Two Firms Ready To Fight CBN As Controversy Surrounds National Theatre Handover

The National Theatre might remain under lock for long as two companies, Jadeas Trust and Topwide Appeas have taken action against Nigerian banks and the Central Bank of Nigeria (CBN) due to the takeover of the National Theatre by the banking sector, which is against an ongoing court battle.

AllNews had reported that the CBN and the Bankers Committee took possession of the structure following a handover ceremony held in Lagos. The handover was done with the involvement of Minister for Information, Culture and Tourism, Lai Mohammed; the Governor of Lagos State, Babajide Sanwo-Olu; the CBN Governor, Godwin Emefiele; and the Chairman of the Bankers Committee, Herbert Wigwe.

When The Controversy Started?

The government had handed over the keys of National Theatre to the CBN despite the controversy surrounding the structure. In 2007, Jadeas Trust had been selected as the most preferred bidder after the initial preferred bidder, Infrastructica Consortium, couldn't fulfill the sale conditions.

But like every other project in Nigeria, the bidding process was declared inconclusive due to a change in government. Another bidding round was conducted in 2013 after the National Council on Privatisation (NCP) adopted a private-public partnership model for the National Theatre.

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Topwide Appeas was selected as the preferred bidder, receiving approval on August 4, 2013, from the Federal Executive Council. However, Jadeas Trust filed a lawsuit to protect its interest, fighting that the previous dealings with the Bureau of Public Enterprise (BPE) was binding by contract.

The case was, however, settled with the intervention of Vice President Yemi Osinbajo and the Minister of Information and Culture Lai Mohammed, both of whom were in a stakeholder meeting on October 12, 2016. Jadeas Trust and Topwide Appeas later agreed to work together on September 5, 2017.

They both signed a memorandum of understanding in April 2019. The BPE and Infrastructure Concession Regulatory Commission (ICRC) reportedly endorsed the MOU.

Banks, CBN Takeover National Theatre Despite Existing MOU

The CBN governor, Godwin Emefiele and the Attorney General of the Federation, Abubakar Malami, now have a case to answer at the federal high court in Lagos after the government handed over the National Theatre to the banking sector despite an existing MOU.

The federal high court summoned Malami and Emefiele on July 18, 2020, to appear before it July 24. The court intends to hear why the handover was carried out when there's an existing lawsuit involving the National Theatre.

Nigerian Banks, CBN Accused Of Illegal Activity

The Managing Director of Jadeas Trust, Yetunde Aina, said the decision of the federal high court in Lagos shows the company is fighting back to claim what is theirs, as they have no involvement in the recent handover. Aina fault the involvement of Nigerian banks in activities that relates with the National Theatre.

She said the CBN and banker’s committee don't represent private sector. Aina questioned the funds that the banks' intend to use to invest in the structure, “We are fighting back. People are assuming that we are part of it because they see the private sector is involved, it has nothing to do with us,” Yetunde Aina, Jadeas Trust managing director, told TheCable.

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“Since when did banker’s committee and CBN represent the private sector? Whose money do they want to spend? This is illegal and cannot stand. Topwide Apeas, the other preferred bidder with whom we have an MoU, have secured an injunction from the federal high court, Lagos, against the bankers’ committee and CBN against any interference with the national theatre and surrounding landmass.

“The honourable minister (minister of information and culture) knows of our transaction. He was in one of the meetings where he asked us and Topwide to go and work out how we can work on this project. At this point, it is the course of public opinion that is going to justify what is going on.”

Is FG Hiding Something From The Public?

According to Aina, if the National Theatre project is handled by Jadeas Trust, FG won't have to provide any fund despite being a private-public partnership. She revealed that the World Bank had already offered grant to the firm for the National Theatre, and there's a development agency willing to financially support the project as well.

Aina stated that the plan will not cost the government a dime, “They are saying that they are going to spend N25 billion on a facelift, our own transaction is completely not going to cost the federal government any money,” she said, adding that, "Even for the national theatre, there is a development agency that has said as long as they have seen our plans, they would fund the renovation. We even got a grant from the World Bank before.

“We have built up a public-private-partnership. With the World Bank, different agencies are ready to fund it without costing federal government any money.” She told The Cable. Aina further stated that the plan is to build a 55-hectare creative industries business park and a trade centre on the land surrounding the national theatre, as well as a 3,000 capacity creative industries university.