Speeches

Business Luncheon Of The Nigerian-British Chamber Of Commerce

Mar 24, 2009 - Let me start this speech by craving your indulgence to join me on a mental journey around the Lagos State of our dreams. As a manufacturer, entrepreneur or business person or even a worker, you own or work in a concern which runs on an efficient public power supply in a safe environment where human and vehicular movement is swift and predictable. Consider that the terrain under reference has some of the largest sea ports and airports in Africa with huge sea and air traffic. This place of our mental trip is the commercial nerve centre of the country and the economic hub of the West African sub-region with a population of over 20 million persons, meaning a large market of skilled workers, professional and technical experts. There, the roads are tarred, in fact macadamized; rail and water transport run efficiently, the environment is clean and beautiful. The service and telecommunication industry thrive like no business and the citizen culture is excellent. At weekends, there are captivating and inspiring tourists’ sites for many to visit and unwind after an engaging and prosperous week long activity. It is hard to distinguish between day time and night in this place because the sun and the street light compete for brightness everyday round the clock. Sending your children to public schools is a matter of preference, not simply a choice. You walk into any hospital and your get the best in diagnosis and treatment.

Distinguished guest, ladies and gentlemen, you have just traveled round LAGOS THE MEGA CITY OF THE FUTURE. As you can see, this mega-city of the future is an investor’s destination, the workers haven and the megalopolis whose economic development and growth is to a large extent tied to the growth and development of the country. As the country’s most populous city and State with 18 million persons expected to increase to 25 million according to the United Nations Habitat, Lagos’ population explosion has overstretched the existing infrastructure and threatening its economy. Currently, Lagos has 2,000 industries, that is 65 per cent of the country’s total, 250 financial institutions, accounts for 60 per cent of the country’s Gross Domestic Product, generates 65 per cent Nigeria’s total value added tax, substantial percentage of its Custom and Excise duties, 70 per cent of total value added manufacturing, home to 200 Nigerian Stock Exchange listed companies, two sea ports, two dry docks, one RoRo port and one international airport.

It is in the realization of this onerous duty bestowed on Lagos State by virtue of its position in the political economy of the country and sub- region that we have chosen to accelerate the tempo of infrastructural development because in Lagos State; we believe that the future is NOW, not even tomorrow because as I speak, there is monitoring going on to ensure that people and business are safe and traffic runs with less hitches. The objective is to ensure proper policy coordination and implementation.

On this note, I wish to commend the president, council and members of the Nigerian-British chamber of commerce for inviting me to this business luncheon and to speak on such a stimulating topic that is dear to my heart; “Lagos: The Mega City of the Future.”

I also consider it a mark of honour on your part to have suggested this topic because many of you here will be working closely with the Lagos State government on the Mega City project in your areas of competence, particularly in the area of promoting trade and investment, two vital areas we consider as very important in the development of the new Lagos that we hope to build and bequeath to the coming generation of Lagosians. Since this administration came into office almost 700 days ago, we decided to embark on the Mega City project under a 10 point Agenda to consolidate on this vision started during the administration of our Governor Emeritus, Asiwaju Ahmed Bola Tinubu.

We have taken up the challenges presented by urban congestion, slum re development, refuse collection and management, acute traffic congestion, inadequate transportation, and urban infrastructural deficiencies and housing shortfall.

I crave your indulgence to highlight some of our 10- Point Agenda to strategically resolve these challenges: These include: Economic empowerment of our people through micro- credit financing, skill acquisition and poverty alleviation programmes; Free and qualitative education up to secondary school level, subsidized at the tertiary level; Establishment of the Lekki Free Trade Zone to develop the Lekki sub region and empower 30, 000 persons; Environmental upgrade and beautification and drainage construction works; Provision of houses through public-private partnership housing mortgage financing. Construction, rehabilitation and upgrade of health centres, General Hospitals and provision of ambulances; Inauguration of a standing Security Committee, establishment of Lagos State Security Trust Fund to support the initiative of the state security and the introduction of the Bus Rapid Transport, (BRT) system, provision of buses for mass transit, taxi cabs and plans towards providing and improving the state rail services, and the restoration and preservation of the state’s cultural and historical heritage.

In 2005, during the tenure of my predecessor, the first concrete step was initiated to discuss the spatial growth of Lagos that has already over-spilled its boundaries into adjoining Ogun State. Part of the challenges facing the City-State at that time included unplanned squatter settlements, inadequate or failing infrastructural facilities to support the growing population, blighted areas, urban squalor, inadequate water supply, transportation problem and traffic congestion, over population, energy crisis, unemployment among others.

The facts on ground is that compared to 1950 and 1965 when just 288, 000 and 300, 000 people respectively lived in the city, Lagos now is home to over 18 million who live and work on the 3, 577 square kilometers land mass and rely on the inadequate infrastructure that has consistently been put under undue pressure by this growing population. It is therefore expected that the challenges facing Lagos would be one of monumental proportion.

Dr. Gisbert Glaser, the Chairman of one of the Committees of the World Congress on Mega-cities of the Future argues that “there will be no sustainable development worldwide without a greatly enhanced sustainability of mega-cities. This is why we are very proud to be part of history in building a model megacity that will showcase the ingenuity of the black race. For many foreigners and local people especially young people, you are not in Nigeria, if you are not in Lagos.

Unfortunately, over the years Lagos State which served as the seat of the Federal Government as well as the State Government, has suffered gradual infrastructural decay.

Since we started this great journey to a New Lagos, the Africa Model megacity over seven hundred days ago, we have focused our attention on infrastructural renewal and development, economic empowerment of our people, employment generation, improved power supply to ensure full capacity utilization in industries, improved quality of education and healthcare delivery system. You would recall that we have deliberately been running budgets that have consistently addressed capital expenditures over and above recurrent. In fact towards the end of last year, we had to readjust our Great Leap Budget to put more funds into our infrastructure development projects.

Let me assure the business community in the State that we are making concerted efforts to re-invigorate and grow the economy through the provision of needed infrastructure. It is heartwarming to note that this administration has recorded landmark achievements in the provision of an enabling environment to attract and sustain investments in areas such as the Free Trade Zone, Enterprising Cluster Zones, Improvement in Power Supply, improvement of traffic flow, preparation of master plan for tourism development, refuse collection and environment management. We believe that with the planned construction of the Lagos–Badagry Express way into a 10-lane international highway along the eastward ECOWAS route, vibrant socio-economic, cultural activities attractive for viable investments would be enhanced.

Distinguished audience, I believe that the challenges of Lagos as mega city of the future present all of us with great opportunities to invest in the future of our nation and by implication in the future of your own businesses. Let me say that a decision to invest in Lagos is a decision for prosperity and economic growth with national multiplier effects.

Very briefly, I will attempt to outline some of the challenges of Lagos as a megacity which come with investment opportunities.

In the area of housing for instance, the growing population would require accommodation for residence and business. Since we began rehabilitation projects our Central Business Districts and other zones, real estate business has become one of the fastest and most lucrative growing long-term business opportunities. Most parts of Lagos are becoming prime areas from the high brow Lekki Corridor to the downtown Mainland and from the CBDs in Central Lagos to Ikorodu suburb.

And as we prepare to meet this future challenge in this area, we have simplified our legal procedures for titling and other land matters so that investors would be able to acquire property without much stress.

With the provision of the state-of-the-art facilities and other attractive incentives in our Lekki Free Trade zone, we are hopeful that investors would be attracted to come and enjoy a high net worth for their investment in the zone. When the zone becomes fully operational, hundreds of jobs will be created leading to a reduction in unemployment.

As part of our poverty alleviation and empowerment programmes, our development of the Small and Medium Scale Enterprises sub-sector will become a gold mine that would help to grow our economy. This was what gave impetus to our Microfinance programme for which many are already beneficiaries.

We are already providing the enabling environment for those willing to set up cottage industries to produce textile materials, shoes, fruit juices, simple equipment for artisans etc.

Because we realise that waste management is one of the huge challenges facing mega-cities worldwide, we have been very proactive to turn our waste management challenges to create wealth. We are particularly focusing on:
(a) Investment in Modern waste management techniques especially solid waste management for the promotion of a cleaner environment;
(b) Commercialisation of waste management that is efficient and effective but also delivered at cheap cost to the people;
(c) Technology for the conversion of waste to wealth;
(d) The development of dumpsites and landfills.

Last year, we commissioned our waste to wealth project in Ikorodu and just last week I commissioned our Transfer Loading Centre in Ijora with the unveiling of Compactors Trucks for efficient waste management.

In the area of tourism, we are exploring various avenues to make Lagos a destination of first choice for pleasure and business. Already, the bar Beach rehabilitation and reclamation project is in progress. The Eko Atlantic City project has been launched with the hope of making Lagos one of the most beautiful mega-cities in the world. Our administration would welcome business interests and discussions in these areas.
(a) Beach development for recreational facilities;
(b) Water recreation for boat cruses and water sports;
(c) Development of holiday resorts for relaxation and tourist activities.
(d) Development of Health resort and campsites;
(e) Development of amusement parks such as Water parks, Rides etc;
(f) Development of Botanical and Zoological Gardens; and
(g) Hotels and Restaurants development for Tourism.

Mega-cities worldwide rely on efficient transportation to sustain its millions of commuters daily. While the issue of traffic congestion may not be completely eliminated, we have been performing near-miracles to manage Lagos commuting activities that rely solely on road transportation. Even London and New York with other viable transportation systems such as rail and ferry services dating back to many years still experience traffic gridlocks that last for hours.

On transportation therefore, I believe that a wise business man will put his money in a sector that promises a handsome return on investment of U$$100million in infrastructure because our Bus Rapid System will yield yearly revenue of U$$50million. On rail transportation, estimated yearly revenue of U$$400 million awaits any creative investor with a commuted US$787 million. Water transportation which presently has poor investment in spite of its very high viability represents an untapped economy potential for the State.

It is an unarguable fact that the success of mega-cities depend to a large extent on efficient and clean energy. While we will continue to seek ways to join the rest of the world in reducing the incidence of greenhouse gases by seeking ways to develop clean energy, we are hoping that our Independent Power Project initiative will provide the shortfall between 1000MW that is currently being supplied and the actual demand of 12,000MW. Our doors are open for discussions with investors willing to participate in this sub sector.

The over 18 million people in Lagos will continue to require water for sustenance. The effective demand is for 720million gallons per day but only 170million gallons are generated daily.

Distinguished guests, ladies and gentlemen, let me remind you that our determination and commitment to address the challenges of development in Lagos State led to the initiation of the Public-Private Partnership (PPP). And I am pleased to inform this gathering that this initiative has remained one of the best decisions of this administration. Through the PPP, we have succeeded in launching a N400billion Lagos Housing Mortgage Scheme for income earning residents through the assistance of a consortium of six banks. Apart from meeting the housing needs of many Lagosians, the scheme will significantly stimulate the demand for housing stock; trigger higher demand for building materials, household utensils and appliances, water and electricity supplies thereby opening wider investment options in the various sectors of the economy.

We have also been able to greatly improve the security of life and property through our Security Equipment Fund. This has made possible the re-organization and strengthening of the State’s Anti-Crime Outfit, the Rapid Response Squad (RRS). Within the next few months, we hope to launch a state wide security surveillance network with the installation of CCTV cameras and high tech communication systems in strategic locations when our Central Security Command building is completed.

Distinguished ladies and gentlemen, because we know that good governance involves transparency, due process, respect for the rule of law which are germane to rapid economic growth, we have introduced aspects of e-governance to modernize and simplify the process of administration.

The efforts of our administration are also being deployed to meet the needs of our people who are yearning for an urgent upliftment of their living standards. We are always seeking ways to open up our markets and economy for investors with the provision of an enabling investment–friendly environment.

Let me assure you that the major pre-occupation of the present administration is the transformation of the State to a modern and vibrant economy that will meet the challenges and expectations of 25 million persons that will inhabit this emerging Africa model mega city by 2015. Of course, these challenges demand hard work and focus. We have rolled up our sleeves to work assiduously towards accomplishing the goals we set for ourselves. We would, however, require the involvement/collaboration of all stakeholders in the areas of economic activities highlighted above that would make life worth living for the people of Lagos State and which promise bountiful returns on investments.

These policy measures, like I said earlier were designed and taken to prevent the total collapse of our infrastructure as well as create an environment that will make life comfortable for all Lagos residents. We have chosen to take a very proactive approach in handling the enormity of the challenges we are faced with so that we are not overwhelmed by them. In doing so we have followed due process and with a milk of human kindness in the realization that the targets dates for the actualization of the Millennium Development Goals, (MDGs) and Vision 2020 just six and eleven years way. Any great achievement recorded anywhere in the world has always come with a price tag. But the cost of addressing the problems now will be cheaper than the cost of correcting the confusion and catastrophic effects of our collective neglect later.

I cannot end this speech without thanking many of your for being responsible and responsive stakeholders in this Mega City project, whose support has got us this far. I want to assure you of our resolve to continue to enhance the living standard of our people through the implementation of programmes that will create conducive environment for businesses and investments to flourish in Lagos State for the collective good of all citizens.

While we must submit that the challenges of sustainable development in this model megacity that will become the third by 2015 cannot be done alone by those of us in government, we will continue to give all our support to all of the stakeholders, especially the business community to make your investments in Lagos safe and prosperous.

We will continue to expect the same solidarity and cooperation from you as we all journey together to the first Africa Model megacity, the New Lagos of our collective dream, the destination of first choice in Africa.

I thank you for listening and wish you a very wonderful luncheon.

“Eko O ni baje”

Mr. Babatunde Raji Fashola, SAN
Governor of Lagos State