Few countries offer a clearer insight into both the challenge and the opportunity of doing business in Africa than Nigeria.

The world found its way to Nigeria first for palm oil 100 years ago. Now the prize is crude oil, which was first exported from Nigeria in 1958, two years before independence from Britain.

Sitting on 35 billion barrels of proven oil reserves, Nigeria is Africa's largest producer of oil, and America's fifth largest supplier.
The country depends on oil for 95 percent of it s $20 billion a year in export earnings and 80 percent of government revenues. Oil has been driving an annual 5 percent increase in GDP.

Difficult challenge
Nigeria - like many other developing countries - is said to be afflicted by "the curse of resources". Blessed with oil, minerals and other high-demand commodities, such countries often fail to diversify industries and invest in education and infrastructure.

Since 1956, the money oil has brought into the country measures in the trillions of dollars. Yet, the World Bank reports that 54.4 percent of Nigerians are still living in absolute poverty. Some 70 percent of the population lives on less than $2 a day. Many roads have not been touched since the 1980s; drives that once took hours now take an often-terrifying several days.

Past infrastructure projects remain uncompleted, and air travel is iffy at best. Tens of millions of people live in urban slums without electricity, water or sanitation. Street violence and local attacks in the oil producing regions are ever-present threats.

New direction
"In terms of growth, personally, I am hoping for greater things in the near future, as more confidence is instilled across the country. Yes, there are pockets of issues but that's not any different from any other country in the world. Here, unlike widely-held perceptions, you can actually walk the streets. Sometimes, I do feel much safer here in Nigeria than in New York," said Sinclair Anih.
Sinclair Anih is a GE Energy Field Engineer who has been with the company for two years, he goes out into the field sites in the Niger Delta meets with local Nigerians and talks to them about the exciting opportunities that a company like GE can offer. "It makes me happy to spread that positive energy and excite others about our products and services."

One significant milestone was the recent election. Even with widespread charges of coercion and fraud, the May 2007 inauguration of Umaru Musa Yar'Adua was the first time since independence in 1960 that there was a peaceful transition from one elected official to another.

Begun by his predecessor, President Olusegun Obasanjo, President Yar'Adua is expected to intensify the anti-corruption drive that has won praise from the World Bank.

The reforms are starting to show results. Economic growth outside the oil sector grew more than 8 percent in 2005 and almost 9 percent in 2006. That is something new for this country. It has lowered tariffs that made doing business there so expensive, and privatized major companies in steel, petrochemicals, mining and ports. That is going to have an impact on efficiency and productivity.

The government sees this progress as a small start on some big plans. It wants to be one of the world's top 20 economies. The key to that goal is finance. Nigeria - also by 2020 - is set on being Africa's financial center.

With undeniably rich resources tempered by repeated disappointment, some caution the 2020 goals are more hopeful than realistic. Others are seeing hints of an encouraging break from the past. Citing a recent national conference titled Financial System Strategy 2020, editor Anver Versi wrote in the respected African Business: "I could sense the culture change, which has been maturing under the surface, now coming out in full bloom in the mature and very realistic manner in which Nigerians discuss their future." He also pointed out how rapidly reforms are moving, particularly in the critical banking sector. There is a sense, he said, that "the tide had turned and those who were refusing to go with the flow would be left beached in the shallows."

For GE, cross-business opportunity
For GE, the key opportunities cross businesses. One major near-term opportunity is rebuilding the rail system, a $40 billion undertaking.
Another is building out the oil and gas infrastructure, which will cost
$27 billion. A planned pipeline across the Sahara desert is a $15 billion project. Some $23 billion is earmarked for a ten-fold increase electrical output. There is a $10 billion opportunity in strengthening health care; $12 billion in revamping and expanding the country's water system; and $1 billion in creating the security needed to insure growth-enabling stability.

The country has far to travel to meet its goals for 2020, but Yibrah Tesfazghi, Corporate Region Executive & President, Africa, is encouraged. "We've met with Nigeria's leaders," he said. "We've listened to the plans. There are a lot of challenges ahead, but we thing Nigeria is moving in the right direction. We can play a large role in making the vision real."


http://www.ge.com/ng/

this is an intranet site, you might not be able to access the full story.

some of us av actually seen the whole story!!! informative! but i still think we shdnt put all our major businesses in GE hands alone! i knw about their history and also their integrity watch word!

hopefully, yaradua will display the political will to transform our country! time will tell!!!