PENRESA FOCUS ON LAGOS STATE APRIL 2016 EDITION
AFRICA
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A New Vision for Africa
PENRESA FOCUS ON LAGOS STATE
LETTER FROM A LAGOSIAN PG 02 Leading The Nation PG 04 Asiwaju Ahmed Bola Tinubu: Where It All Began PG 05 Babatunde Raji Fashola: He Had A Dream
BY RUDOLF MUELLER
PG 06 Akinwunmi Ambode: Lagos Follows The Right Path PG 08 Heroes Of Democracy PG 12 Eko Atlantic City: Enter First Class PG 14 The Lion Is Marching Forward
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Lagos is the smallest state in terms of size in Nigeria but it is now home to more than 20 million people. I find myself among them, as we enter a new era under Akinwunmi Ambode, as he takes over the governorship from Babatunde Fashola. Fashola and his predecessor, Asiwaju Bola Ahmed Tinubu, have held the reins for nearly two decades and no-one can deny that they have changed the face of Lagos. The sheer magnitude of the task, to transition this massive urban sprawl into a prospering metropolis of the 21st century, seems impossible at first glance. Yet, successive administrations have managed to project a vision that has incentives for both the public and the private sector to participate in the effort. Fruits of labour The Lagos of today is reaping the rewards of this vision and we are now seeing the dividends of improved infrastructure and private sector involvement. I see a city that is vibrant and full of energy, where something happens and improves every day. Experienced Nigerian expatriates have returned to the state to fill leadership positions and help to build a stronger public administration. For example, the Lagos Internal Revenue Service (LIRS) has benefited immensely from this. I have seen average citizens queuing to pay their annual taxes, and I can’t say I have ever seen that elsewhere! I see a city that is vibrant and full of energy, where something happens and improves every day! Lagos has been a home away from home for my family for close to seven years now and with this report I want to thank those that have included me in their vision for a better Lagos of tomorrow. Itesiwaju Ipinle Eko! O je mi logun!!
AFRICA
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PENRESA FOCUS ON LAGOS STATE
PENRESA FOCUS
Leading The Nation A NEW CHAPTER OPENS FOR NIGERIA’S FINANCIAL CAPITAL BY SAMALI ROTIMI
With the election of Muhammadu Buhari as Nigeria’s president, a new dawn is breaking for Lagos State. As the All Progressives Congress (APC) takes over the federal government, its policies will align with those of the Lagos State administration. The state has already begun to reap the dividends from the work of previous administrations and the new governor, Akinwunmi Ambode, is primed to continue building on those foundations. Nigeria isn’t Africa’s best-kept secret anymore. In 2014, Nigeria, Africa’s largest country by population, also became the continent’s strongest and best-performing economy by GDP. Lagos is also no longer the big yam, a moniker it was given some six years ago. It has effectively become the crown jewel of Nigeria’s economy, with more than 20 million people calling the city of Lagos home. The volatility of commodity prices highlights the importance of building a solid foundation of infrastructure, transportation and financial systems. The state of FORBES AFRICA APRIL 2016 42 | PENRESA APRIL 2016
Lagos had a GDP of some US$136 billion in 2014, generating approximately 25% of the country’s total GDP, and has the highest amount of internally generated revenue in Nigeria – an estimated 75% of total revenue. This makes the state significantly more resilient to dwindling federal revenues derived from oil exports. Steering towards a new Lagos Undoubtedly, the country faces severe headwinds in the face of global economic downturns, particularly a slowdown in Chinese investment and demand for natural resources, and domestic unrest in the north of the country. Nevertheless, the peaceful handover of power to Nigeria’s new president, Muhammadu Buhari, in the presidential election in 2015 bodes well for the country’s continued stability. While having to confront budget deficits from the decline in oil revenues and a devaluation of the currency, Buhari’s aspirations for reform and the fight against corruption reach all corners of the country.
On the local level, Lagos State has been able to institute a solid public administration that has raised the profile of civil servants and delivered returns on investment for the private sector during 16 years of uninterrupted governance and political stability under what is today the APC. The government agencies of Lagos State, such as Lagos State Internal Revenue Service and Lagos State Signage and Advertisement Agency, have relentlessly laboured to provide public services, and, after having garnered significant interest from other countries such as Kenya and Ghana, are now being emulated by other administrations across sub-Saharan Africa. Footprints of success In 1999, Asiwaju Bola Ahmed Tinubu took on the reins as governor with a vision he promoted as a “blueprint” for a modern Lagos. One of Tinubu’s most successful initiatives was winning over accomplished expatriate Nigerians for his cause and signing them up to reorganise public service agencies in the state.
“Lagos state is a success story and we are experiencing unprecedented migration from other parts of the country. This is because Lagos has become a model government that is responsive to the people and creates economic opportunities and sustenance for millions,” says former Governor Tinubu. Then, Babatunde Fashola, another Action Congress candidate, succeeded Tinubu in 2007. He remained in office for two consecutive terms during which he showed a determination to eliminate graft and further strengthen public-private partnerships. Meanwhile, the demands of a young and rapidly growing citizenry, reaching more than 10.5 million, had been putting enormous pressure on Lagos and is stretching the limits of its infrastructure. Fashola continued to assert good governance and follow the blueprint with the aim of turning Lagos into a modern African megacity with thriving commerce. Today, we see the beginnings of the fruits of their labour in the form of new public transportation such as the bus rapid transit system, the foundations of a new airport, the Lekki Free Zone and improved transport in the waterways: the mega transport plan. Light rail is expected to relieve traffic congestion as soon as 2017. “The mass transit option for public transportation remains one of the drivers of growth and must continue to top the agenda,” Tinubu says. Building on foundations This is where the new Governor Akinwunmi Ambode, former Accountant-General of
Lagos, will pick up where his predecessors left off and continue implementing policies that bring strong returns to the citizens of Lagos and serve as a model for the rest of Nigeria. At the same time, the new president in the capital, Abuja, is also starting his first term with an electoral victory over an incumbent president – a first in Nigerian modern history. The smooth transition of power bodes well for the future of the country and has reassured investors about the security of their investments. An APC presidency is also set to benefit Lagos where policy-making is now aligned with the federal government. Many projects are set to move forward with federal approval. In particular improvements in the power sector are beginning to take root, including the commissioning of several independent power plants. In March 2015, then Governor Babatunde Fashola inaugurated the fifth independent power plant installed over a five-year period, adding a total of 42.5MW to the state’s electricity generation capacity. In addition, Nigerian cement producer and billionaire Aliko Dangote has forged a partnership with US private equity firms Blackstone Group and Carlyle Group to invest more than $5 billion in power projects. Full steam ahead Reliable energy and transport systems represent the key requirements for the city to become a megacity of the 21st century, providing a sustainable living and working environment for more than 20 million people. Now, the aim is to position Lagos as a gateway to the rest of Africa and an easy
place to do business. The strategic imperative is for Lagos to become an international financial centre for sub-Saharan Africa and beyond. Looking ahead, Governor Ambode’s agenda for Lagos will be centred on developing the state’s social and security environment, powering the economy and building environmentally sustainable infrastructure. This multi-pronged approach has been termed “the four pillars”. Governor Ambode told CNBC Africa in November 2015 that his focus will be on creating security, job opportunities and infrastructure. “These three factors rotate around all the other priorities in delivering government services,” he explains. “Security is the backdrop of economic growth. And it needs a successful partnership with the private sector,” Ambode says. His strategy is a continuation of a plan that was initiated in 2012 and envisions a line of projects and specific actions until 2025. “Past administrations have ultimately paved the way for Lagos State to become a megacity. The new administration is building on this legacy, and it is very much a continuation to enable sustainable growth for Lagos under the four big pillars,” says Uyi Akpata, senior manager PWC, West Africa. The promotion of public and private partnerships already saw several breakthroughs in transport infrastructure and the construction of the Lekki Free Zone. Now, with Ambode’s promise to continue building on these foundations, Lagos has a vote of confidence to become Africa’s very own “Big Apple”. APRIL APRIL 2016 2016 FORBES AFRICA | 5 3 PENRESA
PENRESA FOCUS ON LAGOS STATE
GOVERNOR OF LAGOS (1999-2007) ASIWAJU BOLA AHMED TINUBU
Where It All Began
BY GBENGA GOLD
Asiwaju Bola Ahmed Tinubu has long retired from his post as Lagos governor, but he remains an active force in Nigerian politics. No other politician is more frequently mentioned when discussing the last 17 years of Nigeria’s political journey after military rule than Tinubu. In 2013, he managed the unthinkable of uniting the opposition to form the All Progressives Congress, which put forth the new incumbent President Muhammadu Buhari in 2015. Today, he remains firmly entrenched in the driver’s seat as the party’s national leader.
The blueprint and the commitment to the implementation of our developmental plan, coupled with a great team of dedicated people at all levels, laid a great foundation for the rapid development of Lagos.” ASIWAJU BOLA AHMED TINUBU, FORMER GOVERNOR OF LAGOS STATE
Man with a vision He is often described as the visionary who conceived the blueprint for a new Lagos, outlining long-term plans for the city’s transformation into a modern metropolis and Nigeria’s financial centre. In 1999, he became the first governor to serve following military rule and during his eight years as governor of Lagos State, he laid the foundations for some of the most ambitious and transformative urban infrastructure projects on the continent. Introducing regular garbage pick-up was not the least of accomplishments – considering that Lagos was once known as the world’s dirtiest city. His ideas were a catalyst for the development of Lagos, conceiving the plans that are now fully coming to fruition. In 2007, Bola Tinubu signed a memorandum of understanding with the Chinese government for the construction of Lekki Free Zone, which is now nearing completion and is set to become a major African manufacturing and transportation hub. Once finished it will add a new deepsea port and support Nigeria’s non-hydrocarbons sectors, generating significant economic dividends for the state. In a previous interview, Bola Tinubu called for the federal government to stimulate the economy with expenditures targeted at infrastructure, power, employment and manufacturing. “The nation needs an industrial policy and an employment policy. We will not be able to grow this nation without a vibrant manufacturing sector,” he said. Order of business Most importantly, Tinubu manned his administra-
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tion with capable and experienced civil servants who were able to give Lagos’ transformation strong institutional support. The way he organised his administration into agencies, such as the Lagos Internal Revenue Agency (LIRS), has become an example for many sub-Saharan countries trying to reshape their own public administrations. With the infrastructure and transport overhaul initiated by former Governor Tinubu, including the Bus Rapid Transit (BRT) system, becoming a success under his successor Babatunde Fashola, Lagos’ public mass transport system also stands out as a positive development example. Tinubu has said: “The mass transit option for public transportation remains one of the drivers of growth for Lagos and must continue to top the agenda.” Tinubu was also responsible for the first successful Independent Power Project (IPP) by any state government, generating 260MW of electricity from Ikorodu to the national grid. Public-private partnerships play an increasing role in the development of Lagos’ infrastructure and today there are five IPPs generating some 47MW of electricity. “The blueprint and the commitment to the implementation of our developmental plan, coupled with a great team of dedicated people at all levels – executive, legislative and judiciary – laid a great foundation for the rapid development of Lagos. It re-positioned Lagos to be able to meet the challenges of an emerging mega city,” Tinubu has said. Footprints In February 2016, Tinubu accepted The Sun newspaper’s Man of the Year award, and Tinubu’s political prowess appears to be at its zenith. He handed over the reins to his capable chief of staff, Babatunde Fashola, in 2007, who has continued to walk in his footsteps by carrying out the blueprint for Lagos. Most recently, his endorsement in support of Akinwunmi Ambode in the 2015 gubernatorial election strongly weighed in on public opinion and helped to seat Ambode as a successor to Fashola in a tight race against the opposition. In any case, history agrees, he has set a high standard and now continues to provide inspirational leadership.
PENRESA FOCUS ON LAGOS STATE
GOVERNOR OF LAGOS (2007-2015) BABATUNDE RAJI FASHOLA
He Had A Dream
BY ELEONORA BICHLER
Babtunde Raji Fashola, a Lagosian by birth and a lawyer by trade, has shaped the face of Lagos more than anyone else. His milestones are easy to spot – between 2007 and 2015 his administration put in place some 362 new roads, mass transit routes, bridges, a transformed Lekki Peninsula and the Eko Atlantic, which is starting to rise out of the sea. As governor, Fashola set out in the footsteps of his predecessor, Bola Tinubu, and continued to complete the creation of a modern megacity of the 21st century – Africa’s very own big apple. Social contract While outwardly his focus may have seemed to be infrastructure, Fashola’s passion was centred on his human capital. He built schools and redefined public service institutions. To man his administration, he won over expatriate Nigerians to return and support his cause. “I think the biggest achievement here is that it says that the social contract is working. That is defining,” he has said. The least of which is evident in the spike in internally generated revenue in Lagos State following his efforts to turn residents from mere taxpayers into stakeholders. “People are now energised in a way that is the truly inspiring part of the effort. They now see all that is possible,” Fashola has been noted as saying. “People now begin to realise that they must be part of the solution and stop just pointing at the problems. I think of the mobilisation of public support, civic engagement and payment of taxes in the sense that it is a contribution to the overall effort,” he says. One of his biggest achievements, and perhaps the most underreported in international media, was putting a swift and efficient halt to the spread of Ebola in his city during the height of the crisis in West Africa in 2014. The containment of the virus in a city of 20 million people was no small feat. Fashola quickly rose to the challenge and implemented a strict quarantine for suspected cases and Nigeria was subsequently declared Ebola-free little over a month later, while the
disease raged on in neighbouring West African countries. Full steam ahead In addition to improving popular sentiment and civic engagement among the inhabitants of Nigeria’s most populous state, he was also able to enlist the support of the private sector and drew the eye of many foreign investors towards Lagos. “It is a land that needs so much service, a land that promises so much return on investment. It is a place where you catch, what I call the “never-leave bug” once you come here,” he commented about investment climate Nigeria in general and Lagos in particular. In 2015, with Muhammadu Buhari’s election as Nigeria’s new president, Fashola became Nigeria’s Federal Minister of Power, Works and Housing. Hopes are high for him to do for Nigeria what he did for Lagos. “That is all that I have tried to do and to champion by using the authority of my office as governor. I will do the same thing if the same resources are at my disposal without the title of governor,” he said. Power play In the new year, Fashola has already begun to push aggressively for the overhaul of the country’s power sector, which many consider the root of all of Nigeria’s problems. The initiative includes electricity tariff reform to incentivise private investors who are to contribute with smaller independent power plants to add some 2GW to Nigerian electricity generation in 2016. As far as his legacy is concerned, he said Akinwunmi Ambode took over from where he stopped. Moving on to bigger tasks in his position as minister, he leaves many institutions to be preserved and built upon in his home state. “Because all of this will mean nothing if there is no generation to hand it to. All of these plans will fizzle away. The next generation must be better equipped than I am.” On April 12, 2015, when the All Progressives Congress swept ahead in the regional elections, he tweeted from his personal twitter account: “Lagos wins. Eko o ni Baje.”
I think the biggest achievement here is that it says that the social contract is working. That is defining. People are now energised in a way that is the truly inspiring part of the effort. They now see all that is possible.” BABATUNDE RAJI FASHOLA, FORMER GOVERNOR OF LAGOS STATE
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PENRESA FOCUS ON LAGOS STATE
GOVERNOR OF LAGOS AKINWUNMI AMBODE
Lagos Follows The Right Path BY RUDOLF MUELLER
A new chapter has been opened for Lagos with Governor Akinwunmi Ambode. So far, Lagos State has benefitted immensely from the continuity of political stewardship under the All Progressives Congress (APC), and within only a few months, the new incumbent has managed to show that he is set to continue to move Lagos forward under the same standard. Governor Ambode is known as a man of few words but has an impressive résumé as a public servant. His experience gives him a proper foothold in office and many consider him as a suitable successor to former Governor Fashola. With 27 years of civil service in Nigeria, culminating in his post as former accountant-general of Lagos State from 2006-2012, prior to being elected as governor, Ambode knows his jurisdiction well. He was responsible for the state’s financial activities and had more than 1,000 accountants under his watch. He has already been instrumental in upgrading financial planning methods for Lagos State. This knowledge will come in handy in managing Nigeria’s most populous state. Compatible goals In addition, the new national configuration with Muhammadu Buhari’s election as president in March 2015, aligns Lagos State’s government politically with the federal government for the first time since the end of military rule in 1999. While the opposition party controlled the federal government, Lagos was hard-pressed to raise funds for public services and public infrastructure. Now that the APC is in control of both the federation and the state, it will make approval processes and consensus smoother for Ambode than it was for his predecessors, former governors Bola Tinubu and Babatunde Fashola. Former Governor Tinubu also endorsed Ambode’s candidacy in January 2015 by stating that Ambode was “the right man for the job”. “I can say that the revolution is here and Lagos will experience another level of development with Ambode,” Tinubu was quoted as saying, according to Nigeria’s Daily Post. However, the opposition continues to loom in the background, as the last election for the governor’s post in Lagos State was a close call against the Peoples Democratic Party’s candidate. The margin of victory for the APC was too narrow for the leadership to be able to rest on its laurels. Growth capital But pressure comes from all sides. As the financial centre of Nigeria – Africa’s most promising source economic growth – despite the downturn in oil prices, global attention is fixed on these 3,577 square kilometres, which make up the country’s smallest state territory. 6 | FORBES AFRICA APRIL 2016 8 | PENRESA APRIL 2016
Ambode will have to work hard as Lagosians are notoriously difficult to please and the “Top 10 reasons to move out of Lagos” have already been circulating on the internet. Establishing security remains the premise of all development in Lagos and it sits firmly at the top of Governor Ambode’s agenda. In his effort to prioritise the fight against crime, he made a donation of assets worth N4.8 billion ($24 million) in November and rebranded the Rapid Response Squad, which operates under the public-private partnership of the Lagos State Security Trust Fund. The new administration is also banking on new technology and recently commissioned Nigeria’s first forensics DNA lab in Lagos. “We know that if we have a safer Lagos, it creates more opportunities for investment to thrive and it also creates job opportunities for our people and within that context, we will be able to get more revenue from taxes and also improve upon infrastructure and allow the GDP of Lagos to grow and so we have that commitment that we will improve on whatever it is that we are doing and ensure ease of doing business,” says Ambode. The technology upgrade is in line with the “Light Up Lagos” project, which was one of the election campaign’s focal points expected to improve socio-economic challenges. The project has the ambitious goal of maintaining continuous electricity supply to residents and illuminating major transport infrastructure such as key highways. Here the new administration is following the Lagos blueprint, initiated under Governor Bola Tinubu, by fostering public-private partnerships (PPP) for fully independent clusters of power generation. Bottoms up Given the sharp drop in the price of oil and the subsequent depreciation of the naira, the government has stepped up efforts to promote and support industries that are able to improve the situation by strengthening Nigeria’s export industry. According to Nigeria’s National Bureau of Statistics, growth in the nonoil sector is largely driven by agriculture, financial services, telecommunications and trade sectors. Ambode in particular has initiated efforts to support the domestic manufacturing of Nigerian consumer goods for example in the collaboration with Guinness Nigeria, whose factory is located in the capital of Lagos, Ikeja. “This is in line with our commitment to showcase Ikeja, as the real capital of the state as well as a hub of manufacturing and commercial activities,” says Ambode. “We will implement government policies that will encourage the private sector to employ more citizens and foster economic development,” he adds.
Nigerian Breweries is another example of domestic production; in Ambode’s view the 100% locally-owned Nigerian Breweries is an example of an enterprise that allows Nigerians to produce goods locally in Nigeria and free up forex by foregoing imports. A fillip for business Governor Ambode has formulated a focus on small to mediumsized enterprises. To encourage investment, his administration
“In order to make our state a tourism destination in Africa, we will develop our waterfront by providing recreational facilities and encourage investors to invest more in tourism infrastructure,” Ambode commented. Building on the state’s cosmopolitanism, he has planned an array of festivities and museum upgrades to highlight Lagos’ cultural heritage as a melting pot. “It is a natural location for tourism and this is an area my government is working to harness as quickly as possible,” he said in previous interviews. In December 2015, the administration organised a five-day celebration of arts and culture in Lagos, the One Lagos Fiesta, which was said to have taken place without any incidents of crime. “When we say you should live in Lagos, work in Lagos and enjoy with Lagos, we mean that we are going to put tourism, entertainment, arts and sports together for excellence,” he said. Governor Ambode has encouraged fostering sports in particular. For example, in February, Lagos held a successful international marathon, the first one of its kind held in Nigeria for the past 30 years. Finishers were welcomed in Atlantic City and more than 20,000 runners participated. And now, Lagos is set to host FC Barcelona’s first football academy on the African continent, which is also the first of its kind in Africa.
Lagos State has justified its creation. Apart from being the pacesetter and first among equals in the comity of states in the Nigerian Federation, Lagos State also occupies a noticeable position in global affairs especially as the fastest growing mega city in the world.” GOVERNOR OF LAGOS STATE AKINWUNMI AMBODE
has created the N25 billion ($124 million) Employment Trust Fund to give loans to entrepreneurs with only 3% interest. To further enable an environment for businesses, his administration is working on establishing the Lagos Micro Finance Bank, in cooperation with Nigeria’s Central Bank. Other notable initiatives can be seen in the state’s transportation segment. Fashola is said to have focused on the more commercial areas of central Lagos where he initiated the light rail system to ease traffic congestion. Governor Ambode has picked up where Fashola left off with the extension of the part of the light rail system known as the Blue Line. The extension is currently being built and is expected to go live by December 2016. In February 2016, he said the improvement of waterway channels was also being finalised to bolster water transportation and relieve the pressure on road networks. Other road works have also been initiated, including two flyover bridges and the urban renewal project following the demolition of Oshodi market. Ambode has also stated ambitions to raise the profile of tourism in the state, which he expects to bring benefits to the local economy.
Party like it’s your birthday Lagos is not only Nigeria’s smallest and most populous state but also its oldest and that is reason for celebration, says Governor Ambode. Lagos is set to celebrate its 50th birthday next year, marking half a century since its official founding in May 1967. Governor Ambode argues: “Lagos State has justified its creation. Apart from being the pacesetter and first among equals in the comity of states in the Nigerian Federation, Lagos State also occupies a noticeable position in global affairs especially as the fastest growing megacity in the world.” The governor has tasked famous poet and Nobel Prize winner Wole Soyinka to spearhead the organisation of cultural festivities. This anniversary will be Ambode’s opportunity to showcase the achievements of prior administrations in Lagos, both domestically and overseas, and to set a starting point of his own path towards further development of a smart and sustainable African metropolis. APRIL 2016 FORBES AFRICA | 7 APRIL 2016 PENRESA | 9
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BUILDING THE NATION
Heroes Of Democracy THE LONG ROAD TO SUCCESS
BY FOLAKE EDWARDS
Undoubtedly, Nigeria has come a long way from independence in 1960 to the constitutional republic it is today. The country suffered a turbulent path in trying to overcome military rule and handing over of power to a civilian government, which was achieved in 1999. Outside of Nigeria, and outside of Africa, the political activists in the early beginnings of the struggle for democracy may be less known, but they are not unsung. The Nigerian struggle for independence has its own heroes. Icons of African democracy There were many in who paved the path for other African leaders. For example, Kwame Nkrumah spearheaded Ghana’s independence from Great Britain in 1957, the first sub-Saharan nation to claim independence. In addition to achieving political self-governance, another of Nkrumah’s priorities was to quickly develop economic self-reliance and support education with public spending. However, Nelson Mandela, who led South Africa into a new era with the end of apartheid, remains the most famous icon of African democracy. The first election with universal suffrage did not take place until 1994, and marked the end of apartheid with the African National Congress’ and Mandela’s overwhelming triumph in the polls. Nigeria’s struggle Perhaps inspired by what he saw in South Africa on the day Nelson Mandela was released from prison in February 1990 after 27 long years of imprisonment, Nigerian businessman and political activist, Moshood Kashimawo Olawale Abiola, resolved strengthened to lead his own country towards a civilian government. Abiola had been active in Nigerian parties since his early youth and joined the ruling National Party of Nigeria 8 | FORBES AFRICA APRIL 2016 10 | PENRESA APRIL 2016
MOSHOOD KASHIMAWO OLAWALE ABIOLA (R) AND NELSON MANDELA (L) IN SOUTH AFRICA AFTER THE RELEASE OF NELSON MANDELA
(NPN) in 1980 and swiftly climbed the ranks to be elected chairman of the party. However, his presidential ambitions were repeatedly dashed by military involvement – first in 1983 and again a decade later in 1993. On June 12, 1993, Abiola was shown to have won 58% of votes in preliminary results of the presidential election – the first time a southern candidate was able to reach across ethnic divides. However, the victory was pre-empted by the incumbent president and military general, Ibrahim Babangida, and the country descended into political chaos culminating in a military coup shortly thereafter. Abiola was imprisoned and passed away in 1998 before he could assume the presidency and Nigeria remained under military rule until Olusegun Obasanjo was elected into office in 1999. During Abiola’s imprisonment, Nelson Mandela had consistently petitioned for his release, and a few months before Abiola’s death, Pope John Paul II also made a plea for him.
At the time of the coup, perhaps one of the most tumultuous periods in Nigeria’s modern history, Bola Ahmed Tinubu, best known internationally as former governor of Lagos State during Obasanjo’s
The June 12 anniversary offers us another reminder that this country is one set for greatness. We all are called to duty. Through his [Abiola’s] political struggle, we glean courage and incorrigible commitment to principles of the just, free and humane society.”
presidency, but then-Senator representing Lagos West Senatorial District, cofounded the National Democratic Coalition (NADECO) to protest the military takeover. Like many others, he was forced to retreat when General Sani Abacha rose to power, and went into exile until his return in 1999 when he ran for governor on the election ticket of the Alliance for Democracy (AD) party. Referring to Abiola’s political activism and personal sacrifice, Tinubu said last year, “We are challenged to guard our hard won democratic freedom and prevent any hijack or abuse of the very principles of constitutional democracy.” Today, June 12 is observed a national holiday in Nigeria in remembrance of the hopeful election in 1993 and in commemoration of the martyrs in the struggle for democracy. “The June 12 anniversary offers us another reminder that this country is one set for greatness. We all are called to duty. Through his [Abiola’s] political struggle, we glean courage and incorrigible commitment to principles of the just, free and humane society,” Tinubu says. Modern times Under this motto Tinubu continued to build coalition parties bridging the regional divide with the aim of unseating the People’s Democratic Party (PDP), which had a firm grip on the capital. In 2006, Tinubu founded the Action Congress of Nigeria (ACN), which united the Alliance for Democracy, the Justice Party and the Advance Congress of Democrats under one banner in opposition to the PDP, which had won every national election since 1999. Last but not least, Tinubu is said to have been the mastermind behind the All Progressives Congress (APC). The APC was created in 2013 to prepare a formidable opposition for the 2015 election, by forging an alliance between the ACN, the Congress for Progressive Change (CPC), the All Nigeria Peoples Party (ANPP) and the All Progressives Grand Alliance (APGA). Where the ACN had failed against the PDP in the 2011 election, the APC was able to declare a victory four years later.
(FROM L-R): BABATUNDE RAJI FASHOLA, FORMER PRESIDENT OF THE USA BILL CLINTON AND ASIWAJU BOLA AHMED TINUBU
(FROM L-R): DURING THE 2015 PRESIDENTIAL CAMPAIGN, ASIWAJU BOLA AHMED TINUBU, MUHAMMUDU BUHARI, BABATUNDE RAJI FASHOLA AND AKINWUNMI AMBODE
In its short existence, the APC has been able to bridge the ethnic divide between the South West and the North West, and chip away support in PDP strongholds. Presidential opposition candidate Muhammadu Buhari was also not a new face in Nigeria’s modern political history. He briefly headed the state following a military coup in 1983 for two years, and subsequently ran for office as an opposition candidate in four elections since 2003. Changing tides The APC presented such a strong draw that immediately after its inception in 2013, five PDP governors defected from their own party to join the ranks of the APC. After a postponement of the general election from February to the end of March 2015, Nigeria’s fifth general election saw the APC take centre stage in the federal government and announce Muhammadu Buhari as the next president. Then-President Goodluck Jonathan was credited with facilitating a smooth transition of power – or as Nigerians like to say; without “wahala”.
The PDP that had considered Abuja as its stronghold since 1999 is now a minority party in the House of Representatives. However, Sunday Dare, a journalist and special media advisor for former Governor Bola Tinubu, points out that there are important developments in Nigeria’s march towards democracy that can be observed in this recent election. “The most important lesson from the election victory is that for the first time, we have two clearly defined parties,” Dare explains, implying that having a choice rather than just the right to vote marks a certain progress in the democratic process. “We have never been at this point before. The APC is a strong party and the PDP is also strong. A two-party system is now clearly in place. We must give recognition to leaders and thinkers of the APC for making this possible; for forging political mergers and moving ahead to energise the Nigerian public,” says Dare. As Lagos turns 50 years old in 2016, it celebrates unity with the federal government at last. APRIL 2016 FORBES AFRICA | 9 APRIL 2016 PENRESA | 11
PENRESA FOCUS ON LAGOS STATE
LAGOS METROPOLITAN AREA TRANSPORT AUTHORITY (LAMATA)
Prime Movers The question of where is everyone going and how are they getting there has been at the heart of Lagos’ urban planning. In 2008, the Lagos Metropolitan Area Transport Authority (LAMATA) was tasked by the state government with finding and implementing solutions to the state’s dismal traffic situation, the result of the 20 million trips taken by Lagosians on a daily basis. The agency has gone through various cycles of planning and implementation under the auspices of former governors Bola Tinubu and Babatunde Fashola, seeking to align federal, state and local programmes under the Strategic Transport Master Plan, which encompasses most of the state’s territory. “Urban transportation is complicated, even in more developed countries. It involves co-ordination between so many levels, governments and permitting agencies,” explains Dr. Anthony Ekundayo Mobereola, former managing director of LAMATA and incumbent Commissioner of Transport for Lagos State. Now, after close to a decade into its existence, and establishing facts on the ground, the agency is garnering the first success. From 2008 until now the bus rapid transit (BRT) system has carried almost 290 million passengers in what was mainly supposed to be a pilot connecting the bus and rail system. In 2015, the new Governor of Lagos commissioned a BRT extension and officially kicked off the bus as part of the public transportation system. Under Ambode, LAMATA is now continuing implementation of the Strategic Transport Master Plan, which has already set out achievement goals for the agency over the next 20 years. “At the same time, we are also centred on the sustainability of the infrastructure that has been put into place,” says Mobereola. 10 || PENRESA FORBES AFRICA APRIL 2016 12 APRIL 2016
“We needed to predict the trend over time. And we came up with the fact that we are going to need nine BRT routes and seven rail routes. In addition, Lagos requires seven or eight water transportation routes,” he says. After all, lagoons and creeks cover one-fifth of Lagos State, and harnessing the waterways could significantly lessen travel times between suburbs and the centre. Much of the emphasis will also be on integrated systems from bike and bus to rail and waterways, and to introduce electronic ticketing, digital monitoring and communication – “e-traffic”. Another specific aim, for which negotiations are ongoing, is to connect the existing federal government rail line in Lagos’ more densely populated areas to the rail mass transit system. Part of the new rail system is being built under a public-private partnership programme. China Civil Engineering Construction Company (CCECC) was assigned the design and construction of the first line, also termed the Blue Line, in 2010. So far 27km have been built with four stations, with nine more still to come to bring the total to 13 stations. The first train is expected to be tested in June and a tender for an extension has now been opened to connect the northern and southern parts of traffic-plagued city of Lagos. “Rail is the backbone of movement in most megacities such as London, New York and Washington DC.,” says Mobereola. “Investment in the rail is a huge and is always long-term, including operations and maintenance. A rail track will last 100 years if it is well maintained,” he adds.
Another rail line, the green line, will connect to the airport, sea port and the Lekki free trade zone, which is becoming a major transport hub for Lagos. Currently, Mobereola explains, only 20% of Lagos’ population uses public transport. “Ordinarily it’s supposed to be the reverse with some 20% driving a motorised vehicle. The majority is supposed to be travelling on public transport. That would lessen the impact and decongest the roads,” comments Mobereola. LAMATA is working to create a smart city, making it more liveable and efficient, but the road to success is long. While benefitting from a strong administrative lead, Lagos’ infrastructure remains in urgent need of more resources from investors to achieve the necessary scale of mass transport for a metropolis.
Address: Block C, 2nd Floor, Motorways Centre, Motorways Avenue, Alausa, Ikeja, Lagos, Nigeria Phone: 01-2702778-82 Fax: 01-2702783 Email: info@lamata-ng.com Web: www.lamata-ng.com
PENRESA FOCUS ON LAGOS STATE
LEKKI FREE ZONE
Port Of Call This article is dedicated to the legacy of the late Mr. Tajudeen Ajibola Babatunde Disu, former Managing Director of Lekki Worldwide Investments Limited. We would like to honour his accomplishments in the Lekki Free Zone and his many contributions to the development of Lagos. Undeniably, Lagos has experienced over a decade of unprecedented growth and has become an economic nexus for both Nigeria and West Africa. Scaling up the state’s infrastructure is now essential in carrying forward industrial development. One of the most crucial new projects tied to expanding the country’s transport network is the Lekki Free Zone (LFZ), which spans more than 16,500 hectares and is located a mere 60km from metropolitan Lagos. Wedged between two peninsulas of land and surrounded by the Lekki and Lagos lagoons and the Atlantic Ocean for easy access, the LFZ is well positioned to become a major catalyst for the economy of Lagos State and beyond. Lekki Worldwide Investments Limited (LWIL) was set up as a special-purpose vehicle by the government, to play a vital part in moving the LFZ project forward via public-private partnerships. The future LFZ will provide Lagos State with a model for all the infrastructure requirements of a megacity: roads, airports, seaports, and supply all basic services such as drainage, water and electricity. The project, first announced in 2004, started off with a joint venture involving the Lagos State government, LWIL and China Africa Investment Limited (CALI) to develop the first of four quadrants (comprising 3,000ha) of the project. The involvement of the Nigerian Export Processing Zone Authority has, so far, provided incentives for foreign direct investment to be channelled into the different zones and into different sectors.
Diversification is key Private sector investment to stimulate and diversify the economy has become imperative, as the upstream hydrocarbonsrelated sectors are increasingly volatile due to global oversupply, resulting in the sharp decline of commodity prices. The non-oil sectors of the Nigerian economy have been largely untapped for several decades. After the discovery of oil, Nigeria, once known as the breadbasket of West Africa, neglected the main pillars of its economy: farming, mining and industry. Hence, the plan for Lekki includes a host of downstream processing facilities, such as refineries, which will enable the country to process oil further down the value chain. In addition to duty free privileges, it allows for 100% foreign ownership of investments and 100% repatriation of capital, and most importantly independent power supply. Former managing director, the late TAB Disu, envisioned that the new world-class infrastructure would enable investors to reap the full advantages of the growing Nigerian economy. Various transportation projects, such as a fourth mainland bridge and a new airport, still offer ample investment opportunities worth up to US$10 billion.
Major gateway However, one of the key elements of success is the Lekki deep seaport, which in March received a cash injection of more than $1 billion from six banks, including the African Development Bank, Standard Chartered and the European Investment Bank. A deep seaport in Lagos, with an initial capacity of an estimated 2.5m TEU annually and berthing depth of more than 10 metres, will attract business and lift congestion at the notoriously strained Apapa Port and also benefit the surrounding landlocked countries. The LFZ is set to become a major transport hub and gateway into West Africa. Lagos’ newest port is primed to become a port of call for any investor seeking to participate in Nigeria’s growth story.
Address: Lekki-Epe Coastal Road, Ibeju-Lekki Local Government Area, Lagos, Nigeria Phone: 234-(0)7035417440 234-(0)8063037118 Email: info[@]lfzdc.org Web: www.lfzdc.org
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PENRESA FOCUS ON LAGOS STATE
EKO ATLANTIC CITY
Enter First Class BY PENELOPE T. SILVA MICCOLI
The first buildings have begun to rise up out of the sea in Lagos’ new commercial and residential development, Eko Atlantic City. Land reclamation for the 10 million-square-metre development, hugging the Atlantic Ocean coastline off of Victoria Island, began in 2009, and has now become the signifying project for Lagos’ status as a mega model city. Described as one of the world’s fastest-growing cities, Eko Atlantic City is projected to house a quarter of a million people – a city within the megacity of Lagos. It will be to Lagos what Manhattan is to New York, or the financial Lujiazui district that brightens the skyline of Shanghai. Although the project is privately funded, by South Energyx Nigeria, an urban planning and property development company and a subsidiary of the Chagoury Group of Companies, it is supported by the Lagos State government. While the project promises to stimulate the state’s overall economy, it has also been designed to secure the settlements in Victoria Island, protecting the shoreline from tidal ocean surges.
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The development is therefore benefitting from streamlined planning procedures through an arrangement with Lagos State. Entire sections of the city will be zoned specifically for high-rise developments for mixed use, both residential and commercial facilities. Rising demand Here, at the intersection of business and leisure, Eko Pearl is being developed to provide an emerging middle class with apartments and high-grade commercial buildings within Eko Atlantic City. Sitting at the heart of Lagos’ financial centre, the five Eko Pearl Towers are set to make their mark, spread out over 23,000 square metres. Elias Saad, chairman of the Eko Pearl Towers luxury real estate project, is known for his avant-garde architectural designs, which have eventually led him to envision this superstructure. “One of Africa’s largest financial cities is being developed in Eko Atlantic, and we are expecting about 300,000 apartments to emerge in the area,” Saad explains. “It was a logical step to develop real estate because there is a huge shortage in Nigeria today. That shortage is only going to increase over time, so it made sense to plan for a high-density city with high-rise buildings and the infrastructure that comes with it,” says Saad.
The first tower is set for completion in spring 2016 with the second 31-floor tower to follow by January 2017, becoming fully operational by March 2017. Primed for business Sub-Saharan Africa’s GDP growth is projected to be 4.9% in 2016, meanwhile Nigeria’s growth is estimated to be 5.8% in 2016, according to World Bank data. Lagos’ GDP alone is expected to spike more than 200% to US$355 billion by 2025, predicts new governor Akinwunmi Ambode. “Lagos is a place where people are already doing business. Eighty of the 500 biggest companies in the world are already operating in Lagos,” comments Uyi Akpata, Senior Manager of PWC, West Africa. In 2015, many investors took a wait-andsee attitude before and during the presidential election. However, following the smooth transition of power in Abuja in April and the appointment of a new cabinet in November, investor interest has returned. “We have seen a lot of strong interest from overseas investors since the election. Interest from overseas companies and private equity funds returned almost overnight,” says Ronald Chagoury Jr., Vice Chairman of South Energyx.
“There is also an expatriate population that is generally on the rise, alongside an emerging middle class. Those two factors alone create even more demand in a market already short of supply,” he says. Previous real estate projects such as Banana Island and Lekki have demonstrated that construction companies have the capacity to undertake larger development and that private investors can be very successful in Lagos. Demographic and socio-economic changes will almost certainly continue to drive demand for housing in Lagos. All eyes on Lagos As the economy is at pains to diversify away from hydrocarbons and the domestic banking sector consolidates its balance sheets, an underdeveloped mortgage sector also holds a certain appeal for investors. However, foreign investment and public-private partnerships remain key for sustainable infrastructure in a metropolis the size of Lagos. “The Lagos State government and the Nigerian federal government have a long-standing reputation for honouring their commitments, especially in regard to real estate. Under the terms of the concession agreement with the Lagos State government, which has been very supportive in this project, all potential investors and residents in Eko Atlantic can be assured of full legal protection,” says Chagoury. As Lagos continues to present a stable investment environment and presses on with power and infrastructure developments, Eko Atlantic City may well come to be the center of Africa’s new top investment destinations.
One of Africa’s largest financial cities is being developed in Eko Atlantic and we are expecting about 300,000 apartments to emerge in the area” ELIAS SAAD, CHAIRMAN OF THE EKO PEARL TOWERS LUXURY REAL ESTATE PROJECT
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PENRESA FOCUS ON LAGOS STATE
THE WORLD’S FASTEST GROWING CITY
The Lion Is Marching Forward
LAGOS IS A CENTRE FOR EXCELLENCE, WITH A PASSION FOR MORE
BY GEORGIE BAKER
Years ago, there was nervous whisper. It was murmured quietly to friends. They would say, in hushed voices and twinkling eyes, “Lagos is marching”. The voices started to get braver, following the leaders who had faith in the dream. The voices grew, uniting into a crowd, they worked hard, forced the tide, and today it is there for all to see. Lagos is alive, a pulsing beat of festivals, artists and fashion, driven by business, by entrepreneurs, by anyone who wants to play a part. The cranes circle overhead, they can’t keep up as the city rises beneath them. The once nervous whisper is now a thunderous cheer, a deafening tidal wave. Lagos is a lion, and it has arrived, roaring. Thousands are flooding to Africa’s Big Apple, drawn by the lights and possibilities. It is the world’s fastest growing city. It is a city of soul and opportunities, of dynamism and ideas, big and small. It is a city like no other. Africa is rising and Lagos is the capital, the leader, a self-made centre of excellence. Mark Twain wrote, “Make your mark in New York and you are a made man.” Today, if you can make it in Lagos you can make it anywhere. Artists come from far and wide to launch their exhibitions, musicians want to be part of the dance that echoes from King Sunny Ade and Fela Kuti’s shrine. The music and lyrics of the Nigerian Afrobeat legend premiered on New York’s Broadway in 2009, winning awards left, right and centre. There’s an energy like no other within this buzzing city of more than 20 million people. The city, has been making and producing world famous musicians since the 60s. Today, Naija beats are on radios
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internationally, P Squared’s No-one Like You is in London taxis, and D’Banj’s Fall In Love is in the clubs in L.A. It came as no great surprise when Lauryn Hill, a New Yorker, after years of silence picked Lagos as her stage. Tiwa Savage, WizKid and Davido fill stadiums, with bigger followings that Bieber and Beyonce, this is the generation creating new genres and uniting the continent through a digitally-connected tide of listeners. Judging by the festivals alone, Lagos is the heart and soul of the party. The shrine is full every weekend, live music pouring into the street, artists from all over the country come to Freedom Park to get the crowds jumping. Lagos is also home to African Fashion Week, a star-studded festival, a whirlwind of heels, feathers, prints, legs and flashing lights. Designers fly from the old centres, Milan, London and New York to catch a glimpse of this world. Designers, from the most diverse backgrounds have showcased their work on Lagos’ runways. Emerging designers, independents and boutique labels all work tirelessly to present their work to the likes of Deola Sagoe and Folake Folarin-Coker. The prints, the materials, the champagne of Africa’s greatest is there for all to see, partying underneath the Lagos sky. The city does not sleep, it cannot sleep, it does not have time to sleep. The parties are a symptom of the success, and the city has to grow, to match the Lagosians. It is in a constant state of reinvention. The skyline is a dance of cranes and steel. On the back of a rapidly expanding economy, land is having to be
reclaimed from the sea, dragged from the Atlantic to support Lagos’ stunning growth. Eko Atlantic City, a mega project of an unknown scale is set to establish Lagos as the epicentre of Africa’s rise. The centrepiece of new Lagos is this brand new city, a total of 10 square kilometres, changing the face of Lagos, bringing what was once lost to the sea back to the people. It is a feat of stunning engineering. This is one of Lagos’ ambitious projects, and with a burgeoning population to satisfy and support, the administration has an overwhelming determination to make sure that no one is left behind in Africa’s model megacity. It is a complex myriad to administrate and manage. The rise was ushered in by unsung heroes, working tirelessly to realise their vision of Lagos. Bola Tinubu was the first, his lead was followed by Babatunde Fashola, and today Akinwunmi Ambode is at the helm of this great march forward. “My dream is to have a Lagos that will work for all of us. We all want a Lagos that is safe for everyone, a city state we can be proud of.” Lagos state has led the way, partnering with the driving efficiency of the private sector, the visionaries and engineers, creating an enabling environment. The entrepreneurs are there, at the big clubs and bars, at the weekends, you meet them all, from the music producers, to photographers, mining engineers, to green architects, all of them with big ideas and the drive to realise their dreams. Why Lagos? Because in Lagos, anything is possible. Today, the young, the educated and the ambitious are flooding back to the city. Their parents hoped they would build their futures in the likes of London, Paris and New York, but today, the golden call of home is too strong. They have been encouraged by the recent election of President Muhammadu Buhari, and his pledge to stamp out corruption and ensure that the new Nigeria is one all can be proud of. The confidence is infectious, and there is no city in the world with more diversity, more dynamism, more confidence. The evidence is clear, together the city is changing into something magnificent, a city of hope, where anything is possible and together they can do more. Lagos is marching.
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