Forwarded by Adebayo Animashaun

It just occurred to me that communication is really the key element by which the plague called stigmatization which has infected Africa's greatest Nation may be eradicated with the right dose of anti biotic, in this case a massive pro investment media drive.

Not too long ago, a media organization who claims to be the best in the world practiced what journalism school warned us about, biased and one sided reporting which adversely sent the wrong signals to the world about the true nature and academic professional skills of 99% of Nigerians. It is not often true that one bad apple spoils the bunch as was portrayed.

An internationally acclaimed African journal in its last ten years of production has revealed hundreds of African intellectuals, especially Nigerians who have performed great feats world wide and have not looked back at propagating the positive side of Africa and Africans in living color.

10 reasons? There are even more but the developed nations, investors and prospectors should recognize that the platform for viability has seen a new season. It was really bad in the past especially during the era of advanced fee frauds which now have extremely severe repercussions.

In highlighting some of the opportunities, it is pertinent to state that using the modern super fast information highway, facts can be verified in the sea of available data.

Much of these assertions were actually revealed during a recent road trip to the United States by the Nigerian Stock exchange and its market operators. The Nigerian Stock exchange started organizing International investment Road shows in March 2003 which was a collaboration between the Nigerian Stock exchange, the United Nations Development program and the New York stock exchange.

1. The Stock Market: The Nigerian stock exchange was established in 1960 as the Lagos stock exchange and changed its name to the Nigerian stock exchange in 1977. As at the end of 2005, the number of listed securities stood at 288 with a total market capitalization of over two trillion nine hundred billion Naira ($1 to N141 approx.). The stock market performance has been astronomical which even may beat the speed of the space shuttle as it hurls itself to space at 5 miles per second. The equities market has been the main strength of the Nigerian Stock Exchange over the years. The index has risen from 100 units in 1984 the base year to 24,085.76 in December of 2005. The market turnover grew by 16.44% from N225.82billion in 2004 to N262.937billion in 2005.

2. Oil and Gas: The vast amount of reserves of oil and natural gas is said to be amongst the largest in the world. Not even the recent turmoil in the Niger delta could prevent a dependable production capacity from declining. The presence of the world's largest oil companies amongst who are CheveronTexaco, ExxonMobil, Shell and Total attest to the fact that the industry is hardly untapped. The obvious emergence of indigenous oil companies and recent acquisitions has largely increased production capacity as well as opened doors for more international investment opportunities by specialized support conglomerates. The highly untapped gas reserves are also capable of sustaining the needs of neighboring states which eventually refine for domestic consumption. Employment opportunities cannot be overemphasized in this industry.

3. Agriculture: Once almost forgotten is now the next economic stimulant. The Federal Government under President Olusegun Obasanjo is investing millions of dollars in ensuring agricultural sustainability. The emergence of the oil boom distracted agricultural development in a country that is blessed in its geographical location in terms of favorable climatic environment. The president recently attended a fertilizer summit in New York as well as other related events geared towards revamping the agricultural sector. Thousands of hectares of land have been made available to farmers to cultivate crops for commercial production. Governor Saraki of Kwara state recently welcomed extradited experienced Zimbabian farmers to assist in massive commercial agricultural production. A USA based pro agricultural body; the Alliance for Agriculture recently surveyed the possibilities of utilizing Agriculture in Nigeria as a means of Ethanol production which is a source of alternative energy. The key crops, Cassava and Sugarcane are to be commercially grown and processed to produce Ethanol. Here also lies a boundless array of investment opportunity.

4. Communication: At the recent Nigerian Reunion Corporation convention in Atlanta USA, the President of the group Mr. Segun Adeyina recalled that a few years ago, he had to call his neighbors house to enable them connect to his parents for a dialogue. Sometimes ago, one had to wait in line outside hot tents to make phone calls. Today in Nigeria, over three million phone lines are active. As a matter of fact, the growth in the rate of phone lines has been so overwhelming that MTN, a leading provider relocated its head office from South Africa to Nigeria. The entire country is currently re wired with fiber optic cables while numerous micro wave towers are extremely visible even in the most remote areas. The emergence of effective telecommunication has greatly increased commerce as well as assisted to fight crime. The ailing National telecoms company was recently acquired just as it had reached a comatose level. The emergence of communication companies with millions of dollar investments has also helped to reduce the cost of owning a phone which is said to be the cheapest in the world. For instance, in 2001 it cost $250 approximately to own a line but today it's about $3 and sometimes even free! The investment opportunities for maintenance, hardware production and manpower are so immense that this industry is sometimes likened to oil.

5. Real Estate: The president of the Federal Republic of Nigeria recently officially commissioned the first and largest shopping mall in Nigeria. This mall is a joint venture between foreign investors and local shareholders. A tour of major cities such as Abuja and Lagos has revealed a boom in housing developments as well as office complexes which is as a result of the fast emerging real estate industry in Nigeria. Modern housing estates are being built on dredged lands to increase the availability of housing units for a population of over 150 million people. In Lagos, the turn over on the value of land is said to be a record setter. A piece of land that cost $4000 in 2001 now stands at about $110,000 in 2006. The demand for such properties also continues to rise despite experiencing the emergence of multiple players. Nigeria boasts of land availability for real estate development which has a profitable future for a growing economy.

6. Transportation: With the ever increasing population and increase in rural development, the transportation sector is worth a try. Road transport is the most popular and still highly untapped. Nigeria needs a series of ultramodern road transport corporations to instill confidence in commuters. This is likely to be influenced by government policies but eventually would be more lucrative than it is presently. The rail systems are currently being revamped and there have been numerous dialogues between giant Asian corporations and Nigerian transportation industry officials. The pro privatization stance of the present government creates a platform for private investors to participate in enhancing and improving the sector. The aviation industry recently experienced a massive shake up with the introduction of foreign partners to lend there wealth of experience at ensuring a professionally run industry. Once existing criteria are met, the country still has investment opportunities in the Aviation, rail and road transportation sector.

7. Education: With an ever increasing population, the need for affordable qualitative education for the next generation continues to grow. Nigeria welcomes foreign partners to build a viable and recognizable education platform. Presently, there has been an increase in the number of private tertiary institutions which have encouraged the growth of a self reliant educational system. In as much as a few still seek education abroad, Nigerian schools now largely have affiliates abroad who ensure that the level of education remains at the highest possible quality. The current trend of children being sent to school in Nigeria from their foreign base is an attestation to the fact that there is an increase in the level of confidence in the educational system that runs in Nigeria.

8. Anti Corruption Monitoring Institutions: The Nigerian government has set up various economic monitoring bodies to ensure the restoration of the confidence of would be investors. The Economic and financial crime commission EFCC is set up to tackle financial and related crimes and has recently been successful in its drive at various levels. The Independent Corrupt practices commission ICPC is the apex body saddled with the responsibility to fight corruption and other related offences in Nigeria. It is mandated to prohibit and prescribe punishment for corrupt practices and other related offences. The Extractive industry transparency initiative EITI was set up to provide greater transparency on petroleum revenue data and public finances thereby assisting the policy makers in devising and implementing policies. These bodies have also largely instilled confidence in would be investors.

9. Banking: Not less than six Nigerian banks were recently listed as the world's top banks in a recent survey. The just concluded consolidation exercise in the Nigerian banking sector has again reaped another benefit as nine Nigerian banks have made it into the listing of Top 1000 World Banks, up from four in 2005.

The Banker Magazine, an arm of the Financial Times Group weekend released its world renowned Top 1000 World Banks ranking for 2006 and on the list were First Bank, Union Bank, Zenith International Bank, IBTC Chartered Bank, Intercontinental Bank, Spring Bank, GT Bank, First Inland and Oceanic Bank.

According to the magazine, the rise in the number of Nigerian banks in this global 1,000 listing is "due to the consolidation that has taken place in the banking sector in Nigeria since 1st January 2006 and the creation of larger banking institutions with a minimum capital requirement of N25 billion". This also shows the strength of the economy as well an open opportunity to consider investments.

10. Manpower: I would think that large scale industrialists would economically prefer to reduce overheads and one of the most effective ways is controlling the wages of workers but at the same time carefully maximizing their potentials. With a population of dedicated potential unskilled and skilled labor force, Nigeria would be a viable economy to consider large scale industrialization. Manpower is so available that over production may become an issue. The average Nigerian is particularly very dedicated to duty and is endowed with immense physical and mental strength.

The Nigerian government has started to stipulate that investment in the non-oil sector and infrastructural projects is a condition for preferential allotment of oil blocks while trade and importation policies are now being put in place that will help stimulate domestic production and help revitalize the non-oil sector.

Tosan Aduayi is the founder of trendyafrica.com and the managing editor of OVATION INTERNATIONAL MAGAZINE USA who has represented his organization at various international events worldwide. Respond to tosan@trendyafrica.com

Robot  Villager

# 1 Forwarded by Adebayo Animashaun...Read the full article. Posted by Robot| 12.07.2006 13:19