Take the current construction boom for instance.

Nigeria has decided on a path of private sector-driven development. Once you understand this, you'll grasp the reason why the first batch of apartment blocks springing up are of the relatively upper-scale variety.

Look at it from the point of view of an investor. Would you construct for the poor, or for the rich?

Good.

But there will come a time when the market for the rich elite is saturated and this will force private developers to begin to cater for the lower-income groups, even at the risk of lower profits - or go out of business.

But make no mistake, they will aim for the projects that offer the highest returns first.

In fact they'll scramble to put them up - as we're currently witnessing.

The important thing is for the machinery of state to maintain the economic momentum that supports the construction boom.

The rest will take care of itself.

Jen33:


But there will come a time when the market for the rich elite is saturated and this will force private developers to begin to cater for the lower-income groups, even at the risk of lower profits - or go out of business.

That is an excellent statement there @Jen33.

You see, our country has been on the downside for so long that people are just so pessimistic and honestly speaking, I don't blame them. Until the current wave of change is felt by the common man, no one would ever give any Nigerian government any credit.

My prayer right now is that we meet this 10,000 MW target by Dec 2008. I think people can then have a sigh of relief.

God Bless Nigeria.

OK - can someone plaster pictures of Ajegunle and all the slums all over Nigeria so we
can make these guys happy? Somehow they get energized from looking at the slums -
the mountain of refuse, the filth, the ruggedness, its viciousness, and its hopelessness.
That's the only kind of Nigeria some of these people holds dear and wants to keep seeing.

Never mind that most humans (at least the non-Nigerian humans) needs something to
provide them hope that things can get better or that they can do better. Never mind, that
its human to recognize and celebrate the feats that people from humble beginnings such
as yours have made in their various endeavors. Please help them to wallow in their misery,
its their drug of sort.

Not only do I recognize the many contradictions that is Nigeria: its potential for greatness,
its brilliance, vibrancy, its many glaring failures in so many areas, but I also acknowledge the
many feats of people like Cecilia Ibru, Jim Ovia and Tony Elumelu (all whom are Delta indigenes
like me by the way ) in the tough terrain that is called Nigeria. I mentioned these names
because most of the projects that have been posted here are been financed by indigenous
banks and its safe to bet that Oceanic, Zenith, and UBA are key players in one capacity or
the other. How is that not something to be happy about?

The newly completed Lagos airport terminal is a sure sign of the collaborative effort between
the private and public sectors. As we speak, they are zeroing on the power sector and in time
the life of the average man on the street will be impacted. Lest we forget or for those who
have no clue, prior to the recent banking reforms, Nigerian banks had no financial muscles to
be pulling deals like these. Expect to be seeing major investments by Nigerian banks in areas
that will be to the betterment of the lot of Nigerians. You have to be hopeful!

jen jen, lol, my guy im feelin u on this thread and the pics, people lets not be pessimistic bout the growth and development being made in nigeria, but jen my guy, lets not alsobe delusional to the reality of the bad roads, the overflowing nepa, the daily robbery,, the fact that all these buildings have to be powered by private generators , with that said, lets still stick to the positive and reach for change, not just physical or landscape wise, but ecomomic and political also, im impressed all the same///, even though slow and not as far reaching, in 8 yrs we have taken baby steps kudos

what can i say?
jen you are da bomb

what can i say?
Jen is da bomb

is there a middle class in nigeria?

does it really matter what kind of apartment blocks are being built if the people (not the elite) had the purchasing power?

No matter the number of luxurious high rises, luxurious cars, and fancy restaurants, in a society, when the purchasing power of the majority of the citizen in a country, declines with each coming here, then, something is totally wrong. That's the situation back home namely, the brutal elimination of the middle class, the decline of the Naira, and the concentration of money in the hands of the rich people. That's being realistic, not pessimistic, or optimistic. When I lived in Nigeria, each time, plans to eliminate fuel subsidy was met with disapproval by the citizens. Back then, before owning a car, I highly doubt if the prices of gas, could determine your ability to afford to maintain a car or not. Sadly, in Nigeria today, people, unable to afford petrol have bypassed buying cars in favor of public transportation. So much stress.

When we talk about development in the country, let it start from the grassroots, instead of sprouting up fancy buildings in big cities, that may be inhabited by expatriates and the nouveau riche.

Ndipe:

No matter the number of luxurious high rises, luxurious cars, and fancy restaurants, in a society, when the purchasing power of the majority of the citizen in a country, declines with each coming here, then, something is totally wrong. That's the situation back home namely, the brutal elimination of the middle class, the decline of the Naira, and the concentration of money in the hands of the rich people. That's being realistic, not pessimistic, or optimistic. When I lived in Nigeria, each time, plans to eliminate fuel subsidy was met with disapproval by the citizens. Back then, before owning a car, I highly doubt if the prices of gas, could determine your ability to afford to maintain a car or not. Sadly, in Nigeria today, people, unable to afford petrol have bypassed buying cars in favor of public transportation. So much stress.

When we talk about development in the country, let it start from the grassroots, instead of sprouting up fancy buildings in big cities, that may be inhabited by expatriates and the nouveau riche.

exactly my point.

@ jen33

the premise of my argument is that the economic model is wrong. which middle class is going to pay upwards of $50000 p.a to rent these luxury apartments? the truth of the matter as the previous poster has implied, is that there is no middle class in nigeria. they've been completely wiped out by decades of economic sabotage and misrule.

the only people with the wherewithal to move into your fully serviced apartments, as you have already admitted, are rich people of the same class as the government contractors busy putting up these structures.

you guys shouldnt get me wrong, progress in whatever direction is commendable (even if only for its own sake and not for how well its been able to impact the lives of the people whose resources are being tapped to produce these structures)

the basic necessities of life : power, security, good roads, functional education. these things are axiomatic to life in other less resource-endowed societies, why should nigeria's case be different?

obasanjo failed to even begin to achieve these things after eight corruption-ridden years in power because he catered mainly to the interests of the ruling class.

the average nigerian is resilient. he doesnt have to wait for anybody to empower the middle class to come and employ him. he couldnt afford an education so he became an artisan. a barber, a vulcaniser, a battery-charger. but the electricity to power his tools is not available for twenty hours out of twenty four. so he has to buy a generator, where is the fuel, the prices have gone through the roof. . . all these costs are passed along to the next man along the production/service delivery chain, everybody except the elite end up wallowing in want.

obasanjo's regime has failed the common man, no matter how many fancy pictures you people post on this thread.

all the preferentially allocated oil blocs. all their refineries overseas where the leftover crude is diverted to after the western nations must have drunk their fill of bonny light. the monstrous monopolies which have been built right before our very eyes over the  past eight years.

spot on. we cannot be decieved.

OBJ has initiated the construction of 13 power plants most of which the next administration will inherit.

Between 1978 and 1999 when OBJ  came into power just TWO power stations were built by all the presidents - Shagari, Buhari, Babangida, Abacha, Shonekan, Abdulsalami - and they were atrociously maintained which led to massive degradation.

OBJ tried to fix the damage done via refurbishment which failed to increase output, and this made him decide to construct an inprecedented 13 plants that should substantially reduce the incidence of power failure.

If people are too STUPID to see the potential benefit of such policies to the economy, while wallowing in self-pity, too bad.

The New Nigeria is about to LEAVE YOUR SORRY ASSES BEHIND, while you suck up to your salary masters in the west.

And one more thing, the middle class is EXPANDING RAPIDLY in Nigeria.

Foreign investors are TROOPING IN.

Just two days ago a group of investors from Birmingham England stormed Nigeria looking for where to invest $4 billion.

The Economy has received a very creditable international rating by financial houses and the stock market is among the fastest growing in the world, as is our economy.

SIT IN YOUR COLD LONDON FLAT thinking you know what's going on in Naija.

Nigerian graduates in the UK and US are queueing up to return, as they're being offered attractive salary packages in line with the demand for their services.

WHEN LAST DID THIS HAPPEN IN NIGERIA?

In fact many of those apartments you see (plus many you haven't seen) are being snapped up by the young, educated middle classes, including returnees, not government millionaires or whatever.

I have many friends renting /buying - paying mortgage in VGC, and other areas springing up, and they are simply educated  business men/ IT personnel etc etc  - not government officials!

So sit there and be moaning about the problems.

NIGERIANS SMARTER THAN YOURSELVES are whisking in and out of the country, seeking and taking advantage of the opportunities being created.

Over 200,000 Chinese have left THEIR country to come and take advantage of the huge opportunities available in Nigeria.

You think they don't know we have this problem or that problem?

But they see the direction the nation is heading, and they want to be part of it.

While our know it all moaners SIT ON THEIR LAZY BACKSIDES IN THE WEST moaning all day about what their country can do for them.

Awon Ode!

@Jen33,

Take a look at this.

SOURCE:  

http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10434308

Shopping spree in Lagos as malls finally arrive in Nigeria


Nigeria's middle class can now enjoy retail therapy closer to home.
In the old days, for some, going shopping in Nigeria meant going to London.

Now Nigerians, at least in Lagos, can go to the country's first shopping mall and parade past air-conditioned shops of clothes and jewellery, or sit in a coffee shop, sipping a latte or cappuccino. The centrepiece is a South African Shoprite supermarket - again Nigeria's first - where the middle classes can buy ordinary things such as biscuits and pre-packed beef.

Not far away, on the edge of the street, are the old shops - open-air markets where women sit with little piles of tomatoes or onions on the ground in front of them. Nearby, in the open air hang slabs of meat feasted on by flies. Until a few years ago, these markets and a few family stores were all that was available as shops.

Elements of the old Nigeria are still visible at the Palms Mall. The Shoprite manager, Andrew Mweemba, complains that containers of perishables regularly get held up at the port. The local electricity supply is too unreliable, so the whole mall is powered by generators, which puts prices up. But, says Mweemba, they are hitting their targets and controlling costs.


They are planning several other malls in what must be one of the last countries in the world to enjoy retail services the rest of the human race take for granted.

This is probably the most visible sign of a new Nigeria, a country that is becoming more in tune with the rest of the planet. Its cause is the growth of a young middle class, many of whom have returned from London or New York to work in the booming financial services industry.


The Nigerian "Big Bang" started in 2001 with a free auction for Nigeria's mobile phone licences. Stung by a global reputation for corruption and fraud, President Olusegun Obasanjo's government started to reform the banks, reducing their number from 89 to 25, and supporting businesses that wanted to do things according to international standards.


In the old days Nigerian business people were simply agents, getting contracts from the state or acting for foreign companies. Nigeria produced little except oil and gas, and its exceedingly rich elite stayed rich because of connections, not competence.

Osaze Osifo, 39, who worked for HSBC in London, is typical of the new generation. He and six other Nigerian professionals are setting up a US$300m ($407m) equity fund in cool, glass-panelled offices with a view across the lagoon and out to sea. They have international businessmen on to their board to make sure everything is done in accordance with international business practice.

"It is not just local people and people coming back from overseas," he explains. "Nigeria is where it is at. The hotels are full, and the merchant banks are beginning to arrive." What encouraged people like him to return was the business space opened up by the economic reforms. Obasanjo picked a business-minded team to run the economy and the national bank, and appointed a brave young police officer to run the anti-corruption body, the Economic and Financial Crimes Commission. Its spectacular investigations and arrests of prominent people have helped to persuade outsiders that you can do business in Nigeria without being corrupt. The sale of mobile phone licences in 2001 was the start of the new era, according to Osifo.

The business tyros are challenging the old oligarchs in business and, inevitably, in politics. "More and more people in Nigeria have too much at stake.

"They have something to fight for, and they don't want their businesses ruined by the reputation for corruption," says Osifo.

Lagos also used to have a frightening reputation for robbery and violence, but that too has subsided. Ten years ago the biggest companies on the Nigerian stock exchange were subsidiaries of multinational corporates. Today, the three richest companies are all Nigerian. Its top 10 banks, most of them new, have announced returns of between 14 per cent and 38 per cent on shares.


Nigeria's richest business man, Aliko Dangote, turned 50 last week. A manufacturer of everything from cement to orange juice, he is reported to be worth US$8bn ($10.8bn) - and may not be the richest man in Nigeria. Some of the oligarchs may be richer, but not for much longer.

Jen33:

OBJ has initiated the construction of 13 power plants most of which the next administration will inherit.

Between 1978 and 1999 when OBJ  came into power just TWO power stations were built

If people are too STUPID to see the potential benefit of such policies to the economy, while wallowing in self-pity, too bad.

The New Nigeria is about to LEAVE YOUR SORRY ASSES BEHIND,




Over 200,000 Chinese have left THEIR country to come and take advantage of the huge opportunities available in Nigeria.


While our know it all moaners SIT ON THEIR LAZY BACKSIDES IN THE WEST moaning all day about what their country can do for them.

Awon Ode!

Classic Nigerian form of debate. If you can't convince detractors and make them see your point, abuse and curse them out, this will change their minds, or make you feel better about yours.

Cheers and kudos to you.

Two power stations built between 1978 and 1999. Since then, nothing has been done for the country in perpetual darkness inspite of the trillions accruing to the nation!
Initiating 13 power stations is not equated to completing them. This is nothing new with the government dreaming on paper with there so called 'white paper' where they write all sorts of mouth watering projects for which money will be appropiated but nothing to show for it at the end of the day!

Over 200, 000 chinese left their country not only to do business in Nigeria, for which their government and businesses gave them money for. We should actually be quacking in our 'ode' (stupid) minds because these are mordern colonialists who are out to take over our poor country.

It is not those of us sitting in our 'cold flats' who can't see thes but our leaders who pander to the outside world instead of lifting up our people to produce and better themselves.
A lot of us sitting in US, UK etc and have high skills in whatever would just like nothing better than to come back home and start businesses. Where do we get the money, most of which you will spend bribing the goverment officials.

So while wesit on our 'lazy backsides' most of us earn more money out here than you can 'shake a stick at' but at the same time, we have investments and families that can't be easily uprooted just like that.
With only $200,000 grant, i will readily uproot myself to start my dream business in Nigeria, beacuse I believe I can carve out a niche and make a fortune while at the same time making the lot of the people better.
For this same reason, I refused to sell the products of my casava farm to foreigners. Instead opting to turm them to end products to seel to Nigerians.

With kids in law school and other colleges do you think it is easy for anyone to just pack up and move to uncertainty?

Your point is now crystal clear to this 'ode'   THANK YOU

I dont know what middle class is talked about here. Nigeria has just 3 economic classes : The very rich , the struggling and the wretched.
Last time I checked , any Nigerian who can travel abroad for shopping can not be labelled as middle class . This is the preserve of the very rich. Also, somebody who is involved in an equity fund of 300 million US dollars cannot exactly fit into my definition of a middle class.

@Uche2nna

There are middle class folks in Nigeria. They may be just a couple of folks, but they do exist. There are people in Nigeria who make between N70, 000 and N200,000 a month. Many of them work for MTN, the banks etc. Some of them are university lecturers. I consider them middle class folks.

@Bankole01

Have you had a chance to visit this thread ? Two of the power stations being built have been commissioned. A world bank team took a tour of some of the power construction sites and were very impressed with what they saw. They are not just white elephant projects.

Please you guys belleful yourself with Yankee or London. No one will tell you. It is better you stay where you feel you are Ok.

@ Jen no need to Insult. They will come around They are Disillusioned and You can not command it out of them. Let them see and they will be converted NEW NIGERIANS.

When a Nigerian comes home and gets a Job and house and there is light and security there will be no need to beg people to come home.

@ Gnature

Good My brother Works in a company he finished school and he is working he is far better off. No connection before he got the Job oh!

He wanted to travel but he Changed his mind. Very soon This Embassy will beg us to travel out.

@Gnature

Thanks for the education, it was an eye opener. We need more of this as that is the only way Nigeria will develpo when the services and infrastructure exist for the citizens to execise and display their God given tallents.

Also, thank you for not calling me 'ode'

@Backslider, I am so happy for your brother. I have seen people get job offers even through this Nairaland (through the job posting section). Someone got a job at Virgin Nigeria airlines and did not have any connections.

When I visited Naija last in 2004, I was told that things are better than the days of Abacha. Much, much better ! Infact, part of the reason why there is so much traffic congestion in Lagos is due to the boom in economic activities.

My ibo friend, Chuks, said you can't compare how busy the ports are now to the days of Abacha, and they are charging more fees now at the ports than ever.

The only things people complained of were inflation, power supply and gasoline prices (and of course, the infrastructure).

@Bankole01

My brother, why would I call you 'ode' ? I don't resort to name calling just because someone has a different point of view than mine. That's childish 

Well, for one to earn anywhere from 70k to 200k is somewhat comfortable to a certain degree. But the question is, what percentage of the total population has this earning power. To me that percentage is statistically insignificant. An economy being driven by a middle class is not hard to spot. That economy is usually bouyant and aggressive and  I dont see these qualities in the Nigerian economy. That is why I am skeptical about the existence of a middle class in the Nigerian setup

I know a lot of lecturers and I know that for the last couple of years they have been having it good relatively to the conditions they were subjected to in the past. However, I also know that many can not afford a trip to london for thier shopping.

Uche2nna,

I do agree that the middle class folks are on the low end in Nigeria, there is no doubt about that. But it has increased a little bit under obasanjo due to his economic reforms

Have you ever heared of Pencom ? Nigerians now have money deducted from their salaries (monthly) that goes towards their retirement (similar to the social security system here in the states).

As of October 2006, over 600 billion naira has been contributed to this fund [url=http://209.85.165.104/search?q=cache:nL7oZFAV7UEJ:financialstandardnews.com/page.asp%3Fid%3D71+Pencom+Nigeria+billion+naira&hl=en&ct=clnk&cd=6&gl=us](Source)[/url]. As a result, Nigeria has witnessed an influx of portfolio managers and stock market folks from the UK and the U.S. at a rate never witnessed in its history as a Nation.

About 14 licenses have been granted to firms to help manage this fund.

Now uche, do you know how much money stock market folks, portfolio managers make per annum ? Positions such as Market analysts, Research people et al are the middle class jobs created here.

When you have a chance, visit the Pencom website to learn more. I gave this as an example of how the non-public sector middle class has increased (even if it is only marginal) in Nigeria.

Also, remember that lots of middle class jobs were created as a result of our boom in telecommunications.

@Uche, why do you keep mentioning going to shop in London ?

Nigeria's middle class can now enjoy retail therapy closer to home.
In the old days, for some, going shopping in Nigeria meant going to London.

Sorry, bro if I got stuck up on dat

Anyway, it will be great if this middle class does really exists and it will be fantastic to see it growing. That is a good omen. We just have to wait and see.

I am no economist, but where do you guys propose things start from? Virtually most
of these projects are private sector driven, meaning they target in areas where they
expect to make their profits soonest. Should they wait for the middle class to appear
out of thin air or should they jump-start the developments and by so doing encourage
the government to invest in ares that can nurture the middle class?

Lastly, are the people being hired to work on these construction projects not Nigerians?
Are some of the construction materials being sourced by these projects not purchased
or made in Nigeria by companies who are in turn employing Nigerians?

As someone with a better knowledge of economics said earlier, eventually the market
will determine when there is an over supply of high end or high rise apartments, thus
signaling the need to expand the market/demand for those in lower income brackets.

I will have serious problem if the government is investing in waterfront apartments for
the wealthy as supposed to investing in mass housing projects or social infrastucture.
Gradually, both the private and public sectors in Nigeria are getting the formula down,
as demonstrated by the newly constructed Lagos terminal and Tinapa.

Dont Bother. Those That Would See Would See. Vision and Insight Is Not For All.

Wisdom is Not So Common Afterall

Iyke-D:

I am no economist, but where do you guys propose things start from? Virtually most
of these projects are private sector driven, meaning they target in areas where they
expect to make their profits soonest. Should they wait for the middle class to appear
out of thin air or should they jump-start the developments and by so doing encourage
the government to invest in ares that can nurture the middle class?

Lastly, are the people being hired to work on these construction projects not Nigerians?
Are some of the construction materials being sourced by these projects not purchased
or made in Nigeria by companies who are in turn employing Nigerians?

As someone with a better knowledge of economics said earlier, eventually the market
will determine when there is an over supply of high end or high rise apartments, thus
signaling the need to expand the market/demand for those in lower income brackets.

I will have serious problem if the government is investing in waterfront apartments for
the wealthy as supposed to investing in mass housing projects or social infrastucture.
Gradually, both the private and public sectors in Nigeria are getting the formula down,
as demonstrated by the newly constructed Lagos terminal and Tinapa.

I think we are all the same page here. I wonder y U are all getting riled up. My point is dat there is no middle class in Nigeria and ur point is dat the economy now driven solely by the private sector will create one. That makes perfect sense and seems very logical. Of course, it has to start from somewhere and if the private sector in Nigerai can provide that then so be it. However , my wait and see attitude is knowing the fact that most theories of economics can be turned into absolute crap with very bad and inconsistent government policies. The private sector is thought to be supposedly driving the economy because current government policies made it possible and in Nigeria the fickleness of governmental policies is always a strong factor.

@Pain
Wisdom does not accomodate naivety

"He wanted to travel but he Changed his mind. Very soon This Embassy will beg us to travel out." (Backsider)


Funny indeed!.

Yeah, lets build houses for the rich and this will somehow trickle down to the poor and the economy will take off. Lest we forget, nothing has been done to change the micro-level issues in Nigeria that has led to the deterioration we see. Nothing is going to change unless we change the fundamental things that have caused the economy to backslide so much , e.g. corruption and an elite class who willl killl their moms for foreign consumption.

Government and private sector spending on projects like apartment buildings do not lead to GROWTH, they're more likely to lead to BUSINESS CYCLES i.e. periodic ups and downs in the economy wuthout any long run sustainability. If you push the spending too much, you generate massive inflation.

If you want growth, do what Korea, Japan, India and China have done in recent times, change the many things that have handicapped the economy over time. It may be protectionist measures, huge Government restrictions to business, corruption, poor transparency in management, urban bias in development, name it. Those micro-level changes are more likely to generate long term growth than speending.

I don't need to go far for examples of how micro-level changes can only lead to long term growth. Take a look at the TELECOMS sector, it is the deregulation and liberalization of this sector that lead to the changes we see. For as long as I know, rich men have always had access to cellular phones in Nigeria but these phones never trickled down to the common man, did it?. . .Ofcourse technological change had a lot to do with the cellphone boom but fundamental changes in the telecoms sector led to its boom IMO because under the former regime, cellphones couldn't have reached the common man.

As someone with a better knowledge of economics said earlier, eventually the market
will determine when there is an over supply of high end or high rise apartments, thus
signaling the need to expand the market/demand for those in lower income brackets.

Faulty analysis, you're contradicting yourself.ou claimed earlier that low end apartments are not profitable. Why will excess high end apartments push them into a not so profitable investment especially when the lower class is getting poorer?. . .All this is assuming that the Nigerian market is anything to write home about!

By the way, some of the recommendations (not all since i haven't gone through it all) look good enough as a growth strategy but the problem is that I haven't seen evidence of some of the institutional reforms mentioned, Government is still as ugly as the man who heads it.

dangote is bringing good things to nigeria. before you start spanking me, here is the source http://www.thisdayonline.com/nview.php?id=78025. nigeria is definitely moving in the right direction. 10,000 new jobs by the new cement production plant is no joke. ask tony blair. and remember, these jobs are not for the rich. the masses will benefit.

President Olusegun Oba-sanjo yesterday in Oba-jana, Kogi State said what Nigeria needed to turn its economy around were forthright and foresighted businessmen investing in the manufacturing sector rather than those who solely engage in buying and selling.
Obasanjo while commissioning the $178 million Obajana Cement plant owned by the Dangote Group of Companies said the President of the group, Alhaji Aliko Dangote, has distinguished himself as one of the few manufacturers who have faith in the country and are ready to help transform its economy.
He said his administration’s support for Dangote was informed by his commitment to the growth and development of the country rather than favouritism as it is being alleged in some quarters. He also challenged other entrepreneurs to emulate Dangote in order to be equally favoured.
"People used to say Dangote is being favoured by the government and they also want to be favoured but they don’t want to do what Dangote is doing. Let them do what Dangote is doing and see if they will not be favoured”, he said.
The President said he felt fulfilled, satisfied and overjoyed that the cement plant  came on stream before he would leave office.
The President, who also commissioned some projects in Kogi State thereby causing about four-hour delay in the take-off of the ceremony, went down memory lane and said Nigeria was not only celebrating  the new plant but  what he called the four Fs-Forthrightness, Fore-sight,  fortitude and  fortune of Aliko Dangote whom he said  told him the truth that actually gave room to the project. "We are celebrating forthrightness, Aliko told me the truth when I invited him  on the problem of cement importation and I did not argue with him.  I went back to the drawing board and it is now a success.
"Aliko Dangote took the challenge  and worked on it  because people like him  can smell good business from a distance. The foresight in this project  is monumental  and we are also celebrating  foresight and fortitude. he did not give up and now fortune is beckoning on him."
The President said the lesson from the Obajana dream was that, "Nothing can be achieved unless we drive ourselves to achieve  success. All that should be put together must be put together. If after 50 years we can produce only 2.5 million metric tonnes of cement  and just now the Obajana plant is producing  much higher quantity within a short time, then we are moving forward". President Obasanjo also used the occassion to confirm that he has directed the Bureau for Public Enterprises (BPE) to  give the Dangote Group the right of first refusal in the Onikologbo Cement Company in Benin Republic, where Nigeria is a major shareholder".
"I have directed the BPE to give Dangote the right of first reusal on the Onikologbo Cement Company privatisation, and he has also been given  the permission to establish a 50000 mega watts power plant, for which he has deposited $30  million. He has also been asked to deposit another $20 million for the establishment of a refinery and another deposit of $10 million for the building of a fertiliser plant in the country. Nobody will do it for us. If after  50 years of our cement business in Nigeria we could not get it right and under four years Dangote has gotten it, we have to support him," he said.
President Obasanjo also regretted that the cement industry in the country was also a casualty of the rot that was visited on the country by successive administrations in the country. He said only three out of the seven cement plants operating before he left office in 1979 were in operation when he assumed office in 1999.
Dangote, while welcoming guests to the plant had explained that with the coming on stream of the Obajana cement factory, Nigeria would save  about $460 million  from the importation of cement while the plant would create direct and indirect employment for well over 10,000 people.
He  regretted that "despite huge investment  by both government and  the private sector into cement manufacturing in the past, we have  failed to achieve our objective of becoming  a major cement producing country and net exporter of cement. Not only did we fail to meet  this objective, we were not able  to produce enough to meet  our local demand. and have  to depend on imports to meet the bulk of our local demand consumption. representing  a huge  outflow of forex from our economy."
Between the year 2000 and 2006, according to Dangote,  "local cement production was 16.3 mm tonnes and imports during the same period  totaled 39.2 mm tonnes estimating that Nigeria paid out a total of $3 billion during the period just to fund the importation of the product.
The Dangote group President, who traced his humble beginning from Kano to Lagos  said "since Nigeria has given so much to me and  I stand here before you  to vow that I will give back to Nigeria." He urged Nigerians to join him in the ownership of the company when Obajana finally goes public in December this year.
"I am from Kano, I do business in the East, West and the Middle Belt. That means Nigeria is one indivisible entity. I have been accepted in all parts of the country where I have been and it is encouraging that Obajana is a Nigertian company owned by Nigerians and the work-force is made up particularly with Nigerians."
The plant, Dangote said was one of the lasting legacies of the Obasanjo Administration  and urged the incoming government of Alhaji Umaru Musa Yar'Adua who had to leave Kogi for Abuja enroute Cameroon by 2.30pm on official state assignment, to ensure that the reform programmes put in place by President Obasanjo is sustained to buoy up economic growth.
Dangote also said he expected that by 2010, Nigeria will become a net exporter of cement as the present factory has capacity to load 100 truck per day and when the plants in Ibeshe Ogun State and the Benue Cement Company factory are fully rehabilitatated, the Dangote Cement Group will be  contributing over 18 million tonnes of cement.
While thanking the former Governor of Kogi State, Prince Abubakar Audu, for the  support given him during  the conceptual years of the project, he  said his group is mindful of  the community, where it operates disclosng that Dangote has partnered with the International Finance Corporation (IFC), a part sponsor of the project to institute a $200,000  HIV/AIDS  programme in the Obajana area of Kogi State  and will on Tuesday this week sign the Memorandum of Understanding (MoU) between Dangote and Power Holding Company of Nigeria on a N700m electrity project for the extension  of power supply to the plant which will automatically benefit the community .
"We have to respond to the community. It is a life changing project. We have put in place an action plan on environment, schools health  boreholes  micro-credit and vocational skills to benefit the community," he said.
In his vote of thanks, Chairman/Editor-in-Chief, THISDAY Newspaper Group, Mr. Nduka Obaigbena, said "we have to celebrate President Olusegun Obasanjo's  for creating the enabling environment and the reforms he put in place for  economic growth."
Obaigbena said it was only in Nigeria that you can see out-going governors and governors-elect and out-going President and  the President-elect sit together on one table. "We need to honour President Obasanjo with a befiiting retirement as heleaves office May 29 to retire to his farm at Otta," he said.
The project when fully completed is estimated to cost $1billion and is expected to be  the largest cement plant in the world.
The project site is located in Obajana, an area in Kogi State  with a quarry in Oyo village connected  by an eight kilometre conveyor  to the cement plant. The gas pipeline end that also supplies  gas will run for 70 kilometers from the manifold at Ajaokuta Steel Company, along the Okene road  with the section running from Lokoja  to Obajana.
The commissioning was attended by the President-elect, Yar'Adua who left earlier for Cameroon, his deputy, Dr. Goodluck Jonathan, governors of Kwara, Benue, Nasarawa, Delta, Kaduna, Cross River, Gombe as well as the host governor, Alhaji Ibrahim Idris. Some governors-elect such as Dr. Andy Uba of Anambra and his Bayelsa counterpart, Timipire Sylva also attended. Many captains of industries and political leaders also graced the occasion.

Dangote is really trying, atleast he is investing in Nigeria and providing jobs for the masses. He is even making people rich by placing some of his companies on the Nigerian stock exchange (Nigerians can own a bit of his massive empire).

If the man really ends up building a 50,000 MW power station (did they mean to write 5,000 MW ?) , we might have to name one of the naira notes after him. lol

@donzman,

Faulty analysis, you're contradicting yourself.ou claimed earlier that low end apartments are not profitable. Why will excess
high end apartments push them into a not so profitable investment especially when the lower class is getting poorer?. . .All
this is assuming that the Nigerian market is anything to write home about!

Hope you didn't miss my disclaimer about not being an economic expert. Having said that, I am not sure where I contradicted
myself or expressively stated that "low end apartments are not profitable". What I did say was that obviously investors are
targeting areas where they can make the quickest profit. Believe it or not, there is a very strong demand for these high end
apartments (not to say there are none at the low end market) which is the reason developers are breaking new ground almost
everyday.

With the little knowledge I have about the market system, there is something called product maturity. As more and more
developers engage in catering for the super rich, you are more likely to end up with a situation where there is an over-supply of
housing for the super-rich which ultimately means that the profit margins may not be as attractive as before. Sooner or later, the
market being what it is will come to the sudden realization that while the profit margin for low end apartments may not be
as high, the difference in profits could be made up based on its sheer volume as you definitely have way more people to sell to.
The government can also play a role by providing incentives to developers focusing on mass housing development.

As per Nigerian getting poorer, please provide me with facts or numbers and be sure to make adjustment for the population growth.
Also, as per "there is nothing to write home about the Nigerian market", please cite concrete proof as well, are you suggesting that
the Chinese, or the South Africans that are invading Nigeria at the moment don't know what they are doing? For once try to be
objective (I know this is very hard for some people to do) - there has to be some good that the present administration and the private
sector has done over the past 8 years, don't just make sweeping generalization. Nigeria is far better positioned econmocially today
to invest in social infrastructures than any other time within the past decades or so as the money that will be used for debt servicing
can be re-invested in those areas. There is more transparency in the government contract bidding processes and allocations made
to the state and local governments than at any other time in the history of the country. Those are some achievements that the next
government can build on. Our problems weren't created in just 8 years and will not disappear within 8 years!

Some of the folks on this thread are under the impression that the luxury apartments et al show-cased on this thread by Jen33 are government built/financed. Wrong ! All of those properties are privately owned with no government stake whatsoever.

I agree with Jen33 and Iyke-D. When the market for luxury homes becomes saturated, I have no doubt that the home builders would turn their attention to the lower income earners.

It is not that lower income properties are not profitable, they are just not as profitable as the luxury homes/apartments. With the lower income scheme, it'll take much longer for developers to recoup their investment, but in the long run, its still profitable.

Here in the states, there are housing estates/apartment complexes (privately owned, of course) that are catered to the "not so rich" folks. Many of them are half or one-third the size of festac town in Lagos. With some incentives such as free (or leased) land from the government, I have no doubt that with time we'll replicate the practice in Nigeria.

_{( i think there is already a public/private partnership estate being built in abuja, but I don't know if the estate is catered to the rich folks).}

Wouldn't it be nice if top notch real estate developers can go to the Nigerian Stock Exchange to source funds to build apartments and bungalows that are in the cadire of 1-3 bedrooms, i.e. not catering to the rich ?  I believe such estates can be built with  estimated rental income of ~ N70 million - N100 million a month. Because they'll be privately owned and managed, the facilities are not likely to rot and decay that easily - revenue is at stake !
This is the direction we should be heading and I believe we will get there.