Speeches

Opening Ceremony Of Lagos Megacity Business Expo 2008

Sep 23, 2008 - I am delighted to address this distinguished audience on this auspicious occasion of the opening ceremony of this unique event-the Lagos Mega City Business Expo. For me, this event would not have come at a better time than now when the global financial markets from USA to Europe to Asia have been going through the most trying period ever witnessed since 1960s economic recession. This lends credence to our recent calls to investors to explore diverse opportunities opening up in real estate and agro-allied industries among others rather than over-labouring the financial markets.

This business expo is indeed a historic event which will provide an attractive and conducive platform for Local and International investors from the Private, Public and non-governmental organizations to brainstorm on relevant contemporary and emerging issues confronting the State with a view to proffering time-tested solutions toward achieving the Lagos of our dream.

Just as I explained during our 4th Lagos Economic Summit and other similar fora, we are ready to do business with every willing investor because our words have remained our bonds. Without being immodest, as you survey the length and breadth of this country, it would be difficult to find a place like Lagos.

The critical factors that make Lagos State a prime centre of attraction for investors include her strategic geographical location that enables her to harbour Nation’s largest international sea and airports. Other factors include paying host to the country’s hospitality, telecommunication, media and service industries, in addition to hosting West Africa’s premier Stock Exchange and the financial and industrial sectors.

The Expo with the theme entitled “Consolidation of Lagos Mega City for Mega Investments” is a relevant developmental reference point and statement in our quest for sustainable growth and development of the State. We believe that all the various Stakeholders in the Lagos project must be repositioned to face the challenges posed by its emergence as a Mega City.

Lagos State, as you are well aware is the biggest economy in Nigeria with the largest population of about 18 million people and controls 65% of the nation’s commercial, industrial and manufacturing activities. Unfortunately, Lagos State which served as the seat of the Federal Government as well as the State Government, had suffered gradual infrastructural decay over the decades.

Since our assumption of office five hundred days ago, we have focused 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.

We are making concerted efforts to re-invigorate the economy of the State and it is heartwarming to note that this administration has recorded landmark achievements in the provision of enabling environment to attract and sustain direct foreign 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.

At this juncture, distinguished investors, permit me to just highlight some viable investment opportunities in Lagos State which I am always glad to talk about in forum of this status. Let me say that a decision to invest in Lagos is a decision for prosperity and economic growth with national multiplier effects.

REAL ESTATE
Accommodation needs for the growing population in Lagos has become so huge that investment in real estate has been regarded as the fastest and most lucrative growing long-term business opportunity. Most parts of Lagos are becoming prime areas from the high brow Lekki Corridor to the downtown Mainland Yaba and from the CBDs in Central and Mainland Lagos to Ikorodu suburb. We have simplified our legal procedures for titling and other land matters.

In the FREE TRADE ZONE AT LEKKI
The State Government will welcome viable investment partnership which can facilitate the development of Free Trade Zone in Lagos State to stimulate job creation and wealth generation. With the provision of the state-of-the-art facilities and other attractive incentives, investors are poised to enjoy a high net worth for their investment in the zone.

INVESTMENT IN SMALL AND MEDIUM SCALE INDUSTRY
This sub-sector has been regarded as a gold mine that we are yet to fully exploit in this country. Our administration is determined to use SMEs as the linchpin for rapid economic growth. This was what gave impetus to our Microfinance programme for which many are already beneficiaries.

The State Government requires support and investment in infrastructural facilities, which can support the growth of the industry. We will provide the enabling environment for those willing to set up cottage industries to produce textile materials, shoes, fruit juices, simple equipment for artisans etc.

ENVIRONMENT
(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.

TOURISM
I believe that the large expanse of coastal line with the beaches, water front and aqua culture are also of immense economic, tourism and cultural exchange potentials.

In the area of tourism investment therefore, the Government 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.

PUBLIC TRANSPORTATION
On transportation, the sector 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.
(a) The construction and management of metro line for the movement of the masses at very cheap cost. This is without any bias to any other suggestion that can best fit a mega city.
(b) The provision of an efficient rail system to serve a complementary role to the metro line and especially assist in the haulage sub sector.
(c) The development of a profitable water transport system, as the State is blessed with an abundance of water and waterways.

WORKS AND INFRASTRUCTURE
The Government will be looking forward to investors in areas of:
(a) provision of social amenities and public infrastructure;
(b) the expansion of road network and rehabilitation of the existing ones.
(c ) We have earmarked many roads and construction projects on Build-Operate-and-Transfer(BOT) basis for investors.

In the area of power supply, investors can participate in the Independent Power Project initiative to provide the shortfall between 1000MW that is currently being supplied and the actual demand of 12,000MW. The same picture exists in the water supply sector. 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.

In a similar manner, security of life and property which we consider a sine qua non to attracting investors has been greatly improved through our Security Equipment Fund supported through the PPP. 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. For instance, the introduction of the Electronic Banking System in the management of the State finances has ensured greater transparency and accountability in the collection, monitoring and utilization of revenue. Also, the land registry and record system have been computerized and made more reliable through the Electronic Data Management System (EDMS) while the process of accessing and perfecting land titles have been considerably simplified and made less cumbersome.

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. It is in this regard that I consider the Lagos Mega-City Business Expo as most timely platform, which would afford us the opportunity to showcase our investment potentials; hold bilateral discussions with both local and foreign investors on areas to participate in the development of the State and for the growth of their own businesses.

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.

Let me conclude this address by expressing profound gratitude to the good people of Lagos State for consistently keeping faith with our determination. 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.

I congratulate the organizers of this Expo for translating their vision into the reality we have gathered here to witness today and for our worthy partners, the Organized Private Sector(OPS) for your consistency and steadfastness in supporting our various programmes to build the Lagos of our collective dream.

On this note, it is now my pleasure to formally declare the Lagos Mega–City Business Expo open.

Thank you and God Bless.

Eko O ni Baje.

BABATUNDE RAJI FASHOLA (SAN)
GOVERNOR OF LAGOS STATE