Lagos — IT should also be clear to some of us that a year 2004 N1.00 investment in some quoted companies in the Nigerian Stock Exchange has grown in value to as much as N6.00 in the early months of 2006 when Transcorp shares were sold in a private placement. WAPCO shares, bought at about N8.00 per share in a 2005 rights issue is now trading at about N60.00; a 1 to 7.5 rise.

Similarly, Benue Cement's rights issue at about N3.50 per share some months ago is now trading at about N30.00 per share; about 1 to 8.5 jump. Even the company's shares bought at N6.50 on the floor of the NSE less than a month ago have had almost a 1 to 5 jump. This is another way of saying that there are better stocks available to people who have the money to invest, instead of buying into Transcorp. Therefore, in my candid opinion, it was really a sacrifice for anybody (including Obasanjo) to have put money into Transcorp at its incorporation or formation in 2004, and even in the 2006 shares placement.

Secondly, and more importantly, I think that people should reflect on the notion that if Obasanjo did not put his own money on the line by buying the 200 million Transcorp shares he is alleged to have purchased in 2004, there was no way he could have persuaded the other promoters of Transcorp to put their money into the company. Sometimes, you have to lead by example, by taking definite risks in order to encourage others to do so. It is indeed plausible that if Obasanjo did not buy into Transcorp as he allegedly did, he may never have succeeded in rallying the other promoters of the company, and hence in getting the company off the ground.

Furthermore, it should be noted that by the time Transcorp concludes its expected public offer, there would be so many billion units of its shares in issue that Obasanjo's supposed 600 million shares holding will not amount to even a substantial equity in the company. Definitely, the said 600 million shares will not constitute as much as 2-5 per cent of Transcorp shares. Even now, that is since the private placement, I do not think that Obasanjo's percentage holding is all that intimidating or large enough to warrant the insinuation of the President selling NITEL to 'himself' at a give away price. Obasanjo cannot possibly have a 'majority share' of Transcorp as Mr. Balla claims.

Transcorp, I think, will certainly end up a public trust, with widely diffused and diluted individual share holdings. In effect, the company is not going to be for the wealthy alone; the average Nigerians will certainly be accommodated. In fact, this has already been partially achieved via the year 2006 private placement of its shares.

It is in the above regard that Obasanjo's actions and supposed investment in Transcorp should be viewed. His was largely an act of economic/political brinkmanship that every Nigerian should extol. It is clear that if Obasanjo did not create Transcorp, Nigeria's potential Chaebol, most Nigerian public enterprises could have been sold to foreign interests. That surely would have deepened the progressive recolonization of the country, which many local commentators have riled against. Secondly, the opportunity to substantially promote the corporate culture in Nigeria, which Obasanjo exploits via Transcorp, would have been lost.

So, I am truly proud and relieved that the President has taken steps to establish Transcorp and the banking /insurance reforms, which I believe are geared towards reducing the negative impact of our anarchic one-man business culture or syndrome. I believe that this vision and exertion will prove to be Obasanjo's most important legacy and gift to Nigeria. In this regard, I do not think that it is fair to lampoon or criticize the President over the Transcorp initiative, including the pratical steps he has taken to get it going. If anything, we should put partisan and selfish considerations aside, even this once, to applaud the President for a job well done. The spirit should be kept alive and made progressive through the deepening of this presidential initiative in ways I cannot for want of space discuss here.

Mr. Nwankwo is a public affairs analyst.