Monday, November 29, 2010

ISSUE ORIENTED CAMPAIGN




Paul Summerville, a visiting Associate Professor of History from the United States who has been in the country for six months said it is appalling and ahistorical to see a bunch of politicians who want to rule a complex and dynamic nation like Nigeria not having a clue on how they intend to address fundamental issues that are at the core of the unity of the country.

“I am yet to see the aspirant that has told Nigerians how much the country makes from crude oil sale daily, monthly, quarterly and yearly; how he intend to move Nigeria forward when close to 70 percent of the annual budget is spent on recurrent expenditure and how he hope to use the remaining 30 percent or less to ‘make Nigeria great’ again.

These are the fundamental issues that Nigerians should impress on their leaders to explain.” Summerville added.

Friday, November 26, 2010

Rauf Aregbesola


The Court of Appeal in Ibadan has finally decided the case between Action Congress candidate and former Lagos State commissioner, Rauf Aregbesola as the legitimate winner of the last bgubernational elections 3 years after the elections held. It will be remembered that the Federal High Court had dimissed his case.

Mr. Aregbesola is now the governor of the state and People’s Democractic Party candidate Olagunsonye Oyinlola has been removed

Monday, November 22, 2010

Investment Club: Vehicle for Wealth Creation







Investment Club: Vehicle for Wealth Creation

We all aspire to be rich and retire comfortably someday. What are you doing about this?
In addition to having personal savings and investment or registering with an Asset manager or Pension Funds Administrator, I will suggest that you form an investment club with likeminded people. The beauty of an investment club is that it helps you to be disciplined enough to save and invest consistently.

An investment club is a group of people( 5 or more) who pool resources together on a regular basis ; preferably monthly to save and invest. It is similar to a Cooperative society but here you save to invest for the long term i.e. 10 years and above. The club may allow members contribute an equal amount of money monthly (e.g. N5,000) or different amount in multiples of the minimum monthly contribution permissible for ease of valuation.

Experience shows that if 20 people begin an investment club, by 2 years later only 50% or 10 of them will be left. So you may need to get on board more people than you need to make room for dropouts. However, you must be very careful and selective in your choice of members to ensure only people of like mind are invited. You must also ensure you have some members with useful skills and or experience. E.g If possible, it is advisable to have a lawyer as a member to provide legal advice and guidance. It is also advisable to have someone with accounting or book keeping skills to ensure all the financial records of the club are properly kept.


I advise that for the first year the club should just focus on savings, registration, exploring different business ideas/proposals and working out the blueprint.

An investment club should have executives i.e. chairman, vice chairman, treasurer, fin sec, investment director etc. members of the executive must meet at least once in a month hence the need to have sacrificial and passionate people on board. To help members remit payment faithfully, it is advisable post dated cheques are collected on an annual basis. This enforces discipline and reduces the chance of default in contribution.

The investment club should have an investment plan and stick to it.


An example of an Investment Plan

Total Contribution = 100%
Capital Market (Preferably via a well managed mutual fund ) =20%
Money Market (Savings for opportunities) =20%
Investment in real business (Education; Agriculture; Commerce etc) = 50%
Soft loans to members = 10%


The club should have a bye law or constitution guiding members conduct, signing up of new members, exit procedure e.t.c. Members must be fully involved and engaged. Beyond prompt contribution of money, members must be willing to contribute their ideas and time to the club for her to be able to realize its objective. Knowledge sharing is critical. Fines might be introduced to compel members to attend meetings.

An investment club could serve as a safety net for members in times of dire emergencies, a loss of job etc. it also provides a platform for horning entrepreneurial skills. It is good to allow members who bring up ideas to champion its implementation. Members who offer to manage a business idea should be given an incentive E.g 10% of the profit to serve as a compensation for productivity and motivation for success.


Business set up by an investment club has a high rate of survival. It is not easy for a group to give up. The club also serves as a board of director for businesses set up which encourages good governance; accountability and best practices. This is something that most SMES lack and is partly responsible for their high rate of failure. Two good heads are always better than one.


Oluyemi Adeosun is an executive member in 2 investment clubs. He has 6 years cumulative experience in Investment Club Management. He is an Investment Club Consultant.
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