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Tinapa, Nigeria’s $450m White Elephant

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  • Tinapa, Nigeria’s $450m White Elephant

With its futuristic film studios, luxury shops and elevated light railway, Tinapa should be a showcase of Nigerian dynamism, a commercial hub for West Africa raking in millions of dollars.

But 10 years after it opened, the resort in south-east Nigeria is a ghost town and has become a symbol of monumental waste.

Its majestic contours and avant-garde domes rise defiantly out of the bush and palm trees. At the entrance, a giant signboard proclaims “Tinapa back on track!”

But the few visitors who venture inside are quickly disillusioned.

Apart from a few idle employees, not a soul stirs in the endless aisles of shops and warehouses that should have made the capital of Cross River state, Calabar, famous across Nigeria’s south.

“It’s empty there, we have no clients, it’s like a cemetery,” said one shop assistant in Da Viva, which sells the popular brand of wrapper skirts.

“Many have left already,” he added, pointing to shuttered premises.

A huge supermarket still displays clothes, furniture and foreign-made knick-knacks but in virtual darkness: the electricity was cut off some time ago.

Inside, an old man snoozes in the suffocating heat.

Tinapa, with its 80,000 square metres (861,000 square feet) of warehouses and shops, cost $450 million (413 million euros) to build.

But it has become a financial black hole for its backers.

– Economic development –

At the turn of the century, Nigeria was on the point of becoming Africa’s biggest economy and leading oil producer. Newly returned to civilian rule, everything seemed possible.

A handful of businessmen and architects got together and imagined an international centre of commerce and tourism in a free-trade zone.

Nigeria’s biggest banks fell over themselves to finance the project, which was opened in 2007.

“At that time, everyone was excited. Tinapa was going to boost economic development of the whole region and create thousands of jobs,” said Bassey Ndem, who was in charge of the project.

It aimed to attract Nigerian millionaires, who ordinarily jetted off to Dubai or London to go shopping, as well as make Cross River a commercial crossroads on the Atlantic coast.

A plush 242-room hotel with a view over the lagoon and a water park with slides were built to cater for the cream of high society and their families.

Alongside luxury tourism, imported goods would provide for Nigeria and its neighbours such as Cameroon, Chad and Niger, competing with the country’s commercial capital, Lagos.

“Everything was going well at first,” said Ndem. “At the peak, in 2009, we generated $30 million of revenue. But we faced a lot of resistance from the customs.

“They really didn’t want the tax-free zone to work.”

Goods were supposed to be exempt from import duties in the free-trade zone.

But from the beginning, the customs — which has a reputation for rampant corruption — blocked containers destined for Tinapa in the ports, paralysing business.

– Top down, trickle up –

Ndem left in 2012. None of his successors has managed to get Tinapa off the ground.

“There was clearly a lack of political will” to make the project succeed, he said, describing himself as angry and frustrated at a “wasted opportunity”.

For the economist and blogger Nonso Obikili, Tinapa’s downfall was largely because of a lack of existing infrastructure to transport goods: bad roads and an average-sized port.

“It was a wide project conceived with the deep sea port, which was supposed to enable big ships to come to Calabar,” said Obikili.

“It was the responsibility of the federal government but finally it wasn’t done,” he told AFP.

In the end, no big-name jeweller or pret-a-porter line wanted to invest in the paradise promised by its promoters and the hotel remains desperately empty.

The cinema studios have likewise been unable to attract Nollywood’s stars, who have largely preferred to stay in Lagos.

In “Looking for Transwonderland: Travels in Nigeria”, the British-Nigerian author Noo Saro-Wiwa castigates the leaders in the country of her birth.

Few of Nigeria’s nearly 190 million inhabitants have benefited from the riches brought by oil; most still live in extreme poverty.

“This top-down approach to boosting Calabar’s economy seemed hollow,” she wrote.

“I’d heard Nigerian politicians’ endless talk about theme parks, tourist resorts, shopping malls and their ‘trickle down’ effects on the economy.

“But there’s no such thing as ‘trickle down’ in Nigeria — money trickles upwards or evaporates on contact with air,” Saro-Wiwa wrote in 2012.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nigeria-Indonesia Trade Surges to $4.7 Billion in 2022, NICCI President Reveals

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The trade volume between Nigeria and Indonesia rose to $4.7 billion in 2022, according to Ishmael Balogun, the President of the Nigerian-Indonesian Chamber of Commerce and Industry (NICCI).

This revelation came during a recent press conference convened to announce the upcoming Nigeria-Indonesia Investment and Trade Forum, scheduled to be held in Kano.

Balogun, speaking with enthusiasm, underscored the pivotal role played by NICCI in fostering bilateral trade and investment between the two nations.

“Our vision at NICCI is to promote robust economic ties between Nigeria and Indonesia, positioning Nigeria as the premier investment destination in Africa,” he declared.

Highlighting Nigeria’s burgeoning position as Indonesia’s foremost trading partner on the African continent, Balogun emphasized the mutually beneficial nature of the relationship.

“Nigeria holds the distinction of being Indonesia’s number one trading partner in Africa, a testament to the strength and vitality of our economic cooperation,” he stated.

NICCI’s commitment to nurturing this partnership extends beyond mere rhetoric, as Balogun elucidated the chamber’s proactive approach to facilitating trade engagements.

“We are resolute in our efforts to bolster interactions between Nigeria and Indonesia through various platforms such as trade forums, fairs, and bilateral symposiums,” he affirmed.

The forthcoming Nigeria-Indonesia Investment and Trade Forum, slated to convene in Kano, represents a pivotal opportunity to further deepen economic collaboration.

Themed ‘Indonesia meets Nigeria: An opportunity for expansion of Bilateral Investment and Trade’, the event promises to be a catalyst for enhanced trade relations and investment inflows.

Reflecting on the evolution of the forum, Balogun reminisced about its inaugural edition held in Jakarta, Indonesia, in October 2022, followed by a successful second edition in October 2023.

This year’s edition seeks to broaden the scope by inviting Indonesian companies to explore the vast potential of the Nigerian market.

Balogun expressed gratitude for the collaborative efforts between NICCI and the Indonesian Embassy in Nigeria, under the leadership of Ambassador Dr. Usra Harahap, as well as the Indonesian government’s Ministry of Trade and Foreign Affairs.

Together, they have orchestrated the invitation of 70 Indonesian companies to participate in the upcoming forum, symbolizing a tangible commitment to fostering bilateral trade and investment.

As Nigeria and Indonesia forge ahead in their economic partnership, the surge in trade volumes serves as a testament to the growing synergy between the two nations.

With NICCI spearheading initiatives to bolster economic cooperation, the future holds promising prospects for further expansion and prosperity on both fronts.

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Dry Cleaners Set to Tap into $165 Billion Global Cleaning Industry

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The Fabric Professionals and Dry Cleaners Association of Nigeria (FPDA) is gearing up to host the “Clean Show Africa 2024” conference.

This conference aims to expose over 25,000 dry cleaners to the vast opportunities present in the global cleaning and hygiene industry, valued at a staggering $165 billion.

Scheduled to take place on May 28–29, 2024, in Lagos, the event is themed “Positioning Africa’s fabric and hygiene industry for excellence.”

It comes at a crucial time when Nigeria’s dry cleaning industry is experiencing steady growth, with projections indicating a 6.4% annual increase over the next decade.

According to Enibikun Adebayo, Chairman of FPDA, Nigeria’s dry cleaning industry was valued at $8.4 million in 2019.

However, this figure is expected to rise significantly, presenting a ripe opportunity for stakeholders to tap into.

Adebayo emphasized the importance of collaboration within the industry to fully leverage its potential.

“A year ago, we launched FPDA of Nigeria. We are also using the platform to educate our members to be better professionals,” stated Adebayo, highlighting the association’s commitment to enhancing professionalism and standards within the sector.

The conference will shine a spotlight on women in the dry cleaning business, recognizing their pivotal role in driving the industry forward. Reports have shown that dry cleaning businesses are often better managed by women, and the event aims to provide them with the necessary support and resources to thrive.

Ruth Okunnuga, Managing Director of Wasche Paint Nigeria, expressed the need to revolutionize Nigeria’s dry cleaning and laundry industry, emphasizing the lack of proper structure and investment.

She stressed the importance of data collection for effective planning and growth within the sector.

Joseph Oru, Managing Director of Zenith Exhibition, highlighted the conference’s objective of engaging the Federal Government to establish training institutions for dry cleaners. Such institutions would play a crucial role in equipping professionals with the skills and knowledge needed to meet global standards.

As Nigeria’s dry cleaning industry prepares to tap into the vast opportunities offered by the global cleaning market, the Clean Show Africa 2024 conference stands as a pivotal platform for collaboration, innovation, and growth within the sector.

With a focus on excellence and professionalism, stakeholders aim to position Nigeria as a key player in the dynamic and lucrative cleaning and hygiene industry.

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Nigeria-Taiwan Commerce Falls to $500m in 2023

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The Chief of Mission to the Taiwanese Government in Nigeria, Andy Liu, has said that the trade relations between Nigeria and Taiwan drop to $500 million in 2023 from $1 billion in 2021.

Liu made these comments during the 2024 Taiwan Business Forum held in Lagos.

According to Liu, Nigeria’s status as a net exporter of agricultural products, particularly sesame seeds has historically fueled the trade between the two nations.

However, the peak in trade experienced in 2021, buoyed by increased demand for Nigerian agricultural goods, notably declined in subsequent years.

“The highest peak of trade reached about $1 billion in 2021. It was the peak of COVID-19, with Nigerians enjoying surplus trading with Taiwan. We imported more of Nigeria’s agricultural products, such as sesame, aside from oil-related products. In 2021, we had a huge demand for agricultural products for our food processing industries,” Liu stated.

However, the trade dynamics shifted in the following years, leading to a significant decline in trade volume.

Liu attributed this decline to a normalization of demand following the peak in 2021, resulting in a reduction in trade value to $500 million by 2023.

Despite this decrease, Liu remained optimistic about the future trajectory of trade relations between the two countries.

“We might see some level of increase in the near future,” Liu enthused, highlighting Nigeria’s continued significance as a destination for Taiwanese businesses.

In addition to discussing trade volume, Liu addressed the issue of counterfeiting and piracy, which has affected Taiwanese products globally.

He said the Taiwanese government is working to combat this challenge by showcasing the quality of Taiwanese products and providing after-sale services.

“We have been having our delegates visit the world to prove that we are victims of piracy, but we are going to use the platform to show that we have good and quality products to let the world know who the true providers of these quality goods are,” Liu affirmed.

The President of Globe Industries Corporation, David Hwang, echoed concerns about counterfeit products, attributing the decline in profit margins to the influx of counterfeit goods from China.

Hwang emphasized the need for partnerships to address this issue and foster mutually beneficial trade relations.

Responding to the developments, the Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Sola Obadimu, commended the Taiwanese focus on African businesses and the quality of their products.

He pledged NACCIMA’s continued collaboration with Taiwanese companies to drive business growth for both nations.

As Nigeria and Taiwan navigate the challenges posed by fluctuating trade volumes and counterfeit goods, stakeholders remain committed to fostering resilient and mutually beneficial economic ties.

The 2024 Taiwan Business Forum served as a platform for dialogue and collaboration, laying the groundwork for future cooperation between the two nations.

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