With his vision to make Lagos the choice investment destination, the state governor, Mr. Akinwunmi Ambode created the Office of Overseas Affairs and Investment at his inauguration, which will radically revolutionise the flow of FDIs into the state. Gboyega Akinsanmi writes

Like other governors in the federation, Lagos State Governor, Mr. Akinwunmi Ambode was 100 days in office penultimateSunday. But Ambode did not mark his first 100 days; neither did he address a news conference on his milestone since he assumed office. This was a sharp contrast to the tradition of his immediate predecessor, Mr. Babatunde Fashola, who marked every 100 days in office.

Even though Ambode did not continue Fashola’s tradition, his aggressive hunt for Foreign Direct Investments (FDIs) has indeed paid off since he took up the mantle of leadership in the state. As a result, Ikeja House, the state’s official seat of power, has been a point of call for foreign missions looking for opportunities they can exploit and foreign investors that chose to do business in the state.

The new scramble for Lagos soul did not happen by accident or by chance. Likewise, it was not just an offshoot of an era gone by. It was largely a product of Ambode, who at his inauguration created an office of office of Overseas Affairs and Investment. The new office is now a beacon for global brands that a new market with varying degrees of opportunities has emerged on the coast of West Africa.

Ambode’s grand strategy for the new office was simply “to assure the business community and corporate Lagos that the ease of doing business in Lagos will be improved upon earnestly and that Lagos is open for greater business.” Contemplating at building friendlier regime, Ambode said the new office became imperative “to enable investors fly into Lagos; start their businesses and work and live in the state.”

True to his ambitious promise, Ambode succeeded creating a new investment climate and an atmosphere for doing business, which he said, dictated his on-going public sector reform; defined his approach to law enforcement; testified to his commitment to public order and safety and explained the rationales his administration had kicked off a comprehensive reform of the state’s judicial sector.

Enabling Climate
At a recent strategic meeting, Ambode provided background to Lagos economy. For him, the size of the state’s population is simultaneously its greatest sources of strength and challenges. But he has been strengthening the state institutions for robust response. He thus said Lagos “leverages on its population and cosmopolitan nature,” which he said, had earned Lagos the most buoyant economy in West Africa.

In terms of economy, Ambode said Lagos “represents the future citadel of entrepreneurship in this country. The state has a population of 21.9 million, of which four million are actually middle class. Lagos is the fifth largest economy in Africa and our GDP has hit $131 billion,” which he said, is more than the GDPs of 42 African countries put together. By this, he said, the state is a destination for investors.

But Ambode acknowledged socio-economic challenges associated with megacities globally. Already, he noted that his administration had started evolving policies and initiatives, which he said, would contain high crime rates and infrastructure deficit and transform Lagos to a choice megacity for foreign investors. He said this explained the creation of an Office of Overseas Affairs and Investment; continued reform of judicial sector and strengthening of security strategy and institutions.

The governor thus explained his administration’s commitment “to the rule of law, judicial institution and security sector,” which he admitted, formed the critical elements investors would want “to see before injecting their capital. The efforts are geared towards ensuring that business transactions are done transparently. We are running a government of integrity,” which seek to protect Lagos and investors.

But at a meeting recently, Hon. Darelle Issa, who led a delegation of Congressmen to Lagos House, described as the citadel for growth and development of Nigeria, hence necessitating the new scramble for Lagos. But Issa, a Republican, canvassed a well-managed synergy between the federal and state governments to contain diverse security issues, which he said, could undercut investment flows.

If the flow of investment to Lagos must be sustained, Issa urged the Ambode administration “to collaborate with the federal government to tackling issues of insecurity in Nigeria, especially the Boko Haram menace. The fight could not be left alone for the government at the centre to handle. Rather than emulate the American democracy, Nigeria should strive to better the America experience.”

Scramble for Lagos
Ambode’s critical reforms, which cut across all strategic sectors, must have propelled the rush of foreign investors to the state. Just under 100 days in office, foreign missions representing different countries in Nigeria have started trooping to Ikeja House in good number. In the same way, the representatives of global brands and conglomerates have not been left behind in the new scramble for Lagos.

During each of these visits, the governor always spent quality time, marketing Lagos “to them and providing insights into diverse opportunities that doing business in the state readily offers. As the economic hub of Nigeria, we pride ourselves as the largest of the country’s economy with the GDP of $131billion. For any company that wants to do business in Nigeria, Lagos is your best bet. We are committed to the rule of law and we assure you of a safer and secured environment.”

At this instance, Australian High Commissioner in Nigeria, Mr. Jonathan Richardson had led a high-powered delegation of envoys to Ikeja House. Likewise, French Ambassador to Nigeria, Mr. Denys Gauer, British Deputy High Commissioner, Mr. Ray Kyles, US Consul-General in Nigeria, Ms. Dehab Ghebreab, Indian High Commissioner to Nigeria, Mr. Ajjampur Ghanashyam and German Ambassador to Nigeria, Mr. Michael Zenner among others, seeking business opportunities for their investors.

Also, the President of Wal-Mart Stores, Inc., Ms. Shelley Broader personally led a delegation of the company’s top executives to the governor sometimes in July. At the meeting, Broader unveiled the group’s strategic plan to expand its business frontiers to Nigeria and the decision of the management to kick off in Lagos. Under two months, she said, Wal-Mart would open more game shops in the state.

More excited about opportunities Lagos market offers, the Smart City Group came with a retinue of directors on its board and a big investment plan. An eminent professor of political economy, Prof. Pat Utomi led the delegation, which comprised the Chief Executive Officer of Smart City Dubai, Mr. Jaber Bin Hafer and the Managing Director of Smart City Lagos, Mr. Uzo Udemba among others.

The Knauf Group International, Germany’s leading manufacturing company, came with the insignia of German Government. Zenner, the German ambassador to Nigeria, personally led the delegation of Knauf Group, which comprised the Head of its Management Committee in charge of Southern Europe, Middle East & Africa, Mrs. Isabel Knauf and German Consul-General in Nigeria, Mr. Ingo Herbert among others.

Another group of Indian investors under the Confederation of Indian Industry Business Group chose a different approach. Rather than visiting the governor, the Indian investors led by Executive Director (West Africa), Mr. Naresh Kumar Leekha toured Lekki Free Trade Zone (LFTZ), the state’s emerging investment hub that host Dangote Group’s over $11 billion Refinery and Petrochemical Company and a sizable number of Chinese manufacturing companies.

Broader, President of Wal-Mart Stores, Inc., captured the rationale behind the new rush for Lagos in a terse address she made during her visit to the Lagos House about one month ago. She apprised the governor of her firm’s blueprint to open more Game Shops in Nigeria, thereby pointing out that the group would start with Lagos before moving to other states. She also indicated Wal-Mart’s interest “to explore other opportunities for greater investments in Lagos economy.”

But Ghebreab, the US Consul-General, provided more insight into the new rush for Lagos. She said the US “is interested in Lagos because it is the economic hub and capital of Nigeria as well as West Africa. Lagos is a very important state. We are here to help the state in any way it will want the US to provide assistance. Our investors from her country are ready to register their presence and provide assistance in Lagos and partner the state government on infrastructural development.”

The state’s investment might not be the real string pulling investors from the western world to Nigeria, Africa’s largest market and Lagos, West Africa’s biggest economic hub. Perhaps, the new rush has been ascribed to the renewed effort to recapture African market, which reports argued, apparently posed grave threat to the stakes of Chinese and Lebanese businesses and corporations that have been dominating the state’s investment climate in the last decade.

Investment Flows
Already, Ambode’s investment drive has started paying off. Each of the global brands that visited the governor came with some volumes of investment. Wal-Mart, for instance, divulged two different plans. First, according to Broader, Wal-Mart has social corporate responsibility plan aimed at training Nigerian youths in customers’ relations and how to produce and package products for exports.

Second, Broader unveiled Wal-Mart’s investment plan, though did not specifically mention how much the group would inject into Lagos economy. She said the group had developed a blueprint “to open two more Game Shops in Nigeria within the next two months while exploring other opportunities for greater investments in the economy, though the company entered into the Nigerian market in 2010.”

Currently operating under its Massmart division, Broader said Game Discount World Nigeria Limited, Wal-Mart “runs three stores in Lagos under Game and Valumart brands. Currently operating in 28 countries, the group’s net sales for the 2015 fiscal year globally since it was established in 1962 is put at $486 billion,” which Ambode believed, would have tremendous impact on Lagos economy.

But the entry of Smart City Dubai excited the governor much better. Utomi, the company’s head of delegation, provided the succinct profile of Smart City Dubai, which he said, was reputable globally for transforming a desert village to the world’s business hub in one generation. Utomi’s statement raised a critical question: How much of Lagos slums can Smart City Dubai turn to paradise?

Apparently, the group of Dubai investors insatiably aspired to play a role, which Utomi said, would significantly change the business climate in the state.” Within a period of time, the Dubai group had developed a business template, which Utomi said, would successively bring as much as $10billion into Lagos economy, which analysts said, might be the largest single investment in the state’s history.

In the case of Knauf Group, an investment of $70 million has been perfected to kick off the first phase of the group’s manufacturing venture in Lagos. Zenner, the German envoy, announced the group’s investment package, but Knauf provided details about what the group planned to do in Lagos. She thus solicited Ambode’s support “to set up building and construction tools manufacturing in Lagos.

“We are looking to invest and build a factory in Lagos. We are soliciting the support of Lagos State Government. We have been to Lekki Deep Sea Port and want to proceed on investing straight off. I wish to express our interest in our in investing about $70 million in construction tools manufacturing company in the first phase. Successively, we will inject more investments as time goes on,” she said.

Areas of Priority
Really, the flow of FDIs remains Ambode’s single breakthrough. But the governor is concerned about the areas investors are injecting capital. At a meeting with the Irish Ambassador to Nigeria, Mr. Sesan Hoy, Ambode emphasised the area of investment priorities. His concern centred more on meeting the state’s food security requirements, which he said, was critical to attaining the goal of self-sufficiency.

The governor gravely lamented the annual spending on rice importation, which he put at N300 billion. He noted that the state could produce only five percent of rice its residents consumed per annum, which according to him, suggested that the state “needs sustained investments in agriculture. And such investments will help create job opportunities and also end the food security gap.”

For him, increasing rice importation is not the answer. Ambode said the state government “cannot claim that we are self-sufficient right now. But the state has a plan to be able to feed ourselves at some point in time. So, one area that Lagos is really interested in is in the agro business. We have a population of over 20 million. We should be able to plan properly the food security of the state.”

Ambode thus said the state government was partnering with agro-allied investors, noting that the state “is looking for a situation where we would expand the potentials of our farmers and cross into other states and be able to produce staple products for the people of Lagos. So if we have any partnership that can assist us in securing the future of our people in terms of agro business will be highly welcomed.”