Paper presented by Henrii Nwanguma, Executive Secretary of LAKAJI Development Alliance (LDA) at the Institute of Directors Nigeria‘s Members Evening on the 27th of August, 2015

1. PROMOTING NIGERIA’S NON-OIL ECONOMY
Paper presented by Henrii Nwanguma, Executive Secretary of
LAKAJI Development Alliance (LDA) at the Institute of Directors
Nigeria‘s Members Evening on the 27th of August, 2015

2. Overview
• Introduction
• Scene-setting: Precolonial, Colonial, Post Independence
• Present : Size and Structure of the Nigerian Economy
• Current Challenges
• Suggestions on the Way Forward
• Thinking Outside the Box: The LAKAJI Corridor Initiative and
the LAKAJI Development Alliance.
• Conclusion

3. Introduction
• Promote: “…support or actively encourage (a cause, venture, etc.); further
the progress of…”

4. Pre-Colonial /Pre-Amalgamation (~1900)
Dominated by empires and kingdoms like Songhai Empire (stretched from the Senegal and
Gambia rivers and incorporated part of Hausaland), Kanem-Bornu Empire, Edo Benin Empire,
Oyo Empire, Onitsha Kingdom, Arochukwu kingdom (dominated South-eastern Nigeria with
pockets of influence in Equatorial Guinea and Cameroon).
Kingdoms and empires traded spices, grains, leather, animals with each other and others
further afield. They also actively took part in the trans-Saharan slave trade and the Atlantic
slave trade. With the abolition of slavery came the "Scramble for Africa", and in the case of
Nigeria, it concluded with the British protectorates of Northern and Southern Nigeria in 1900.

5. Colonial /Amalgamation – Independence (1901-1960)
Nigeria in 1900 and the Lagos Colony, the Southern and Northern Protectorates with the Amalgamation Document May 15, 1913

6. Colonial /Amalgamation – Independence (1901-1960)
Amalgamation Day on Tinubu Street in 1914 in Lagos

7. Colonial /Amalgamation – Independence (1901-1960)

8. Post-Independence – Present)

9. Structure and size of the Economy (GDP Stats/Pie Chart)
The Present

10. Structure of the Nigerian Economy
The Present

11. The Challenges:
• Growing Youthful Population (at 3.5% per annum)
• 50% will live in cities within 25 years.
• Lack of Investment Funds (and Political Will) by Government
• to upgrade and extend the most critical infrastructure
• to prepare the new sources of growth for private investment
• to continue (stop) running services best run by private sector
• One major Income Source
• Low Commodity Prices (Particularly Crude Petroleum)
• Competing Suppliers of this one commodity springing Up closer to main markets
The Present
Recent Headline:
HOW MOZAMBIQUE CAN BENEFIT MORE FROM ITS MASSIVE GAS DISCOVERY
Tendai Dube
http://www.cnbcafrica.com/news/southern-africa/2015/08/24/mozambique-gas-resource-
development/# Last Updated: 24 August 2015|18:49 GMT
Mozambique needs to learn how to benefit more from its massive gas discovery. In 2010
Mozambique discovered the second largest gas find in the world since Qatar but the
Southern African country still needs to benefit from the valuable resource…
…” “It’s huge, I don’t think people really understand quite how big it is, you have got enough
gas there to fuel South African energy, for example, for 150 to 200 years on its own…”

12. The Present
Is infrastructure growth keeping pace?
Do we have the jobs?
Can we feed, clothe and house our people?

13. What must Nigeria Do?
• Come to terms with her Realities. An apolitical audit required:
Population, stock and distribution of assets (cultivable land, water
resources, mineral resources, human resources)
• Understand that there are only limited global sources for
investment and they are not emotional
• Get to work by making the country more attractive to retain
existing and attract new business (corruption, ease of doing
business, incentives, rule of law). Money Chases opportunity
• Unlock the under-tapped” industries (the arts, entertainment,
tourism, sports, housing, information and communications
technology, ship-building and offshore fabrication, textiles, mining,
transport – railways and waterways, medical & pharmaceutical
sciences, etc.)
• Single-mindedly engage in only what we have comparative
advantage for no matter how emotionally appealing
The Possible Way Out

14. What must Nigeria Do? (contd.)
• Have audacious dreams that will lift more people out of poverty.
The aim is to grow the middle class to be the source of effective
demand
• Criminalise illiteracy. Make qualitative Education a right of all no
matter the age and circumstances. Public education once had
quality
• Create linkages within and between sectors. Reduce inefficiency
• Involve the diasporas as a cohesive source of ideas and funds (tax?)
The Possible Way Out

15. The Possible Way Out
A tale of Two Cities or Audacity of a Dream?

16. The Possible Way Out: The LAKAJI Corridor Example
The LAKAJI Development Alliance (LDA)
• Apublic-private partnership with a focus on:
 Advocacy for the creation of the LAKAJI Corridor as a special economic development zone in Nigeria for enhanced trade and
competitiveness
 Supporting the transformation of the LAKAJI Corridor into a multimodal trade expressway that
presents unmatchable value proposition for:
• Attracting Investment
• Creating Jobs
• Generating Wealth
• The corridor construct is a framework “to drive the policy and legislative changes from the three tiers of government necessary to provide
the enabling environment to attract investments into transport, logistics, agricultural and industrial value chains along the corridor”
• The corridor is conceived as a single linear entity with harmonised policies, legislation and incentives

17. LAKAJI Corridor, Trans-African Highways, New Silk Road.

18. LAKAJI Corridor, Trans-African Highways, New Silk Road.
“The New Silk Road may be the dream to inspire coming generations. This seems all the
more the case when set in the historical context of the last half-century. If it were to
become reality, it could be a major inspirational epochal game-changer. Whether it’s a
dream or a nightmare depends in great part on the spirit with which the opportunity is
seized and the challenge tackled.”
Jean-Pierre Lehmann (http://www.forbes.com/sites/jplehmann/2015/05/27/the-new-silk-road-a-
visionary-dream-for-the-21st-century/)

19.  As part of our desire to improve the agricultural supply systems in Nigeria,
the LDA in conjunction with our partners like USAID|NEXTT, Global Cold
Chain Alliance (GCCA), the Federal Ministry of Agriculture and Rural
Development (FMARD), Nigerian Investment Promotion Commission (NIPC),
the National Centre for Cold-Chain Development (NCCD) of India, will be
hosting the International Cold Chain Summit 2015 at the Federal Palace
Hotel, Lagos on the 26th and 27th of October as part of a "LAKAJI Week"
running from the 25th - 30th of October. The Vice-President has been
confirmed as our guest.
 Other scheduled activities include the launch od a LAKAJI Governors Forum,
and a LAKAJI Investment Forum.
Near-term Activities of the LDA to make the Corridor a Reality

20. Conclusion
• It takes rigour, not accidents.
• We must learn from our mistakes and never fear to make them in the first place.
• We must rebuild our pride and confidence as doers, creators and producers and not
professional uninformed critics and consumers.
• We must redefine ourselves based on our realities and on what is, not what we think is.
• On the long run we must execute, with all discipline required, an unwavering grand
long-term vision with lots of incremental steps.
• We must think through our options very carefully to maximise efficiency in resource
allocation.
• Agriculture and Minerals will only make sense if we retain/add as much value locally as
possible due to low prices of primary commodities.
• Intra- and inter-sectoral linkages must be maximised. We must explore hidden markets.
• We must consciously build effective demand at home through all kinds of near- and
long-term measures including a home-grown, market-driven consumer credit policy,
well administered producer subsidies.
• There is no easy way out.

21. Thank You…
HENRII NWANGUMA
Executive Secretary
LAKAJI DEVELOPMENT ALLIANCE
Email: henriin@lakaji.ng please also copy henriin@yahoo.co.uk
Mob: +234-703-8151056; +234-802-3430419
Tel: +234-1-277-8700; +234-1-277-8701
Project Office: 1679 Karimu Kotun Street
Ground Floor, (Legacy Investment Management)
Victoria Island, Lagos, Nigeria