The African leader is mired in inter and intra-tribal conflicts and shamefully depends on former colonial masters on what to do. The leader steals and robs national treasuries, stashes the monies in foreign accounts and prefers to own mansions in foreign land, seek medical treatment overseas and send his kids to colleges abroad.

Come to the most exposed and endowed black people on earth — the African-Americans. Their neighborhood is devoid of small businesses and enterprises that will afford employment to their own. There are hardly financial institutions – viable community banks or credit unions to extend resources to help nurture businesses. The dire absence of such empowering establishments is filled with mega-churches. After worship, majority of the church members return to establishments owned by persons other than their race to eke a living.

The black race devote inordinate amount of time wishing that someone from their race who passed on should come back. Leadership is absent in their dealings. When I was seeking support to run for Mayor of Dallas, I approached various community leaders. When it came to the African-American, I was referred to see a pastor, elected officials or Black leaders. I said well that is good. How about white leaders, Asian leaders and Hispanics? Why are black people consumed by who their leader is? I want someone to tell me who a white leader is?

Folks, this may sound like a sermon but when do we stop the cry? Martin Luther King is not coming back. Were he alive, he would have been discredited and dislodged from the black community. Look at Jesse Jackson, Andrew Young and those that shared the limelight with MLK. The jury is still out.

Until individuals take the responsibility to actualize and recognize that the ground will never be level and that we have to deal with what we have – making lemonade with lime; crying and complaining will only get breed sympathy but not invitation to deal-cutting and its attendant prosperity.

I am yet to understand why:

1.black folks shy from or don’t own establishments such as restaurants, business centers, convenience stores, grocery stores and financial institutions. These establishments create jobs and sustain most immigrant communities;

2.wealthy black folks do not develop real estate in their community or create small business funds to help promote entrepreneurial engagements?

3.blacks whether AA – African Americans or NA – Native Africans, wholeheartedly believe in the biblical saying: ‘No prophet is recognized in their own community,’ which is contrary to what others do. Others recognize their own and will collaborate with theirs before reaching out to others;

4.most black folks look to regular and government employment instead of business ownership and small enterprises;

5.work ethics in the black community is not strong when it comes to personal service industry. When I hire a ‘black’ people to work for me, instead of focusing on the task at hand, they want to chat and get close and personal. But when I hire Hispanics, they stick to the task and even when I extend them things like water or snacks, they politely turn the offer down and do not demand to be paid ahead of job completion.

The list of things on ‘why’ are endless. Salvation as we know it can never be gained wishing for dead ones to come back or hoping that others see and hear our cries and out of the goodness of their heart, send us milk and honey. It may happen but at a costly price.

Other minorities have taken the position. They allow blacks to be the ones making the ‘cry’ on minority issues while they strategically step in after the policies are changed to gain advantage and traction. What competition recognizes and respects, is another well-oiled competition ready to do battle – unapologetically.

Africans celebrate ‘unearned income,’ placing too much emphasis on natural resources while not developing their mental capacity to deal with the expected Politics of Business that determines who gets what. They are consumed with/by tribal wars and overload their exercise with Business of Politics while active and errand foreigners steal and cart away resources right under their nose, aided of course, by the African. It is a thief on the inside to encourage the outsider to strike and be successful. Africans cannot absolve themselves of the responsibilities of squandering their natural resources for a dime, colluding, cooperating and collaborating with foreign interest for lousy promise of some reward.

Take a trip to any museum in Africa and cry. Why? Errand Africans have sold and or given away or have participated unrestricted and willingly and readily smuggled their national treasures for pittance to foreigners who offer them nothing. And this is while the museum curator is a western educated African who is happy parading degrees before his ignorant people but spineless before foreigners.

The discovery of oil impresses naïve Africans. They celebrate and dance that God has buttered bread for them, only for them to see their poverty deepen. The only refinery in Kenya is about to be shut down because it is aged and does not have enough crude to refine. That is the only refinery in East Africa. Yet, silly and marooned Africans run around the world dancing and singing that Africa is rising.

Rising for who and to what? It is hard to see any business in Africa borrow money for business and economic development at interest rate in single digit. Those that do, the corrupt and stealing public officials appointed and or elected, do not pay back and see loans made to them as ‘godsend gifts.’

There you have it: One stealing from themselves but expecting to do better. Really?

Q.What is your take on Kenya’s Vision 2030?

Okpa: Kenya’s Vision 2030 is a boiler plate document. Although it has received support and legislative backing, what would have given it teeth is  lacking. For instance, it says nothing about high interest payment on borrowed money. If Kenyans borrow at nearly 35%, how is that sustainable? How will local business folks survive? It says nothing about monetary and fiscal policy and how to effectively reduce unemployment, stabilize the Kenyan Shilling, improve healthcare budget,  increase local revenue and stop Kenya from aid dependency. Kenya’s national budget is heavily dependent on donor subventions and aid. That is why the country is under foreign influence and corruption is high. Whoever goes a-borrowing must go a-sorrowing, and be a doormat for all. Kenyans ought to pay taxes as a way to exert stake in their leadership and demand more. When one does not pay taxes, they have no say in their government. Therefore, the Vision does not introduce an effective and well administered tax system that is fair and equitable.

Real estate constitutes about 70% of a developed nation’s economic wealth. It is a not a rule of the thumb, but a pretty well documented indicator. In Texas, local government’s revenue that makes up 45-55% of their budget is property tax. Because real estate is local, it proves to be a significant measure to gauge how well a country is doing. While Nairobi has the largest slum in the middle of an urban area, the document says nothing about that. An average Kenyan has difficulty finding affordable housing.

Q.The cost of borrowing in Kenya and Africa as whole is quite high and stifles economic development. Kenya however leads the world in Savings & Credit Cooperatives (Saccos).  In fact most of these Saccos are members owned (like US credit unions) and their rates are fixed and manageable to ordinary people.

Okpa: I don’t know where you get the facts that Kenya leads the world in cooperatives and savings. While such is a commendable feat, such institutions in the overall scheme of things are not the vehicle for serious economic development structure, programs and projects. It is like trumpeting the virtues and values of solar, wind and thermal energy sources as the way to go. Well, all those sources combined, do not contribute up to 2% of US energy needs. They get revving reviews, but they do not drive the energy sector and will NOT in the foreseeable future. Wisconsin and Minnesota in US have great cooperative models but even with that, the rest of the 48 states have refused to copy the model. Two states, Texas and Alaska, have more than 70% of US savings of all 50 states combined and Texas Economic Development Bank is a model only Texas has. I am the second black in the history of the bank to serve on one of the boards.

Although cooperatives, are good, they are not a substitute of paramount financial vehicles. They are not equipped to handle heavy duty infrastructure projects. Until Kenya’s financial institutions differentiate between consumer and capital projects, passing usury law limiting interest rate charged on certain projects, it is a knee jerking lending.

Kenya in 1975 was one of the early countries to be assisted by the IMF, almost the same time South Korea (SK) was teetering. But in 2004, South Korea and China became the first two countries in the world to achieve combined foreign reserve totaling A TRILLION DOLLARS. Because of South Korea’s fate, she was invited to join the executive committee of IMF for transforming  from a recipient nation to a donor.  That is why  a South Korean American is president of  the World Bank, nominated by a Kenyan-American who happens to be President Obama.

Kenya since independence has had no more than five presidents, different from most other African countries that after independence engaged in coups and civil wars. But stability as a tool of effective leadership has not produced for Kenya a reputable economic development ascendency. The Kenya Shilling has lost most of its value against the Dollar and Pound, such that a Kenyan millionaire is only worth about $14,000 while an Ethiopian with one million Birr, is worth more than $66,000. Do the maths and see who has more purchasing power. President Kibaki, is one and probably the only African head of state to make first class from London School of Economics, what has that gotten Kenya?

Q. Visiting Lagos and Abuja cities in Nigeria, one is taken aback by the contrast of the two cities. It’s not uncommon for a highrise building to be located next to a shack in Lagos. Why is the State of Lagos attempting to create new land in the Atlantic Ocean while developing various parts of the city/ state would free up much needed land?

Okpa:  Lagos, according to CNN, is an expensive slum, and I second that opinion. The Lagos plan was what Lord Lugard, then Governor General of Nigeria, who was later transferred, took to Hong Kong and turned that city into a world class destination spotting more high-rises than any other city in the world. Lagos had electricity in 1894, nearly 119 years, and 15 years after electricity was discovered in 1879. For more than a century however, Lagos looks like a dump, and Nigeria’s entire power output is less than what it takes to run Manhattan – go figure. The science and engineering since it was discovered has virtually remained the same.

I know Lagos, and I attended college in Nigeria before coming to US. My dad was a Chief in colonial Nigeria, after independence, during the war and after, so I have been around political figures. He was member of the Eastern Nigeria House of Chiefs, from 1960-67 when the Nigeria-Biafra war broke out. My older sister was one of the First Ladies in Nigeria in late 90s. Longevity of anything does not mean collateral value. The Bank of America was popular in Nigeria in the 1950s before it became known in US. Nigeria’s branch banking regulation is older than that of US because branch banking became entrenched in US in late 1980s, a result of FIRREA – Financial Institutions, Reform Recovery  and Enforcement.

Not only do I have intellectual understanding of things, I have political access and do know how government works. US was trading with Sierra Leone long before it did with most other sectors of the world. Read African Squadron and see the stats. Africa suffers from the PCTDD – Post Colonial Traumatic Disorder and Disability, not because she is the only one ever colonized but because Africans whine and use excuses to justify what they are not doing.

Q. The energy sector in Nigeria is owned, managed and controlled by cartels. It’s a pity that a country so rich with oil has her citizens running to get power. While it’s indisputable that Nigeria is a large exporter of crude, it’s not right that the country has to import the refined end-products (gasoline etc) while cheaper options like a portable refinery plants with capacity of 50,000 bpd exist. It’s easier to be critical to Nigeria, Kenya or any other African country than fixing the problems. In fact these problems are opportunities that investors are exploiting thus owning Africa economies. Now Kenya may not have everything figured out but at least there is a concerted effort to address the malaise that afflicts its people. Nigeria is also addressing some of  its problems. I am particularly impressed by Mr. Dangote’s courage to announce the construction of a new refinery in Nigeria. That is a start on taking the corrupt oil cartel that controls the gas and refined oil sectors. The recent grid redevelopment in Nigeria for $10B is a good start just like the construction of the Thika Highway in Kenya.

Okpa: I am happy you are impressed by Dangote. He runs a monopoly and operates a business model that is unsustainable. As a comparison, the stocks of Dangote companies on Nigeria’s Stock Exchange are trading less than those of NBL – Guinness stout beer, one of the highest trading stocks on NSE. No stock on NSE has a dollar equivalent value of $5 per share. You may be impressed by press releases, but I am interested in the valuation of companies,  actual data and quantifiable information. Dangote announced that he would build a refinery. That is good for him. But he did not state or disclose how he is going to get the crude. Please research The African Executive and see my piece on Dangote or click here – http://www.africanexecutive.com/modules/magazine/articles.php?article=6113

You are preaching to the choir. Being critical is necessary because it prompts the human being and challenges them to greater heights. Africans easily rest on their oars and laurels, forgetting that nation building is a 24/7 endeavor and accomplishments are history. Everything in life lies ahead. The unknown prompts successful nations to be critical, with the bent: the BEST never REST. Opportunities are everywhere and one does not have to look far.

When a leadership uses excuses and parades degrees, PhDs, MBAs, and other papers, nothing gets done. PHD as in Passion, Hard-work and Dedication are more useful and collateral than PhD, which when an African obtains,  thinks the world is their oyster. Nonsense. We must combine all tools including education and nature’s endowed common sense to drive our nations and be willing to compete on the world stage.

If you are impressed in ‘Minors,’ sorry, I play in ‘Majors’ and challenge myself. That is the reason why despite successfully managing US FDIC Central Regional Office – Dallas, Appraisal Department in late 80s to early 90s, as the first black person ever to have such role in less than 4 years coming to US, I left the position to widen and broaden my horizon. Like my father said to me in 1989, he hoped I did not go to America to become a civil servant because I could have done all that in Nigeria. There you have it, fathers/mothers know BEST and mine, was a genius.

Of all the 1,000 biggest global corporations in the world, none is headquartered in Africa. Of all the major financial institutions in the world, none is located in Africa. Of all the top universities in the world, none is located in Africa, but Africa is recorded as having the oldest university in the world, the Timbuktu institution. The first ever presidential library was in Alexandria  Egypt, just like Morocco was the first country to recognize US as a nation, and US reciprocated by building her first ever embassy in Tangier. Yet today, African nations act like they are just new inventions.

We have been around. We just don’t know how to play. We are happy being players but hardly imagining becoming referees so we too can call the game: fair or foul.

I rest until provoked by something collateral. I have enviable track records and match my opinions with intellectual prowess without being overly high handed. Running for Mayor of Dallas, was not for show. I ran because I have content. In politics, when there is no WINNING, there is no LOSS either. Having the record as the first native African to run for mayor of a US major city, is no joke. It is a confidence booster plus more. No immigrant in recent history has ran for mayor of a major US city in less than 8 years of becoming a US naturalized citizen. I did in 2003. I am not done. Stay tuned.

Unemployment and under-employment rates in the continent are huge; no national government in conjunction with domestic corporations have come up with solutions to tackle its socio-economic impacts. The multinationals, having far reaching resources often bigger than those of domestic and local companies/corporations, get their way and enjoy undue profit reparation advantages, paying nominal taxes and front loading expenses. Were they to conduct business the way business is conducted in developed economies, a lot of them would not be singing about Africa.

Many Africans pay dearly for housing whose standards are often below bare minimum. Interest payment on borrowed capital is so outrageous that it chokes economic growth. When the average borrowing rate in most countries is in double digits, does anyone who understands money, its cost and functions need to be schooled that it makes growth hard and painful?

For instance in Nigeria, despite its resources, huge population and more than 100 years building roads, does not have 5,000 miles of well built and maintained transportation network. Meaning, it has only built about 50 miles of road per year in its existence. That is nothing to cheer about. Texas with nearly 275,000 miles of paved highways and freeways has more roads than all of Africa. Go figure. No city in Nigeria pumps 10m gallons of water on daily basis or speaks of having uninterrupted power supply in a 24-hour basis, weekly or monthly. The entire country of Nigeria, except for Abuja, uses individual septic tanks for sewage disposal and the disposal is done in rivers, streams or open fields, in the 21st century. Many businesses have standby generators, all adding noxious fumes and exhaust into the already polluted air. These are hard features of Nigeria, and yet they are hardly mentioned. Huge returns made at the expense of a people is not justification for the often flowery and glowing reports issued on Africa by research establishments who are patronizing but shy from stating what exists. While growth is recorded, Africa hard facts and figures are far below what it will take to emerge strongly.

The sections of Nigeria where oil is drilled and produced are so environmentally denigrated that it will take centuries of aggressive remediation programs to clean up. A nation in need of 6m housing units that in its nearly 100 years of corporal existence has never built 100,000 housing units in any given year, needs a lot catching up to do. Using fancy mansions and expensive cars driven by business people who often are in bed with politicians as measure of successful economy is falsehood. The physical aspects and conditions of Nigeria public buildings and educational campuses are so depressing one almost throw up looking at them.

It may further interest anyone who cares to know that one of the most valued and priced stocks on Nigeria Stock Exchange, is not a utility company or healthcare corporation, but an alcoholic beverage company with headquarters in Europe. And there are less than 200 corporations listed on the exchange, and only 3.5m Nigerians are reported to earn N70,000 monthly; an equivalent of $435 monthly. How does that compare to majority of the 160m who are hapless and despondent? No company listed has a dollar equivalent of $5 per share.

Nigeria needs to be growing an annual rate of no less than 15% for the next 50 years to reach a mark to make her people believe. Since such growth is highly unlikely, there must then be drastic structural adjustment in how the leadership offers solutions. When only 25% or less of benefit trickles down out of every budgeted Naira, no one needs the analysis to conclude the economy and governance system are burdened and ineffectual.

The multinationals should stop couching the hard facts. But since they are afraid of losing the political support that makes their business survive, they dance around what really matters. Africa subsidizes the economies of western nations and now China, paying high interest rates and selling their national resources at a fraction. The continent is encouraged to maintain foreign reserves for balance of payment accounts. Anyone depending on the fraction of another will never emerge. Africa need not be cajoled or stroked like a baby with running nose. The so called experts are offering voo-doo economics. The annoying aspect is that national governments have bought their awful prescriptions and have swallowed them to where they are marooned.

Successful economies are not measured on paper but real and quantifiable benefits seen in housing, good employment, improving living condition, lower interest rate on borrowed money, sustainable environment, infrastructure, security and national sense of pride that motivates and entrenches passion, hard-work and dedication to nation building. Over dependence on foreign direction and steering, often leave a nation gasping for real sense of pride and purpose. While globalization should be encouraged, no nation should be a dumping ground or doormat for another. Africa appears to take and welcome any and everything because it often lacks national pride and sense of purpose to reject some of the foreign prescribed solutions that makes her look like a side child.

Digging holes in the ground in search of minerals to sell to foreign interests who pay royalties for such interests – bare minimum, will never lead to sustainable growth to absorb the yawning and gaping needs of a teeming population often are ridiculed to live on less than $1 a day.

1. Zenon Petroleum, owned by Otedola, owes banks N192.4 billion
2. Arik Air Limited, belonging to Arumemi-Ikhide – N85.481 billion
3. Geometrics Engineering, owned by Barth Nnaji – N19.76 billion

If former Nigeria Power Minister Mr. Barth Nnaji, is indebted to a bank, how come he was confirmed as a minister? Did President Jonathan know about his debt situation but still nominated him for appointment? Did Nigeria’s Senate raise concern in the confirmation hearing? Are nominees requested to disclose their financial situation, assets and liabilities?

In US, it would be hard for one to gain high government appointment if they are heavily indebted to a financial institution and defaulted. Lying on a loan application is grounds for serious felony prosecution. A former Texas Attorney, General Dan Morales, went to jail for providing false information on a loan application. Such will never happen in Nigeria. The only crime one does not commit in Nigeria is the one they have not decided to pursue/commit. There is hardly consequence for bad behavior in Nigeria. One can get away with virtually anything, especially if they are highly placed.

Being in debt is no crime. It is refusing to pay or trying to walk away from the debt obligation that is a serious breach of public trust and good faith. With the debt situation, could it be reason Mr. Nnaji was alleged to have tried to get a former business associate deal with the Power ministry, but he Nnaji claimed he knew nothing about the business associate bid for a contract? It is likely a heavily indebted ministerial appointee will seek ways to use their position to pay back loans.

Nigerian banks make loans on personality as opposed to soundness of projects or their business models. No wonder, Nigerian bank debts are shunned by foreign investors because there is hardly worthy collateral on which the debts are secured. Given the low standards of assets valuation, recovering any reasonable loss from pledged assets is less than 10%. In a recent ranking of financial institutions using outstanding loans matrix, Nigerian banks ranked lowest of the bottom.

The ranking considered the quality of the debt portfolios, worth of the collateral pledged, business model of the borrower and their business sector, among other factors. Often the biggest asset[s] the borrowers offer up as collateral are their homes/houses. These assets are often over-inflated by estate valuers/surveyors to please and appease the borrowers for a promise of something. The Ethical standards of Nigerian estate surveyors/valuers mirrors the general Nigerian populace ethos/ethics – less than 1% desirability index.

Nigerian Institution of Estate Surveyors and Valuers – NIESV, the ultimate authority for valuation of assets in Nigeria, hardly conducts courses in Ethics, Code of Conduct and Conflict of Interest for practitioners. Without enforcement mechanism at the state or federal to ensure public trust is protected in the practice of any profession in Nigeria, the abuse and fraud levels are much higher. Professional bodies in Nigeria are self-policing entities lacking capacity and enforcement resources, a situation further compounded by tribal sentiments and nepotism. It is an open market for quacks and so called professionals alike; all trying to undue each other while the public trust is seriously eroded.

There is no obvious conflict of interest consideration when doing a property valuation for a client. Fees are often based on a percentage of value reached; an undue incentive for concluding value high, worthless than the paper it is written on. The typical conclusion of capital value [market value as in the case of US], ends with: ‘In my professional opinion’, the value is so and so.’ It is an opinion all right, but such opinion taken under the microscope, is fraught with poor judgment, lousy analytical standards and paucity of market data, similar to what one may obtain from a voo-doo doctor – nonsense. In the absence of critical review and enforcement committee to reign in errant practitioners, professional practice in Nigeria, is an opportunity to make it big. The valuation profession is no exception.

While I worked as an Estate Surveyor/Valuer in Nigeria before leaving for US, any time I went out to do a valuation assignment, I knew another pay day was likely. The borrowers did everything and anything to earn my support. And often, I refused their overtures.

If banking is to make sense in Nigeria, valuers and accountants must be held in high standards and be prosecuted for blatant practice when aiding and abetting fraud on what is considered ‘federally insured financial institution’ banks insured by Nigeria Deposit Insurance Corporation – NDIC. The Nigerian tax payers are always left holding empty bags as they bail out the banks. Practitioners should be meant to carry at least general liability coverage for errors and omission, to indemnify any financial institution for any loss due to their reckless conduct. If there is obvious fraud, the practitioner should be prosecuted.

No Nigerian estate valuer/surveyor has ever gone to jail for providing worthless valuation report, which aided in obtaining over-inflated loan. It is about time such ‘air’ professionals are locked up and their assets seized when proven they colluded with a borrower to inflate value and in turn defraud a bank. No bank fraud as it relates to assets secured on a landed property collateral can happen without an opinion of value rendered by an estate surveyors/valuer. If that is the case and Nigeria has seen many of these bank failures/frauds, costing and eroding the confidence in banking, how come no valuer/surveyor has gone to jail? Intrigue and under the table deals never cease to be the order of the day in dear native land Nigeria.

As for the debtors, banning them from borrowing is not enough. Their assets should be seized and sold. Given that Nigerian banks are shoddy and shady in their deals with borrowers, sanitizing the system is long overdue. It is often normal business for lending officers to get kick-backs from the loan proceeds. What the borrowers should now do is expose the kick-back takers and show how such chunk out of the loan amount affected the borrower/loan performance. The borrowers should seek immunity from prosecution and serve as federal witnesses to expose the lending officers’ practices.

The blame should not be heaped on the borrowers alone. The lenders have a hand in the fraud and default situation. It is very unlikely to borrow in Nigeria without the bank officials not getting something in return. Now is the time to call their bluff and expose all the shenanigans. If the lending institutions are to be sanitized, the banking officers must hold their end of the lending+borrowing culture and be above board.

For Mr. Barth Nnaji, it is an opportunity to regain some lost ground since resigning or being asked to resign from the Power Minister. By embarking on exposing the bank-lending system for what it is – SHODDY and CORRUPT, Nigerians may see him as a hero. But there again, he may go like former Cross River Governor Donald Duke, who spoke up against corruption in PDP and the political system, and has since fallen out of favor.

Nigerians do not like whistle blowers – because present participants and future hopefuls in the corrupt system see such as stopping them from their turn and those entrenched in it, consider it betrayal of some oath of secrecy. Current practices, are reminders of the early 1970s charges and counter chanrges of massive corruption under Gowon regime – played out in the open by Ministers Joseph Tarka and Godwin Daboh, with ensued slang then: – You ‘Tarka’ me and I ‘Daboh’ you.

In the United States of America, the professional association for the practice of architecture is the American Institute of Architects (AIA). Its members are licensed through states. AIA does not train architects; colleges and universities do. So, how can a trade association like NAHB, which is not accredited to offer architectural training, be training architects in Nigeria? Some associations are taking advantage of the ignorance in Nigeria and Nigerians who are penchant for everything foreign step up and pay up.

In US, there is no special licensing and training to become a real estate developer. A real estate developer puts together a deal hiring an architect, land planner, arranging and obtaining financing, and selling the products at price points suited/affordable to the target market. It may involve obtaining financial incentives from a local government, state, or federal for a particular housing product due to benefits that accrue to low income families using tax credits or other incentives. Such developers are restricted as to what rent they can charge based on the median income level of a particular zip code in that city. There is no special training or education to become a real estate developer. But given Nigerians’ desire to denote their knowledge and experience on some paper certification or qualification, it is no surprise NAHB may have discovered ‘gold’ stepping in to offer bogus training programs just to give Nigerians a paper. Awful.

The lead instructor, Tom Stephani, president of Stephani Enterprises LLC and Custom Construction Concepts Inc has no collateral value to offer in terms of challenges facing housing delivery in Nigeria. His knowledge of housing development in US does not have cross border value in Nigeria. The housing challenges in Nigeria are due to the government’s limited involvement with effective financing structures and incentives to achieve a critical mass in the sector. Lace that with the fact that Nigeria’s financial institutions are not well endowed on long term financing, have no secondary market for mortgages, and lack the use of other instruments to gain momentum, and this compounds the situation.

NAHB is a trade association and not every US state may accept its educational programs for continuing education for architects. NAHB has to apply to each state so anyone attending their training can claim CE – the continuing education credit towards recertification.

With challenges on land ownership, limited credit facilities and legal issues, how will NAHB cure the deficiencies? In housing development, both hard and soft resources have to be in place before Nigeria can see significant gain in the sector. US NAHB is definitely not the association equipped intellectually to help Nigeria. If anything, they are in to make a quick buck selling to ignorant Nigerians.

Back in the 90s, some Nigerians attended the NAHB convention in Dallas and I had a chance to meet them. It included an architect, developer/valuer, official from the federal housing and a lady builder from Lagos State housing department, among others. They confessed that there was nothing to gain or learn from NAHB given Nigeria’s unique financing and housing industry challenges. Nonetheless, the attendees enjoyed visiting Dallas and the allowance they got and of course, collected many brochures for proof of attendance and knowledge. Maybe there has been improvement to the contrary, but NAHB is not the answer to Nigeria housing delivery or land use development.

Since ignorance rules, Nigeria is a fertile ground for all sorts of unproductive engagements by foreign associations in cohort with Nigerians.

When a state in Nigeria grants one a ‘CO’ – certificate of occupancy, even though it is for a term certain [leasehold], it is considered real property given the initial term and renewal options. The land one owns in their village via ‘RO’ – right of occupancy, is freehold because such land is owned in perpetuity but still subject to police power and eminent domain.

The analysis I offer is intended to alert those in property economics and valuation modeling to question Nigeria’s income versus value indices. A property that commands a gross potential rental income of N600,000 equivalent of $4,000, with the possible sale price of N30m or $200,000, is unimaginable in a developed economy where income is the basis of value. Assuming one was to borrow to acquire such property and rely on the income to carry the mortgage note, it would not happen. If the rule of the thumb, devoid of analysis were to hold true in all cases of property valuation, the highest value one can expect from such property earning N600, 000 annually is N6m or $40,000. That is a 10x factor.

Nigeria’s real estate is skewed and overly hinged on transactions motivated by undue volume of cash chasing few investment assets. Nigeria real estate market is very small. The asset class and grade are hardly investment quality. Major foreign pension funds and insurance companies shun Nigeria’s real estate opportunities due to the limited and confusing market fundamentals that direct and influence investment interests.

Given that real estate transactions in Nigeria are often done to hide money from questionable sources, it is not uncommon that the market sees large cash infusion on assets of less desirable grade with returns that are unsustainable. Most buyers are not informed on the economics of real estate; they simply want to buy assets for social prestige as opposed to economic fundamentals. Sophisticated investors therefore stay away while the vultures come in and further make the market unattractive.

Since Nigeria’s financial institutions and service companies have limited exposure in real estate investment in the country, the cash driven investments are not at levels to produce desired trends. Very few cities in Nigeria (such as Abuja, Lagos and Port Harcourt) have some level of limited sophistication. The rest of the cities are bare and not attractive for considerable investment. Here is a measure of property class:

Nigeria has less than 5,000,000 square feet of purpose built office buildings available for rent. This is an indication that the economy is not knowledge based and when it comes to R&D spaces, it is virtually non-existent. Nigerians are trading people and even the retail real estate are denoted with street hawking, dominated with open space markets, and mom-pop shops/stores that sell anything and everything.

What many in Nigeria regard as shopping centers and malls, are basically neighborhood stores of less than 100,000 square feet. While definitions can be localized, certain grade of real estate assets are universal by definition, and when such definition seems to go counter international standards, global investors shy away.

Nigerians like to define their own rules; a dangerous culture that increases their notoriety while damaging their national reputation. The consequences of such culture is the absence of volume of transactions and sophistication to help jump-start the real estate market. Since real estate in developed economy constitutes about 70% of a nation’s economic wealth, the manner of its use must meet certain standards in order to add value to the overall economy.

Most municipalities in US rely on real estate property taxes as source of their revenue. It is the highest single source of their revenue, bringing in up to 45%. In Nigeria, property tax called rating valuation lacks good administrative structure and skilled practitioners to help states and local governments increase and improve their revenue base. It is no wonder; most Nigeria states and cities (except for Lagos with bare attempts) collect less than 5% in revenue attributed to property tax. How can they, when real estate ownership in Nigeria is more about prestige than returns and responsibility?

As it is, Nigeria is a fifth rate country in terms of a country considered favorably for global real estate investments. Until there is significant investment in Nigeria’s non-oil/gas sectors, the economy will never produce enough activities to absorb the needs of its teeming population. Ironically, the dance and songs about Nigeria oil is just that. Nigeria in 2011 realized less than $40b in the sale of oil/gas. Nigeria can realize about more than $200b from property taxes were the leadership sincere and committed to jump starting the domestic economy. While Nigeria is one of the largest oil producers, it’s largely an undeveloped country that dances around a single commodity – oil.

The constitution basically promotes and wishes on the benevolence of whoever has control of the coffers of the state or federal, instead of being an agency constitution that relies and promotes independent appropriation and allocation of public resources to the various government agencies by ways and means approved by the State Assembly and the House of Representatives. With the benevolence mentality, the Governors act as Trustees, by design and default and use state resources as they please. While that should not enable corruption, but for a people that have no clear demarcation on what is private and public, it inadvertently encourages such damaging conducts.

To curb and curtail the undue access to state funds, the constitution needs to be amended to become an agency form of resource appropriation. Each Governor as well as the President is appropriated certain percentage of the state/federal budget to run the Government House, and that percentage must be pegged not to exceed say 5%, and scaled down as the budget amount increases. Meaning: If a state has a budget of $1 billion, the Governor should receive no more than $50m, annually to run the affairs of the Government House and no more. Unless the constitution limits the undue access to state money, corruption will always remain a fact of Nigeria politics of the purse. If one does not want their yam eaten by a goat, they do not ask the goat to watch the yam, instead they keep the goat away and or on a leash.

For the judiciary, EFCC must be made independent of the Presidency and allowed to investigate as well as pursue treaties with foreign agencies in their fight of corruption. A good example can be copied from US FBI, which is the only US federal agency that prosecutes public officials for corruption and also can pursue criminals that may have committed economic crime against US abroad. The FBI does not need the authorization of US president to pursue and prosecute public officials for corruption nor to go overseas to set up shop in pursuit of activities that are deemed anti-US as it concerns corrupt practices. There is a body of knowledge to copy from but the question always, Nigeria lacks the political will to engage in what will enhance the collective existence of the nation. Everyone has their hand in the cookie jar. It is often the singled-out culprit that is taken to be chopped off.

Nigeria is a banana republic whereby whoever gets to the ‘banana’ eats as mush as they want. To think of it, then East Central State Sole Administrator late Ukpabi Asika; 1967-1975, sang to that by saying in unequivocal terms, it is a turn by turn affairs, in other words, embezzle as much as one can because it is their turn.

Nigerians since then have seen public resources as God buttering their bread and often behaves like kids in a candy store – stealing in day light and having people dance and sing to such nefarious conduct. A people that willingly and wittingly steal and rob themselves, only have themselves to blame. Nnamani, Ohakim, Ibori, etc., and all others may have fallen into the wrong side of the political equation. An example needs to be made of them but selectively prosecuting does not do well to enhance justice nor does it entrench deterrence on future occurrences. It is awful and very damaging.

Very few holders of PhD impress me. I am not given to the display of education gotten by mere regurgitation and cramming of theories handed down through moribund practices. Those I like are doers! An example, my father who at age 27, in 1955, built a Teachers Training College in my village and was Chief at 31 and youngest Member Eastern Nigeria House of Chiefs, at 32, Member Biafra Consultative Assembly during Nigeria Civil war, all that with only a high school certificate. Go look around; those that impacted the world and keep doing so, were and are men and women of passion, hard work and dedication, motivated by an inner drive to make positive difference. They have never shied from taking on conventional wisdom that limits and shackles a people.

Until Africans in Diaspora; UK and US, achieve a level of political presence and measure of economic success whereby they can lobby and promote a sense of well being for their native countries, the campaign of some like Dr. Christopher Fomunyoh, is just echoes. Most Africans possess a destructive PhD: Permanent Head Damage instead of a constructive PhD: Passion Hard work and Dedication. Now what is your PhD?

Going to hear and listen to talk about Democracy in Africa and its democratization is very depressing! Africa focuses on democracy without good governance: They are not the same. One can have democracy but lack good governance and vice versa. What Africa needs is good governance; benevolent leaders and functioning institutions tailored and suited to the way of life of the people. Democracy is not a panacea for economic development. Many countries are not democratic but have emerged as responsive.

The West’s insistence that Africa democratize is because Africa is lumped as loosely gathered nations with headless leaders and weak institutions – beggar mentality. If the West so believe in democracy, how come some of their biggest trading and investment countries; Saudi and China, are not forced to democratize? India the world’s largest democracy and first of the Commonwealth of Nations to get independence – 1948, is still largely a poor nation. Flip over: China, the world’s largest Communist nation that refuse western pressures and overtures, holds the largest amount of US treasury notes – IOUs. Here is the ticker/kicker: The world’s largest Communist nation lends money to the most successful democratic nation – USA while the world’s largest democracy – India, begs anyone that shows up at the door. Now like we used to write in high school, ‘Compare and contrast’, and or Discuss!

Africa is the doormat of the world. Africans with all their doctors and doctorates can’t figure out what will work for their individual countries. Oman, has had one leader since 1970; In 1970, Oman had only 7 km of paved road, two elementary schools and a clinic that was mistaken for a hospital. At 6pm, the then Sultan would lock the gate to the city of Muscat. But Oman today, is one of the most successful countries in the Gulf region. It has paved roads, emerging companies that compete worlwide and the highest literacy rate (74%).

With a population of about 2.2 million Omanis, it has a GNP of about $60 billion. Nigeria with its 140 million people, makes about $46 billion from oil/gas (2009 figures), its single highest earner; 80% of government revenue. That is what Wal-Mart makes in less than a quarter. Costa Rica makes more money selling bananas to the world than Nigeria makes selling oil/gas. Yet, the average Nigerian mostly naive and ignorant of what makes an economy hum, sings about how rich their country is. Nigeria is the poorest nation of all the oil/gas exporting countries, and she is shameless about her image home and or abroad. It is because Nigeria’s leadership – Cabinet; looks like a college faculty, doctors and doctorate and or some education title.

Africans ought to embrace what works to make their lives better. African-Americans spend about a $1 trillion annually. Were they to become a nation, they will be the fifth largest economy in EU. Their consumption volume dwarfs all the budgets of African nations with some change left over. But they own less than 4% of US commercial real estate, less than 2% are tenured in colleges and universities, hardly have any bank listed on the stock exchange and have the largest consumption per capita compared to savings rate, with 13% of US population. Here is an example that ‘bloodline does not lie’ no matter the degree of separation. The Asians on the other hand, less than 4% of US population, have garnered about 8% exposure in US commercial transactions and ownership. There are more African-Americans holding college degrees than Jews in US. Maybe Africans seeing how their cousins in US are carrying on, say; ‘look what the most exposed and advanced black people in the world are doing’. We are excused!! How can we be spectators to our demise?

Africans erroneously believe that the World Bank, IMF and IFC, are key to their survival. But China never used the World Bank to emerge and so are other countless countries. Some months ago, a British boy flew to Kenya to sell worthless investment programs, and was able to convince their Finance Minister to buy into it. Mark you, Kenya’s President Kibaki, as a student at London School of Economics, made First Class. He is on record as the only sitting African leader to achieve such. But look where Kenya is and how its economy is: worst than that of Cuba; inefficiency, corruption, nepotism, avarice, and highest concentration of the most incompetent civil service in Africa. This is Kenya’s trademark and that of many African nations. It does not matter whether Kenya’s president was the only African Head of State to be given State Dinner during the Bush era. But maybe the two have something in common: Bush was the first US president to hold an MBA, and from Harvard. But look what he left Obama to deal with. My question: What is it that Africans missed while obtaining degrees and diplomas?

I have staked my interest to what matters in this system availing myself opportunities to enhance my knowledge and influence base, recognizing the value of effective networking which is well represented by 3 A’s – Access-Audience-Action. Africans are not effective when it comes to networking. They are more into socializing. If not, how come Obama, a man of Kenyan ancestry, is yet to show favors to Kenya? While he lived in Chicago, he once approached Kenyans there to support his campaign. What did they do? They refused and demanded that he give them money before they could assist. That was the last time he ever showed up at any Africa/Kenyan event. Now, he is President and the same people who thought they understood democracy are either looking for jobs, or busy attending one African event or another. Get serious folks.

America is just as ours as it is for anyone else. But if one chooses to remain on the fringes and is driven by nostalgia of their native country while paying lip service to mastering America and stepping forward to be involved, America will continue to pass them by.

Let’s forget about the appearances at Wall Street, NYSE, Clinton Global Initiative and all the other fanfare that most African leaders adopt as the mantra and manifestation of their leadership and window to the world. The bottom line is: majority of African banks and finance institutions are mere shadows of shady investors from the West whose ultimate goal is not only to keep Africa the way it is, but also ensure that these institutions deliver nothing to the supposed immediate beneficiaries but on the other hand reap hefty returns on their marginal investments.

I loathe calling institutions such as the World Bank and its allied affiliates a ‘bank’ when in the normal and typical sense, they are not. The better name for them should be development agencies and or commissions. If it is a ‘world bank’, when was the last time anyone made a deposit there? What is the share price of holding a stock in the Bank? The World Bank is an institution created by the West to keep an eye on the economic behavior and conduct of developing nations. In the world, the Bank still exists because of Africa.

It is not the interest of those that want to checkmate development in Africa that the bank cease to exist. Visiting and using the Bank is like seeing a psychologist: They pray and want one well but really, they do not want one well. Most Asian and Latin American nations no longer use the bank for anything and shun its advances.

On ADB – African Development Bank.

When dealing with money and financing, two most important questions are: What is the source of the money? What interest rates are borrowers charged? The 24 ADB non-regional members, have more say in what happens at the Bank than the regional 53 members. The partnerships and cooperation unit of the Bank mobilizes untied grant resources from the 24 non-regional member countries with which the institution also has bilateral partnership agreements to fund technical assistance, capacity building and feasibility studies based on grant in Africa. Note the key phrase: ‘untied grant resources’. That is, money they do not need, so Africa becomes a welcoming receipent: More like ‘dumping’ with a view to making heavy gains.

The cost of money is a determinant in borrowing for it affects the level of economic development for a given people. The majority shareholders of ADB are western donors and rich institutions. Very few African institutions have exposure at the bank. When one sees the leadership of these institutions frequent London, New York and Tokyo, it’s not so much to display their glaring accomplishments but to show up in praise of the donors and stretch arms for alms. The saying that ‘he who pays the piper dictates the tunes’ is very evident in lending and borrowing.

With Africa’s minimal financial exposure in the institution that is charged to champion its development, it is no wonder very little is seen and done to elevate the condition of a continent that gives the world a third of the raw materials needed to run industries. Whether one agrees or not, black/Africans are still the ones that borrow at the highest imaginable rate. Here is a glaring illustration.

Throughout Africa, the lending rate is highest. Most African businesses borrow at a rate of up to 40% and none of the borrowed funds are on an amortizing schedule. Instead, they are revolving credit on short term – less than 2 years. All banks in Africa are knee-jerk lenders because they do not control their destiny. Since African national governments are basically off-springs of their former colonial masters, it is not surprising that as independent nations, they are mostly dependent nations.

In Nigeria for example, interest rate is at 35%+. A business needing $1m must turn over 3x of the interest payment as revenue in order to sustain the ability to borrow. Such a business must produce gross receipts/revenue of $1,050,000.

Because banks in Africa are mainly correspondent institutions that service loans for western donors, they are not part of the development effort. In US, one can borrow $1m at 6%-7%, for an annual interest payment of about $70,000. On the other hand, Africa pays back at 5x on the same loan amount. It means that it’s better for a Western institution to loan money to Africa through ‘shylock institutions’ knowing that pay back is assured and guaranteed by the foreign reserve of the country.

If members of G20 really want to assist Africa, they must deliberate on interest rate charged by banks in Africa and cap such at no more than 10%, or a multiplier of 1.25x of the annual percentage rate of a base/benchmark country, which in this case is US. And when an African country has shown remarkable growth rate over a 5-year period, its maximum borrowing rate should be indexed to LIBOR; London Inter Bank Offered Rate, with a multiplier not to exceed 1.5x. Until such happens, no amount of money doled out to Africa without effective reduction in the interest rate will change anything except of course, making and getting rich off the back of Africans.

As long as African-American neighborhoods are laboratories to test how to deal with Africans, Africans will never achieve because whatever they get is first tested on her cousins. Lending to African-American businesses and neighborhoods are high. Most African-Americans are not able to borrow because the credit rating is shot. However, if they have a CD – Certificate of Deposit, just like when African nations have hefty foreign reserve, then they can borrow.

Investment returns in Africa are highest in the world because lending rates are at cut throat. When a nation’s borrowing is hinged to the amount of her foreign reserve, it strives to please the credit rating agencies to remain able to borrow. Is it not the same Standard and Poors, Moody, and all the others, whose ratings gave us the current economic crisis, that also rate Africa’s institutions? If we believe one is bad on one side but good on the other, then the notion of what is good for the goose and gander, is defeated. Rating is a not pure science and will never be when most of what happens in the world is seen along the line of race and geography.

Money and its attendant resource finance, is the preserve and exclusive right of any nation. As a legal tender, whose ultimate value is for the exchange of goods and services, and inducement for production, no nation must play second fiddle to another. But when nations agree to undue devaluation of their currencies and unwittingly agree to sign on to some foreign institution dictating its ability to borrow and grow, then the old adage of ‘he who keeps your money enjoys dictating how well your money serves you’, becomes the order of the day. China has achieved without succumbing to caprices and machinations of Western institutions. African nations can do the same.

Today’s world respects defiance especially if one is matching in lock steps to deliver to her people. Democracy is not a panacea for economic development because if that is the case, India would have emerged before China. Isn’t it an irony that a communist country holds the highest amount of US treasury notes and presses on without pegging its currency to that of anyone and shuns the World Bank? There is a lesson for all in what China has done. The value of such a lesson can only manifest when a nation takes the attitude of ‘we/me first’ and remain unapologetic as its seeks ways and means to serve and deliver her people.

As long as African leaders keep looking outward for solutions, they will remain the doormat and stepping stone for all that want to take advantage of them. Since nations must never engage in activities that undermine their economic growth, how come Africa is so bent on pleasing and appeasing outsiders at the expense of her people?

Africa must quit appearing as ‘beggar’ and step up to the challenges by defying most conventional wisdoms taught her by her colonial masters. It all possible that an old can learn new lessons even at old age. As the oldest continent, why must Africans act like babies with running nose? Now you go figure.