Vanguard Markets Edition - August 4, 2014

8/11/2019 Vanguard Markets Edition - August 4, 2014

1/8

Walking on water

or skatingon thin ice?!page VM6

ONNIE AYERE,

chief executive of-

cer of the Nige-rian Mortgage RenanceCompany (NMRC), is theconsummate investmentbanker. Sitting in his plushoce overlooking the Ma-

rina and admiring acrylic dealplaques, one may be forgivenfor thinking this is the lair ofa Master of the Universe inlower Manhattan, with sightsof the Hudson River.

Usually, the rst thingmost people notice about him

is that the man has a senseof eortless style. This time,the talk is not about shoppingforays on Londons New BondStreet. It is about his infec-tious passion to lay the pipe-lines between bond investorsand home buyers.

VanguardMarkets | Monday, August 4, 2014 | Issue 004

C-SUITE

Fixed Income & Forex

Inside

Whodunnit at Afren?

The announcementthat Afrens board hassent its CEO and COOon temporary sus-pension riled mar-kets at the end of lastweek. Some analystsfear that this may bethe tip of the iceberg.

!Page VM7

Boardroom grandee

In Corporate Nigeria,Senator Udo Udomais known for hisexperience and sagecounsel.

!Page VM6

Sonnie Ayere,

Mortgage Czar

0B 10.0 10.0

16/07 17/07 17/0724/07 25/07 25/0731/07 01/08 01/0821/07 22/07 22/07

120B 11.6 15.0

14.090B 11.2

13.060B 10.8

12.0

30B 10.4 11.0

FGNBonds &TBills NITTY NIBORFGN BondsTreasury Bills

O/N1M

3M6M

TAKEOVERS

Wale Tinubu

161.0

17/07 25/07 01/0822/07

162.5

162.2

161.9

161.6

161.3

FX ($/N)

Source: FMDQ

BidAsk

1M2M

3M6M

9M12M

S

!Page VM2

Sonnie Ayere, chief executive officer, Nigerian Mortgage Refinance Company

As the mortgage industry grows it

will add hundreds of thousands of

new jobs and skills to the Nigerian

economy each year

Currency Central Rate

US Dollar 155.23

PoundsSterling

261.2831

Euro 208.0392

Swiss Franc 170.977Japanese Yen 1.5077

CFA 0.3066

WAUA 236.9421

ChineseYuan/

Renminbi25.1165

Saudi Riyal 41.3903

Danish Krona 27.8975

SDR 237.6727


2/8

INTERVIEWVM2

C-SUITE

VM| Monday, August 4, 2014 | Issue 004

OUR FORMALdesignation at theNigerian Mort-

gage Renance Companyis CEO. What does thisrole entail?

I hold this title for a denedperiod at the discretion of ourboard, chaired by the Coordi-nating Minister of the Economy.When I was appointed, I wasgiven responsibilities to meetcertain milestones, one of whichis the rst renancing of NMRC.

On a day-to-day basis, Ioversee the setting up of the in-stitution by attracting the rightpeople, putting in place theright processes and working tocreate the right enabling envi-ronment for the achievementof the institutions mandate.

Tell us a bit more aboutthe NMRC

NMRC is a secondary mar-ket nancing institution. It isa high nance vehicle estab-lished to provide long-termfunding to mortgage lendersand create corresponding -nancial products to be issuedto the capital markets on aregular basis. The complexity

of the institution comes fromensuring that the issued se-curities match the cash owsof the underlying mortgagepools. In addition to its role asa renancer of mortgages, theNMRC will also service andmanage various bond portfo-lios with dierent durations,and average lives. How well wedo all these will determine thesuccess of the entire transfor-mation we hope to see in themortgage industry.

NMRC will provide long-term funding to institutionsthat have created NMRC-conforming mortgages. Pre-viously, the problem lendersfaced was the lack of access to

long-term funding, that is, 20-25 year money to on-lend tohome buyers.

How does NMRC helpmortgage lenders matchassets with liabilities?

Financial institutions get themoney for mortgage origina-tion from customer depositsand money markets. This cre-ates two problems: a classic as-set-liability mismatch betweenlong-term asset creation andshort-term liability manage-ment, and the illiquidity bur-den of carrying these mortgag-es on their balance sheets forthe duration of the mortgage.

These are the two most

debilitating reasons why themortgage industry has nottaken o in Nigeria apart fromall the other bureaucratic andlegalistic issues, important asthose are.

After the mortgage has beenunderwritten, the mortgage

institution can approach theNMRC to request a renanc-ing for the duration of themortgage. If it meets our con-ditions, we will approve it. Intheory, this allows the institu-tion to pay o its short-termcreditors or replace its deposi-tors nance, and then enterinto a new long-term contractwith the NMRC.

Two things have now hap-pened. First, the mortgage in-stitutions assets now match itsliabilities, and second, it can goahead to make new loans withthe knowledge that the NMRCstands ready to renance themif they meet its criteria. This hasa chain eect on the economy.

More loans to home buy-ers equals more jobs, morejobs mean greater consumerspending, greater consumerspending means more invest-ment lending by companies,and it goes on like a virtuouspositive cycle.

What if borrowers de-fault?

NMRC is hedged from de-fault by borrowers because themortgage lenders retain thecredit risk on their books. It isprotected by the nature of the

covenant with the institutions,which is a bilateral loan. Amortgage lender will still be re-sponsible for making sure thatthe loan is serviced, while theasset itself is pledged to protectNMRC in the event of a default.

In the event of a cata-strophic event, the govern-ment, because of its explicitguarantee of NMRC-issuedbonds, will make bond inves-tors whole with the commit-ment that NMRC will liquidatethe pledged assets to counter-guarantee government sup-port. In order words, govern-ment exposure is fully securedand over-collateralised makingthe overall expected loss, even

in times of stress, pretty low.

How did you get in-volved with the NMRC?

There are two sides to my in-volvement, rst with the insti-tution itself, and then with thebroader development of thebond market in Nigeria.

My direct involvement withthe NMRC goes back to con-versations that I had had withthe International Finance Cor-poration in the early monthsof 2012 on the creation of amortgage liquidity institution.At the time, the IFC had al-ready begun discussions withthe CME, Dr. Ngozi Okonjo-Iweala, on how this could be

actualized.On my part, I held some ex-changes with the CME on myideas about how to make it asuccess. She deserves credit forher drive to see this vision takeo. She co-opted the BankersCommittee and other stake-

holders to make this see thelight of day. Other sponsorslike the Mortgage Bankers As-sociation of Nigeria, BankersCommittee, the Central Bank,and individuals like RolandIgbinoba deserve appreciation.

Immediately after the Na-tional Retreat on Housing whichwas initiated and chaired byPresident Goodluck Jonathanat the Presidential Villa in No-vember 2012, who is extremelypassionate about this sector, Itransitioned from an advocacyposition to an executive capac-ity when the CME asked me tocarry the vision forward in therole of Task Manager.

Demographic guresshow that over 65% of Ni-gerians are below 25. Forgenerations, most salary-earning Nigerians haveseen home ownership asthe result of decades of sav-ing for a purchase just intime for retirement. Thisis in contrast to the case indeveloped countries. Whatare NMRCs plans to radi-cally drop the entry age forhome ownership?

NMRC will help to radicallychange peoples attitudes to

home ownership and real es-tate investment. For example,when the mortgage lenders canquickly renance mortgages,they will start oer promotionscreate awareness and win cli-ents. As people become moreaware of the ease of owning ahome, they will start to makethe decision earlier in life.When the full cash payment re-striction is removed, and buy-ers need put down no less than20 per cent cost of the houseas their equity contribution, Ibelieve we will see the age oordrop dramatically. This will besupported by other changestaking place in the economysuch as the preponderance of

two-income families that canaord the costs of paying mort-gages, as well as the recent re-vision in the pension law thatallows people take money fromtheir pension schemes to investin home ownership.

I will like to help create theproperty ladder where youngpersons can start from a self-contained apartment and growinto a family 3-4 bedroom houseover the course of their careers.

But this is not simply abouthome ownership. It has just asmuch to do with wealth crea-tion and giving people a stake inthe society. Take the example ofa young couple in their late-20swho plan to buy a 1-bedroomhouse on the Lekki-Ajah axisthat costs N20m. Let us assumethat a mortgage lender agreesto lend them 80 per cent ofthe purchase price, that is N16million. The couple providesthe balance of N4m, ve yearsdown the line, the home appre-ciates in value to N30 million.They decide to sell. Give or take,after paying back the principal,interests and fees, the couplewill have at least N14 millionequity in the home from theinitial N4million investment. Ifthey take this amount and re-

invest in a bigger home, or twomore of the same kind, theyare already on the escalator ofbuilding wealth for their fam-ily. Should they replicate thisprocess ve times over the spanof their thirty-ve year workingcareers, you will agree that theamount of value they will createfor themselves is clear. This isthe type of mind-set shift thatNMRC will help unlock for mil-lions of Nigerians.

Critics in some quartershave described the crea-tion of the NMRC as insti-tutional duplication of anarea already being served

by the Federal Mortgage

WContinued from Page VM1

NMRC will provide long-term

funding to institutions that have

created NMRC-conforming

mortgages. Previously, the

problem lenders in Nigeria faced

was the lack of access to long-

term funding, that is, 20-25 year

money to on-lend to home buyers.

What NMRC will do is to allow

commercial banks and mortgage

banks match these assets with 20-

year liabilities on their books.

In this interview, Sonnie Ayere, chief executive officer of the Nigerian Mortgage RefinanceCompany, tells Obiora Onyeaso about the institutions mandate, its vision to make every Nigerianfamily own their home, and his own career.

Home ownership revolutionary

A.A family approaches bank for mortgage loan andreceives approval.

B.The lending bank approaches NMRC to refinancethe mortgage to balance its long-term asset-liabili-ty mismatch.

Overview of NMRCs secondary financing function

C.NMRC packages a pool of compliant mortgages asbonds and mortgage-backed securities. It sells theseto investors. It manages the cash flows from thesepools and passes them on to the investors.

D.Investors buy the fixed income securities createdand sold by NMRC for their portfolios providingcritical liquidity to the growth and sustenance ofNigerias mortgage market.

Mortgage-backed Securities

Corporate Bonds

Homeowners

Investors

Mortgage Lenders

A

B

C

D

Infographic by Publican Media

Y


3/8

INTERVIEW VM3

CSUITE


Bank of Nigeria. Is this avalid concern?

Ideally speaking, using theNational Housing Fund (NHF)

criteria, which sets the ceilingfor mortgage loans at N15 mil-lion, I would recommend that

the FMBN focus on the aord-able housing space where loandemands do not exceed N15million. This is an area where ithas a long record of competence.

On the reverse of that coin, theNMRC would apply its resourc-es to renancing mortgages thatexceed N15 million in value. Thereality is that the market is sobig that when the industry takeso, as it certainly will, there willbe more than enough room forthe NMRC and FMBN to oper-ate without encroaching on eachothers terrain.

One area that has re-ceived scant attentionamong the mandates ofthe NMRC is job crea-tion. Could you shed some

more light on how thegrowth in approved mort-gage volumes will boostemployment?

Experts project that foreach new standard 4-bedroomhouse built there are 7 new jobscreated during the actual con-struction process. When oneincludes the number of newjobs and investments that aremade throughout the entirevalue chain of home building,the number goes even higher.

As the mortgage industrygrows it will add hundreds ofthousands of new jobs andskills to the Nigerian economyeach year driven by companiesservicing the entire building

sector. My hope is to see majordomestic and foreign direct in-vestment come into Nigeria toservice this space as economiesof scale will now make sense.Standardisation of propertieswill also help.

In terms of market size,Nigerias housing decit isestimated at 17 million. If wecalculate the cost of each newhome at an average of N5 mil-lion, this gives a value of N85trillion, which is equivalent toa $500 billion, that is, the sameamount as our rebased grossdomestic product.

Are there plans to listthe NMRC on the Nigerian

Stock Exchange?At the appropriate time theNMRC will oer an opportu-nity for Nigerian investors toparticipate in its success story.When the business grows to alevel where its revenues andcash ows reach a steady level,

the NMRC will invite Nigeriansto partake in its future benets.

Apart from nancial

gains, what other benetswould the NMRC oer tothe average Nigerian?

The benets will be nan-cial, social, economic, and po-litical. On a side note, as moreNigerians access mortgagesand are pulled into the creditecosystem, the governmentwill have a greater incentive tomanage interest rates so thatpayments are sustainable forhouseholds and voters. Wheninterest rates are high, as wehave had in the past few years,it gives nancial institutionsan inverted incentive to investin government securities in-stead of lending these fundsto households, and businessowners. As a trained nancialeconomist, I am yet to hear ofan economy that has grown toits full potential under a highinterest rate regime.

I hope that the more Nigeri-ans take mortgages, the moregovernment will become com-pelled to keep interest ratesmanageable. This can onlyresult from prudent economicpolicies and good governance.They are all interrelated. Aseminal paper, which articu-lated my ideas and which Ico-wrote in 2010, Nigeria:Before the Oil Runs Dry, setsout the case for developing afederal structure that incen-tivises states to independentlygenerate revenues. Housing isa major source of tax revenuesso expanded home ownershipwill prot state governmentscoers as well. It is also an im-

portant forward indicator ofeconomic health, which is whynew home construction guresare closely watched by eco-nomic policy makers and aca-demics in developed countries.

With initial sharehold-ers equity of $37 million,and possible o balancesheet funding options it isexpected that the NMRC

will be regular issuer ofbonds to nance its mort-gage buying programs.How soon can investorsexpect to see the rstNMRC paper?

Our target is to have the rstrenancing in the last quarter

of this year, and no later thanthe rst quarter of 2015. Oncewe issue the rst bonds, weexpect to be a regular issuer toenable the NMRC to nance itsmandate. The demand frominvestors is there so we envis-age a good reception.

Prior to your current posi-tion as CEO for NMRC, youfounded Dunn Loren Merri-eld. At that time, the market

already had dominant play-ers. What client needs did youidentify that could be servedbetter at the time?

This is a question Ive beenasked before. DLM hung ourshingle above the door in2009. It was the lowest pointof the global nancial crisis.I made the decision to openshop then because I am a con-trarian at heart. For instance Ibelieve that the hardest timesare also the best times to starta business because you eithersink or swim. When times aregood, money is cheap but at thepeak of markets, the next is thetrough, commonly referred toin economics as business cycles.

Of course, there was also thehunger to build a business. Iwas 42 and I said to myself thatif I keep putting this o after acertain point the drive mayno longer be there. I had been

fortunate to have worked with

Tony Elumelu, an excellentmentor and believer in people.The successes we recorded atUBA Global Markets, whichI set up with his guidance asthe pioneer managing director,gave me the condence that Icould repeat the same.

Finally, I had been in themarket long enough to iden-tify a number of shortcomingsin the way clients were served,and institutions run. I was, assome said, brave enough towant to do it better, to build arm in the image of the bestfranchises you would nd inthe City and Wall Street. Myvision was to build a rm thattied up origination, distribu-

tion, and trading, the threelegs of the investment bankingstool under a single seat.

You have been involvedone way or another withreal estate nancing anddeal structuring from the

early stages of your pro-fessional career. How didthis happen?

Although I was studying -

nancial economics at universi-ty and dreamt of working in -nance, chance and opportunityhave played a big role in my ca-reer. I had a friend who alwaysused to talk of life in the Citysnancial circles. I also watchedWall Street, the movie, andread Barbarians at the Gate,about the RJR Nabisco takeo-ver and other books about WallStreet back then. These had aprofound inuence on myyoung, impressionable mind.

My entry into structured -nance in 1997 was not planned.But now I look back I see thatmy bosses must have recog-nized my innate creative talentand decided to channel my en-ergies into that area. I have notlooked back since because forme, this is a passion, and I amgrateful for it.

You have led severaldeals using innovativestructures. One analysthas called them deal art-istry. Describe the in-tellectual fullment of a

well-executed complextransaction?

Of course, there is a sense offullment that comes from theknowledge that our humbleeorts will enable a companypay for a new factory, increaseproduction in multiples, orcomplete a takeover. Successfulbusinesses touch lives positively.

There is a craftsmanshipto what we do. The way obli-gations and expectations areworded in contracts may seemabstruse to many. To us, theyhave a poetic beauty when they

are done right and achieve

their purpose.One engagement I recall

demonstrates this. A few yearsago, we helped a fast foodchain structure a future owsecuritisation that if it hadbeen done would have allowedit to fund its business and payback in a way that had notbeen attempted in this part ofthe world before. Essentially,we helped the company sell itsreceivables forward. The abil-ity to do deals like that in a waythat is sustainable for the bor-rower, complies with the law,addresses tax concerns, andtakes care of myriad other mat-ters that must be taken intoconsideration, gives me a great

sense of psychic satisfaction.

How hard was it attract-ing the right calibre of tal-ents to work on projectsor tasks handed to youand how much harder is itto keep them?

In reality, it is hard to ndgood people, and tougher tokeep the best of them. In myexperience, the empathy be-

tween bosses and employeesis very important. The culturewe are building here is onethat encourages professionalgrowth, knowledge sharing,an espirit de corps from be-ing part of an elite team ofproblem solvers, comfort inthe work environment, andmutual respect. We do not justmouth these things. I made aconscious decision to build therm on these principles. Theseare what helps to bring in goodpeople, and keep them.

The most successfulCEOs confess to havinglegacy and transition atthe back of their minds.How would you rate lead-ership development atDunn Loren Merrield?

When we started here wewere a single company calledDunn Loren Merrield Lim-ited. Today, we have transi-tioned to a group with morethan one institution under thatbrand: DLM Advisory Part-ners, DLM Securities, DLMAsset Management & Researchand DLM Nominees.

None of the leaders at thesecompanies started o as man-aging directors. They learntunder me, matured, and wereadjudged ready to run indepen-dently. This is a testament to thegrooming we put in place here.

You have post gradu-ate qualications fromthe University of Dundee,Cass Business School,and the London BusinessSchool. How importantis classroom learning fora successful career in in-

vestment banking?A sound education is very

important. But classroomlearning should be seen forwhat it is and not over-rated.Frankly, I would rate academiclearning at 30 per cent of whatit takes to become a successfulinvestment banker.

It may surprise you tolearn that many top invest-

ment bankers in the Citystudied courses like math-ematics, biology, Englishliterature, and philosophyor politics at Oxbridge,and not accounting, bank-ing or nance. How do yousquare that with the factthat they are some of the

best quant traders or M&Aspecialists?

In my case, the most impor-tant learning I had was whentwo mentors from MoodysInvestor Services, the ratingagency, took me by hand anddecided to give me value byteaching me the nitty-gritty ofstructured nance from how tounderstand the hidden mean-

ings in prospectuses for com-plex securities to constructinginnovative deal structures. Thiswas eld practice at its best.

There is a perceptibleshift in the balance be-tween bonds and equities

in favour of the former.The latest statistics show

bonds hovering at 30 percent of market capitalisa-

tion. What is responsiblefor this trend and will itcontinue?

If you look at the balancesheet of companies you willnd that the debt componentoutweighs the equity compo-nent by a ratio of at least 2 to 1,and in most cases, multiples ofthat depending on the indus-try. Due to the early stage ofdevelopment of Nigerias xedincome market, many compa-nies that should be nancingtheir growth and operationswith bonds are still dependenton bank loans and share sales.

Macroeconomic policy alsoplays a role in all of this. I be-lieve that if the Central Bank ofNigeria had kept the monetarypolicy rate (MPR) at 6 per centinstead of raising it to 12 percent, the 30 per cent gure wesee today would be around the50 per cent mark.

The spike in rates has ledto government bonds crowd-ing out corporate bonds sincemost investors, includingpension fund administrators(PFAs) who were just warmingto the idea of investing in cor-porate and most other bonds,opted for the attractive ratespaid by FG bonds. The newCBN governor has hinted ata reduction of risk-free ratesback to single digits. When thishappens, I believe it will jump-start interest in corporate and

other bond issuance again.

Where do you see yourcontributions in the in-stitutions you have estab-lished in the next 10 years?

I would like to see NMRChaving had a major impact onthe housing sector in Nigeria.Who says we cannot nance2 million units each year withmultiple multiplier eects forthe Nigerian economy? Thedemand is there. For DLM myvision is that it evolves into aninstitution like the InvestmentBanking and Trust Corpora-tion. I have a lot of admira-tion for Atedo Peterside, whofounded IBTC in 1989 at the

age of 33.In the early 1990s, I remem-

ber telling myself way backthen, that if I did not get a jobin London, I would return toNigeria to work for IBTC. To-day, we have many people whohave had the opportunities andexposure of IBTCs founder.The question we should askourselves is whether we havecreated the types of interest-ing employment opportuni-ties that would attract the bestyoung talent in our domesticmarket and the Diaspora towant to return and be part ofsomething magical?

With an ever growing popu-lation, we need to create more

institutions that would absorbthe bright young minds. DLMand NMRC should be amongthose institutions. If we dontdo it now, who will? Thisshould be a burning desire forall able Nigerians of my gen-eration.;

Experts project that for each new

standard 4-bedroom house built

there are 7 new jobs created during

the actual construction process.

When one includes the number

of new jobs and investments that

are made throughout the entire

value chain of home building, the

number goes even higher.

There is a sense of fulfilment that

comes from the knowledge that

our humble efforts will enable a

company pay for a new factory,

increase production in multiples,

or complete a takeover. Successful

businesses touch lives positively

Barbarians at the Gate: TheFall of RJR Nabisco by BryanBurrough and John Helyar


4/8


5/8

MARKET SNAPSHOT

MARKET DATA VM5

# TICKER WTD YTD

1 DANGCEM -5.64 3.67

2 NB 3.82 12.11

3 NESTLE -0.01 -6.514 GUARANTY -4.95 3.10

5 ZENITHBANK 0.40 0.20

6 FBNH -7.16 -11.66

7 WAPCO 1.69 4.35

8 STANBIC 12.73 38.76

9 GUINNESS -3.99 -19.45

10 ETI -0.18 2.93

11 FO 2.08 146.47

12 UBA -5.07 -18.14

13 OANDO 3.89 1.01

14 ACCESS 0.20 3.96

15 TRANSCORP 3.57 26.96

16 UNILEVER 2.39 -7.08

17 FLOURMILL 4.90 -13.70

18 PZ -2.06 2.71

19 UBN -6.22 -12.07

20 CADBURY 0.00 -27.42

21 UACN -3.49 7.19

22 DANGSUGAR -2.59 -20. 27

23 DIAMONDBNK -5 .51 -15.33

24 INTBREW -2.06 -7.84

25 FCMB 0.48 10.16

26 JBERGER -0.95 0.50

27 ASHAKACEM 10.40 50.82

28 7UP 6.97 57.29

29 GLAXOSMITH -0.24 -5.93

30 TOTAL -7.39 -0.75

31 FIDELITYBK -1.47 -25.56

32 MOBIL -5.70 38.12

33 STERLNBANK -2.54 -8.00

34 CONOIL 1.64 1.08

35 SKYEBANK -5.94 -33.26

36 PRESCO -3.08 -5.56

37 OKOMUOIL 3.88 -24.69

38 CAP 0.76 -16.63

39 NEIMETH -1.67 7.27

40 MAYBAKER -5.75 -35.69

WEEK-TO-DATE RETURN

-10% -5%

-40%

-20%

-30%

-10%

0%

+10%

+20%

+30%

+40%

+50%

+60%

+70%

+80%

+100%

+90%

+120%

+130%

+140%

+110%

+150%

0% 5% +15%+10%

YEAR-TO-DATERETURN

LAGGING

SLIPPING LEADING

IMPROVING

1

2

3

4

5

6

7

8

9

10

11

12

1314

15

16

17

18

19

20

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24

25

26

27

28

29

30

31

32

33

34

35

36

27

38

39

40

The relative size of each individual stocks bubblechart is determined by its market capitalization.For indices, the relative size of each bubble chartis the total value of the capitalization modifiedvalues of each constituent stock.

TRADING BREAKDOWN

BY SECTOR

Sector %

Financial Services 76\56

Conglomerates 8\17

Oil & Gas 6\8Others 10\19

24/07 01/0830/0712.4

12.5

12.6

12.7

12.8

2906

2912

2918

2924

2930

FGNBond Index

Market ValueYTD Return


INDEX PERFORMANCE

IndexWeek

Opening

Week

CloseChange WtD MtD QtD YtD

1 All Shares Index 42,285.82 41,934.40 -351.42 -0.83 -0.39 -1.29 1.46

2 NSE 30 Index 1,933.21 1,913.38 -19.83 -1.03 -0.42 -0.95 0.33

3 NSE Banking Index 441.72 427.51 -14.21 -3.22 -1.36 -1.24 -4.54

4 NSE Insurance Index 148.73 147.77 -0.96 -0.65 -0.01 0.64 -3.34

5 NSE Consumer Goods Index 1,054.31 1,055.79 1.48 0.14 -0.21 -0.23 -4.04

6 NSE Oil/Gas Index 453.72 471.53 17.81 3.93 0.36 0.7 38.73

7 NSE Lotus Islamic Index 2,813.19 2,791.18 -22.01 -0.78 -0.27 -2.9 -2.51

8 NSE Industrial Index 2,714.02 2,725.26 11.24 0.41 0.44 2.2 7.02

MARKET SNAPSHOT

Date DealsTurnover

VolumeTurnover Value Traded Stocks

Advanced

Stocks

Declined

Stocks

Unchanged

Stocks

All Shares

Index Value

1 24.07.2014 113 22 39 52 42,529.74

2 25.07.2014 113 25 30 58 42,285.82

3 30.07.2014 5,830 713,842,101 6,727,979,195.42 119\112 29\29 29\36 61\47 42,368.99

4 31.07.2014 6,248 354,760,258 6,912,884,935.90 118\51 24\5 34\1 60\45 42,097.46

5 01.08.2014 4,997 276,500,149 5,939,306,763.98 103\116 19\23 36\40 48\53 41,934.40

The\arrow signifies week-on-week change in value. This weeks value is shown on the left of the \sign, and last weeks value on the right.

GLOBAL INTEREST RATES & INFLATION TARGETS

Central

BankRate

Last Date

Change

%

Change

Inflation

Target

China 6.00% 05.07.2012 -0.31 4.00%

Japan 0-0.10% 05.10.2010 -0.20 2.00%

UK 0.50% 05.03.2009 -0.50 2.00%

USA 0-0.25% 16.12.2008 -0.75 2.00%

Eurozone 0.15% 05.06.2014 -0.10


6/8

Obiora [email protected]

BUSINESSVM6 VM| Monday, August 4, 2014 | Issue 004

JULY 30, OANDO

Energy Resourc-es, the Toronto

Stock Exchange-listed com-pany majority owned by

Oando(94.6%), announcedit had closed the deal to ac-quire the Nigerian assets of

ConocoPhillips for $1.65 bil-

lion. The deal will push upthe companys oil productionto about 50,000 barrels ofoil per day from the current5,000 bopd. FCMB Capi-tal Markets was the leadarranger on the transaction.The rm has built a strongreputation for major energysector deals in Nigeria. In2013 it arranged a $225 mil-lion loan for Accugas Limited,a subsidiary of Seven Energy,to nance the construction ofa central processing facilityand second gas pipeline pro-ject in Akwa Ibom.

Industry insiders condethat Oando oered to paya signicant premium to

competing bids submittedby Seplat, Lekoil, and theMidwestern/Transcorp

consortium in order to winthe assets. Analysts point outthat the company had littlechoice if it planned to growits upstream portfolio as thenumber of assets being of-fered for sale by oil majorsis shrinking. Add to this thatthe federal government hasshown that it is in no rush toconduct regular and trans-parent bid rounds.

It has been a two-yearlong marathon of starts andstops to get to this point forOando, which has now suc-cessfully transformed itselffrom the largest downstreamoperator to a serious playerin the countrys upstreamsector.

By the transaction, Oandobecomes the benecial ownerof Phillips Oil Company Ni-geria Limiteds 20 per centnon-operating interest in theonshore oil mining leases(OMLs) 60, 61, 62, and 63.It would also take ownershipof the related infrastructureand facilities in the joint ven-ture with the Nigerian AgipOil Company Limited (NAOCJV). Oshore, Oando wouldreceive Conoco Explorationand Production Nigeria Lim-iteds 95 per cent operatinginterest in OML 131, and Phil-lips Deepwater ExplorationNigeria Limiteds 20 per centnon-operating interest in oil

prospecting licence (OPL)214. In June 2014, the Hon-orable Minister of PetroleumResources for Nigeria ap-proved the conversion of OPL214 to OML 145 for an initialperiod of 20 years.

Wale Tinubu, Oandoschief executive, who is ad-mired for staying hungry andambitious in spite of winningseveral laurels and accumu-lating a sizeable personalwealth, must now convinceinvestors that he has what ittakes to take the new Oandofrom potential to promise.

According to the FinancialTimes, over the past 5 yearsindigenous companies like

Oando, Seplat, ShorelineNatural Resources and SevenEnergy have paid $5 billion to

purchase assets have expand-

ed exponentially, buying as-sets worth $5bn from divest-ing multinationals includingRoyal Dutch Shell, Total ofFrance, Eni of Italy, Chevronand ConocoPhillips signalinga retreat from Africas larg-est oil producer. These indig-enous companies will accountfor nearly a quarter of thecountrys oil production, orabout 600,000 barrels of oilper day, by 2020. At present,they produce a marginal 10per cent.

The length of time takento complete the deal exposedthe challenges faced by Ni-gerian companies when at-tempting to swallow large,costly assets. Oando nancedthe acquisition with an equalmix of debt and equity. Thelofty valuation, rich forecastsand complex nancial engi-neering expose the companyto risks that may impair itsability to reward equity own-ers for some time to come.Apart from the lengthy du-ration it took to raise the -nancing, the company alsoexperienced delays in win-ning the approval of Dr.Diezani Allison-Madueke,the petroleum minister. Herapproval was only receivedin June.

All the hurdles are in thepast.

In a press release issued bythe company, Tinubu proudlydeclared that the companywould continue to play a piv-otal role in the consolidation,growth, and developmentof the Nigerian oil and gasindustry, and that his teamwill continue to seek strate-gic opportunities that pro-vide a platform for enhancedgrowth and value creation forour stakeholders. It looks likehe is determined to slough oinsinuations that he has abid em up bug. When askedby a Reuters reporter if thecompany plans to bid for theOML 138 block that Total haspt up for sale, he recoiled. Its

a good asset but the price isquite high. $24 per barrel, Ithink its a bit too expensive.

Wale Tinubu, CEO, Oando, the man with the golden smile

Source: Forbes.com

TAKEOVERS

SPOTLIGHT

Now the real work begins

ON

S

Source: Thomson Reuters

Oando Income Statement History and Forecast

0 0%

100 1%

200 2%

300 3%

400 4%

500 5%

600 6%

700 7%

BillionsNGN

2011 2012 2013 2014e 2015e 2016e

Sales Operating profit Net income

Operating Margin Net Margin

Jan13

Feb13

Mar13

Apr13

May13

Jun13

Jul13

Aug13

Sep13

Oct13

Nov13

Dec13

Jan14

Feb14

Mar14

Apr14

May14

Jun14

23/07/14

30/07/14

Source: Thomson Reuters

Oando target price consensus revisions

1.0101.5

152.0

202.5

253.03.54.04.5

30

5.0 35

5.5 40

NumberofEstimates

TargetPrice

Number of estimates Upgrading

Number of estimates Unchanged

Highest Target Average Target Lowest Target

Source: Nigerian Stock Exchange

% Changes in Oando Share Price vs. NSEOILGAS Index

-5.0%02/07 08/07 14/07 18/07 24/07 01/08

-2.5%

0%

2.5%

5.0%

7.5%

10.0%

OANDO price change NSE OILGAS Index change

471.53

457.15

28.5 27.00

ENATOR UDOMA

Udo Udoma, CON,60, is the senior part-

ner of Udo-Udoma & Belo-Osagie, a thriving commerciallaw rm he founded in 1983.From 1999 to 2007, he was amember of the Nigerian Sen-

ate.Senator Udoma, whose fa-ther served on the SupremeCourt for 13 years, specializesin advising clients on Nigeriasinvestment laws with a focuson the petroleum, energy andnatural resources sectors.

His counsel is also sought oncompany law, corporate re-structuring, mergers and ac-quisitions and the raising ofnancing in the capital andmoney markets.

The graduate of St. Cathe-rines College, Oxford Univer-

sity served for two years (1991-1992) as the pioneer chairmanof the Corporate Aairs Com-mission. From 1993 to March1994 he was the Special Ad-viser to the Minister of Petro-leum and Mineral Resources.

Since January 2010, Sena-

tor Udoma been the chairmanof UAC of Nigeria Plcwherehe owns a benecial interestof 24,063,132 shares (1.25 percent) according to proxy l-ings. He has been on the con-glomerates board since 1995.He has also been a member of

the board of Unilever Nige-ria since January 2008.In June 2008, the former

lawmaker, whose great-greatgrandfather founded Ikot-Abasi in modern-day AkwaIbo state, was appointed asthe chairman of the Securi-

ties and Exchange Com-missionof Nigeria. In Febru-ary 2010, Senator GaniyuSolomon criticized him forretaining roles on the boardsof quoted companies at thesame time as serving as thechairman of the board of the

SEC. He believed the risk ofconicts of interest made hisposition untenable. In his de-fence, the SEC chairman ex-plained that he was not an ex-ecutive chairman, and that hehad served on the board of thecompany prior to my appoint-

ment as chairman of SEC andhad declared it, as required bylaw.

In April 2010, Senator Udo-ma joined the board of FirstHydrocarbon Nigeria.The company was founded in2009 by Afren in partnership

with FCMB and GTBank totake advantage of opportuni-ties open to indigenouslycontrolled oil companies.

Senator Udoma has beenthe chairman of board of Un-ion Bank of Nigeria sinceFebruary 2013. ;

Senator Udo Udoma, Lawyer, Corporate titan

Such statements must be re-

assuring to Oandos share-holders and bankers.

After the clinking of cham-

pagne utes, the real work

begins if this acquisition isavoid the fate of a Pyrrhic vic-tory. ;


7/8

After two years on itsboard, Adebayo Ogunlesihas been named as the leaddirector of Goldman Sachs,the investment bank. He re-places James Schiro, who isretiring for medical reasons.This is a rst for Wall Streetas Ogunlesis selection marksthe rst time a person of Afri-

can descent would occupy the

position at a global nancialinstitution.Although his appointment

has been welcomed by many,two questions have since beenraised about his qualicationand his authority. Ogunlesi,a distinguished investmentbanker and founder of GlobalInfrastructure Partners, hasnever run a public company.Normally, chairmen of majorUS corporations have severalyears of chief executive, or atleast, c-suite experience be-fore nomination as chairmen.Governance experts have alsocriticized the retention of thechairman title by Lloyd Blank-fein, the banks chief executive.

The Sagamu, Ogun indi-gene has a proud pedigree.His father, Emeritus Professor

Theophilus Oladipo Ogunlesi,

OFR, was the rst Nigerianprofessor of medicine. He at-tended Kings College, La-gos and Oxford University,where he bagged a rst classdegree in Philosophy, Poli-tics and Economics, beforeproceeding to Harvard Busi-ness School to earn a JD andMBA from its Law and Busi-ness Schools respectively.While at Harvard Law School,Ogunlesi also enrolled at thebusiness school to overcomehis fear of numbers. The newlead director once told an in-terviewer that the reason heenrolled at business schoolwas to overcome his fear ofnumbers. I was a guy whonever really liked numbers inschool. I was never any goodin math. ;

CORPORATES TRANSPARENCY

REGULATION

COMMENTARIAT VM7VM| Monday, August 4, 2014 | Issue 004

Afrens canaries

in the coal mine

Adebayo Ogunlesi

Nigerias Foreign Reserves and US$/NExchange Rate

FREN, AN INDE

pendent oil and gasexploration and pro-

duction company operatingin Africa and the Middle Eastwhose founders included therecently deceased RilwanLukman, a former petroleumminister, has temporarily sus-pended its chief executive of-cer, Osman Shahenshah,and chief operating ocer,Shahid Ullah, following ini-tial ndings of an independentreview by Willkie Farr & Gal-lagher, a law rm appointed bythe board. The news provokedpanic selling of its shares. Thecompanys market capitaliza-

tion shrunk from 1.6 billionto 1.2 billion in the aftermathof the news on Thursday.

In a terse statement issuedThursday, the FTSE 250 com-pany said that in the course ofreview of the potential need fordisclosure of certain previoustransactions to the market,evidence has been identiedof the receipt of unauthor-ised payments potentially forthe benet of the CEO andCOO. The statement goes fur-ther to clarify that these pay-ments were not made by Afrenand that it has not found anyevidence that any other Boardmembers were involved.

Canaccord Genuity, a

UK-registered brokerage,wrote in a note that the sus-pensions raise plenty of ques-tions which are unlikely to beanswered in the near term.Afrens corporate govern-ance reputation has not beenamongst the best in the sec-tor, and investor scepticism insome quarters would appearto have been vindicated bytodays news. It does not ndthe non-implication of direc-tors assuring either since wehave been unable to nd out ifthis also means no-other em-ployees are involved.

Egbert Imomoh, a boardmember and former deputymanaging director of Shell Pe-

troleum Development Compa-ny (Nigeria), has been namedas the executive chairman,and Toby Hayward, whountil now was the senior in-dependent director, as interimchief executive.

Last year, 30 per cent of

shareholders voted againstthe retention of Imomoh aschairman at its annual generalmeeting. They also rejected agenerous pay package for thesuspended CEO. The revoltwas sparked by Afrens deci-sion to raise its stake in FirstHydrocarbon Nigeria, acompany it set up in 2009 inpartnership with First CityMonument Bank Plc and GT-Bank as vehicle for winningbusiness in Nigeria. The com-pany initially owned 44.4 percent of FHN, and decided toraise its stake to about 80 percent. It paid $105m for the ad-ditional equity. It also struck a

deal that allows it to purchasea further 12.5 per cent in FHNat $3.32 a share in 2015.

What later became clearwas that Imomoh, and thesuspended executives hadpurchased a 15 per cent stakein FHN at $0.13 per share fora total cost of $1.3m. Theseshares were sold at the endof May last year at $2.47 pershare, a whopping 1,800 percent return on the originalprice paid. Shareholders wereupset that the directors stakesin FHN was not disclosed until

then. That compounded con-cerns about governance prac-tices at Afren.

At least one source has saidthat it is not unthinkable thatthe suspensions are linked to apower play following the pass-ing away of Rilwan Lukman.

With Lukmans passing,there are plenty of knives outin Nigeria and so perhaps itshould not be that surprisingthat an internal investigationhas quickly revealed paymentsto Shahenshah and meant thathe has been suspended.

Investors can get some com-fort that the company, whichhas operations in eleven coun-

tries as far-ung as Kurdistandand Ethiopia, is doing well.

Last year, the company pro-duced about 47,112 barrels ofoil per day. Its 2014 produc-tion target was revised down-ward to 40,000. In its rstquarter results of the year, itsaid that it had only been ableto produce 35,465 barrels ofoil per day.

The company has post-poned the publication of itshalf year results from August4 to no later than the end ofthe month. ;

The Bayo-sphere keeps expanding

Pens up!

Foreign reserves rising

The oily road to going public

The Central Bank ofNigerias deadline forbureaux de change to raisetheir capital base to N35million from N10 million byJuly 31 has passed. The forexdealers under the auspices ofthe Alhaji Aminu Gwadabe-led Association of BureauxDe Change Operators

of Nigeria (ABCON) hadlobbied to extend the deadlineby 40 weeks to no avail.

Pabina Yinkere, head ofresearch at Vetiva CapitalManagement, told Bloomb-erg that the CBN directive isaimed at reducing the specu-lative demand for foreign ex-change over the election cy-

cle, and would be a positivefor the currency if properlyimplemented, and if success-ful, could prevent an aggres-sive tightening of monetaryconditions.

Alhaji Gwadabe announcedon Friday that over 70 per centof ABCONs members failed tomeet the deadline. ;

Latest gures availablefrom the CBN website showthat the countrys foreignexchange reserves rose to$38.94 billion. In a com-muniqu issued at the endof its July monetary policycommittee (MPC) meeting,

the central bank noted thatthe uptrend in reserves wasmainly due to increased ac-cretion and moderation in therate of depletion.

According to Reuters, thenaira has remained stable ataround 161-162 to the dollar

on the interbank market and155.75 on the ocial window,on the back of support fromdollar sales by some energycompanies and oshore in-vestors buying local debt. ;

At its quarterly CEO Din-ner held last week with thetheme The Role of the Cap-

ital Market in UnlockingValue in the Oil and GasSector, the Nigerian StockExchange reminded pri-vately held companies of thebenets of being listed. Thereis a growing call for more com-panies in the commanding

heights of the economy to sellshares to the public.

Many owners of companies

operating in the sector read-ily admit that the long-termcapital an initial public oer-ing brings would be welcome.They also recognise that it canbe a poisoned chalice. Theirreticence comes from a percep-tion that the investing public

has a limited understandingof their businesses, investmentpatterns, and cash ows.

A director at an indigenousoil and gas company has pri-vately suggested that the NSEneeds to do more work con-vincing the buy-side, espe-cially institutional investors,role they can play in attract-ing them to the market. ;

$35B 155.0N0713 0913 1113 0114 0314 0414 0614

155.1N

155.2N

155.3N

155.4N

155.5N

155.6N

$40B

$45B

$50B

Source: arabianoilandgas.comWorker at Afrens Barda Rash field.

The company paid $588 million for the Iraqi asset in 2012

Afrens Nigerian operations

Nigeria Working Interest Local PartnerEbok 100%/50%a Oriental

Okoro Setu 50%b Amni

OML 26 45%c FHN

OPL 310 40%dOptimum Petroleum

Development Ltd

OML 113 16.875%e FHN

Okwok 70%/56%fOriental Addax

Petroleum (NigeriaOffshore)

OML 115 100%/50%g Oriental

Source: Afren

Notes:

a- working interest pre/post cost recoveryb - working interest post cost recovery.c - held through FHN,a subsidiary of Afren plcd - 40% economic interest (following completion of farm out and

subject to Nigerian Ministerial Consent).e - Held through FHN, a subsidiary of Afren plc, post cost recov-ery economic interestf 70% pre cost recovery effective working interest 56% postcost recovery effective working interest (subject to gross volumeslifted).g - 100% pre cost recovery effective working interest; 50% postcost recovery effective working intererest.

38,942,868,287

155.23

CBN Foreign Reservers and Rates

$/N Exchange Rate

A


8/8

IS THE END OFcharity season andthe dry season inGidi. What a para-

dox. This culminates in the fa-mous, eagerly awaited SmallWorld event traditionally heldon the nearest Saturday to the18th of February. The event

has held every year since 1996.It was started by a group of ex-patriate women living in Nige-ria who were motivated to givesomething back to the countrythat had received them sowell. These ladies believedthat they could, through asso-ciation, raise funds to supportlocal charities. Beginning asa cosy, indoor food fair with300 guests, it has grown to

become a boisterous outdoorfestival with over 3,000 peo-ple attending this year.

I have been selected as amember of the OrganizingCommittee with responsibil-ity for on-ground duty. Thisis a euphemism. In reality, thematrons have Shanghaied mefor the task. How can I say no?

Since I started running myown company I am stretchedthin. Time is a scarce com-modity for me. But Befehl istBefehl (German: orders areorders). So I comply with-out audible complaint. On

the day, I grudgingly makemy way to the event venue atBritish International School,Lekki.

Although refreshments willbe brought by assigned wom-en to the grounds, I look for-ward to a self-rewarded lunchat Caf Vergnano 1882. Thecaf is at the Palms ShoppingCentre, a stones throw awayfrom where the event is taking

place.Afternoon supervisory duty

is no cake walk. After a fewhours, I am knee deep in sand,simultaneously taking in newinformation on specicationsand dimensions of the stage,deciphering a thick SouthAfrican accent, holding themeasuring tape on the water-thirsty eld and calculatingwhat would be adequate thor-oughfare space for the ex-pected trac for hundreds ofpeople. By noon my white silkoce shirt is drenched and Iam famished.

Cae Vergnano, an Ital-ian franchise is part of theextensive Double Four Res-taurant Group part ownedby the Mattar family. For anychild in Gidi of a certain age,a birthday at Double FourRestaurant on 44, AwolowoRoad, Ikoyi was a right of pas-sage literally. Their Knicker-bocker glory sundae, Chickenescalope, and chicken livers

were family favourites. Theyalso pioneered the brick ovenpizzas in Gidi. Pictures frommy 12th birthday are docu-mentary evidence of this fact.The food at Ca Vergnanoecho the sentiments of a goneby era.

This is why I relish eatingat what most would considera cafe franchise whose focusis mainly on designer ItalianCoee. Because of the Mattarfamily backing, their kitchenis just as strong as their es-presso machine.

The grilled chicken and

mashed potato, an o thebeaten menu contender, ar-rives in record time. I am a lit-tle disappointed that the lletis skinless though the chickenis adequately moist. I miss thefact that the chicken is grilledwith the skin side down - thiswas the case in the past - asthis heightens the dish thatcan easily hold its own withany gastropub in Englandworth its salt.

In the midst of savouringmy meal, I receive a text fromone of the ladies on the com-mittee and I leave immediate-ly after my meal. This matteron the Mattar gastro-dynastyis denitely not over. To becontinued! ;

ART AS AN ALTERNATIVE INVESTMENT

EDITOR: MIDENO BAYAGBON

GROUP BUSINESS EDITOR:OMOH GABRIEL

CONTENT DIRECTION:OBIORA TABANSI ONYEASO

DESIGN & ILLUSTRATION:PUBLICAN MEDIA

Vanguard Markets features unbiased, in-depth coverage of corporateand market developments across a wide range of business sectors.

Every week, Vanguard Markets delivers essential business analysis andcommentary on Nigerian companies, regional economies, and globalmarkets.

Vanguard Markets is published by Vanguard Media Limited in associa-tion with Customs Street Advisors Limited, a specialist communicationsconsultancy.

Vanguard Media Limited,Vanguard Avenue, Kirikiri Canal,P.M.B.1007, Apapa.

Website: www.vanguardngr.com

ISSN 0794-652X

Published by

In Association With

TERM, OLD MASters generally refersto the most recog-

nized European artistsmostlypainters, working between theRenaissance and 1800. In mod-ern times, a Master describes anartist usually advanced in agewith recognition gained overextensive years of practice.

In contrast, the emergentartist is part of a more recentera and lacks a certain appealand value which time endowshis work. An analysis of auc-tion results reveals that theMasters have recorded about70 per cent of the highest pric-es in Nigeria in the past 5 years.

In this article, we will ana-

lyze auction results for widelyacknowledged Master, YusufGrillo, as well as an indicationof future values.

Yusuf Adebayo Grillo wasborn in Lagos, Nigeria in 1934and studied at the NigerianCollege of Arts, Science andTechnology, Zaria from 1955to 1960. The following year,he earned a postgraduateteachers certicate. In 1958,together with his contempo-raries at Zaria, Grillo foundedthe Zaria Art Society, famousfor its theory of Natural Syn-thesis, which sought to mergeWestern techniques and con-ventions of representation withindigenous Nigerian traditions.

Much of Grillos legacyrests on his achievements asan educationist. A leadingmember of the Yaba gura-tive school, he served formany years as the director ofthe School of Art, Design andTechnology of the Yaba Col-lege of Technology. He wasthe rst president of the So-ciety of Nigerian Artists, andserved for over sixteen yearsfrom inception in 1964.

Grillo is well-known for hisdistinctive style which adoptsthe geometric planes of classi-cal African sculpture and therich blue hues of traditionalYoruba textiles as exemplied

by Blue Moon, a 1966 oil onboard painting estimated at N8-9.5 million ($66,670-79,170)and sold for N8.8 million($58,666) in November 2008at Arthouse Contemporary.

This remains the recordfor any Grillo sold in Nigeria,erasing the earlier record forHumanaset in 2006, an oil onboard, which sold for N6.05million ($40,000) at ArthouseContemporary in 2008.

Grillo is one of Africas mostinuential modernist paintersand the value for his paintingscontinues to rise on the inter-national market.

Leading international auc-tion house, Bonhams, hasfeatured Grillo in several auc-tions with his highest sellingwork African Woman withGelefetching 80,500 includ-ing premium in its May 2014Africa Now sales. The workhad a pre-sale estimate of30,000 to 50,000.

The table below shows the 5most expensive works by Grillosold at Bonhams, an auctionhouse. The results show a steeprise in sales from 2010 to 2014,which will hopefully boost col-lector condence in acquiringworks by the artist. ;

An Artists Dossier: Yusuf Grillo

Caffe Vergnano cappuccino cups

ARENAVM8 VM| Monday, August 4, 2014 | Issue 004

Oliver Enwonwuis the director of leading Lagos

gallery, Omenka and president ofthe Society of Nigerian [email protected]

HIGH TABLE

Ify Ojiis a lawyer, writer and food

lover. She is the creator of theGidiTang.com(synonym: Lagos

Flavour) blog on food and drinkin [email protected]

The Mattar at hand (1)

IT

Source: torinobygnam.it

Work Details Date Sold Amount

African Womanwith Gele, 1975

oil on canvas92.5 x 91.5cm

21 May 2014Sold for 80,500

inc. premium(N17,879,000)

The Flight,1972oil on board122 x 122cm

21 May 2014Sold for 62,500


The Blue Madonna, 1965oil on composition board

119.5 x 51cm21 May 2014

Sold for 50,000inc. premium(N11,105,000)

Mother - IYA seriesoil on board

111.5 x 45.5cm21 May 2014

Sold for 43,750inc. premium(N9,716,840)

Sabada, 1964oil on board113 x 54cm

10 March 2010Sold for US$ 57,950


Caffe Vergnano 1882

The Palms,

Lekki

The

Yusuf Grillo, African Woman with Gele, oil on canvas, 92.5 x 91.5cm

Documents

Vanguard Markets Edition - August 4, 2014