Privatized Energy Sector Gives Green Light To
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Special Economic Reports The Japan Times Tuesday, January 28, 2014 7 NIGERIA 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 Lagos 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.