WEBVTT 1 00:00:03.399 --> 00:00:08.480 Hey, I'm good evening everyone, and welcome to another money 2 00:00:08.519 --> 00:00:13.800 space with me carlu Aja. On the space, we're talking money, 3 00:00:14.039 --> 00:00:18.039 we're talking the economy. We're talking personal finance, and the 4 00:00:18.120 --> 00:00:21.000 whole idea is to make this personal to you, to 5 00:00:21.120 --> 00:00:24.199 make you a better investor, and talk about the economy 6 00:00:24.199 --> 00:00:27.760 in general. Now, if you've not noticed, if you're following us, 7 00:00:28.160 --> 00:00:31.640 the past week, we've been on the theme of the economy. 8 00:00:31.760 --> 00:00:36.640 We've done taxes, we've done dipecification, we've done the textile companies. 9 00:00:36.640 --> 00:00:39.880 We try to bring in many you know, should we 10 00:00:39.920 --> 00:00:43.920 say many parts of the niger economy into focus. How 11 00:00:43.960 --> 00:00:46.799 can we grow the economy, How can we make Nige 12 00:00:46.920 --> 00:00:50.920 economy better to work for the taxpayers an even for 13 00:00:51.039 --> 00:00:54.159 the government, because the better economy, of course, try this 14 00:00:54.280 --> 00:00:56.960 to better governance from the government. That's what we're just 15 00:00:57.079 --> 00:01:00.560 on that theme of. So this week we're talking, of 16 00:01:00.600 --> 00:01:05.280 course diversification and that's a word every Nigerian has heard, 17 00:01:05.799 --> 00:01:09.959 because every government wants to diversify the economy. You know, 18 00:01:10.159 --> 00:01:13.640 we want to know, take away our alliance on crude 19 00:01:13.640 --> 00:01:18.200 oil and to have an economy that grows and delivers 20 00:01:18.200 --> 00:01:21.519 for Nigeral people, not just via crude oil. That's always 21 00:01:21.519 --> 00:01:24.760 with a mantra in Nigeria. So how well have we 22 00:01:24.840 --> 00:01:27.719 done so far? Should we stay from say nineteen sixty 23 00:01:28.560 --> 00:01:31.120 If you put the data for currently where we are 24 00:01:31.120 --> 00:01:34.519 in Nigeria, you would find that the niger economy itself 25 00:01:34.680 --> 00:01:40.400 is diversified. The niger economy is diversified according to oil 26 00:01:40.640 --> 00:01:44.400 and non oil. The non oil part is booming. The 27 00:01:44.439 --> 00:01:49.560 oil part was in a recession until recently. If you 28 00:01:49.599 --> 00:01:51.879 also go to the non oil part and say what 29 00:01:52.159 --> 00:01:56.879 constitutes that growth in Nigeria, you would find agriculture, you 30 00:01:56.920 --> 00:02:00.560 would find services, you would find telecoms. These are the 31 00:02:00.760 --> 00:02:06.760 folks that are growing the Nigerian economy. Crude oil employs 32 00:02:06.959 --> 00:02:10.319 very little and it's a very rather small part of 33 00:02:10.360 --> 00:02:13.159 the niger economy. I don't think it's up to fifteen 34 00:02:13.199 --> 00:02:18.840 percent of the GDP of Nigeria. The problem really is 35 00:02:18.879 --> 00:02:24.280 the diversification of revenues, because Nigeria has not been able 36 00:02:24.319 --> 00:02:30.240 to diversify high revenues, especially have foreign exchange revenues. So 37 00:02:30.319 --> 00:02:33.759 you then have a situation where crude oil, with less 38 00:02:33.800 --> 00:02:39.479 than fifteen percent of the GDP of Nigeria, contributes somewhere 39 00:02:39.479 --> 00:02:43.599 between eighty nine to ninety four or so of the 40 00:02:43.759 --> 00:02:49.680 forest revenues of Nigeria. Keep in mind, the largest revenue 41 00:02:49.680 --> 00:02:55.039 source for Nigeria is corporate income taxes V eighty, customs income, 42 00:02:55.159 --> 00:02:58.800 that sort of thing. But because Nigeria imports a lot. 43 00:02:58.960 --> 00:03:04.319 Nigeria used to imports, how fuels are pmst just before 44 00:03:04.360 --> 00:03:07.120 we got down go to refinery. We do a lot 45 00:03:07.120 --> 00:03:09.520 of food imports. We import a lot of wheat, a 46 00:03:09.520 --> 00:03:12.319 lot of fish. We do a lot of invisibles. So 47 00:03:12.360 --> 00:03:14.639 when we travel abroad for medicals or we travel of 48 00:03:14.680 --> 00:03:19.159 broad for education, those are also quote unquote imports. Because 49 00:03:19.199 --> 00:03:22.800 we have a high import overhang in Nigeria, it means 50 00:03:22.800 --> 00:03:26.000 that we've got to end a lot of foreign exchange 51 00:03:26.039 --> 00:03:28.240 just to keep the economy running. Give it keep in 52 00:03:28.240 --> 00:03:30.719 mind again and try to imports a lot of machineries 53 00:03:31.360 --> 00:03:34.719 that I used to then manufacture goods in Nigeria. So 54 00:03:34.879 --> 00:03:37.960 the something is that you have an economy in Nigeria 55 00:03:38.039 --> 00:03:41.960 that exports a lot of products. Just one product crude oil, 56 00:03:43.120 --> 00:03:46.919 and it ends eighty nine percent of the forests. It 57 00:03:47.000 --> 00:03:50.759 gets from that crude oil, right and from that crude oil, 58 00:03:51.120 --> 00:03:55.240 we're then expected to then maintain a naira whod's value 59 00:03:55.319 --> 00:03:58.919 is based on the crude oil export numbers and the 60 00:03:58.960 --> 00:04:03.639 crude oil export price. Huge strain on the Central Bank 61 00:04:03.680 --> 00:04:05.960 of Nigeria's reserves, which is why you then see the 62 00:04:06.039 --> 00:04:11.479 naira the local currency devalue, depreciate and have a lower 63 00:04:11.680 --> 00:04:15.360 purchasing power because it's all in a circle. If we 64 00:04:15.439 --> 00:04:20.160 can't export crude oil, the impact is felt on the 65 00:04:20.199 --> 00:04:23.800 local currency. We can't with our quanity, it is not 66 00:04:24.439 --> 00:04:28.560 should we say have a higher value meaning that imports 67 00:04:28.600 --> 00:04:33.360 are more expensive, mean that that important inflation then happens, 68 00:04:33.759 --> 00:04:37.240 and that vicious circle then happens in Nigeria. When we 69 00:04:37.319 --> 00:04:42.199 cannot we see import cheaper. The solution, clearly, guys, is 70 00:04:42.240 --> 00:04:46.000 simple if we were able to diversify the economy, right, 71 00:04:46.079 --> 00:04:48.759 if we're were to have an economy where not just 72 00:04:48.879 --> 00:04:52.959 crude oil was gen written forest Nigeria, but we had agriculture, 73 00:04:53.240 --> 00:04:57.600 we had petrochemicals, if we had entertainment, and perhaps we 74 00:04:57.720 --> 00:05:03.319 reduce the share of crude oil by increasing the share 75 00:05:03.360 --> 00:05:06.240 of the other factors. So instead of just having eighty 76 00:05:06.319 --> 00:05:10.160 nine percent from crude oil, we got thirty percent from 77 00:05:10.240 --> 00:05:15.360 crude oil, but we increased the share of manufacturing. The 78 00:05:15.439 --> 00:05:19.680 share of entertainment, the share of agriculture too also earn 79 00:05:19.839 --> 00:05:23.480 for x and to also employ Nigerian's locally. If we 80 00:05:23.680 --> 00:05:27.040 had that sort of economy, they were not so tied 81 00:05:27.959 --> 00:05:32.160 into crude oil prices and production. The economy is now 82 00:05:32.199 --> 00:05:36.639 more than specified and can withstand external shocks. Right now, 83 00:05:36.680 --> 00:05:39.160 the biggest external shock is the election of the new 84 00:05:39.199 --> 00:05:43.040 of the new president in America. What happens if America says, hey, 85 00:05:43.040 --> 00:05:46.399 we're going to expand crude oil export from America, We're 86 00:05:46.439 --> 00:05:48.560 gonna go to India, We're gonna go to the EU. 87 00:05:49.560 --> 00:05:54.240 Those are Nigeria's traditional market. Whatch you then mean that? 88 00:05:54.360 --> 00:05:56.759 Of course Nigeria would then have to look for more 89 00:05:56.800 --> 00:05:59.839 places to export crude oil and I export in US. 90 00:06:00.079 --> 00:06:03.040 For keep in mind, oil prices do not have to 91 00:06:03.040 --> 00:06:06.759 go down for niger economy to suffer from this mono 92 00:06:07.079 --> 00:06:10.040 you know, Mono should say economy that we have. If 93 00:06:10.079 --> 00:06:13.920 our markets are attacked i e. A new supplier goes 94 00:06:13.959 --> 00:06:17.560 to those markets and offers a lower price than Nigeria offers, 95 00:06:17.959 --> 00:06:21.879 then the economy will feel the impact of not being diversified. 96 00:06:22.160 --> 00:06:27.480 And again, diversification means jobs. The more we are diversified agriculture. 97 00:06:27.720 --> 00:06:31.279 The more we are diversified to trade and manufacturing, those 98 00:06:31.319 --> 00:06:35.839 are jobs being created. So we want to we want 99 00:06:35.839 --> 00:06:38.040 to have to talk this week to like a real 100 00:06:38.279 --> 00:06:40.720 practitioner in the space. We want to talk to a 101 00:06:40.839 --> 00:06:45.319 company that is literally discharge of devastation. I like this. 102 00:06:45.519 --> 00:06:49.920 Particular companies are number one, they're working on the state. 103 00:06:50.439 --> 00:06:53.199 Number two, they're working on the federal government. Number three 104 00:06:53.360 --> 00:06:57.160 they are money, so we say they are supported manufacturing 105 00:06:57.639 --> 00:07:02.319 trade services. They are create jobs on show, they are 106 00:07:02.360 --> 00:07:06.439 bringing in technology on show, they are creating export endings 107 00:07:06.439 --> 00:07:11.079 for nine tuia all at the same time. Hence, I 108 00:07:11.120 --> 00:07:14.240 wanted to just introduce them in so we could talk 109 00:07:14.279 --> 00:07:18.639 to David like fire no fireside chat, just talk see 110 00:07:18.639 --> 00:07:22.439 what they're doing, what can we learn from them, and 111 00:07:22.480 --> 00:07:25.079 then of course take it from there. I'm talking other 112 00:07:25.160 --> 00:07:28.399 than the guys in Alaro City in the Legals Free 113 00:07:28.439 --> 00:07:31.279 Trade Zone. I'm happy to have the ND here. I'm 114 00:07:31.279 --> 00:07:33.879 going to have him on mute so I can introduce 115 00:07:33.959 --> 00:07:37.600 himself them from there. I have a few questions for him, 116 00:07:38.040 --> 00:07:39.759 then we'll take from there. Welcome sir, how are you 117 00:07:39.800 --> 00:07:40.240 doing today? 118 00:07:42.399 --> 00:07:45.319 Good even name Carlus, Thank you very much, Thank you 119 00:07:45.360 --> 00:07:45.879 for having me. 120 00:07:45.920 --> 00:07:48.360 I'm doing well, excellent, a lot. 121 00:07:48.240 --> 00:07:51.000 About your show and very excited to be here. 122 00:07:51.120 --> 00:07:53.720 Excellent. Thank you so much, sir. Do you mind introesting 123 00:07:53.759 --> 00:07:55.800 yourself just for folks. I don't know you, just your name, 124 00:07:55.959 --> 00:07:57.000 what you do company? 125 00:07:57.120 --> 00:08:01.399 Yeah, good evening everyone. My name is Yomi Adam Mola. 126 00:08:01.680 --> 00:08:05.839 I'm the managing director at Alto City. I'm also the 127 00:08:05.959 --> 00:08:09.879 Chairman West Africa for ren Government, which is the majority 128 00:08:09.959 --> 00:08:13.360 shareholder of a lot of city and also the largest 129 00:08:13.480 --> 00:08:18.160 private developer of special Economic Zones and cities in Africa. 130 00:08:18.319 --> 00:08:21.759 Wow, thank you well. First of all, just say types 131 00:08:21.800 --> 00:08:24.240 of being here, sir, I appreciate that. I know if 132 00:08:24.240 --> 00:08:28.480 you had my introduction about diversification, just go really into 133 00:08:28.519 --> 00:08:32.080 that diversification. The point I'm making is that Nigeria over 134 00:08:32.120 --> 00:08:35.120 the years has tried to diversify the economy. We have 135 00:08:35.240 --> 00:08:39.679 succeeded in that. We haven't diversified the foreign exchange and 136 00:08:39.720 --> 00:08:41.919 it's part of the economy. So we are now in 137 00:08:41.960 --> 00:08:45.720 this phase where if oil prices go down, it affects 138 00:08:45.879 --> 00:08:49.919 everything in Nigeria. It affects jobs, it affects inflation, it's 139 00:08:49.919 --> 00:08:54.360 affected revenues that states, local and Pello government gets in Nigeria. 140 00:08:54.480 --> 00:08:57.440 So we're talking about just trus question to you, how 141 00:08:57.519 --> 00:09:01.360 important is an economic diversification for my address long term 142 00:09:01.399 --> 00:09:05.559 strategy to reduce it relies on crude oil. I mean, 143 00:09:05.840 --> 00:09:08.240 talk to us about diversification if you will, if you can, 144 00:09:10.080 --> 00:09:10.759 thank you, Carlu. 145 00:09:12.000 --> 00:09:18.039 I mean, indeed, economic diversification is actually essential. You know, 146 00:09:18.200 --> 00:09:23.039 building a more resilient economy requires us to diversify. You know, 147 00:09:23.200 --> 00:09:26.080 if you look at where we are focused oil, nothing 148 00:09:26.080 --> 00:09:30.720 wrong with oil or gas, but when you consider price volatility, 149 00:09:31.000 --> 00:09:35.120 if you look at the global trends towards renewables, it's 150 00:09:35.200 --> 00:09:38.840 clear that for long term planning and execution, we need 151 00:09:38.879 --> 00:09:41.159 to be looking at sectors. Some of which you mentioned 152 00:09:41.200 --> 00:09:48.480 are Greek technology, manufacturing, and various services, especially business process outsourcing. 153 00:09:48.559 --> 00:09:51.440 I think, and I'll speak more to that perhaps later, 154 00:09:52.000 --> 00:09:55.519 but yeah, we need to create diversity of revenue streams. 155 00:09:55.559 --> 00:09:56.519 We need more jobs. 156 00:09:57.120 --> 00:10:02.080 You know, in twenty fifty, Nigeria is likely to be 157 00:10:02.120 --> 00:10:03.519 the third largest country. 158 00:10:03.159 --> 00:10:06.080 In the world after India and China. 159 00:10:07.320 --> 00:10:11.399 Jobs are critical to social and political stability. We need 160 00:10:11.440 --> 00:10:15.080 to be focused on managing unemployment. We need to be 161 00:10:15.080 --> 00:10:17.559 focused on growing a middle class, and jobs are an 162 00:10:17.639 --> 00:10:20.879 essential part of that. That versification of the economy, as 163 00:10:20.879 --> 00:10:24.440 we said, is going to be linked hand in hand 164 00:10:24.440 --> 00:10:26.080 with job creation, which is essential. 165 00:10:26.879 --> 00:10:29.759 Gotcha, just the primer. Someone's already asking me a question 166 00:10:29.840 --> 00:10:32.799 on DM what is the relationship with the Alaro City 167 00:10:32.960 --> 00:10:34.879 and the freetrads And just to give us a primer, 168 00:10:35.000 --> 00:10:38.200 just so we situate ourselves geographically, what's the relationship? 169 00:10:39.440 --> 00:10:41.320 Thank you, And that's a great question because I actually 170 00:10:41.360 --> 00:10:45.120 took note. There's a small point of clarification. Alaro City 171 00:10:45.159 --> 00:10:48.000 is located in the Leaki Free Zone the Legos Free Zone, 172 00:10:48.759 --> 00:10:51.320 So both of those are two prominent free. 173 00:10:51.240 --> 00:10:53.440 Zones in Nigeria, both in Legos. 174 00:10:53.840 --> 00:10:56.559 So the Lucky Free Zone is the largest free zone 175 00:10:56.600 --> 00:11:01.320 in West Africa. It is a sixteen thousand, five hundred 176 00:11:01.360 --> 00:11:05.120 head tests by comparison Victoria Islands approximately eight hundred head 177 00:11:05.159 --> 00:11:09.320 tests to give you a sense here. So in the 178 00:11:09.399 --> 00:11:13.679 Leaky Free Zone you have a portion managed by Leaky 179 00:11:13.720 --> 00:11:17.679 Free Zone Development Company, lots investors there, including a number 180 00:11:17.720 --> 00:11:21.519 of Chinese investors. You have Dangote Industries where the fertilizer 181 00:11:21.679 --> 00:11:24.840 plant and the refinery are and then you have Alara 182 00:11:24.919 --> 00:11:29.480 City which has a number of light industry mixed use 183 00:11:29.559 --> 00:11:35.679 players and lots of housing and mixed uses for retail 184 00:11:35.720 --> 00:11:38.320 and the rest at the Legos Free Zone which is 185 00:11:38.399 --> 00:11:41.519 located in close proximity to Luky Free Zone. Literally across 186 00:11:41.519 --> 00:11:45.159 the small you have the Leaky Deep Seeport. So that 187 00:11:45.240 --> 00:11:48.840 is where the new Leaky Deep support which is between 188 00:11:49.279 --> 00:11:52.320 you know, Chinese investors and the portant investors and then. 189 00:11:52.159 --> 00:11:54.159 Federal and state government in Nigeria legal state. 190 00:11:55.600 --> 00:11:58.519 So we are located Alto City in the northwest quadrant 191 00:11:58.919 --> 00:12:01.240 of the Leaky Free Zone. So all of the actors 192 00:12:01.240 --> 00:12:03.679 I've just mentioned, a lot of City is the new 193 00:12:03.720 --> 00:12:07.720 kid on the block. We launched in January twenty nineteen, 194 00:12:09.159 --> 00:12:13.200 five years ago, so just over sixty months, and in 195 00:12:13.240 --> 00:12:16.519 that period we on boarded over seventy several countries excuse me, 196 00:12:16.639 --> 00:12:21.120 companies within the country, a number of foreign investors and 197 00:12:21.200 --> 00:12:25.200 a number of indigenous companies and conglomerates. We're also very 198 00:12:25.279 --> 00:12:30.000 proud to have a significant SME demographic within a lot 199 00:12:30.039 --> 00:12:33.360 of city. We believe that SMEs that are the heartbeat, 200 00:12:34.080 --> 00:12:34.799 the majority of. 201 00:12:34.759 --> 00:12:35.799 Employment is from SME. 202 00:12:35.919 --> 00:12:38.279 Is the majority of companies in the country, our SMEs, 203 00:12:38.679 --> 00:12:41.679 and we believe that SMBs are supposed to be able 204 00:12:41.919 --> 00:12:43.000 to benefit from the. 205 00:12:42.919 --> 00:12:44.679 Free zone regime in Nigeria. 206 00:12:44.759 --> 00:12:47.519 And so we're very proud to have a dedicated SME 207 00:12:48.120 --> 00:12:51.840 on cliff. We have preferential pricing and tarists for SME 208 00:12:53.000 --> 00:12:56.039 to encourage them to participate and benefit on the freezone region. 209 00:12:57.200 --> 00:12:57.440 Wow. 210 00:12:57.480 --> 00:13:01.440 Interesting, that sounds massive, don't mind me saying. So that's massive. 211 00:13:01.480 --> 00:13:03.799 You've got a deep sea port, they've got the Chinese, 212 00:13:03.840 --> 00:13:07.120 the refineries, You've got you guys in there. That cluster 213 00:13:07.320 --> 00:13:11.080 alone in terms of GDP is larger than most regions 214 00:13:11.080 --> 00:13:14.840 in Nigeria. How is that aiding exports in Nigeria? That 215 00:13:14.960 --> 00:13:17.639 is there a connection with just building that cluster and 216 00:13:17.679 --> 00:13:19.879 should we say exports going from Nigeria I didn't know 217 00:13:19.960 --> 00:13:22.120 bus that we can say have gone up because of 218 00:13:22.159 --> 00:13:24.759 this this infratructory development. 219 00:13:26.240 --> 00:13:30.799 Oh sure, sure. You know, infrastructure creates an enabling environments. 220 00:13:30.879 --> 00:13:35.120 This lucky freezone access is in my opinion, the most 221 00:13:35.120 --> 00:13:41.120 prolific development corridor in the region, potentially in Africa. It's 222 00:13:41.120 --> 00:13:43.879 such a concentrated area. I mean in terms of billions 223 00:13:43.879 --> 00:13:48.120 of dollars have been spent between you know, the Dangote companies, 224 00:13:48.120 --> 00:13:53.240 including the projects including the refinery, like you did, a 225 00:13:53.320 --> 00:13:57.320 number of American companies Kellogg's Corgates coming at allat the city. 226 00:13:57.399 --> 00:13:59.039 We have Bua Group and Sterium. 227 00:13:59.600 --> 00:14:05.440 They have Canadian company Aerial Foods, Mantrak, Caterpillar, American brand Caterpillar, 228 00:14:05.960 --> 00:14:08.919 and again a number of indigenous players. 229 00:14:09.320 --> 00:14:12.159 So when you when you know, they say, when you 230 00:14:12.200 --> 00:14:13.000 build it, they will come. 231 00:14:13.559 --> 00:14:17.240 And if you an environment where there are you know, 232 00:14:17.519 --> 00:14:22.200 high quality infrastructure projects executed, so you have world class planet. 233 00:14:22.600 --> 00:14:25.960 You have good roads, it is a secure environment. You 234 00:14:26.120 --> 00:14:29.039 have electricity and a lot of city people are producing 235 00:14:29.039 --> 00:14:32.480 in twenty four to seven. We have a you know, 236 00:14:32.600 --> 00:14:36.679 power generation license, a power distribution license, and the brit 237 00:14:36.679 --> 00:14:39.399 in tech, whether you're in pharmaceuticals, whether in your logistics 238 00:14:39.440 --> 00:14:42.279 called storage or otherwise, you can have twenty four to 239 00:14:42.320 --> 00:14:46.240 seven power. It is predictable, there is power assurance. You 240 00:14:46.360 --> 00:14:49.519 can have internet right, so we we have a roll 241 00:14:49.600 --> 00:14:52.159 through the fiber. We've connected the site from kilometers away 242 00:14:52.200 --> 00:14:55.559 to ensure that there is fiber there with built in redundancy, 243 00:14:55.720 --> 00:14:58.600 so that there's fiber coming from different directions and we're 244 00:14:58.600 --> 00:15:01.279 going to further make it redundant by adding microwave radio. 245 00:15:01.720 --> 00:15:04.000 So that again we look at tech Earlier you talked 246 00:15:04.000 --> 00:15:07.960 about services in tech. Export of services is a very 247 00:15:08.240 --> 00:15:12.159 unique space that is very impactful for job creation for 248 00:15:12.279 --> 00:15:18.120 the young Nigeria highly educated, very dynamic, entrepreneurial language of 249 00:15:18.519 --> 00:15:20.879 Nasi English, which travels to a lot of the business 250 00:15:20.919 --> 00:15:25.320 community internationally, from call centers to tech support. We can 251 00:15:25.440 --> 00:15:29.440 compete effectively with Silicon Valley. We can compete with India, 252 00:15:29.519 --> 00:15:31.279 with China, with the Tel Aviv. 253 00:15:31.799 --> 00:15:33.679 If we have a. 254 00:15:37.879 --> 00:15:41.840 Coordinated environment with good Internet, you are exporting services, generating 255 00:15:42.480 --> 00:15:45.200 hard currency, improving income levels. 256 00:15:45.120 --> 00:15:47.240 And that trickles into the economy. 257 00:15:47.720 --> 00:15:51.879 So the freebooks provide a very robust and broad platform 258 00:15:52.440 --> 00:15:53.399 for every industry. 259 00:15:53.799 --> 00:15:55.879 Earlier you talked about exports. 260 00:15:56.080 --> 00:15:59.000 I just talked about export services, which is an area 261 00:15:59.000 --> 00:16:02.759 I think Nigerians to focus on. Indeed, the Vice President 262 00:16:02.879 --> 00:16:07.360 launched the Outsource to Nigeria Initiative, which is pushing and 263 00:16:07.440 --> 00:16:09.960 promoting a Nigeria to the world for a business process 264 00:16:10.039 --> 00:16:13.840 outsourcing EPO, but not just export. 265 00:16:14.600 --> 00:16:16.320 The free zones in Nigeria have very. 266 00:16:16.360 --> 00:16:20.960 Effectively facilitated significant investment all of the projects I've mentioned 267 00:16:21.000 --> 00:16:24.080 on more Now you see area is the largest market 268 00:16:24.279 --> 00:16:26.399 in West Africa as an example, right and it's the 269 00:16:26.480 --> 00:16:28.320 largest market in Africa in terms of the number of 270 00:16:28.519 --> 00:16:32.080 people and one of the largest economies. Now, when you 271 00:16:32.600 --> 00:16:37.679 look at investors looking to access market in Africa, Nigeria 272 00:16:37.759 --> 00:16:38.440 is always. 273 00:16:38.360 --> 00:16:39.960 One of the top of the list, if not the top. 274 00:16:40.840 --> 00:16:44.240 So when you have a free zone regime that creates 275 00:16:44.279 --> 00:16:48.240 a simplified ease of business environment with tax and twote incentives, 276 00:16:49.559 --> 00:16:51.440 they will come and when they come, they're closer to 277 00:16:51.519 --> 00:16:54.919 their market. So one of the most strategic and impressive 278 00:16:55.000 --> 00:16:57.159 things that government did going back to two thousand and 279 00:16:57.279 --> 00:17:03.360 two was when the President authorized for one hundred percent 280 00:17:04.119 --> 00:17:06.799 of what is produced or assembled in Nigerian free zones 281 00:17:07.759 --> 00:17:09.880 to be permitted to come into Nigeria. 282 00:17:10.680 --> 00:17:12.559 It is since that time to now the last two 283 00:17:12.640 --> 00:17:13.640 decades plus where. 284 00:17:13.480 --> 00:17:16.759 You have seen terms of billions invested into Nigeria. Before that, 285 00:17:16.880 --> 00:17:19.880 the free zone regime in Nigeria was not as robust, 286 00:17:19.960 --> 00:17:21.440 did not attract as much investment. 287 00:17:21.920 --> 00:17:25.640 So just to be clear, you can bring it in 288 00:17:25.720 --> 00:17:27.720 one hundred percent into the friezes and take it out 289 00:17:27.720 --> 00:17:31.160 one hundred percent to money, it's one hundred percent taxpay 290 00:17:31.200 --> 00:17:32.039 and all that to diffree. 291 00:17:33.319 --> 00:17:34.680 Yeah, let me let me clarify that. 292 00:17:34.799 --> 00:17:37.759 Sorry, calum so many free zones or let me say 293 00:17:37.839 --> 00:17:42.359 some free zones and historically Nigerian free zones, you have 294 00:17:42.519 --> 00:17:45.839 to export a portion of what is produced in the 295 00:17:45.880 --> 00:17:49.279 free zone outside of Nigeria and you would only be 296 00:17:49.359 --> 00:17:52.640 allowed to bring in a certain percent. Now because free 297 00:17:52.720 --> 00:17:55.519 zones and other industrial hubs in Bernin and Ghana, in 298 00:17:55.559 --> 00:17:59.000 Coude for a Cameroon, as far as Kenya are targeting 299 00:17:59.000 --> 00:18:02.799 the Nigerian market to make us competitive. The very wise 300 00:18:02.839 --> 00:18:06.119 thing that government did was to create a globally competitive 301 00:18:06.160 --> 00:18:09.680 free zone regime that has globally competitive tax and duty incentives. 302 00:18:10.079 --> 00:18:12.359 And then they said you don't have to export. 303 00:18:12.640 --> 00:18:14.839 You are permitted to export one hundred percent, but on 304 00:18:14.920 --> 00:18:18.079 the flip side, you are permitted to import one hundred percent. 305 00:18:18.440 --> 00:18:21.240 So it will be the multative player to satisfy the 306 00:18:21.279 --> 00:18:25.440 biggest market in Africa, Nigeria, the enterprises that are based 307 00:18:25.480 --> 00:18:28.680 in Nigeria. So instead of particularly within the context of 308 00:18:28.720 --> 00:18:32.759 Africa Free free trade Zone, free trade treaty, instead of 309 00:18:32.799 --> 00:18:37.480 having companies in other countries creating jobs, bringing technology, bringing 310 00:18:37.559 --> 00:18:40.759 investment to ben In, to god to Kenya, don't being 311 00:18:40.920 --> 00:18:43.720 products in the largest market in Nigeria. The wiest thing 312 00:18:43.720 --> 00:18:45.359 in Nigeria did was say, come and set up here. 313 00:18:45.559 --> 00:18:47.559 You can export to anywhere in the world and you 314 00:18:47.599 --> 00:18:50.519 will also be the Nigerian market. You can access the 315 00:18:50.559 --> 00:18:53.240 Nigerian market. And that's when we started to see significant 316 00:18:53.319 --> 00:18:58.039 investment increase into the free Yeah, so what the. 317 00:18:58.200 --> 00:18:59.920 By products you mentioned earlier? 318 00:19:00.319 --> 00:19:03.640 I took a note you said something about, you know, 319 00:19:03.960 --> 00:19:08.559 the high import overhead and needing to generate purpose, right, 320 00:19:08.960 --> 00:19:11.319 and you talked about going outside for education and going 321 00:19:11.400 --> 00:19:15.480 outside for health care. The beautiful thing about the Free 322 00:19:15.559 --> 00:19:18.880 Zone in Nigeria is that because they have allowed one 323 00:19:18.960 --> 00:19:21.559 hundred percent of what is producing the Free Zone to 324 00:19:21.599 --> 00:19:24.519 come into the country, it has really posted import substitution. 325 00:19:25.319 --> 00:19:27.920 So we're not looking for that dollar to go to Turkey, 326 00:19:28.000 --> 00:19:29.799 go to China, go to the buy to import. 327 00:19:30.400 --> 00:19:34.079 What we are saying is don't import, ready to use 328 00:19:34.119 --> 00:19:36.240 the reputed food produce it here. 329 00:19:36.680 --> 00:19:37.599 Be close to the market. 330 00:19:37.960 --> 00:19:40.480 You can be very priced competitive, reduce your logistics costs 331 00:19:40.559 --> 00:19:42.640 to satisfy the market has to be profitable. 332 00:19:42.680 --> 00:19:45.559 The accents this. So we have a company called Area 333 00:19:45.559 --> 00:19:45.960 of Foods. 334 00:19:46.759 --> 00:19:49.279 Before they came to Nigeria into allow the city almost 335 00:19:49.279 --> 00:19:50.119 five years ago. 336 00:19:50.440 --> 00:19:54.519 Nigeria was a net importer of r you t ready 337 00:19:54.559 --> 00:19:54.839 to use. 338 00:19:54.880 --> 00:19:58.920 The reputed food is the food that manutrition children internally 339 00:19:58.960 --> 00:20:03.440 displays children people that take for nutrient unic and USA 340 00:20:03.480 --> 00:20:08.119 ideas when they came into Nigeria, into Alar City in 341 00:20:08.240 --> 00:20:10.559 the last four and a half five years. Now Nigeria 342 00:20:10.799 --> 00:20:14.279 is a net exporter of that product. So one hundred 343 00:20:14.920 --> 00:20:17.920 of the demand from within Nigeria sat Aside from within 344 00:20:18.039 --> 00:20:21.720 Nigeria and from a Lara City, they're exporting to seventeen 345 00:20:21.759 --> 00:20:26.599 countries around the world. And now Nigeria has security in 346 00:20:26.680 --> 00:20:29.799 this space. It can all be provided without you mentioned 347 00:20:29.880 --> 00:20:32.319 the president of another country taking a decision. 348 00:20:32.119 --> 00:20:35.160 Without so this can hand anywhere being blocked. You can 349 00:20:35.240 --> 00:20:39.039 now do it. And it's the same thing with the detergent. 350 00:20:40.119 --> 00:20:42.359 So if you look at POA group Sterium z at 351 00:20:42.359 --> 00:20:46.799 Alara City, import detergent into Nigeria, clear the port and 352 00:20:46.920 --> 00:20:51.759 sell it. Now they produce it at Allaro City. They're 353 00:20:51.839 --> 00:20:54.440 not sent to Turkey or China anywhere else. 354 00:20:54.480 --> 00:20:57.400 They're producing it here. The jobs are here, the technology 355 00:20:57.519 --> 00:20:58.720 is here, and they're. 356 00:20:58.559 --> 00:21:04.720 Supplying the market, the Nigerian market, the Nigerian market, Nigerian 357 00:21:04.799 --> 00:21:05.440 and international. 358 00:21:05.599 --> 00:21:10.359 Yes, yes, yes, So the next focus is we've talked 359 00:21:10.359 --> 00:21:11.640 about services, let's. 360 00:21:11.440 --> 00:21:12.880 Talk about education and healthcare. 361 00:21:13.200 --> 00:21:17.160 The amount of money leaving Nigeria art currency to facilitate 362 00:21:17.799 --> 00:21:21.240 payment of school fees and medical bills. Let us offer 363 00:21:21.559 --> 00:21:23.960 a hand of partnership and let us also be more 364 00:21:24.039 --> 00:21:27.000 entrepreneurial and resilient. And let us bring some of that 365 00:21:27.119 --> 00:21:29.799 world class education and world class health care. Bring it 366 00:21:29.880 --> 00:21:33.519 into the zone. Capitalize on the incentives, bring equipment in 367 00:21:33.640 --> 00:21:37.000 duty free. Don't worry about expertise, They're not expert quotas. 368 00:21:37.079 --> 00:21:40.200 People can come in as required to service right and 369 00:21:40.279 --> 00:21:42.039 then now people can drive down the street or take 370 00:21:42.039 --> 00:21:43.920 a domestic flight to access world. 371 00:21:43.720 --> 00:21:46.880 Class health care or education. It is here in Nigeria. 372 00:21:47.000 --> 00:21:49.319 The jobs are in Nigeria. They pay tax is paid 373 00:21:49.319 --> 00:21:52.680 in Nigeria. So this is what we need to continue. 374 00:21:52.759 --> 00:21:58.599 Input substitution, promoting industrialization, promoting export including export of services. 375 00:21:58.200 --> 00:22:01.279 Which can help us accelerate job create. So we have 376 00:22:01.359 --> 00:22:02.200 a sister project. 377 00:22:02.279 --> 00:22:06.880 I mentioned that Endeavor is the best private developer, especially 378 00:22:06.880 --> 00:22:10.400 economics and cities. We have a project called Tatoo City 379 00:22:10.440 --> 00:22:15.920 in aerobic Kenya and this year launched a building where 380 00:22:17.000 --> 00:22:20.640 a BPO company a call center in one year has 381 00:22:20.680 --> 00:22:23.359 created eight thousand jobs for young people in Kenya. This 382 00:22:23.519 --> 00:22:26.799 is what our Sources to Nigeria initiative is looking to 383 00:22:26.880 --> 00:22:28.680 achieve in BPOs. So a lot of city wants to 384 00:22:28.759 --> 00:22:30.880 position to be a big part of that. 385 00:22:31.079 --> 00:22:33.240 So we're going to have that outsource since set up 386 00:22:33.240 --> 00:22:35.319 also in Nigeria in this city as well. 387 00:22:36.680 --> 00:22:40.440 Most definitely, so we're already working engaging with Outsources to 388 00:22:40.519 --> 00:22:43.279 Nigeria initiative. Some of the key one of the key 389 00:22:43.319 --> 00:22:45.759 factors are the enabling environment. Right, it's a lot of 390 00:22:45.880 --> 00:22:46.680 young people. 391 00:22:46.599 --> 00:22:48.279 With jobs, a little place to exactly. 392 00:22:48.440 --> 00:22:50.279 So all the all of the projects I. 393 00:22:50.319 --> 00:22:53.680 Talked about, the seaport, the refinery, the fertilizer plant, all 394 00:22:53.720 --> 00:22:56.160 of those international companies, Allara. 395 00:22:55.920 --> 00:22:57.079 Cities are lookid on the block. 396 00:22:57.160 --> 00:22:59.519 All of these projects are big, they ambitious, the very 397 00:22:59.640 --> 00:23:04.359 lord of and we're all complementary. But these projects have 398 00:23:04.440 --> 00:23:07.000 taken up a big portion of people's focus and investment. 399 00:23:07.279 --> 00:23:10.160 Seaports we find it where do all of the employees live? 400 00:23:10.799 --> 00:23:13.000 So a lot of city has I don't need right, 401 00:23:13.079 --> 00:23:15.279