_d:
Let this NYSC thing stop for once and LET Nigerians be,

total madness

Seconded.I'm happy none of my younger siblings have any interest in the NYSCshit.We'll work around that obstacle

dayokanu:
^^ And volleyball

LOL

I wonder whoever it was that mis-advised afin to opt for footie instead of volleyball as he appears to fare better in the latter

[size=14pt]FBN and the planned 2009 Bond Offer (051009)[/size]


Monday, October 05, 2010

Conversation with Investors:

FBN is the stock that has established footprints in the Nigeria financial system. Over time and more recently, it appears to have become a stock that has turned itself from an investor delight to an investor dislike over a period of steady wrong decision making.

FBN is a great company but with an ill-equipped management in place! The management of the company certainly has no excuses given the realities and positioning it has.

We all knew the incident of 2006 when FBN came to the market to raise N100 Billion (thru rights and IPO) and in the process raised more than N700 billion. Money poured in from all over the world but unfortunately FBN and it regulators said it can only keep N250 billion and not a kobo more.

The Director General of the Nigerian Stock Exchange – Prof. Ndi Okereke-Onyuike was contacted through a series of emails, met with her one-on-one during one of her many road shows in the then gloomy days in Atlanta and made her see reasons why FBN should keep that N700 billion. The then SEC Director General, Musa El 'Faki was contacted as well all with a view to making him see reasons why FBN should keep the whole money raised. Calls were made to Sanusi Lamido Sanusi (fondly called SLS), then Chief Credit Risk Officer at FBN at the time about the need to keep the funds to avoid the impending waves. It was clear, he was told that FBN will come to the market for more money by 2010 and his response was that such an analysis was unfounded.

Today, we all know the story as it is - FBN is in the market again seeking to raise N500 billion thru a planned bond offering. What a shame!

This is evidently a credibility and integrity problem FBN has dug for itself! It has dealt a severe blow on its corporate identity and credibility. You can compromise anything in a company but not integrity and credibility. How would FBN explain to its customers, potential investors that it now needs the money it rejected in 2006? What manner of credibility loss is that?

What happened here? It's very disturbing and frustrating to see a Bank that rejected more than N500 billion three years ago now coming to the market, seeking same. Investors will immediately interpret this action as meaning a potential going-concern problem. That is a big credibility problem right in there and like you know credibility is the greatest threat to a bank’s bottom line.

That being said, one of the major management problems FBN will stand to face in the coming years is the rate of stock price dilution. It is evident that they have diluted the stock far more than its initial valuation. It makes absolutely no sense diluting the stock further; instead FBN management should focus on buying back as much outstanding shares on the company's book and create more value for shareholders.

Possible Response by Board - Hypothetical


The first recommendation would be to commit at least 5 to 10% of the Bank's profits towards share "Buy Back" thru the next five years and by 2013, FBN Plc should trade at not less than between N300 and N500 / share - IF and ONLY IF those profits they declare are real and not mere paper profits.

This should create a far more reaching value for shareholders than diluting the price.

Seriously, why would you dilute a stock when the price is already very cheap? I mean more than cheap! Nestle and Guinness are good candidates for stock dilution and not FBN.

Ignorance as an escape from Reality

Based on the information available to analysts, the evidence suggests that FBN’s planned BOND offering has every indication of a failure, as is. Not a few investors and analysts have voiced concerns with increasing gaps in level of understanding of what all this is about.

Those who should know, do not. They conceal their ignorance with buzzwords and logic that has no relationship with the workings of a fixed income market. From operators to regulators, we embrace self denial in our approach to investing in bonds – the word on the street now is that anything but the equities market and as such the bandwagon effect is on again.

Having responded to the questions and concerns on that single comment alone with 75% of the respondents agreeing with me that it's actually going to be a failure after giving them the inside details, while the remaining twenty five per cent replied that it will record much success than the previous stock offering. The truth - every one of them is right but the one that truly is ‘in the money’ is one that achieves the best return on investment when the outcome is released.

Categorically speaking, one needs to understand the technicalities of bond(s) before getting involved. It is no longer a major expose to affirm that Nigerians are fond of jumping at any opportunity to make money for which there may or may not possess a background or fore knowledge of/in. In the end, we often get burnt and start looking for someone to blame. It's a shoot before you ask kind of planning and execution in Nigeria. Don't get me wrong though, bond is a good investing tool but not in the current Nigerian setup and context.

Understanding Bonds, at a base level

In layman terms, a bond is simply a debt (IOU) which the investor agrees to loan to a company or government in exchange for a predetermined interest rate at a later date. Please mark and note the words "Predetermined Interest Rate".

Like I said Bond is good but not in this Nigerian setup where currency and interest rates are volatile. No body knows yet the interest rate they are going to sell the bond but let's assume it's going to be 15% to be on the conservative side.

Let's therefore assume today's interest rate as determined by CBN is 10%. Bond holders might think they have made a kill by buying a bond @ 15% interest rate. I am quite sure you know that the biggest economic threat to bonds is rising interest rate. So let's say CBN sees inflation on the horizon in the coming years and decides to raise rates gradually to 17%. Automatically that puts bond holders in the water. How? Simple- because bond prices move inversely to interest rates. When interest rates head north bond prices head south and when interest rates head south bond prices head north.

Hypothetical Illustration

Let me make a simple illustration for you to understand it better. Let's say you buy the FBN bond for N10, 000 @ 5% interest rate with a maturity date of 5 years paid every six months to be conservative. Then CBN raises interest rate to 6%. Now you want to sell the bond. Who do you think will buy it when it is selling 1% below interest rates (5% vs. 6%)?

You have to sweeten the deal so that the buyer gets a market rate for the bond. Remember you can not change the interest rates on the bond. That is fixed at 5%; however you can change the price you will take for the bond. The annual payment of N500 (i.e. N10, 000 X 5%) must equal a 6% payment.

Doing the math you will discover that the face value of the bond must be discounted to N8,333 so that the N500 fixed payment equals 6% yield on the buyer investment - (N8,333 X 6% = N500).

If on the other hand CBN decides to lower interest rates, you could then sell your bond at premium over the face value because the fixed interest rates would be higher than the market rates.

Some examples of why the bond option is not fully there

That being said, if history is anything but a good prediction of future occurrence, would you buy bonds in Nigeria? No, when you know fully well that Nigeria has the most unstable interest rates and currency in the world. That is putting it mildly when considered in tandem with the possibility of interference by the Government for either political or economic considerations.

That is one reason I said it will be a failure but let's go to the second. This one is what most investors, retail investors like you and I don't know and no one will tell you unless you talk to those folks at the big investment houses like Goldman Sachs, Morgan Stanley, Merrill Lynch (now Bank of America) but you know their advise is not free. It comes at a huge price.

Key questions to ask!


Why is FBN, UBA, etc raising more funds through issuing of more shares and bonds? What did these banks do with the funds they raised from the capital market a couple of years ago?

These banks, including FBN are already very bloated – yet it (FBN) gave bonuses to shareholders this year which naturally increased the number of shares outstanding, and they are still going to the market to issue more shares and dilute the shares of the existing shareholders further - these banks are truly irresponsible, and it is not limited to credit and risk management alone; we should include the management of the enterprise.

Is the CBN and SEC aware of what their approval of the current scheme will do to existing shareholders? This is the fleecing of Nigerian investors.


The Bond holder vs. Stockholder


Let me take my time to explain what stock and bond is to you and I am sure you already knew but often leave out. Stock and bond are both securities but the major difference between the two is that stockholders have an equity stake in the company (i.e. they are the owners) whereas bond holders have a creditor stake in the company (i.e. they are lenders). Another difference is that bond usually has a defined terms or maturity after which the bond is redeemed, whereas stock may be outstanding indefinitely.

Now that you know who the two holders of a company are - one who owns the company outright - (stockholder) and the other who lend money to company - (bondholder). When a company determine it can no longer be a going-concern (meaning going down), who do you think the liquidator will settle first? It's obvious the lender will.

So that tells us that the stock you and I have in FBN is a collateral to the bondholders (this is the piece most investors are not informed about).

Recall also that bondholder interest payments take precedence over shareholders dividends since shareholders are owners.

According to Dr. Chuck Biosah, “It is amazing that Nigerians and brokers continue to bid up the shares of FBN whose true fair value is about N15 - pre- the last bonus shares. How can FBN make interest payments on these bonds and still pay any significant dividends. Future annual dividends at N1 will be about 24 billion and the interest on annual interest on the bonds will be approx N50 billion at 10%.”

He adds, “This means that FBN will have to generate at least N74 billion in net income annually for these obligations. Is it realistic? These brokers and investors that continue to buy FBN shares will soon see that the emperor has no clothes.”

Why the FBN Bond Plan is a curious one, as is

OK, we are now at a point you need to sit down and ask yourself a question. If the stock you own in FBN is a collateral to the bondholders why would FBN raise N500 billion in bond when its equity value is only N402 billion? At Friday (021009) closing price, FBN was worth N402 billion.

The question I need to ask you now is who will secure the other N98 billion for the bondholders? Go and ask Stephen Onasanya, CEO of FBN this question and come and tell me his reaction. I bet you that he will scratch his head for an answer and may not be able to sit down if actually if knows the technicalities and the relationship between stock and bond.

That being said, for FBN bond offering to be successful, the stock price need to be at nothing less than N28 because by law, bondholders would need an 80/20 loan to value security coverage. This point makes one wonder if the SEC even knows its function in Nigeria or if Nigeria has a Government that ought to ensure that things are done properly is able to educate those that do not know. If SEC really knows its job; it would not give an approval to FBN to float that bond unless the stock hits N28.

We will rest the discourse here. Let us attempt a review of likely issues through a few Q & A below:


Q: If GT Bank Plc is that very good, how come it doesn't split its shares annually as FBN does?

A: While it is an acknowledged fact that the FBN management is killing the stock by splitting it, we should be clear that not every stock is a candidate for a split. A company will split its stock when the stock is too expensive for an average retail investor to buy in the open market.

It is an established fact that the more you split your stock the more you create outstanding shares in your balance sheet and the more outstanding shares in your balance sheet the cheaper the stock becomes. The FBN management had diluted the stock beyond valuation level. Consider the P/E (Profit / Earnings) ratio which takes into consideration the number of shares outstanding.

The more you split a stock the more you dilute future earnings. So let no investor think FBN is creating more value for you by splitting that stock, they are actually killing you financially. FBN is better off buying back the stocks to create value for shareholders than splitting it.

Q: Would your opinion be different if this Bonds are tradable like is done in the matured markets where investors are free to alternate trades between the Bond Market and Equity Market. Also would your opinion have been different if our interest were to be single digit like we have in other climes.

A: If you read my commentary closely you will notice that my concerns are not whether the bonds are trade-able or not but the overall economic system where such bonds are deemed to be traded.

Owing to the Nigeria economic environment where there is no stable interest rate, currency volatility, I personally don't think our market is matured enough to float corporate bonds at this time be it FBN or otherwise. It is doable however if we have the will but we must put certain things in place which is not there now.

So to answer your question, yes my opinion would have been different if our markets were matured enough. I am very much concerned about our Government inconsistent policies, period. You know how much the Dollar was October 2008 versus the Naira and you equally know how much it is today. Same goes Interest rates. Is that an environment you would want to put your hard earned money into bonds?

Q: Please can you help check if FBN proposed Bond is not Foreign guaranteed.

A: No analyst is yet to sight the Bond Prospectus regarding this proposed bond offering but I can assure you that no foreign entity will dare raise its head and guarantee a penny out of this bond. You know why?

How can you guarantee a fund that is not collateralized (I mean not secured in layman terms). FBN is worth N402 billion for goodness sake and they are planning to raise a debt of N500 billion which is collateralized by it equity value of N402 billion. So tell me if it makes any business sense for any entity to guarantee such debt when you know fully well you will be under water from day one? For the sake of those who may not be well grounded in the world of investing, let us break it down further?

If you walk into any FBN branch tomorrow asking for a loan of N1 million, what would the manager ask you first? Straight and simple question - do you have collateral to backup your N1 million loan request? If you don't have, what would you hear next? Sorry sir we cannot process your loan application. The Bank would not only want N1 million worth of collateral but more. Why? Because they have to index it for inflation and probable risk of default.

So why would you give a N500 billion loan to someone who is worth N402 billion? Who will secure the N98 billion shortfall for you? Or you want to tell me you don't know that a bond does default? Risk wise, I cannot lend N500 billion to someone worth even N600 billion. That is too close to comfort for me and does not make any financial sense at all.

I am quite convinced that Stephen Onasanya and his team know all these technicalities but they want to prey on the ill-informed investing public just because they need to save the bank through its liquidity/funding requirement for purposes of meeting capital needs and the purchase (or possible M&A) opportunities that the CBN has induced which if it fails to take; may make it fall behind competition.

Thus, the informed stand at this time remains that before this bond can sell, FBN equity needs to trade at least N28; else they will be under water.

If you or you know of any shareholder who will be at the AGM on Thursday where this bond offering will be approved, could you please ask them to help us ask Mr. Onasanya and his team to clarify these claims. You will see that they will chuckle and scratch their heads.

http://www.proshareng.com/blog/

Emperoh:
[color=#550000]

BTW, who aside Giggs, it means Man U has no game changer? Gosh can't wait for VDS and Hargo to be back!!

The truest post in 20 pages

edoyad:
^^ Thunder fire ya mouth .

Odeshi,back to sender

edoyad:
What about ya own ?
Ra. . . .Ra. . . .Rasputin,
lover of the Russian queen. . .

The fraudulent prophet was poisoned, shot and thrown off a bridge into an icy river.

Like Boney M said,Ohhhhhh,those Russians
They misunderstood him and murdered a great mind that came to open their eyes for that was what Grigory Efimovich Rasputin came to do
Was it his fault that Tsarina Aleksandra was alleged to have wanted more than his teaching and healing?
See how long it took for them to eventually subdue him, there's something about the life of the Siberian peasant that can't be denied even today:THE CAN DO AND CAN BE SPIRIT;well that's another topic for another place and time

duduspace:
How dem no go shoot am? when him dey assist King dey fire Queen? na who our dear rasputinn dey assist?

This here rasputinn,has his own tsarina,I no dey assist anybody dey fire anybody abeg ooo

jamace:
Yes na. Abi you don forget trade by barter?
Sorry o, no margin for my end I am scratching from all angles to make sure I gather something for my portfolio before rush starts. Brother, try load up small now o.

Them no dey tell man,in 15-24 months time no be small thing man go dey see for portfolio spread sheet 

See one of my strategies,apart from my personal portfolio,I've cancelled elaborate birthday bashes for my children.The usual budgets have now been split into two parts of 25% and 75%.On their birthdays,we use the 25% to organise low celebrations,while the other 75% part goes into stocks (we buy great companies,we don't pick stocks as far as this scheme is concerned  ) in their respective names.

edoyad:
*hissing and rolling sexy eyes*

edoyad,don't cause confusion here,which one be rolling sexy eyes na,that one no be pinky stuff

Ibime:
Can we now conclude that Adeballz is a "fickle" analyst and does not have an eye for players like moi?  

Players like you   ,never knew you were a player.Or did you mean have an eye for players,the way you do  

BTW,have you accepted the amnesty,if dem catch you with dat ya shakabula,na ayoko city one hand  

@ OP

For a moment I thought **************__________^^^^^^^^^^

ogbongzky:
WE SHALL GO THROUGH PROVIDED D BOYS STOP FALLING LIKE JOHN TERRY INFRONT OF GOAL,

Not to worry man,there shall not be any banana peels on the pitch