A tall ambition in Lagos

This year’s summit was an attempt to build on earlier ones. The annual Lagos State Economic Summit was started in 2000 and was conceived as a participatory forum for integrating stakeholders into economic and development matters, by which it means allowing the economy to be, if not private sector driven, then granting the private sector […]

This year’s summit was an attempt to build on earlier ones. The annual Lagos State Economic Summit was started in 2000 and was conceived as a participatory forum for integrating stakeholders into economic and development matters, by which it means allowing the economy to be, if not private sector driven, then granting the private sector a huge leeway in the drive toward economic progress. This fact was underscored by the Lagos State Governor; Mr. Babatunde Fashola, the host of the summit who informed both local and international investors at this year’s summit that there are tremendous opportunities for investment in the critical areas of power sector, agriculture and agro-allied industries, transportation as well as housing (PATH).

Governor Babatunde Fashola told the summiteers that if Nigeria was poised to join the league of emerging economies that included Brazil, Russia, India and China and South Africa, the acronym BRICS would change to BRINCS—the N in the latter standing for Nigeria. Then it is Lagos State that will lead such a spectacular economic transformation. He argued that the auspicious position of Lagos State as a viable industrial hub would have to be made the most of to Nigeria’s advantage and this was why investors should take advantage of the opportunity for investments in the four sectors that are the focus of this year’s summit. Now, Lagos rightly sees itself as the hub of any push for economic transformation for two major reasons. It is the nation’s foremost port city and at one time, the seat of federal government which have continued to make it an El-dorado of sort.

Many years ago, young men and women from all over the country saw it as the only source of instant employment; as soon as they walk out of the portals of their institutions and their certificates safe in their hands they head for Lagos, as it were, in search for the ‘’golden fleece.’’  And Lagos had obliged them as its many government departments and agencies, in need of educated and also not so educated manpower had given them work. The industrial complexes and private companies also took many of them on. And in no time as Lagos grew in size, economic activities also grew in tandem, but not without some consequences. This point was made succinctly by Governor Babatunde Fashola, when he told the summiteers that in Lagos there are ‘’2000 industrial complexes, 10000 commercial ventures and 22 industrial estates; on the strength of which it contributes 30% to the nation’s GDP, making it easily the leading contributor to the non-oil GDP’’.

All this makes Lagos State into an entity sitting pretty on gold mine which it rakes in form of tax revenues. But even so, the ever increasing demand for social and economic amenities as a result of unceasing influx of people into the city makes these revenues inadequate. The choice of PATH as critical areas for investment therefore is a way to further look inwards to get around the challenge to make the state solvent and to be able to continue to provide jobs for the teeming masses that flock to Lagos from all parts of the country. So PATH is a means of providing the atmosphere that would be capable of attracting ever more industrial and commercial ventures and economic concerns. The importance of power as area for investment is self evident. The perennial inadequacy of power has done untold damage to Nigeria’s ambition to join the league of economically vibrant countries, as in frustration many big industrial concerns have had to take their plants to other countries. Such private sector investments in the power sector in Lagos may jolly well help in stopping the continuous exodus of industries to other countries. If investors heed the call it will give the necessary impetus for investments in the other critical areas of agriculture, transportation and housing.

Housing has always posed a challenge to Lagos. It cannot but be so with everyone trying to make it a place to stay. One reason why Lagos has avoided a housing crisis is the Nigerian penchant to live in his own house. There should not be problem in achieving its goal in housing its teeming masses since there are many Construction companies waiting to take up the challenge of building housing estates which will be given out for hire. Additionally, the construction boom that is likely to ensue could create employment opportunities.  Transportation on its part, might pose a challenge somewhat because replacing the popular and ubiquitous “molue’’ with companies that would run transportation by means of air-conditioned buses might meet with opposition. To be sure, the “molue’’ should have long been taken out of Lagos streets, few countries allow vehicles that pack people like sardines to ply their thoroughfares anymore. And even as strict as traffic rules are enforced in Lagos, insufficient adherence to demands of vehicle maintenance by the “molue” still constitutes a major cause of accidents. There is a hunch however that the ‘’molue’’ operators may not relinquish their lucrative business without a fight.

All said however, the authorities in Lagos would have to show uncommon dedication to bring Ehingbeti 2012 to fruition. Among the challenges it may have to surmount is winning the goodwill of federal government. Many times both the federal government and the Lagos state government have had to settle scores over concurrent powers on certain matters in court. It is hoped on Ehingbeti 2012, matters would not be allowed to get to that pass. It is heartwarming that this time around the federal government has assured the Lagos state government of its full support, promising that it will extend to it the instrument of sovereign guarantee that will facilitate access to finance in the global market.

If the project is pulled off, it will help in curbing the incidence of armed robbery and urban lawlessness that had plagued Lagos for so many years. Moreover, Lagos would be turned into a frenetic place of industrial activity that would be the envy of many of its peers, particularly if it seriously embarks on production of many of the components of the policy, as opposed to the importation. It is envisaged therefore that soon the buses, coaches and ferries that would form the backbone of the invigorated Bus Rapid Transit (BRT) would be produced on the ground in Lagos.  It is only when that happens that it would indeed be said to have achieved its aim of being the hub of industrial revolution and economic strength in Nigeria.