- Still Nigeria’s Top Investment Destination
- Game-Changing Multi-Billion- Dollar Infrastructure Unfolding
- Hosts 38km Fourth Mainland Bridge, Longest in Africa
- Undoubtedly, Africa’s Music & Entertainment Capital l
By AMOS ESELE, OLUSINA OLAOLU, SAM DIALA, JUDE OBAFEMI and MIKE JIMOH
Governor of Lagos State, Babajide Sanwo-Olu, was upbeat last weekend about the state’s attractive greatness within the context of an improving African continent.
Far away in Marrakesh, Morocco, at the African Investment Forum, the governor who sported his usual smooth haircut and looking very dapper in a navy-blue suit charmed his audience with his concise wording of his government’s sustained vision for the world’s sixth megacity.
Of the United Nations recognised 33 megacities globally, three exist in Africa: Cairo in Egypt, Kinshasa in the Democratic Republic of Congo and Lagos in Nigeria.
In Africa, Lagos leads in terms of the size of its population, commercial and economic centrality to the country’s GDP.
“As the biggest black city in the world growing at about 3.5 per cent annually, Lagos has the potential and power that requires constant planning”, to keep it in tune with applied metrics in the areas on infrastructural developments, he said, during a boardroom session on leveraging cities for national development attended by private investors, fund managers and development partners.
Sanwo-Olu highlighted the need to prioritise infrastructural development, so as to address the challenges posed by an ever-expanding population due to daily migration attracted by the city’s possibilities and disclosed that four years ago his administration envisioned it in a 6-point agenda that has measurable achievements, particularly in the area of transportation, which facilitates ease of movement to markets, shopping malls, entertainment centres, schools and work.
“The state, in its relations with the rest of the world, would be predictable, believable, resilient, and have all of the trappings of a mega city,” Governor Sanwo-Olu told the investors, adding that, “what that means is that we have a city and the audacity to make it first among equals is our responsibility. To do that, we have cleaned up our regulatory environment; we have opened up our doors to ensure all the red tape has been removed,” he said.
LAGOS AT A GLANCE
As the smallest state in Nigeria with a land mass measuring 3,577 square kilometres and an estimated 20 million population, 4,193 persons per square kilometre and a host to 2,600 communities going by the 2002 National Population Census, during which the government independently enumerated 4.5 million households, Lagos presents a sharp social contrast.
In a national macro-environment, which presents low growth, high inflation, a depreciating Naira and exchange rate volatility, Lagos is faced with the possibility of deepening urban poverty in the context of scarce resources, poor shelter and infrastructure, traffic gridlock, chaotic environment, leading to social instability.
But as the commercial nerve of the country with a skilled labour force, ability to generate over 70 per cent of its internally generated revenue and contributing substantially to the nation’s Gross Domestic Product, Lagos presents the government with the power to control its chosen development strides through committed leadership and attract investors seeking safer havens and diversifications for their funds following the disruptions caused by COVID-19, the ongoing war in Ukraine and the Israeli-Hamas conflict.
As Sanwo-Olu told his audience in Morocco, subsequent governments in the state have designed a policy framework often codified as points agenda, to tackle the challenges in infrastructural development.
ECONOMIC AND SOCIAL DEVELOPMENT
In its effort to place Lagos on a global spotlight among the world’s most outstanding cities, the state government is firing from all cylinders.
For a state that the African Property Investment in 2019 predicted would accommodate 30 million people by 2035, with 86 immigrants from within the country and the ECOWAS region entering the state daily to stay, according to former Governor Akinwumi Ambode, the unmatched drive by the government towards aggressive infrastructure development is understandable.
As a result, the government expands its annual budget to accommodate humongous capital projects in various sectors which fuel the explosion in wealth creation.
Consequently, the state budget has increased in geometric progression, hitting N1.768 trillion in 2023, up from N287.68 billion in 2019, representing a 514.5 percent jump.
The state government approved a 2023 Budget of N1.768 trillion, which is made up of N1.020 trillion (Capital Expenditure) and N748.097 Billion (Recurrent Expenditure-Debt Charges inclusive), resulting in a Capital to Recurrent ratio of 58:42.
MULTI-BILLION DOLLAR INFRASTRUCTURE PLAN
The Lagos State Government has instituted a multi-billion dollar infrastructure funding plan to accommodate the gigantic projects meant to catalyse rapid economic development in the planned mega city. This includes the Fourth Mainland Bridge, which will cost $2.5 billion and will be constructed by a Portuguese company, Mota-Engil Group, and two Chinese ventures.
The bridge will be built under a public-private partnership (PPP), meaning that the construction companies would bear part of the costs of the project. It is expected that motorists will pay tolls on the bridge from which parts of the loans will be recouped.
The bridge will be 38 kilometres long, connecting Lagos Island (Langbasa in Lekki) to Itamaga in Ikorodu. It is a dual carriageway with provision for BRT (Bus Rapid Transport) and future expansion. It is expected to become the longest bridge in Africa, featuring three toll plazas, nine interchanges, 4.5 km Lagoon Bridge and other added features.
The construction of the bridge will last four years. This bridge, like the planned new airport, will be a game changer in Lagos as it will help ease traffic congestions in the city, cut travel time and decongest the other routes.
With a population of over 20 million, Lagos is certainly living up to its expectation as the largest city in Africa. Currently, the longest bridge in the continent is Egypt’s 6th October Bridge, measuring 20.5 km.
THE RAIL PROJECT
Governor Sanwo-Olu further revealed that the rail project being executed by the state government will gulp over N100bn. Lagosians are thrilled that the project is progressing well. It consists of the Blue Line (Okokomaiko – Marina) which commenced operations in September and the Red Line (Agbado – Marina), the construction of which is ongoing.
As expected, the train has commenced operations. Both the Red and Blue lines will carry over 20,000 passengers daily when fully operational. It goes without saying that these projects will undoubtedly stimulate the growth of the GDP of Lagos, estimated at $180 billion currently, about half of Nigeria’s GDP, and position it as a 21st-century megacity.
As part of the transportation development, the Lagos State Waterways Authority (LASWA) has a fleet of 21 ferries, up from seven in 2019 for water transportation.
AIRPORT, SEAPORT EMERGE
In addition, the state also plans to build an airport near Epe to serve the growing population in the Lekki area where the deep seaport is located.
“This investment will power our long-term infrastructure projects, demonstrating confidence from international and local partners in our growing economy,” Governor Sanwo-Olu had said.
The Special Adviser to the Lagos State Governor on Public-Private Partnerships (PPP), Ope George, confirmed the state government’s readiness to construct the airport, stating that the construction will commence in 2023. The project will cost US $900 million and cover 3,500 hectares of land.
Built within four years at the cost of about $1.5 billion, the deep seaport is equipped with state-of-the-art technology, such as biometric scanners and facial recognition systems. It is expected to ease cargo congestion that costs billions of dollars in annual revenue.
INVESTMENT DESTINATION
Data from the National Bureau of Statistics, NBS, showed that Lagos attracts the highest investment in-flow among the 36 states of the federation and the Federal Capital Territory (FCT).
From Q1 2022 to Q2 2023, Nigeria received a total capital importation of $7.489 billion with Lagos hosting $5.096 billion or 68 percent of the total investment inflow, compared with the FTC which ranked a distant second with $2.233 billion or 29.8 percent.
With its huge population, Lagos stands out as a unique city with amazing capacity to fuel an explosion in wealth creation. Its uniqueness resides in the fact that every aspect of human endeavour is accommodated – finance, education, energy, manufacturing, service, real estate, transportation, mining, agriculture, tourism, sports, entertainment, telecommunication, media and MSMEs.
There are 11, 643 registered SMEs in Lagos State, as stated by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and National Bureau of Statistics Collaborative Survey.
The state has over 8,000 registered companies.
Nigerian Stock Exchange trades over N37 trillion Naira market capitalization – one of the largest in Africa
Lagos Computer Village has over 10,500 business transactions that generate $2 billion annually. It is the hub of technology incubation in the state.
HUGE REVENUE, HUGE DEBTS
Lagos has the largest IGR according to NBS. It generated N267.23 billion in HY 2021: PAYE N152.66 bn, Road Tax N6.98 bn, MDAs N41.26 billion. The latest figures released by the Debt Management Office indicated that the state recorded the highest domestic debt as of the end of Q4 2022 with N807. 21bn; this was followed by Delta State with N304. 25bn and Ogun State with N270. 45bn
Lagos recorded the highest external debt with US$ 1.26 billion, followed by Kaduna with US$569.38 million as of Q4 2022.
SPORTS
Here, Lagos is living up to its name as the centre of excellence as it undertakes massive sports infrastructure development aimed at transforming the city into a premier destination for sports in Africa and globally. Towards this end, the Lagos State Government has constructed and renovated stadiums, arenas and other sports facilities across the state.
When Governor Sanwo-Olu revealed that his administration had started building 10 mini-stadiums to be completed in early 2022, the aim of continued infrastructural development, in terms of sporting facilities, was obvious.
These arenas have been completed and commissioned and added to several other completed projects, including the upgraded Mobolaji Johnson Arena, revamped Teslim Balogun Stadium, Agege Stadium, and Rowe Park Sports Centre, which can now host major international tournaments. The state government has been able to fund these projects through the Lagos Sports Trust Fund, established to finance youth sports programmes.
Yet, more needs to be done to accomplish the lofty goal of making Lagos comparably competitive against other sporting destinations in Africa and beyond. Attracting greater private sector financing remains key to sustain this rapid sports infrastructure development.
On the positive side, the government’s focus on training more coaches and sports administrators will definitely strengthen the sector. The progress made so far confirms Lagos’ enormous potential to become a world-class hub for sports.
The sports infrastructure drive brings many benefits, including engaging youths in positive activities over crime and creating jobs. After two decades, the national football team has returned to playing games in Lagos due to improved facilities. In 2021, Lagos hosted the Aisha Buhari International Women’s Football Tournament, attended by FIFA President, Gianni Infantino. The state’s status as a sports hub has seen it being preferred as host for African Basketball tournaments, wrestling, boxing, table tennis, badminton and long distance race competitions, such as the internationally recognised annual Access Bank Marathon.
With Lagos’ efforts to upgrade existing venues and build new state-of-the-art facilities, the city is realising its vision of developing sports for socio-economic growth. Lagos provides a model that governments across Nigeria should emulate to revive sports and empower youth nationwide. Though challenges remain, the city’s future as a premier destination for sports in Africa shines brightly.
THE FLIP SIDE
The Economist Intelligence Unit (EIU), a sister publication of The Economist of London, in a 2023 Global Liveability report, said Lagos is now the fourth worst city to live in the world.
According to the EIU, Lagos was ranked above Algiers, the capital of Algeria; Tripoli, Libya’s capital; and Damascus, capital of war-torn Syria.
The report surveyed 173 cities and used 30 qualitative and quantitative factors across five broad categories: stability, healthcare, culture and environment, education and infrastructure.
Lagos was the second worst liveable city in 2022 after holding the position for two consecutive years and was only behind Damascus which has been held down on the list by social unrest, terrorism and conflict.
EIU said Lagos moved up the ranks after seeing improvements in healthcare and education but added that corruption is still a problem.
“Even at the bottom of our rankings, cities such as Lagos (Nigeria) and Algiers (Algeria) have gained ground, with some improvements in their healthcare and education systems. Both are in countries that are energy exporters and have to some extent benefited from higher global oil and gas prices,” the report reads.
“Although corruption continues to be an issue, some additional public funding has been made available for infrastructure and public services, which have also benefited from the decline in COVID -19 o cases.”
The ease of doing business (EDB) is a challenge in Lagos, according to an EDB survey in 2021.
Lagos came 20th on the list, scoring an overall average of 5.28. In infrastructure and security, the nation’s commercial nerve centre scored 3.71; in transparency and accessibility to information, it scored 6.49; in the regulatory environment, it scored 3.62 while in skills and labour, it scored 3.62.21.
The overpopulation of Lagos contributes to the huge environmental challenges, such as noise pollution, blocking of rain water ways which results in flooding and endangering the life of the residents.
Just like in business, sports also presents a flip side. The increasing levels of insecurity in the state has to be given attention. It must ramp up its maintenance culture to secure long-term availability of these infrastructure projects, encourage a sporting mindset among children and youths, engage with role models to inspire a new generation of sports champions and deal with the wanton predilection for extortion in and around sports facilities by state-backed hoodlums and thugs.
INSECURITY AND CRIME
Career criminals at one time in Lagos lamented that things had become so difficult that there was virtually nothing to steal anymore. How true! The period of inactivity for men of the underworld began with the lockdown during COVID-19 from March 2020.
With businesses shut down, those running them safe and secure in their homes, burglars, petty thieves and armed robbers were sent on compulsory vacation. It was a season of drought for most of them with some blaming the deadly virus for the calamity.
No sooner was the virus contained than another disaster befell the criminals: Currency swap and the introduction of new naira denominations by the Central Bank of Nigeria. Although people moved around freely unlike during the COVID-19 lockdown, there was barely enough money in circulation to tempt any self-respecting thief into action.
With time, more money was pumped into circulation by the CBN, thus prodding the robbers into action and metro reporters of Nigerian newspapers reporting their activities correspondingly.
The series of robberies that ensued in some parts of Lagos prompted some chairmen of Community Development Associations to send an SOS to Governor Sanwo-Olu.
Incidents of violence and crime have been reported in popular places like the Mike 2 area where hoodlums clashed with police and disrupted activities for several days.
For instance, recent occurrences include kidnappings and armed robberies in Green Land Estate and abduction at Lanre Bus Stop in Igando area of the state, where the victim was forcibly taken from his vehicle, leaving his abandoned car by the roadside with its headlights on.
Another alarming incident occurred on Salvation Army Street in Oshodi and Governor’s Road in Ikotun, where eyewitnesses reported that a group of criminal elements, numbering about six, riding on two motorbikes, each carrying three individuals, dispossessed innocent citizens of their valuables, including cash and mobile phones.”
Two months before the incident, the Lagos State Command of the Nigeria Police Force arrested 32 suspects for criminal activities, according to SP Benjamin Hundeyin. During the raid, the police recovered 25 firearms, 75 live cartridges, 12 of them expended, and a toy gun.
The gunsmiths busted in Adata Village of Ibeju-Lekki were clearly not fabricating toy guns.
“They were manufacturing real firearms based on “actionable intelligence,” Hundeyin said.
With the spike in crime in the state, law enforcement agents have been equally hard at work, nabbing criminals in their numbers as evidenced by recent arrests of criminals who seem to have been adapting as well.
Reports of thieves masquerading as dispatch riders to vandalise vehicles abound. They specialise in removing the brain box of cars. There have been cases of thieves driving luxury cars and jeeps to rob unsuspecting victims who might mistake them for affluent or decent people. Currently, men dressed in costly suits and driving expensive cars, perhaps to evade the police, have reportedly been involved in stalking and robbing rich preys.
When contacted for comments, Police Public Relations Officer, SP Hundeyin, asked to be sent a text message but he failed to reply.
However, Lagos State has a Security Trust Fund in place since 2007. The Fund is aimed at equipping the police and supporting its operations, as well as improving the welfare of its personnel. With this, the state government has managed to keep the city safe, enabling shops and petrol filling states to remain open well into the night.
VISITORS’ VIEWPOINTS
The Assistant Secretary for Economic and Business Affairs at the US Department of State, Ramin Toloui, last Monday, said he understood why everyone he spoke with about Lagos found the city as ‘such an electric place,’ saying, ”The energy here is palpable.”
Toloui, who flew in from South Africa, on a visit to the city, stated this in a keynote lecture on Intellectual Property Protection at the Africa Creative Market where he was a guest.
”I am delighted to be here on my very first trip to Nigeria as Assistant Secretary for Economic and Business Affairs, at the US Department of State. I just arrived last night from South Africa and already I can see why everyone finds Lagos to be such an electric place. The energy here is palpable, ” the Assistant Secretary said.
Excited at the reception given to him, Toloui, expressed gratitude to Dr Inya Lawal from Ascend Foundation Studios for partnering with the US Mission in Nigeria to organite IP programming within the Africa Creative Market, adding, ” I would also like to thank her partner at Paramount, Bada Akintunde Johnson, and Herbert Wigwe for supporting the event.”
He also appreciated the Chairman and CEO of 21st Century Technologies, Wale Ajisebutu, “for hosting us at your beautiful state-of-the-art location and for taking the time to join us today, as well as our colleagues at the US Mission in Nigeria who helped us organise today’s event.”
Earlier in August, the Under Secretary of Commerce for International Trade at the US Department of Commerce, Marisa Lago, led a delegation of the Global Diversity Export Initiative Trade Mission to Lagos on the last lap of their three-nation African tour which had earlier taken them to Ghana and South Africa, and she testified to what she described as the “electric pace” in Lagos .
“I am also especially pleased to be in Lagos. While it is my second time in Nigeria, it is my first time in Lagos. As a native and resident of NYC, I am loving Lagos’ electric pace! The innovative energy in Lagos, and especially here at the Microsoft Garage, is palpable. And the results that flow from this energy won’t benefit just Nigeria, as ideas originated here (will) inevitably grow beyond the Garage’s walls and Nigeria’s borders. You will have an impact on the world!,” she told her hosts.
Only last month, the German Chancellor, Olaf Scholz, was in Lagos and he enjoyed a guided tour of the Lagos waterways as he visited the University of Lagos, Akoka , through the UNILAG waterfront, thus becoming the first foreign leader to visit the university through the waterfront.
THEWILL recalls that former British Prime Minister, Boris Johnson, who was on a visit to deliver the Anyiam Osigwe Annual Lecture in Lagos a few years ago, also attested to the fun of the nightlife in Lagos by visiting a place of choice during his visit. Also, the French Prime Minister, Emmanuel Macron, was a guest at the Africa Shrine in Ikeja, Lagos during one of his visits to Nigeria a few years ago as he reminisced about his early life in Nigeria. When Facebook CEO Mark Elliot Zuckerberg visited, he jogged on the streets of Lagos, a plus for security in the state.
ENTERTAINMENT CAPITAL
Lagos is also a music and entertainment hub in Africa with the acclaimed Nollywood, Afrobeats and global fashionistas firmly rooted in the city that never sleeps. Music and entertainment particularly appear to be one of the new drivers of the economy not only in the state but in the country as A-Class artistes with large followings across the world find a home in Lagos. The entertainment sector also drives the booming tourism and hospitality sectors which bring in huge revenues for the state government.
LAGOS VIEWPOINT
The Lagos State Commissioner for Information and Strategy, Mr Gbenga Omotoso, is optimistic about the success of government strategies to make Lagos a liveable megacity in the world. Upon enquiry, he sent a note to THEWILL which contained answers to many questions in the area of infrastructural development and the flip sides.
The state government has initiated a six-pillar policy programme named T.H.E.M.E.S to solve problems through good governance. The six pillars are Traffic Management and Transportation; Health and Environment; Education and Technology; Making Lagos a 21st Century state; Entertainment and Tourism; Security and Governance.
On gridlocks in Lagos, for example, Omotoso said that of the 60 gridlock points identified, 41 have been resolved; 13 are in the works and six are on the drawing board. Six troublesome roundabouts have been reconfigured – at Allen Avenue, Maryland, Ikotun, Lekki 1 and Lekki II, and Ajah.
He said, “The human element in the Lagos traffic situation is the biggest problem, although it is often overlooked. Some motorists get reckless, disregarding the regulations in a manner that calls to question their claim to have been licensed to drive. But the government has responded with a law that prescribes forfeiture of vehicles for driving against the traffic. Such vehicles stand to be impounded and auctioned.”
On flooding during the rainy season, he described flooding as a natural and global phenomenon, which “we will always experience, no thanks to climatic changes that have got the world worried.”
He said, “In Europe, Germany, The Netherlands, France, Italy and Belgium, among others, suffered devastating effects of flooding last year. In New York, motorists were being ferried away in their cars by furious floods. Some train stations were shut. Holidaying police officers were recalled. It was an emergency of a frightful scale.
“Lagos, which is below sea level, with an average elevation of 1.5m above sea level, did not experience such calamities, despite the fact that it had an unusually high volume of rains because it was well prepared. At the same time, many other states, such as Jigawa, Taraba, Delta, Rivers and Cross River were badly affected.
“What we experience in Lagos are flash floods, which dissipate in one or two hours after a downpour. The water disappears because there are functional drainage systems.
“Lagos has been investing heavily in its drainage facilities since 2004 when the state designed the seven systems that link the whole of Lagos with drainage channels. Old facilities are cleared regularly, even as new drains, which are highly efficient, are being built.
Besides, Lagos has set up a Resilience Office, the first of its kind in Nigeria, which envisages challenges and how to tackle them.”
Omotoso is unperturbed about negative reports on the state like the EIU report, because such “reports have not stopped the state’s phenomenal growth.”
Why have investors – and tourists – found Lagos to be a worthy destination, despite such jaundiced reporting? He asked and answered, “The Lekki Free Trade Zone keeps attracting manufacturers, with more than 40 already operating in the area.
“The Lekki Deep Seaport is the biggest in West Africa. The Dangote Refinery is the world’s largest. Machines are roaring at the Dangote Fertiliser and Petrochemical Company. The audacity of many businesses has found expression in Lagos – courtesy of the enabling environment provided by past and present administrations,” he stated.
Lagos, he maintained, tops the chart of Africa’s Foreign Direct Investments (FDI) with about $1.03b. It is also the continent’s start-up capital.
“Our youths are setting up hubs where they are using technology to resolve everyday challenges. They are attracting the attention of tech giants, such as Microsoft, Facebook and others. Our music rules the world, pulsating on the airwaves in big cities and at night clubs all over the world. Our youths are setting the pace in the creative sector. Our movies are popular in many parts of the world,” Omotoso added.
CONCLUSION
Lagos has its challenges, no doubt, said Omotoso. But the huge infrastructural developments, he contends, and the enviable advancements in the economy, which have made Lagos the most attractive investment destination in Africa, cannot be discounted.
“Like other growing cities around the world, Lagos has its challenges. But the challenges are being tackled with boldness, creativity and wisdom. This approach points to a glowing future for Lagos,” he said.
Amos Esele is the Acting Editor of THEWILL Newspaper. He has over two decades of experience on the job.
