By Japhet Alakam

To many, despite the inherent potentials in art and the money garnered at different art auctions in the country and beyond, many do not still see it as an alternative investment. What is then the position of art in the area of investment, apart from its aesthetic value, can it be used as an alternative?

DG/CEO, NSE, Oscar Onyema

This and other issues might have been what informed the invitation of Oscar Onyema (OON), CEO, Nigerian Stock exchange as the guest speaker at the 10th Distinguished Ben Enwonwu Annual Lecture Series. And as it turned out to be, Onyema gave an insightful and illuminating lecture which was somehow described by one of the partrons as a departure from the usual lecture.

The event which was held at the Wheatbaker, Ikoyi, Lagos as usual, brought together many stakeholders in the art industry especially the fans of the late international artist, Ben Enwonwu who came to be part of the lecture which incidentally, according to Mr Oliver Enwonwu, the Executive Director and Member, Board of Trustees of the Ben Enwonwu Foundation (BEF), commemorates the 20th Anniversary of the death of Prof. Enwonwu MBE, NNOM (1917-94).

Speaking on the topic: Art as an alternative investment, Onyema who has followed developments in the art business for long described art collecting has gone beyond mere appreciation for its aesthetic value, but is now more than ever before considered as an investment, noting that visual arts have the prospect to create wealth “even when political, fiscal and economic headwinds buffet world economies.”

According to him, “Art is no longer just appreciated for its aesthetic value and the expression of its lofty ideals; it is now, more than ever before, considered an investment.” But advised investors to take a portfolio approach while investing in art which means that they have to take asset diversification.

Onyema who has followed developments in the art market for long recalled how emerging economies, which have been the engines of growth since the 2008/2009 financial crisis, faced upheavals in 2013 and took a toll on total global growth, noted that art collecting is a “must-have investment.

He cited the examples of some monumental sales recorded in art auctions like the Ben Enwonwu’s “Seven Wooden Sculpture which was sold for £361,250 and Mystery sold for £300,000 at auctions and even the examples in the foreign countries where Edward Munch’s The Scream sold for nearly $120 million, said that “Prices paid for certain art pieces have gained international publicity, and art as an object of investment has become particularly alluring,”

Looking generally on the state of the art market in Nigeria, Onyema noted that on the positive side, there has been an emergence of a formal secondary market which has steady growth in the visual art sector, focus on production has been high and there is also rise of young artists. And on the negative side, he pointed out some of the short fallings which include, “lack of documentation by artists, dearth of art historians and professional valuers, lack of transparency and confidence in auction houses and professional specialisation, conflicts of interest.”

However, he insisted that opportunities are abound in the local art market. “Sustainable, credible art auctioneering structure, securitisation of artworks, leading to art financing, availability of new sector- specific products and services such as Market Research, Art Valuers, etc and Development of local and regional art funds,” were some of the areas listed.

The annual lecture which was instituted in 2004 is organised by the Ben Enwonwu Foundation.

the lecture , as a think tank forum where notable leaders of thought, national and international figures, policy makers and renowned academics come to share with the public their knowledge, perceptive and ideas on how art can engage society in initiating desirable changes. Past speakers include Prof. Wole Soyinka, Dr Christopher Kolade CON, Chief Rasheed Gbadamosi OFR, Prof. Yemi Osinbajo SAN, Mr Donald Duke CON and Prof. Bruce Onobrakpeya MFR.