Monday, April 23, 2018 /08:54 AM / FBNQuest
We attended a briefing at the Business Council for International
Understanding last week at the IMF/World Bank spring meetings in Washington DC.
Nigeria was the focus and Lagos stood out as the poster child. The briefing was
well attended by Lagos State government officials including the
Last year GDP for Lagos State stood at US$92.9bn (data drawn from the
state’s own statistics). The population is currently estimated at 24.8 million
with a rapidly growing middle class, pointing towards a huge consumption
market. The keynote speaker, Governor Ambode, gave useful insights into
investment opportunities within Nigeria’s commercial hub.
Based on data from the UN, as quoted by the governor, Lagos receives 80
visiting individuals per hour. As such, he disclosed that transportation
features on the priority list of his administration’s agenda. There are ongoing
conversations geared towards developing integrated multi-modal transport
systems (roads and waterways).
Power supply shortages remain a key issue not just for Lagos but the
country in general. However, to encourage business activities generally as well
as manufacturing within the state, a few energy projects have been
initiated. The governor discussed Island Power, a US$16m power project
expected to generate 9.7MW.
Investment opportunities within the tourism sector also cropped up and
delegates seemed enthusiastic. Lagos State is culturally rich, and has not
fully capitalised on converting this positive into tourist attractions. Rather
than a replica of Disney World, the authorities and/or the private sector could
develop a tourist center that captures the state’s cultural characteristics.
Lagos is one of the country’s largest markets for agro-products, and we
learnt during the briefing from an IBM official who discussed an "Uber for
tomatoes" product being developed by IBM. Tomato distribution across the
country is challenging: it is often said that half of locally produced tomatoes
rot before getting to end-users.
The Lekki free trade zone was also covered at the briefing. Incentives
are available to increase investors’ appetite. These include: zero-tax on
rental income during the pioneer period; zero-duty on the purchase of power
generation equipment; and one-stop approval for all permits, operation licenses
and incorporation papers.
Lagos State has consistently achieved the highest internally generated
revenue/total revenue ratio over the past few years. Based on the most recent
CBN data, in 2015 the ratio stood at 69%, compared with 53% and 50% for Enugu
and Ogun respectively.
The Lagos State government is to be applauded for its
efforts to attract investment into the country. However, for Nigeria to achieve
inclusive growth, all other state governments need to identify their
comparative advantage, develop it, and create favourable conditions for local
and offshore investors.
Commonwealth Head of Government Meeting (CHOGM) 2018
of the Thirty-Seventh Meeting of the International Monetary and Financial
- A Window
for Reform According to the Fund
of IMF Global Financial Stability Report Press Briefing
Economy: Good News for Now but Trade Tensions a Threat
- Lagos State Has The Highest Domestic and Foreign Debts as at
December 2017 - NBS
- Fitch Affirms Nigeria''s Lagos State at ''B ''; Outlook Negative
- Cleaner Lagos Initiative announces Hotlines for Feedback and
Enquiries from Residents
Affirms Nigeria's Lagos State at 'B+'; Outlook Negative
- NOW OUT! -
36 States & FCT Economic Report plus Estimated 2016 States GDP,
Rivers Top IGR for Full Year 2016