Building a New Lagos, Nigeria

June 17, 2009



Sub-Saharan Africa's largest city in its most populous country is now open for foreign direct investment. According to the World Bank, Nigeria remarkably grabbed nearly 30% of all FDI to sub-Saharan Africa last year, making it one of the continent's premiere investment destinations.

The recent development of Nigeria's oil sector is responsible for having catapulted its GDP nearly 200% in just two short years. Oil contributes roughly 20% to the national GDP and over 10% to US oil imports. Amidst global economic decline, the Nigerian economy is still expanding at nearly 3% this year and the country continues to increase both oil and non-oil exports. As the government improves its banking sector and diversifies its economy away from the oil sector, it has attracted foreign investors that realize the country's vast potential for further economic growth. A testament to both the growth of the non-oil economy and brisk expansion of capitalism in the third world, Nigeria is home to a surging number of wealthy entrepreneurs such as billionaires, Aliko Dangote (sugar, flour, cement), as well as Femi Otedola (oil).

Lagos, Nigeria's chief port and financial hub, is at the heart of all the action. The Lagos state government is rather serious about attracting foreign direct investment (FDI) and is taking measures to open itself to international investors.

Not only has Lagos become more business friendly, it has a host of ambitious projects underway that promise to transform it from a chaotic, third-world city, into Africa's world-class center of commerce, trade, and tourism.




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