By: Olufemi AWOYEMI, FCA
Lagos, Nigeria
June 06, 2006

  
Project Transcorp is a well conceived and relevant initiative designed to release the latent potential of Nigeria and its businesses.

We believe that the initiative has the potential to create wealth for Nigerians and serve as a vehicle for developing the entrepreneurship base of the economy.

The promoters and public have shown an uncommon drive and interest in supporting the initiative, demonstrated through the 166% oversubscription of the initial private placement offer.

The project must therefore not be allowed to fail or be tarnished through a combination of communication misalignment and interpretation of the ‘real’ political risk unique to the business.

Political risk is a question of perception. It cannot be disguised nor explained away as inconsequential, especially on matters relating to investments.

Investing in Transcorp or not should therefore be a matter of individual risk appetite.

There are unique challenges and peculiar situations affecting this business opportunity that needs to be properly contextualized. As a case study, it is the first time such would ever occur in the annals of our growing economy. It is simply too attractive to ignore.

It is this learning opportunity provided by the Transcorp offer that informed this contribution. A culture of unsustainable projects must not be allowed to fester in this land. Nigeria must achieve a transnational corporation that will outlive its founder(s).

This does not however appear to be the case.

This investment has a lot of pitfalls tied to it which appears inevitable.

Let the buyer beware!