Reverse brain drain as ambitious Nigerians come home

By Nick Tattersall Reuters - Wednesday, August 6 01:12 amLAGOS (Reuters) - From cocktails with hip-hop stars to sushi with smooth-suited bankers, it's no wonder Nigerians moving back after decades in New York or London feel right at home among the high-rolling elite of Lagos.


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This urban sprawl of 14 million people, the chaotic hub of Africa's most populous nation, may epitomise what many foreigners fear most about megacities in the developing world: violent crime, corrupt police and crumbling infrastructure.

Yet legions of young Nigerians, educated at English public schools and U.S. Ivy League universities, are leaving highly paid careers with Wall Street banks and City of London consultancies to return to the Lagos hustle.

The draw?

Not just a pay package that approaches or matches what is on offer in the United States or Europe, but a dash of patriotism -- a chance to help fulfil an ambition of building world-class Nigerian businesses as an example to the rest of Africa.

"In the States, it's an established economy. You can't create another Apple, you can't create another Microsoft, you can't really create another Disney," said Michael Akindele, who left U.S. consultancy firm Accenture to set up his own business investing in Nigerian media and entertainment.

"I'm stepping away from that salary, that comfortable, stable environment where you have power all the time, you have water all the time. But here I can create the lifestyle I want."

Nigeria is the world's eighth biggest oil exporter but its economy has been hobbled by decades of endemic corruption and unemployment is high. A power sector crisis, which means much of the country can go without electricity for weeks or months, has closed hundreds of factories and cut thousands of jobs in sub-Saharan Africa's largest economy after South Africa.

Many wealthy Nigerians of Akindele's generation were sent to boarding schools in England or the United States in the late 1980s and 1990s, when Nigeria was a military dictatorship with little foreign investment and a disintegrating education system.

They watched with cautious optimism as it began to return to democracy in 1999 with the election of Olusegun Obasanjo after three decades of military rule, and welcomed the reforms he started to push through after winning a second term in 2003.

When Nigeria used $12 billion (6.1 billion pounds) of oil savings to pay back debts owed to the Paris Club of rich creditor nations in 2005, and won the write-off of a further $18 billion in return, foreign investors and diaspora Nigerians sat up and took note.

"I was following all this from London and started to believe now was the time to start planning to come back," said Kayode Akindele, 28, no relation to Michael, who returned to work for United Bank for Africa's (UBA) investment banking arm, UBA Global Markets.

ENTREPRENEURIAL SPIRIT

Kayode Akindele, an Oxford graduate who lived in Britain for more than 16 years, was working on structured derivatives for Lloyds TSB in London when he was introduced to Tony Elumelu, chief executive of UBA, two years ago.

Elumelu was looking to build a world-class investment bank in Nigeria and Akindele's skills were exactly what he needed.

"There was a sense of patriotism. I have always regarded myself as Nigerian and planned to return to Nigeria eventually," said Akindele, now a vice president at UBA Global Markets.

Financial sector reforms in 2005 forced Nigeria's banks to consolidate, creating multibillion-dollar institutions with the capacity to branch out into sophisticated new markets and pay salaries on a par with some of their Western peers.

Banks have also seen explosive growth on the back of record oil prices and a growing middle class among Nigeria's 140 million people, and have been aggressively raising capital and increasing their capacity to lend.

Diaspora Nigerians -- with experience in banking but also the cultural knowledge to navigate the complexities of doing business in Nigeria -- have been in high demand ever since.

"I think there's a window that will be there for maybe another 18 months to two years," said Chuka Mordi, head of business development at First City Monument Bank.

"That's the view at the moment, that people moving back understand exotic products , but it will percolate to the local sector and people will learn these things and there won't be any need to drag investment bankers from New York or London."

Nigeria's $95 billion stock market was one of the best performing emerging markets in the world last year, attracting private equity and hedge fund investors from Europe, Asia and the United States.

THE LAGOS HUSTLE

The world of vanilla interest rate swaps may seem a million miles from the realities of life on the streets of Lagos, where hawkers selling everything from phone charge cards to electric irons ply their trade among belching minibuses and moped taxis.

But bankers hope that building strong financial institutions will help open credit lines to millions of would-be entrepreneurs, allowing them to develop small businesses and lift themselves out of the informal sector, which accounts for a major part of the active workforce.

"When you see the hustle on the streets of Lagos, all those traders selling all those products, you know the street works," said Obi Asika, an Eton-educated entrepreneur whose own record label sells albums through market traders and street sellers.

"You formalise distribution in Nigeria today, it's a billion dollar business. Because everybody needs distribution. Everybody's got products," he said.

The idea of making money as a businessman in Nigeria -- long spurned by some of the elite as inferior to a high-powered job in the public sector -- is catching the popular imagination, demonstrating to an ambitious young generation that you don't have to be in the pay of government to get rich.

It is a point hammered home by "The Apprentice Africa", a reality TV show co-produced by Michael Akindele's Executive Group and Asika's Storm Media based on the hit U.S. series, in which aspiring entrepreneurs compete for a job with a top businessman.

"You get up in the morning and you see all of Lagos on the move, young boys trying to make ends meet. It's an eye-opener," said Isaac Dankyi-Koranteng, winner of the first series, aired on free-to-view TV in Ghana, Kenya, Uganda and Nigeria.

The government is still the largest official single employer in Nigeria, and the vast majority of people still live on less than $2 a day, but the new private sector elite hope that if they avoid the mistakes of their kleptocratic predecessors, Nigeria may haul itself out of poverty and corruption.

"There are issues. It's not Valhalla. We're not in Milton's Paradise yet," said Asika. "But I believe in Nigeria, I'm positive about this country."

(For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com/ )

(Editing by Clar Ni Chonghaile)



source: http://uk.news.yahoo.com/rtrs/20080806/twl-uk-africa-diaspora-nigeria-bd5ae06.html

I guess this is the trend now, A lot of Nigerians are leaving the comfort zone and heading home.

A lot of Nigerians are realising that, loads and load of complaints and criticism from abroad will not turn Nigeria to a country of our dreams. Dipping their hands in the dirty mud to build a vibrant nation is the only way out.

Yes, No NEPA, No Road, No Security, No Transportation,.,.,.,.,.But this means only one thing, opportunities are abound. There are problems to be solved.

No matter the colour of passport anybody carries, a Nigerian will always be a Nigerian.

It would be nice if Nigerians in diaspora could have somewhere they could migrate to permanently while the country tries to turn itself around.

Like the Irish who left the country (for good) in the millions when things were looking bleak. After a while ireland was able to pull itself together and today is doing well.

Its interesting to note the exodus of millions of irish citizens didnt affect the country negatively. In fact, right now they're having a problem with excessive immigration. Ireland, of all places. Who'd have thought it.

Going back home isnt easy especially if you're used to the comfortable life abroad and arent ready or willing to inconvenience yourself.

However, the world of today has shrunk, so its not like before.

Life is harder for Nigerians outside Nigeria. (especially if you don't have your papers: considering after 9/11 and the continous scandal of 419/ AND such)

Imagine a Nigerian PHD professor working as a janitor in the States,

In essence its better if you go home to make something of your self.

The best of luck to all those that see it okay to come back home and contribute their bit to the development of the country.

madamkoko:

Life is harder for Nigerians outside Nigeria. (especially if you don't have your papers: considering after 9/11 and the continous scandal of 419/ AND such)

Imagine a Nigerian PHD professor working as a janitor in the States,

In essence its better if you go home to make something of your self.

Even if you have papers they still see you as a "nigger" (but with papers). Time to rebuild Nigeria so our children don't suffer same thing.

Even if you have papers they still see you as a "nigger" (but with papers). Time to rebuild Nigeria so our children don't suffer same thing.

YEEEPPA!!!


Who is " they? "

those coming back are really welcome.but hope you'll stay long enof to feel naija well well.meanwhile lets exchange residences ^{how abt that proposal}

Just curious.

*How come all the examples they gave are of Nigerians based in the UK?
*How come there was not a single example given of a Nigerian living in the United States?

Again, just curious.

logical, more nigerians migrate to the uk

olrotimi:

logical, more nigerians migrate to the uk

Aight, thanks.

It is definitely a growing trend but then, the people who would stay abroad would still stay!

And some people in Nigeria, would prefer to come and sweep the streets of London or mop the toilets in Newyork even if they have a blue collar jobs back in Nigeria!

Unfortunately, the solution is not going back to invest resources in your private venture. You will either get frustrated out or adjust to the very corrupt system to survive Naija. I'm waiting for those committed to sacrifice everything and fight for public office. Only way to start changing the corrupt system.