Business activities return after post election fears

Emeka Ibemere

Business activities seem to have picked up following the concluded presidential election which brought back Muhammadu Buhari as the winner of the March 28 general election in Nigeria after four attempts to rule Nigeria, though the gubernatorial elections are yet to be concluded.

The Broad Street, Apapa Wharf, Murtala, Central Business District, Mohammed International Airport, the closed borders, Sea ports, and oil sector business are back again to business.

Presidential election was perceived to be the election that could throw up confrontation that could cause danger to the nation. 

But the out-going President, Goodluck Ebele Jonathan poured oil on the troubled minds of Nigerians that were gripped with tensions and fears when he accepted defeat and called Nigerians to accept the results.

 Jonathan who apparently adopted the ‘Abuja Accord of No Violence’ calmed the nation’s fears, which many have envisaged to rock the country should one of the two major candidates lose the election.

 Many who travelled to their different states for fear of war or politically induced violence are on their ways back to their places of business and abode, despite the yet to be concluded governorship elections.

Traders, importers, aviation sector, banking sector, oil sector, maritime sector and other private sectors have started witnessing life again. The Easter festival and the public holidays seem to be the only thing that holds business activities from picking up as usual.

Akabuogu Chukwudi, an importer said he is jetting out on Saturday April 5, to Europe to resume business after three months of staying at home for fear of the elections.

According to him, he intentionally refused to import throughout the election season for fear of somebody destroying his business.

 “But now that the President has accepted defeat I don’t see any reason while there should be violence again. Infact, he is the hero of the election. Life has returned and he has erased out fears that have gripped this country for more than three months now”, Chukwudi reasoned.

“Those who predicted that Nigeria was going to scatter have lost out. The President has restored the hopes of Nigeria by accepting the results of the election and I think, Nigerians should go back to their normal business”.

Mrs Ngozi Abba, a trader at Balogun Market affirmed on phone to our correspondent that during those two weeks to the election on March 28, that she locked her shop and travelled to Abia with her family to avoid being a victim of election violence. She said they would be returning to Lagos after Easter festival on Monday.

While Agaptus Okafor, who went to Orlu in Imo State since Christmas in December with the hope that the election would hold in February 14, also spoke to our correspondent on phone and hinted that he is returning with his family back to Lagos on Wednesday after Easter.

The traffic infested Apapa has started witnessing long jams again following the returning of business activities at the ports and wharf.

Before the election on March 28, the trailers and tankers that use to block the Apapa end of the Oshodi-Apapa Express Way disappeared on the road because of fear of being set ablaze in case of political violence.

Aviation industry has also started beaming of activities following the successful conduct of the presidential election by the Independent National Electoral Commission, INEC. 

It would be recalled that for three months to the much awaited Presidential election in Nigeria, business activities suffered immensely following fears and tension that pervaded the entire nation due to the suspected backlash of the outcome of the election.

Tension wrapped the nation few weeks to the election as earlier scheduled to start on February 14 2015. The campaigns was what heightened the tension of Nigerians with heated campaigns that was characterised with hate speech, lies, gestures, blackmails, violence, attacks and many more controversies ahead of the general elections on 14 February.

Campaigns of both major parties recorded pockets of violence. Supporters of a party, suspected to be APC were accused of tearing other political parties’ posters and flags.

This was unconnected to the killings in some parts of the North by Boko Haram insurgents which became more noticeable few weeks to the general elections.

In 2011 general elections, that produced Dr Goodluck Jonathan as the President violence erupted throughout the north when the 2015 president-elect, Muhammadu Buhari lost to Jonathan.

The activities of Boko Haram which started in the North East and has continued since then saw multiply deaths and destruction of business activities and properties which was recorded as a result of that.

Thousands of Nigerians lost their lives and properties.  Many were forced to leave some parts of the North where they were doing one business or the other to other safer states.

However, the wisdom of the Independent National Electoral Commission, INEC, to postpone the February 14 election for six weeks; watered down the high tension of the election month.

Yet business activities were suspended as business, parastatals, maritime sector, aviation, banking, importation and exportation suffered a great deal. Business recorded abysmal low turn-out as importers refused to import as well as exporters.

It was the time the oil sector witnessed low pricing as naira recorded poor performance in international market. For three months, Nigerians panted with fear as economy, politics, social life, education and other super structures of life literarily went down.  The outcome of election and depreciating value of the naira forced importers to put a hold on business. The situation took a general toll on the national economy.

It was reported that many foreign investors held on to see the outcome of the general election before committing their hard earned foreign money to investment in the country.

Traders, especially those at Idumota Market, Alaba International Market, Trade Fair market and other markets across the country were lamenting of low business.

Those affected much were those dealing on cars, electronics, maritime sector, textile, wears like shoes and other imported goods. While business was relatively performing for those dealing on food items, it was costly as prices of some certain food stuffs went up.

Reports said, the Nigerian Maritime industry functioned at less than 30 percent, as a result of the March 28 Presidential Election and its results with most operators consciously keeping their eyes on security and protective measures.

The much heated traffic within Apapa area, that hosts the nation’s major port, suddenly disappeared, as several port users who travelled out of Lagos were yet to come back, while many of those who stayed in Lagos rarely go to their offices. If they do; they go to while away time.

Before and during the election, it was reported also that many importers and customs’ brokers, saw the postponement of the general election was not the best. According to them, it is simply another delay on their business.

They wanted a situation where the election was conducted once so that they could continue their business activities. The postponement to March 28, postponed the business from picking up as many of the importers would have to wait for too long before starting their international trade as usual.

Reports said at the Tin Can Island Port and PTML Terminal, many of the customs’ brokers were complaining of dull business due to the election. They also complained that the matter was made worse following the shift of the date.

 According to media reports, the monthly target of N1.9billion, was not realised by the Apapa command but was only able to collect N852 million in January and collected only N198 million in February.   This was short of the January record.

But things have changed as noticeable business activities have gradually resurfaced. At the Murtala Mohammed International Airport, MMIA, passengers were visibly seen trooping out to catch their flights having suspended their trips till after elections.

 At the different terminals of the Lagos airport as passengers were seen scrambling for flight tickets to various destinations within and outside the country.

The renewed courage to fly out to resume business was attributed to the presidential election results which the president conceded defeat signalling the end of perceived violence expected to happen.

At the departure hall of the Murtala Muhammed International Airport, many passengers were seen waiting for their flights to be called. According to some passengers, whose families are residing in Nigeria, they waited for the presidential election results to be announced before their journey so that they can be sure before leaving the Nigerian shores.

In Akwa Ibom State, especially in Uyo capital, business activities returned while Schools, markets, shops, and other private and government offices opened for businesses

The Ibom Plaza, the main business area in Uyo has also been bubbling with activities. Business recorded slow action ahead of the election.

Bloomberg Business an online International medium reports that Nigerian stocks surged the most since March 2010, leading gains among world equity markets, after former military ruler Muhammadu Buhari won a vote marking the first peaceful shift in power since the end of colonial rule in 1960.

According to the Bloomberg, “The Nigerian Stock Exchange All Share Index rose for a ninth day to extend its longest streak of gains since December 2012. The West African nation’s $500 million of Eurobonds due July 2023 advanced for the 11th day, pushing the yield down to the lowest since Dec. 8, as President Goodluck Jonathan conceded defeat, reducing the threat of post-election violence that marred previous votes”.

“The political risk has certainly decreased,” Thabo Ncalo, a money manager at Stanlib Asset Management Ltd., which oversees about $45 billion and has been adding to its Nigerian holdings, said by phone from Johannesburg. “It bodes well for investing in Nigeria. It boosts the case for coming back into the country.”

The Report also stated that Nigeria’s all-share index jumped 8.3 percent; the most among 93 global measures tracked by Bloomberg, to close at 34,388.46, the highest since Dec. 31. The gauge has gained 18 percent since the start of a nine-day rally, also the world’s largest advance over the period. At the end of February, it was the global laggard for the year.

“Almost 22 shares gained for every one that fell, paring losses for 2015 to 0.8 percent. Dangote Cement Plc, Lafarge Africa Plc, UAC of Nigeria Plc, which has interests spanning food to real estate, and Forte Oil Plc, all rose more than 10 percent on Wednesday, last week Nigerian equities traded at about 9.4 times estimated 12-month earnings, compared with a multiple of 10.1 for the MSCI Frontier Markets Index”.

“The Nigerian equity market is cheap and part of this cheapness is because the risk premium is high,” Ayodele Salami, the chief investment officer at Duet Asset Management Ltd. in London, said by phone on Tuesday.

Yields on the nation’s Eurobonds declined 22 basis points to 5.98 percent. Rates on the notes on Tuesday dropped below those of Kenya’s $2 billion of debt securities due June 2014 for the first time since Dec. 11, according to Bloomberg indexes. Nigerian dollar debt returned 3.3 percent in March, the most in Africa, the data show.

“The opportunity for positive change with genuinely new leadership is enormous,” Samuel Vecht, who oversees $2.7 billion across five emerging- and frontier-market funds, said in e-mailed comments from London. “Within Nigeria we think the banking sector has tremendous long-term potential and trades at inexpensive relative and absolute valuations.”

Newswatch Times’ correspondent who moved around in Lagos metropolis on Wednesday, Thursday and Friday April 2, reports that several companies, such as  petroleum marketing firms, banks, ICT service firms, and many manufacturing companies who shut down productions during and before the election for fear of election violence few days before the elections proper have resumed activities.

Perhaps because of the two days public holidays of Friday and Monday may have caused the hectic long traffic that resumed across Lagos metropolis an indication that the city has started witnessing the usual bustling business life.

 The popular food stuff markets, Oshodi, Ikotun, Agege, Ikeja, Idumota, Mile 12, among others are also coming back alive unlike during the election period when some Hausa traders were not bringing their wares to Lagos for fear of political violence. Meanwhile, the banks’ operations have intensified as activities resumed strongly. On Monday March 30^th during the announcement of the results, banks in Lagos worked half day for fear of violence.