Dangote: Nigeria to Earn N8tn from Lekki Investments Annually
Ambode, Ganduje seek strong economic partnership FG: $2bn needed for Lagos-Kano rail line
The President of Dangote Group, Alhaji Aliko Dangote, yesterday disclosed that his investments in the Lekki Free Trade Zone alone would earn Nigeria a whopping sum of N8 trillion per annum by the time the projects are completed.
Dangote however, lamented the country’s socio-economic challenges, which he argued, could have been addressed if different states of the federation had not cultivated partnership along their areas of comparative advantages.
He expressed concern over the relationship among states of the federation at the Lagos-Kano Economic and Investment Summit held at Epe yesterday, challenging sub-national governments to develop strategic partnership beyond regional integration and political affiliation.
The summit, which is the first of its kind in the history of Nigeria, was convened by of Lagos and Kano States governments, to create awareness on their investment climate and policy thrust and a platform for dialogue for potential investors in both states.
The summit, which would end today with the signing of a memorandum of understanding (MoU) between the two states, was attended by Vice President Yemi Osinbajo, Lagos State Governor, Mr. Akinwunmi Ambode, his Kano counterpart, Dr. Abdullahi Ganduje, Emir of Kano, Alhaji Muhammadu Sanusi II and Oba of Lagos, Oba Rilwanu Akiolu, among others.
Specifically, at the summit, Dangote commended the partnership between the Lagos and Kano State governments, noting that Lagos “has clearly demonstrated its readiness for serious investments. Lagos State is more than ready for business.”
He disclosed that the investments of Dangote Group in the Lekki Free Trade Zone (LFTZ) alone would generate N8trillion per annum for the country when fully on stream.
He pointed out that the figure was not part of what the country would earn from other companies and conglomerates that chose to operate from the zone.
He therefore, challenged the Lagos and Kano State governments to build a relationship that would endure irrespective of political affiliation, noting that distance “is not a barrier to inter-state relations in Nigeria.”
Before he declared the summit open, the vice president noted that at least $2billion would be required to revive the LagosKano Rail Line as part of efforts to boost local and international trade along the northern and southern zones.
Osinbajo said the federal government had partnered a United States multinational, General Electric (GE) with a plan “to invest in the project to enhance the movement of cargo from Apapa ports to Kano via the rail line.”
He commended Ambode and Ganduje for creating a platform to collaborate for economic growth, noting that such initiatives would open up the investment opportunities that abound in both states to would-be investors both locally and internationally.
“I believe that Lagos and Kano States have by this collaboration underscored the cornerstone of the federal government’s economic recovery and growth plan, namely the leveraging of synergies among States and between government and the private sector,” he noted.
He therefore, explained the strategic role of the federal government, which according to him, would be tailored “to create an enabling environment for commerce beginning with the provision of infrastructure.
“For us, what this meant especially in the context of Lagos and Kano collaboration is the refurbishing of the narrow gauge Lagos to Kano Rail with a concession to General Electric who are proposing to invest almost $2billion to ensure that the rail route is effective for movement of cargo from Apapa port to Kano.
“Similarly, we are investing in the Lagos to Kano standard gauge line, the Lagos Ibadan portion of that is expected to be ready by the end of this year. Also, we have budgeted N80billion for the development of special economic zones in the six geo-political zones of the country.”
Also speaking, Ambode explained the decision of the state government to join the Oodua Investment Group, which he said, triggered what had evolved over the last two years to become a signpost for effective partnership between Lagos and other states.
He said with the current economic challenges facing the country, there was no better time for states to begin to look beyond an oil driven economy and take advantage of their comparative advantages to engender economic growth.
“We urge other States and Regions to begin to leverage on their respective areas of comparative advantage by establishing partnerships towards establishing an inter-state or inter-regional commodity value chain.
“The idea of an intra and inter-regional trade and cooperation is not new to Lagos State. Over the past years, our State has collaborated with Kebbi and other states from within the western region to drive economic growth and development,” the governor explained.
He said the immediate aim of the strategic partnership with Kano is to produce about 80 per cent of Nigeria’s agro-allied inputs such as wheat, groundnut, onions, maize, millet, sorghum, sugar cane and beef.
Ambode added that a memorandum of understanding would be signed by both states at the end of the summit to demonstrate commitment to the sustainability of the partnership.
Also speaking, Ganduje said his administration entered into the partnership with Lagos with a strong belief that it would create a veritable platform to drive home grown investments in the face of volatile global oil prices.
According to him, “we need to redefine our investment climate and find alternative sources of financing critical sectors and projects as well as improve public service delivery.”
He said Kano was looking towards an effective partnership in infrastructure, agricultural value chain, solid minerals, ICT, commence and industry, medium and small scale enterprises, tourism, governance and institutions.