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Lagos-Calabar coastal road will raise GDP to $14tn — Expert

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The Development Agenda for Western Nigeria and the BRACED Commission, comprising Bayelsa, Rivers, Akwa Ibom, Cross River and Edo states, alongside other stakeholders, have agreed to explore investment opportunities along the 750-kilometre Lagos-Calabar Coastal Road.

The programme, held at the corporate head office of the DAWN Commission at Cocoa House, Dugbe, Ibadan, on Tuesday, was attended by representatives of governments from the South-West states and other relevant stakeholders.

Participants noted that if the opportunities presented by the road are properly harnessed, the project could serve as a game changer capable of increasing Nigeria’s Gross Domestic Product to between $1.4tn and $14tn over the next 50 years.

In his welcome address, the Director-General of the DAWN Commission, Seye Oyeleye, said the commission convened stakeholders from the South-West and South-South regions to plan how to maximise the economic benefits of the road.

He said, “The biggest infrastructure programme in the last 65 years in Nigeria, which is the 750-kilometre Lagos-Calabar Coastal Road, requires structured development to avoid the mistakes of the past.”

Oyeleye stressed the need for collaboration among states to create industrial, green and tourism zones to maximise the economic potential of the project.

“We at the DAWN Commission, which is the think tank for the South-West states, decided to bring in the critical states along what we have described as a game changer for southern Nigeria. The biggest infrastructure programme in the last 65 years in Nigeria is the 750-kilometre Lagos-Calabar Coastal Road.

“What we planned to do was bring in the three South-West states—Lagos, Ogun and Ondo. We also invited the BRACED Commission, which covers the South-South states, because the road runs parallel to those states. The idea is that for the South-West region to harness the benefits of that road, there has to be structured development,” he said.

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The DG warned against repeating past mistakes associated with uncoordinated development.

“We must ensure that the mistakes of the past, where states worked in silos and pursued individual interests, are not repeated on this infrastructure. We have seen examples in different parts of the world where a coastal road becomes a major catalyst for development.

“It is important not to wait until the completion of the road before planning begins. From the discussions so far, we are already considering collaborative efforts on how Lagos, Ogun and Ondo can work together. We are looking at creating industrial zones, green zones and tourism zones.

“One of the outcomes we expect from this meeting is an agreement to establish a joint body that will supervise development along this corridor. There has to be a team dedicated solely to development along the coastal corridor, and this must happen as soon as possible,” Oyeleye added.

In a lecture titled Unlocking Economic Potentials of the Lagos-Calabar Coastal Highway: Land Governance and Regional Alignment for the South-West Corridor, the Managing Director and Chief Executive Officer of Makaya Consult, Eko Atlantic City, Olawale Opayinka, projected that the coastal road could significantly increase Nigeria’s GDP over the next five decades.

He emphasised the importance of preserving the integrity of the corridor and ensuring coordinated development to prevent haphazard growth.

“There is a major opportunity in this coastal highway of over 700 kilometres, with the possibility of maintaining the integrity of that corridor. We have about 700 square kilometres of potential development.

“With our population expected to grow significantly over the next 50 years and our GDP currently at about $400bn, developments along that corridor could create enterprise value ranging from $1.4tn at the lower end to about $14tn at the upper end.

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“The values we have projected can only be realised if the states work together. If they fail to collaborate, the projected value may not be achieved. It does not stop with Lagos, Ogun and Ondo; it also involves Edo, Delta, Bayelsa, Rivers, Akwa Ibom and Cross River. If they fail to do the right thing on their side, it could undermine the entire project,” he said.

He added that the project could significantly transform Nigeria’s economic outlook.

“We are talking about moving the Nigerian economy from under $400bn today to between $1.4tn and $14tn over the next 50 years. This provides an opportunity to build a multi-trillion-dollar economy and position Nigeria among the leading economies in the world,” Opayinka stated.

In his remarks, the Director-General of the BRACED Commission, Joe Keshi, also stressed the need for coordinated planning, citing examples of well-planned coastal roads in other parts of the world.

“This is the beginning of a conversation to ensure that we plan adequately and avoid the haphazard developments that have affected many roads in Nigeria.

“It would be unfortunate if a major infrastructure project like the coastal road eventually reflects the same pattern of unplanned development seen in some parts of the country,” he said.

Keshi emphasised the importance of political will among state governments.

“We are encouraging governors to develop the political will to understand that this road could be a game-changer for the southern states if the right steps are taken. The road itself is only the beginning; what comes after the road is what we are discussing here—how to ensure that it strengthens the Nigerian economy and does not become another example of unplanned development,” he added.

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Other speakers, including Commissioners for Physical Planning and Urban Development in Ogun, Ondo and Lagos states—Tunji Odunlami, Sunday Olajide and Olayinka Abiodun—as well as the Ogun State Commissioner for Culture and Tourism, Oluwasesan Fagbayi, emphasised the need for collaboration to ensure effective economic planning.

Similarly, stakeholders, including Muyiwa Ige; the Nigerian Investment Promotion Commission South-West Zonal Head, Ololade Okeowo; Executive Director of Odu’a Investment Company Limited, Yemi Ajao; retired Director of Federal Highways, Folorunso Esan; and Permanent Secretary, Lagos State Ministry of Environment, Tajudeen Gaji, stressed the importance of proper zoning, security and governance structures.

They noted that synergy among states, the Federal Government and relevant agencies would be critical to unlocking the full economic potential of the Lagos-Calabar Coastal Highway.

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Read how Nigerians tap savings, loans to buy Dangote refinery shares

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Some Nigerians seeking to invest in the Dangote Petroleum Refinery and Petrochemicals FZE Initial Public Offering have turned to personal savings, loans and proceeds from the sale of assets to raise funds to buy shares, Saturday PUNCH has learnt.

Findings by our correspondents revealed strong interest in the shares among prospective retail investors, some of whom said they expected the investment to yield substantial returns in the future.

While some respondents said they were dipping into savings or raising funds through other means, others said the prevailing economic hardship had made it difficult for them to participate in the offer.

The refinery opened its IPO on Monday, September 14, giving Nigerians an opportunity to own equity in the company.

The offer comprises 4.1 billion ordinary shares priced at N525 each, with the company targeting about N2.15tn to part-fund an expansion that would nearly double the refinery’s capacity to 1.4 million barrels per day.

The minimum subscription is 10 shares, costing N5,250.

Dangote Group Chief Executive Officer, Aliko Dangote, said the low entry threshold was deliberately set to allow ordinary workers, including drivers, cooks and domestic staff, to become shareholders, describing the offer as “the IPO for the people.”

The offer is expected to close on October 13.

Investors turn to savings, loans

A staff member of the Federal Ministry of Works, David Adelabu, described the shares as expensive for struggling civil servants but said he considered the offer an opportunity to become a shareholder in the refinery.

He said, “I have small shares in some companies, including Glo and MTN, but Dangote’s shares will be the highest I will be buying. It is on the high side, but I feel this is an opportunity to become a shareholder in Dangote.

“I understand that the dividends are not going to be immediate, but I don’t mind even if it will entail selling a plot of land I have in Metumbi here in Minna. I will gladly do so.”

A trader in Dutse, Jigawa State, Adamu Bala, said he planned to use savings from his business to buy the shares.

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“I will not sell my house. I will use a small profit from my shop to buy,” he said.

Similarly, a civil servant, Fatima Mannir, said women in her group had started raising money through contributions, known as adashe, to participate in the offer.

“We have started raising money through adashe,” she said.

A trader in Damaturu, Yobe State, Malam Musa Ibrahim, said he invested part of his business savings after learning about the offer.

“I am using part of the money I have saved from my business.

“I believe that if I can invest a small amount now, it may become useful to me in the future. But I am also being careful because business is not easy at the moment,” he said.

Another resident, Aisha Mohammed, said she raised money by cutting down on some household expenses.

“I did not borrow money to buy the shares. I have been saving little by little, and when I heard about the offer, I decided to use part of what I had saved,” she said.

A businessman, Abdullahi Yusuf, however, said he obtained financial assistance from a friend to increase his subscription.

“I wanted to buy more shares than what my savings could afford, so I discussed it with a friend who agreed to lend me some money.

“I know that borrowing money to invest carries risks, but I am hoping that the investment will perform well. I will repay the money from my business income,” he said.

A petty trader, Hauwa Lawan, said she sold some personal belongings she no longer used and added the proceeds to her savings to finance her purchase.

“I sold some things that I was no longer using and added the money to my savings,” she said.

A farmer, Mallam Abdullahi Adamu, said he sold farm produce to raise about N500,000 to invest in the shares.

In Kano State, an investor, Abdulmalik Ibrahim, said he bought 10 shares for N5,250 using personal funds.

Hardship keeps some investors away

While some Nigerians are finding ways to participate in the IPO, others said economic pressures had put the investment beyond their reach.

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A civil servant in Kogi State, Saliu Joseph, said he would have loved to invest but had just paid his children’s school fees.

“Right now, I don’t think I can afford to participate unless a miracle happens,” he said.

A retired permanent secretary in the state, Bola Boro, also said he would not participate because he could not afford the investment at the moment.

“As a retired civil servant, I cannot afford such an amount to invest in the offer. Even though I am a fan of investment through the stock market, which I have been doing for years, I don’t think it will be convenient for me to participate considering the time frame of just one month,” he said.

A civil servant, Kuta Abdulahi, said the financial demands of his children’s education had left him unable to participate in the share offer.

“I must tell you the truth, I know about the Dangote Refinery shares, but I cannot even think of it at this time. My children are just resuming a new term in school. Where will I get the money for their school fees before thinking of buying shares? Please, I have a lot on my head,” he said.

Similarly, a vulcaniser, Ahmed Alkali, said his income was barely enough to meet his family’s basic needs, making investment in shares difficult.

“With the kind of job I do, I am working from hand to mouth. So, how can I buy shares when I have not eaten?” he asked.

Experts warn against borrowing

Investment experts, however, cautioned Nigerians against taking loans, selling properties or committing all their savings to the IPO, warning that equity investments carry risks.

Speaking with Saturday PUNCH, the Group Managing Director of Lancelot Group, Adebayo Adeleke, urged prospective investors to understand the risks associated with the capital market before committing their funds to the IPO.

Adeleke, who is also a former Secretary of the Independent Shareholders Association of Nigeria, said capital market investments should be made with funds that investors could afford to leave untouched for the long term, noting that equities were unsuitable for people struggling to meet immediate financial needs.

He said, “When you buy shares, you are buying a portion of the ownership of the business. Investment takes a lot of time to pass through gestation, to stability, to profitability. And you cannot, with any degree of certainty, predict when the company is going to turn the corner and begin to produce profits.

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“So, investment money is not the money you are likely to need in the next two months, three months, six months, even one year. If you cannot part with your money for a minimum of three to five years, the capital market is not the place to invest.”

Adeleke, however, described the IPO as a strategic investment, citing the refinery’s scale and demand for its products.

Also speaking, the Head of Financial Institutions Ratings at Agusto & Co., Ayokunle Olubunmi, urged Nigerians to consider the risks associated with the investment and avoid committing all their savings to the offer.

He said, “There are plenty of risks to this business. It’s not risk-free. Things can get worse for the business. Valuation is based on expectations of what will happen in the future. Things might not go as planned. And, like we all know, equity is a risky business.”

Olubunmi particularly cautioned prospective investors against selling property or using up all their savings to invest in the offer.

He advised them to invest only a portion of their funds and diversify their portfolios.

The expert also advised those considering taking loans to buy the shares to have a separate and reliable repayment plan rather than depending on returns from the investment.

The Emir of Kano, Muhammadu Sanusi II, had earlier warned prospective investors against using their children’s school fees or selling their homes to invest in the shares.

Sanusi, who gave the warning on Thursday while speaking at the company’s roadshow in Kano, urged prospective investors to invest only money they could afford to set aside for some time, suggesting amounts such as N10,000, N20,000 or N30,000.

Source: punchng.com

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ARE NIGERIANS BUILDING CHINA’S ECONOMY WHILE NEGLECTING THEIR OWN?

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While other nations are busy producing, manufacturing and exporting, Nigeria must ask itself a difficult question: Are we building our own economy, or simply creating a bigger market for other countries?

Nigeria has a huge population, abundant natural resources and a massive consumer market. Yet the country continues to depend heavily on imported finished products—from electronics and clothing to machinery, household goods and other consumer items.

The issue is not simply about Chinese businesses or businesses from any other foreign country operating in Nigeria. Foreign investment can bring capital, technology, jobs and expertise.

The bigger issue is whether **Nigerian businesses are being given the opportunity and support to manufacture competitively at home.

Instead of remaining primarily a consumer of finished products, Nigeria needs to strengthen its manufacturing sector and move further up the value chain.

Nigeria needs to produce, not just consume.

A stronger manufacturing economy could help Nigeria:

* Create more jobs for Nigerians
* Add value to locally available raw materials
* Develop industrial skills and technology
* Reduce excessive dependence on imported finished goods
* Build competitive Nigerian companies
* Increase the country’s ability to export

The goal should not be to drive legitimate foreign businesses out of Nigeria. The goal should be to build an economy where **Nigerian manufacturers can compete, grow and eventually take Nigerian-made products to markets around the world.

The question Nigerians should be asking is simple:

**Why should Nigeria remain one of the world’s biggest markets for finished products when we have the potential to manufacture many of them ourselves?

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🇳🇬 **Nigeria must move from being predominantly a consumer nation to becoming a stronger producer, manufacturer and exporter.

What do you think?

Which products should Nigeria prioritize for local manufacturing instead of relying heavily on imports?

Share your thoughts in the comments.

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ICRC defends toll pricing on highways

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The Infrastructure Concession Regulatory Commission has defended the toll pricing structure under the Highway Development and Management Initiative, saying charges are evaluated against the quality and benefits of the upgraded roads.

In a statement made available to PUNCH Online on Thursday, the Director-General, Dr. Jobson Ewalefoh, cited the 227-kilometre Akwanga–Makurdi road corridor as an example.

He said the route has four toll gates, and motorists pay as they travel along it.

He argued that toll payments should be viewed against the previous costs imposed by the poor condition of the road, including lost man-hours, vehicle damage and accident risks.

Feedback from road users, he said, shows many motorists are willing to pay tolls where they see clear improvements in road quality.

Some drivers have expressed support for similar arrangements on other major corridors if the roads are upgraded to the same standard.

“That, to me, is the beauty of a well-structured PPP,” Ewalefoh said.

He explained that negotiators carefully consider toll pricing to keep charges fair. A portion of the revenue is set aside specifically for road maintenance. Under the concession agreements, the government does not bear additional maintenance costs for the duration of the contract.

The government must repair potholes within 48 hours, and it funds major routine repairs from the dedicated toll revenue.

Source: punchng.com

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