Special Economic Reports The Japan Times Tuesday, January 28, 2014 7 GLOBAL INSIGHT www.global-insight.net NIGERIA Growing and transforming West Africa’s big success story Blessed with abundant natural resources, Nigeria is successfully diversifying its growing economy with the help of international investors from Japan and beyond.

A continental giant blessed investment in major new infra- President Mohammed Namadi with vast human and natural structure. “Nigeria’s economy Sambo during the high-profi le resources, including huge oil is undergoing a very compre- event. and gas reserves, Nigeria is hensive reform and we want the “Prime Minister Abe an economic powerhouse that private sector to take the driving expressed his intention to boasts strong macroeconomic seat in economic development,” strengthen ties with Nigeria, one fundamentals as underlined by he says. “This opportunity rep- of the key countries for stability the 6.5 percent year-on-year rise resents a multi-billion-dollar and growth in West Africa, par- in third-quarter GDP. investment for the world. We ticularly to cooperate to promote Home to around 170 million have achieved huge advances in investment from Japanese people and with a strategic posi- telecoms, and the agricultural companies,” Japan’s Ministry of tion in the heart of West Africa, and transportation sectors. Foreign Affairs explained. Nigeria is a long-established Nigeria is an investors’ heaven.” During his address to the audi- diplomatic and trade partner of ence at the event, Prime Minister Akinwumi Adesina, Minister of Japan, with strong relations in Agriculture and Rural Development Ties strengthen Abe said: “Africa’s markets, the political, economic, cultural In June 2013, a delegation of now undergoing a tremendous and trade spheres. senior Nigerian government offi - expansion, appeal enormously With pro-business President percent for the eight-year period cials traveled to Asia for the fi fth to Japanese companies beyond Goodluck Jonathan at the helm 2005-2013. Tokyo International Conference natural resources. Japanese since 2011, a strategic socio- The ambitious republic’s huge on African Development companies have a strong enthu- economic development blue- agricultural industry generated (TICAD V) where they asked siasm for expanding their busi- print titled the Transformation 42 percent, followed by wholesale their Japanese counterparts ness relationships toward Africa, Agenda has been laid down, and retail trade, telecoms and for support in modernizing the which is appealing in these Agriculture, a relatively untapped industry, offers huge potential. which comprises a compre- post at 35 percent, oil and gas energy sector and general infra- ways.” hensive set of priority policies revenues generated 13.5 percent, structure. According to offi cial A leading fi gure in the recent development of Japanese- Meanwhile, Nigeria’s Nigeria has 84 million hectares rapidly growing population. “Over the past 10 years, we “Nigeria’s economy is undergoing a very comprehensive Nigerian relations is Ryuichi Agricultural Transformation of arable land, but no more than Already the largest food company have grown our portfolio in agro- Shoji, the Japanese ambassador Agenda (ATA) is designed to 40 percent of that is actually in the country, the fi rm is setting allied businesses, increased reform and we want the private sector to take the driving to Nigeria, who says his country boost private-sector investment cultivated and no more than 10 its sights higher as it looks to hectares on our farms and we seat in economic development.” is fully focused on expanding in agriculture, reduce post- percent is used optimally. become one of the biggest food continue to expand our farming and strengthening its relations harvest losses, add value to local “We have not yet scratched the suppliers in Africa. portfolio,” Gbededo explained. Labaran Maku, Minister of Information with Nigeria. “Japanese com- produce, develop rural infra- surface in terms of unlocking the “We do not just stop at crop pro- panies need to seize emerging structure, and improve growers’ potential and we offer a whole Raising fl our portfolio duction, but also processing, so and programs to transform the and construction and industry data, Japan’s direct assistance to opportunities, and cope with the and distributors’ access to fi nan- menu of incentives for the private FMN is headed by Group it’s very important we create and economy to meet the future 9.5 percent. Nigeria almost doubled to $145 risks and challenges,” he says. cial services and markets. sector. The ATA is therefore an Managing Director Paul M. add value to the food chain. We needs of all Nigerians. Minister of Information million in the four years to 2012, “They should come with a busi- As Akinwumi Adesina, minis- investment-driven strategy to Gbededo, a talented, philan- are currently developing oil palm The plan is certainly working Labaran Maku says the trans- with grants over the same period ness model tuned to the charac- ter of agriculture and rural devel- unlock the greatest potential you thropic and dynamic business that will be refi ned to produce to date, as shown by data formation agenda will improve reaching nearly $104 million. teristics of the Nigerian market. opment, says: “When we found can fi nd on the African continent executive with a strong focus on vegetable oil and margarine. released by Nigeria’s Central governance, reform institutions Technical assistance almost “Downstream oil and gas and oil, we abandoned agriculture in agriculture.” results who boasts an outstand- “We are also one of the biggest Bank in mid-November that and reduce government costs, trebled, to $42 million. power are promising sectors of and we are paying a big price for Incorporated in 1960, Flour ing track record of success and fertilizer producers, and are revealed the strong single-digit while boosting economic growth, Japanese Prime Minister opportunity, but we don’t want to that. We spend $11 billion a year Mills of Nigeria Plc (FMN) is who is now driving the group’s working with international part- rise in GDP was in line with an speeding up the development of Shinzo Abe had a positive limit the imagination of compa- importing basic food stuffs such one of the greatest providers of backward integration policies, ners to improve yields and bring average annual growth rate of 6.8 human capital and increasing meeting with Nigerian Vice nies to fi nd more opportunities.” as wheat, rice, sugar and fi sh. healthy nutrition to Nigeria’s programs and initiatives. more money to the country.” Privatized energy sector gives green light to FDI Recently taken out of state control and handed to private companies, Nigeria’s vital energy nitely need international part- Japan’s Marubeni in 1982. The in Nigeria,” says Mike Uzoigwe, The business will be guaranteed sector expects to attract at least $100 billion of fresh FDI over the next decade. ners and investors. Japan has vital facility produces 1,320 MW the plant’s managing direc- because people need power.” wonderful technology, mainly in of the 4,500 MW the country cur- tor. “Nigeria has an installed Meanwhile, with an enviable renewables, and we encourage rently produces. capacity of about 5,000-5,600 resume that includes a degree The infl ow of FDI to Nigeria in In May 2013, President transmission company, which is not suffi cient for a country of them to invest here. Japan can While South Korea’s Kepco MW depending on those plants from Yale University, and 2012 totaled some $7 billion and Goodluck Jonathan told the concessioned to a private fi rm to 170 million people, but he is also invest in wind technology, recently acquired 70 percent that are functional, and there time at international oil giant one sector that received this World Economic Summit in manage. Following these critical confi dent that the privatization capacity building and equip- of Egbin Power Plant, there is is a country peak generation of ExxonMobil and as an inde- welcome injection of funding Cape Town, South Africa: “In the reforms, we expect an annual $10 program will improve effi cien- ment maintenance.” enough space to expand the 4,500 MW. This plant is rated pendent consultant, Durosola was the power and energy indus- last two weeks, my government billion investment to follow for cies and attract FDI. existing six units of 220 MW to 1,320 MW, so you can see what Omogbenigun is an oil and gas try, an industry striving to make completed the biggest transfer the next decade.” “We need around 200,000 A bedrock of power eight, with the plant looking for percentage of 4,500 MW is 1,320 expert currently utilizing his up for years of underinvestment of power assets in Africa to Nigeria’s Minister of Power MW; this will take a generation The largest power plant in private investors for technical MW — we are almost one quarter impressive skills and knowledge by opening its doors to private- private investors. By this act, the Chinedu Nebo acknowledged to reach,” he said. President Nigeria, Egbin Power Plant is education and maintenance. of the load. as CEO of Integrated Resources. sector funding, knowledge and power sector in Nigeria is now that Nigeria’s power generation Jonathan’s goal is by 2020 we will situated close to the bustling city “Egbin Power Plant is the “We are also more reliable than An indigenous company with technology. totally privatized, except for the capacity of 4,500 MW is simply generate 40,000 MW. We defi - of and was constructed by bedrock of the power industry other plants, since we can run for global experience, Integrated weeks without major problems. Resources is a fast-growing For Nigeria to have a big leap in player in the power industry, and improving its power base, the is currently searching for part- private sector must come in, run ners and investors as it strives to the existing plants like busi- achieve new goals. nesses and have money to put “We are in the unique position Responding more plants in place. Japanese of being able to understand what investment is needed in Nigeria, a world-class investor requires, to the needs as this power station shows.” and can synchronize and intro- of Nigerians There are opportunities in duce them to the Nigerian envi- since 1960 the areas of spare parts, train- ronment,” he says. Nigeria, ing, and upgrading facilities, “There is vast potential for Flour Mills of Nigeria Uzoigwe says. “This plant was generating thermal power from the place for investment stands poised to help built 30 years ago and we still gas that’s either stranded or has achieve company have two more units to build. not yet been extracted.” in the power sector objectives while simultaneously improving Egbin Power Plant, the largest power plant in the lives of untold numbers Nigeria, built by the Japanese in 1982, accounts of Nigerians — employees for 1,320 of the country’s 4,500 total megawatt and consumers alike. production. South Korea’s Kepco has acquired 70% of Egbin, and there is still space available to expand The preferred local partner the existing six units to eight. We are therefore with international experience looking for private companies to help us invest in technical education, maintenance and effi ciency. in power, oil and gas

Flour Mills of Nigeria 1 Golden Penny Place Tel: +234 01 804 4416 Off Wharf Road, Apapa www.egbinpower.com Lagos, Nigeria Tel: +234 0803 907 5000 www.irl.com.ng | Tel: +234 1 4631228-9 www.fmnplc.com

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Special Economic Reports The Japan Times Tuesday, January 28, 2014 9 www.global-insight.net NIGERIA GLOBAL INSIGHT

Nike Art Gallery, , State of Osun The Olumirin Waterfalls in Erin-Ijesha, State of Osun Where culture embraces business The State of Osun, Nigeria, is a hive of activity with opportunities for Japanese investors Education is the means by which jumped 25 percent in a period of oped institutions to remove the human capacity is developed. three months.” prospect of those vices. We have looking for healthy returns in a forward-thinking and dynamic hub within a huge market. Education is the instrument of Such grass-roots dynamism developed an Offi ce of Economic development and change, and and enterprise has attracted Development and Partnerships When poverty, strife and Lagos to Osogbo; The tablet of knowledge — cannot therefore be neglected by the interest of the Japanese. (OEDP), led by Dr. Charles ‘Diji confl ict hit the headlines, the • provision of an enabling and Opon Imo Program — has given any responsible government. Japanese Ambassador to Nigeria Akinola, alumnus of the Harvard good work going on beneath professional business environ- back to the economy by the “As we are focused on educa- Ryuichi Shoji announced he Kennedy School and Fellow the surface is often overlooked. ment through a concessionary assemblage of the hardware. We tion as a means of mobilizing our was encouraged by several of the Harvard Weatherhead Yet there are people and initia- model of public-private partner- developed the software, but we people for large-scale produc- development projects of the Center for International Affairs tives making a difference in all ship involving private-sector- are using a Chinese-produced tion, we can see the need to give administration. (WCFIA), Harvard University, corners of the world. Take the based project management tablet, so the company is build- sound education as support to whose sole responsibility is State of Osun, Nigeria. teams; ing a factory here for manu- this production. Without edu- Empowering young people to provide a one-stop shop for A thriving region in the center • provision of land for com- facturing the device. We are cation, the cost of passing the Shoji gave particular investors anywhere in the world of Nigeria where all roads cross, panies intending to develop currently looking at the produc- minutest amount of information mention to the Osun Youth — to remove any challenge an the State of Osun has been rec- warehouses tion of mobile phones, laptops, to the people will be exorbitant. Empowerment Scheme (O’Yes), investor could face and isolate ognized for its unique culture, • provision of a level playing desktops and plasma televisions. With education, it will be less a volunteer scheme aimed at them from common vices in and forward-thinking health fi eld for operators of the concept. Those are the industries we have expensive to mobilize, motivate “creating a bridge to employ- developing economies. and educational programs Ogbeni Rauf Aregbesola The state administration is attracted. and get people to do those things ment by equipping young men “As I said earlier, we have a by the prestigious United Governor of the State of Osun also doing a lot to attract invest- “There has been a huge that will benefi t their society. and women with positive work warm and safe territory. Our Nations Educational, Scientifi c ment in many other areas. investment in hospitality, tourist “Because we are committing ethics and culture, self suste- people proudly call themselves and Cultural Organization excellent growth and invest- “We are spending a huge centers, hotels and recreational “We realize that resources to agriculture for nance, resourcefulness and virtuous, which is the appellation (UNESCO), among others. ment opportunities. Cocoa amount of money to ensure the parks, so these are coming up. poverty is a production and self-suffi ciency respect for the environment.” that distinguishes the state: the The capital of Yoruba culture grows in abundance, while the security of life and property in We are looking at investment in major deterrent in food, we are committing More than 250,000 young state of the virtuous. So we strive — around a fi fth of Nigeria’s huge large concentration of palm trees the State of Osun,” Governor the development of the market resources to the development people applied for the fi rst intake to show people virtue, credibil- population are makes the State of Osun a viable Aregbesola states. “You hardly where goods and products could to school-age of school infrastructure and in December 2010 — which ity, morality and good caution. — the State of Osun is home to zone for vegetable oil processing. ever hear of any crisis here. We come in from all parts of Nigeria. children, so we developing the capacity of the offered 20,000 places — attracted With that, you have people who more than 3.6 million people and The number of untapped forests have succeeded in guarantee- The state has arranged a free potential of teachers, which is by the chance to enter the are cautiously working to ensure widely believed to be the cradle offer excellent potential for ing peace, security, and peace freight service that facilitates the introduced the again very important. School Nigerian economy by improv- the perfect human relationship. of humanity. Hundreds of people movement of fi nished products school feeding buildings alone do not make ing their capacity, empowering Also, we are spending a huge from around the world travel to from Lagos to our state.” schools. them and virtually ensuring that sum of money on social security the area every year to attend the “We are encouraging bold entrepreneurs, Meanwhile, 61 township roads system to students. “The human factor in educa- they can better walk into life- to ensure that there is no threat annual Osun-Osogbo festival, to creative investors and other brilliant and 20 intercity roads have been tion and training is more critical long careers. whatsoever to life or property. Rauf Aregbesola worship the shrine of the Osun people to invest in the State of Osun.” upgraded and a 74-kilometer than those other required facili- “They shall be armed with When we put these efforts goddess, and enjoy the area’s superhighway is being built ties. The reorientation of the new skills, entrepreneurship together, I want to say we have acclaimed arts, literature and to connect Osun to Lagos. The teachers to understand the new and mentoring as part of efforts done everything possible to give Rauf Aregbesola, Governor of the State of Osun music scene. Ede waterworks has been reha- method of teaching and student of the government of the State of our partners, especially our busi- It seems right, then, that an bilitated to increase production management is key. Osun to prepare them for honor- ness partners, the best business amazing socioeconomic trans- wood-based industries, and rice of mind for both the citizens and from 17 percent to 30 percent “We realize that poverty is a able and gainful exit from the environment in Nigeria.” formation is currently under and fruits are also grown in com- for investment. Nobody here capacity. There are also environ- major deterrent to school-age scheme,” the mission statement Unsurprisingly, this refresh- way. Thanks to cash crops that mercial quantities. Gold is also a entertains any fear of insecurity. mental operations in progress children, so we introduced the says. ing attitude that has earned the include yams, cassava, grain, prominent resource within this This is a calm, peaceful and to keep Osun fl ood-free for two school feeding system to the Japanese involvement in the State of Osun governor inter- cocoa and tobacco, the State of region, as well as nickel, dolo- hospitable environment. Our years and a new fl eet of waste- grade one to four students to give State of Osun will help in many national recognition, not least Osun has a buoyant economy mite, limestone and clay. cultural tourism is the richest disposal trucks in use. them good nutritious meals to ways, Governor Aregbesola the Economic Community Of that will only be enhanced due to “We are encouraging bold in Nigeria. We have traditional attract them to school, to keep explains: “Japan is at the West African States (ECOWAS) the discovery of oil and gas there. entrepreneurs, creative inves- institutions that show the wealth An enlightened society them in school, and to develop height of electronic technol- Community Service Gold Award, It currently has a global credit tors and other brilliant people of our people. We have festivals, Governor Aregbesola has been their physical and mental capac- ogy, recognized as a leader of the Ambassador of Goodwill for rating of BBB, but with new who have avenues for good waterfalls and several other highly praised for his innovative ity to learn. The enrolment of stu- technology and a promoter of the state of Tennessee in the U.S. measures and fi nancial schemes opportunities to come and invest unique natural attractions, as approach to education. dents into that level of education international development. The and the Humanitarian Service introduced to support 2,000 in the State of Osun,” explains well as traditions and cultural The Opon Imo program, for Japan International Cooperation Merit Award. farmers and cooperative groups, the esteemed governor, Ogbeni sites that will engage and attract example, gives a stand-alone Agency (JICA), has been While Governor Aregbesola the area is set to blossom as an Rauf Aregbesola, an engineer. visitors. tablet to senior secondary school working with us on water, so we is delighted, he is certainly not agriculture center for Nigeria To this end, he has unveiled “Our policies and programs students that provides the learn- look forward to partnering with complacent. As he says: “It is and its neighbors. plans to make Osogbo a trading are so investment-friendly ing materials for school leaving Japan not only on that issue, good to receive these awards, but The area enjoys water hub, where commercial goods that now we have three indus- examinations in the form of but on every aspect of human my ultimate ambition is to take resources from the Osun River from Lagos can be bought and tries already growing. There textbooks, tutorials and practice development that will help my people to the highest level of and is a pivotal part of Nigeria’s sold at wholesale rates. The plan is a garment factory, which questions. Some 150,000 are our people and equally be human development, achieve- ongoing diversifi cation plan to will offer the following services: developed out of our efforts to being distributed across state of benefi t to the economy ment and accomplishment con- redistribute petrodollars. More • provision of logistics for easy give suitable uniforms to our secondary schools in a bid to of Japan. “While we sidered by man. than 75 percent of the State of haulage of farm products to school-children — this is now the democratize access to learning. appreciate their gesture It is only when we are there Osun’s inhabitants are farmers, Lagos and fi nished goods from biggest in Nigeria. “Education is the means by of support for us on water, that I will be fulfi lled. I want to so agribusiness which you develop an enlight- we want to further our rela- ensure that we give our people p r o v i d e s ened society, a society that can tionship in education, the meaning of freedom and a effectively manage its affairs, in culture, and good life.” and ensure human dignity, As part of his mandate 56- human rights, and human year-old Governor Aregbesola honor is promoted has stated he wants his term in and protected. offi ce to be measured by func- tional education, the restoration of healthy living, the banish- ment of poverty and hunger, the human capital develop- creation of work and wealth, and ment.” The governor is communal peace and progress. reassuring about the invest- As the saying goes, “Where ment climate in his state. there’s a will, there’s a way,” and “Investors do not it is clear that the State of Osun need to worry about is fi nding a way to challenge the red tape. First of negative headlines, and lead by all, we have devel- example.

A Sculpture at the Osun-Osogbo Sacred Grove

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