Federal Govt backs Lagos’ investments drive

•Senator Amosun (left), Mr. Richardson, Fashola (SAN), Fayemi, Mr. Aganga and Mrs. Orelope-Adefulire...yesterday.

Lagos State got yesterday a Federal backing for its investments drive. The state will get sovereign guarantee to leverage its competitiveness in the global financial markets.

A sovereign guarantee is an irrevocable commitment given by a national government that an obligation will be satisfied if the primary obligor, usually a sub-national entity, defaults. Besides, a sovereign guarantee sometimes takes the form of an assurance by a government that certain provisions of a project agreement would be honoured.

Speaking at the sixth Lagos Economic Summit (Ehingbeti 2012), President Goodluck Jonathan, who was represented by Minister of Trade and Investment Mr. Olusegun Aganga, said the Federal Government recognised the importance of Lagos State as the commercial nerve centre and would support its quest for investments.

He said the government was on the verge of completing an agreement to grant concession to Lagos State to develop railway lines. The government has started working on many important roads to complement the efforts of the state government to ease traffic gridlock, he said. 

According to him, for Nigeria to join other major emerging economies, the partnership between the Federal Government and Lagos State is critical, given the state’s dominance and centrality to the Nigerian economy.

Noting that Lagos accounts for more than 20 per cent of the Gross Domestic Products (GDP) and more than 59 per cent of the non-oil sector’s contribution to the GDP, Jonathan said the Federal Government was working on two emergency power plants in Lagos that would be dedicated to supplying power to the state.

Although he declined any comment on regional economic blocs, the President said the Federal Government would back all states that focus on economic growth.

Earlier in his opening address, Governor Babatunde Fashola (SAN) said the government has identified four key areas - power, agriculture, transportation and housing - as critical for economic development and growth.

He said the government believes that investing its resources in these four areas would provide a quick leverage for Nigeria to join the major emerging economies of Brazil, Russia, India, China and South Africa.

Fashola urged the Federal Government to consider licensing new power companies to create the much-needed competition for the sector’s development.

The state needs investments in several areas, including water, waste management, inter-modal transportation, and housing, among others, he said.

Explaining further the choice of the Summit’s theme, “From BRICS to BRINCS : Lagos Holds The Key’ and the  reason for focussing on PATH, Fashola said the path that would lead the country to BRINCS is laid out in the state.  

He said: “Lagos is home to about 2,000 industrial complexes, 10,000 commercial ventures and  22 industrial estates. It contributes 30 per cent to the nation’s GDP and is the leading contributor to the non-oil sector GDP.” 

“Lagos accounts for over 60 per cent of Nigeria’s industrial and commercial activities, 70 per cent of national maritime cargo freight, over 80 per cent of international aviation traffic, over 50 per cent of Nigeria’s energy consumption.

“The Government of Lagos State is responsible for over 18 million Nigerians and we take that responsibility very seriously. Those over 18 million Nigerians whose numbers are increasing daily, have different aspirations. Some are just looking for survival, some are looking for work and a better life and some already have work and seek, expectedly, to improve on what they have and make life even better for themselves. 

“We are conscious of the fact that the best way to stimulate development is to  create a conducive environment for business to thrive. “We, therefore, see our role as that of an enabler, the provider of a favourable and enabling atmosphere for businesses to expand and grow so that the hopes  and aspirations of those over 18 million Nigerians will be met.”

Commenting on the advantages of regular power supply, Fashola said his administration believes that regular power supply would  enable it to unleash the possibilities of the economy “beyond the imaginations of even our most ardent critics”. 

Fashola said: “Think of the small businesses that generate their own power and just imagine how much they will prosper if their down time becomes their up time or productive time because we have been able to provide stable power. 

“Imagine a Lagos that is much safer than today because every inch of it is lit up at night from regular power supply. “ 

He said life would be much better for the over 18 million Lagosians if the state could industrially produce milk, bread and eggs daily, produce and package vegetables and transport them within and beyond the state and its environs instead of importing them.

Recalling the lifestyle changes that were reported when the Bus Rapid Transit (BRT) was flagged off, Fashola said life would be even much better in the transport sector when the Lagos Light Rail – the Blue Line, with its larger carrying  capacity, would start operation in the state adding that with  60 ferries soon to be added to the existing six, with a capacity for 200 passengers to ply no less than 10 ferry routes across the state, the transportation system would be greatly enhanced for the benefit of the population. 

On housing, Fashola said when the Lagos HOMS finally kicks off and is able to guarantee at the start of each month that 100 tax-paying citizens own their own homes as long as they are able to make the 30 percent deposit of the value of the house they choose and make their monthly payments, their self esteem  and dignity would undoubtedly improve while their commitment to duty would be enhanced.  

Fashola said this year’s Summit is intended to mobilise and sustain the continuous inflow of investment to Lagos to help the state achieve “Our PATH to economic greatness”. 

In her keynote paper, which centered on the theme of the summit: “From BRICS to BRINCS, Lagos Holds the Key,” the Vice President, Africa Region, Standard Chartered Bank,  Ms Razia Khan, said Nigeria has enormous potential to join the BRICS nations and change the configuration of the global emerging economies but it has to implement more proactive policies and reduce dependence on oil revenue.

According to her, the government must not only think about necessary policies today, but also proactive policies to support future growth.

She said Nigeria was on course to surpassing South Africa as the largest economy in Sub-Sahara Africa, noting that something transformative has taken place in the non-oil sector, which has been helping to power the national growth.

She, however, warned that Lagos stands the risk of a migration problem, unless the other states and the Federal Government match the state’s efforts and create growth in the wider economy.

She advised other states to learn from the less dependence of Lagos State on oil revenue.

While reviewing  past Summits, the Chairman of the Lagos Economic Summit Group and Commissioner for  Economic Planning and Budget, Mr. Ben Akabueze, said the summit  is not a talk shop but a very serious business interaction adding that  of 118 resolutions taken in the past summits, 109 have so far been implemented. 

According to the Commissioner, more than 50 percent of the recommendations from the 5th Ehingbeti have  also been  implemented; others are either on-going or being reviewed in accordance with the prevailing circumstances. 

Earlier in his welcome address, the Co-Chairman of the Summit, Mr. Olabode Augusto, said the theme of this year’s event was in realisation of the importance of Lagos State to the Nigerian economy. 

“We believe that if Nigeria is going to become a major emerging market, then Lagos State must be central to that strategy,” he said.

Also at the ceremony were the Deputy Governor, Mrs. Adejoke Orelope-Adefulire, Commissioner for Transportation Mr. Kayode Opeifa and Commissioner for Environment Mr. Tunji Bello, among other members of the State Executive Council and Legislature.

 Senator Olorunimbe Mamora, Hon. Abike Dabiri-Erewa and among many other local and international dignitaries were there.