Anxiety heightens over fate of National Arts Theatre

After much ado  over the status of  one of the country’s most-priced assets- National  Art Theatre, Orile Iganmu, indications have emerged over the weekend that the Federal Government may have finally withdrawn its planned sale of the theatre, allegedly over the pressure mounted by concerned stakeholders. OREDOLA ADEOLA, in this report, examines what may have been responsible for the new development. 

Last week, Chief Edem Duke, the Minister of Culture, Tourism and National Orientation, who is also the Supervising Minister of Information, disclosed that the National  Art Theatre, Orile Iganmu, Lagos State is not up for sale. But what has remained undisclosed is whether the theatre would be concessioned or not?

The Minister said that the national heritage cannot be toyed with. He however confirmed plans to transform the national monument into an entertainment city.
According to him, rather than selling the property, the vast expanse of land around the theatre will be converted into an entertainment hub for the benefit of stakeholders in the music, movie and other arts genres.

He said “The information that we are going to sell this iconic place is the handiwork of mischief makers. On the contrary, what this government plans to do is to change the status of this place into an entertainment city that will create a new vista of opportunities for Nigerian artists to fulfill their artistic talents. Just like we did with the Centenary Village, we are going to transform the theatre into a place Nigerians and Africans would be proud of.”

Stakeholders held strong belief that the recent announcement by the minister cannot be relied on, since he has not fully explained the controversy over the $40million  deal with Mulk Holdings, United Arab Emirates conglomerate. A deal which they said was meant to convert the property into a duty-free shopping centre in partnership with the Suzanne Group. It is secretly done despite the subsisting concessioning arrangement with the Bureau of Public Enterprises, BPE.

It would be recalled that the attempt to sale the theatre first emerged in 2001. President Olusegun Obasanjo’s administration was forced to withdraw the decision after it was greeted with a massive protest by stakeholders , when it served notice of its intent to privatize the monument the Bureau of Public Enterprise.

The 38-year old theatre is a convergence point for the stakeholders in the artistic and cultural sector - visual artists, dancers and actors. It was established through decree with the sole responsibility of showcasing the nation’s rich cultural heritage internationally and locally, a parastatal, the National Troupe of Nigeria is the soul of the National Theatre.

The monumental edifice was completed in 1976 during the military regime of Olusegun Obasanjo, in preparation for the 2nd World Festival of Arts and Culture (FESTAC) in 1977. Its exterior is shaped like a military hat, with a capacity of 5500-seater main hall and a collapsible stage. The edifice has two 700/800 capacity cinema halls, both of which are equipped with facilities for simultaneous translation in13 languages.

Based on the information made available to our Correspondent, through an authoritative source from the ministry, the ministry had placed a request for the Expression of Interest(EoI), for the concession in line with the masterplan  on the Nigeria Entertainment City through Public Private Partnership (PPP) in accordance with the ICRC Act 2005 and National Policy on Public Private Partnership. It was further revealed that seven companies including CCECC Nigeria, Calzada, Chrismichaels, Resilient Africa, Quippo Energy Nigeria Private Limited, RMB Westports and Neon Holding Consortium, pre-qualified for the concession agreement.

The source, disclosed that the project will ensure the design, finance, build operate and transfer the property into a five star hotel, international standard shopping Mall and Multi level car park, office building, land and water recreation park.

Meanwhile in another report sourced from GulfAfrica Review, published in December 10, 2014, Chief Edem Duke, was reported to have sold the theatre to Mulk Holdings, United Arab Emirates conglomerate with interests in retail sector and other businesses, in a $40million deal to convert the facility into a shopping mall. This deliberate decision was kept from the local media due to the difficulty and protest that had greeted previous move to sell the property.

The Gulf Africa report further says that Mulk Holdings, announced its entry into the retail sector in West Africa through a $40m joint venture with the Suzanne Group, to develop theatre into a duty-free shopping centre. It quoted Mr. Kabir Yaradua, Chief Executive Officer of the National theatre as saying “The interior of the National Theatre will be redesigned and renovated into a modern duty-free and retail shopping mall. The project will convert approximately 30,000m2 of the existing space in two 15,000m2 phases. These developments will kick-start a master re-development programme for this area.”
It also quoted Mr Shaji Ul Mulk, chairman, Mulk Holdings, as saying that the project was expected to be completed in 2016. Adding that Mulk Holdings will be adopting aggressive strategies to expand its core business, involving serious investment into existing businesses and diversification into sustainable industries,”

According to Macford Okwara, a stakeholder in the sector, the BPE commenced the concession transaction of the theatre in 2001, an action that led to the pre-qualification Jadeas Trust Consortium, and Lloyd Anderson Investment Limited, that were the concessionaires. The transaction was later stalled in January 2003, after the concessionaires conducted data room and physical due diligence of the property, due to the inability of the Ministry of Culture and Tourism to provide relevant documents of the edifice.

In 2006 BPE also advertise the property for EoI, during which eight consortia responded. In 2007 Infrastructica Consortium emerged as the Preferred Bidder with a bid price of ₦35, 560, 000,000 and Jadeas Trust Limited as the Reserved Bidder with an offer of ₦28, 902,948,593.23.

Following the approval of the results of the financial bid by the NCP, an offer letter was sent to the Preferred Bidder on May 18, 2007 and a timetable to complete the concession agreement by May 28, 2007 was drawn. The offer was however terminated because the preferred bidder failed to meet the terms of the offer. Consequently, the Jadeas Trust , that emerged as the reserved Bidder, was thereafter invited for negotiation to pay for the enterprise but the process was later stalled by the government.

In January 22, 2013, the BPE later resumed the transaction when it invited Jadeas Trust Consortium, with the offer of N28,902,948,593.23 to present a revised technical and financial proposal. The N28.9 billion bid offer, which was not yet concluded as it will form part of the renegotiation with Jedeas Trust, comprises both Entry fee and yearly lease fees to be paid over a 35-year period. This is different from the investment capital to be based on approved Post Concession Business Development Plan from which the Concessionaire is to recoup its investment and return the enterprise to the Government after 35 years in the event that the concession is not renewed.

The NCP, in line with its practice to carry along ministries whose enterprises are being privatized/concession, also approved that the BPE should invite the Minister of Tourism & Culture to participate in the NCP’s technical sub-committee that will evaluate the proposal of Jadeas Trust.

Jadeas Trust Consortium has submitted a revised Technical and Financial proposal to BPE. In accordance with NCP’s decision, the BPE has written the Ministry and the Management of National Theatre to send two nominees each to join the evaluation committee that will assess Jadeas Trust Consortium’s Technical and Financial proposal.

The BPE is awaiting the response of both the Ministry and Management of National Theatre for the evaluation of the Technical and Financial proposal to begin in earnest. The result of the evaluation team will be presented first to the Technical Committee of NCP for consideration before the committee presents its recommendations to the NCP for approval or further directive.

While the Jadeas Trust bid is still waiting to be concluded, the undisclosed transaction with the new UAE conglomerate is being kept away from public glare. This has become a major source of concern to stakeholders in the sector. Although most of them identified that the theatre must be positioned for sustaining growth of the industry possibly through privatization, they are of the view that the government must be transparent in its dealing. Concerned citizens have queried the intent of the minister, wondering how long it would continue to mask the deal from public glare.

 According to a member of the National Troupe, Thompson Babatunde, this is a country where government has no respect for the culture and tradition of its people. He said “The minister has refused to demonstrate commitment to developing the sector. The National troupe is not comfortable with the plan to sale the national heritage. This is where we promote our trade, it is better if they are transparent with any plan to offer it to concessioners.” he said.