Speeches

London Capital Markets Roadshows

May 30, 2008 - It is with immense excitement that I welcome participants to this year’s edition of the Capital Market Road show being hosted by the British High Commission here in Lagos. Lagos State is singularly blessed by the continuous stream of high caliber summits and workshops which have benefited the state administration with expert ideas and resolutions that will contribute immensely to our goal to make Lagos the economic destination capital of Africa and truly one of the best Mega- Cities in the world. This is one of such beneficial summits.

Even so, we think that Lagos is playing its natural role in hosting such a summit as the one in which we are gathered here to take part today.

The evidence of my assertion concerning the central role Lagos occupies in the Nigerian economy is confirmed by the fact that Lagos hosts 60 per cent of the country’s non-oil export, generates 45 per cent of its value added tax and is home to 15 per cent of the country’s population. Apart from being the country’s commercial nerve centre, Lagos services the sub-region through its network of roads, the biggest sea ports and one of the most viable air traffic by virtue of hosting one of the busiest and the largest airports in Africa, the Murtala Mohammed International Airport.

Still, this summit could not have come at a better time.

Almost a month ago, the Lagos state government organized the 4th Lagos Economic Summit, tagged Ehingbeti 2008. The idea was conceived partly as a way to find answers to the challenges of infrastructure in the state. At the end of the summit, we came away with the right information and strategy to help us in our resolve to build a model Mega- City. This Road Show will certainly enrich and benefit our partners in the capital and financial sectors, the most critical sectors that drive the national economy. The challenges are however systemic and structural.

Lagos once enjoyed the dual status as a state and as the capital city of the Federal Government for over three decades. But since December 1991 when the seat of the central government was moved to Abuja, the responsibility of managing the bloated social and economic infrastructure fell on the slim purse of the state government, complicated by the legal and constitutional constraints ever present in a developing federation like ours.

It is however not all dark clouds with no silver lining. In fact, we have laid the foundation, created the vision and are executing the mandate to make Lagos great indeed.

The immediate past administration of Asiwaju Bola Ahmed Tinubu however had done a lot of work for the rehabilitation and construction of the infrastructure of the state through a ten-point plan between 1999 and 2007. Since our assumption of office, we have consolidated and improved on this road map.

Yesterday, Democracy Day when I addressed a World Press Conference, I dwelt extensively on the strides this administration has made in the past 365 days in office with specific reference to our provision of the enabling environment for the business and investment to thrive and for the security of life and property.

Our budget for the current financial year is N403 billion. 60 per cent of this amount is being channeled to infrastructural projects. So far we have used N33.89 billion of the supplementary budget to refurbish schools, green the environment and provide road transportation. We are empowering our youth and women with credit facilities under a well-funded Micro-Finance scheme. We have upgraded our health system, commenced rehabilitation of the Bar Beach and other critical projects. In fulfilling our vision, we have been greatly assisted by a vital segment of the society in the private sector, the financial sector under our Public- Private Partnership Initiative, PPP, in the areas of housing mortgage financing, security and micro –finance.

But like I said during ‘’Ehingbeti 2008”, Lagos needs $50 billion, that is N6trillion, to bring infrastructure to a functional level. This, you will agree with me is peanuts in the global economy. The point I am making is that Lagos is capable of housing a lot of development capital floating around the world. Over the next two decades, it is projected that the state must expend trillions of Naira on the expansion and modernization of its infrastructure among which are water supply network; a qualitative and efficient road network; an efficient waste management system and regular power supply. The opportunities for viable investment are limitless and promising in terms of returns in revenue.

May this capital markets road show be a blessed follow-up to the 4th Lagos State Economic Summit in terms of exposure and networking opportunities for the participants who invariably are our partners in our journey to build an enviable and prosperous economy.

I wish you happy deliberations and urge you to avail us of your deliberations at the end of this road show.

I thank you for listening and wish you safe journey to your respective destinations after the summit.

“Eko O ni baje O!’’

Mr. Babatunde Raji Fashola SAN
Governor of Lagos State