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Insecurity Threatens Lagos’ Tech Growth, $136bn GDP

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  • Insecurity Threatens Lagos’ Tech Growth, $136bn GDP

Experts have said that the growth of the Information and Communications Technology in Lagos State is being threatened by the rise in insecurity in the state.

They said on Friday that the insecurity challenges, such as the Ikorodu killings and kidnapping, were also a threat to its Gross Domestic Product of $136bn.

In April 2017, Governor Akinwumi Ambode of Lagos State had described the country’s commercial nerve as the world’s fastest growing mega city, “with a GDP of $136bn.”

Ambode said that the GDP could improve if the state government invested in the ICT, saying, “That is why we are connecting major parks in the state to the Wi-Fi.”

However, a major shareholder in one of the four main telecommunications companies in the country said that the GDP could take a slide downwards if the government failed to improve on security.

“Should vandals continue to destroy our equipment and terrorise Yaba and environs where tech hubs are located, then there is no doubt that this will threaten the growth of Lagos’ GDP of $136bn,” the source said on the condition of anonymity.

While pleading with the state governor to intervene urgently, a technology expert, Akintunde Akinleye, said, “It has been more than 40 days since some six pupils were kidnapped at a school in Epe, on the North side of the Lekki lagoon in Lagos, raising questions about the ability of the state government to address the insecurity challenges.”

He said, “The parents of the abducted pupils have reportedly paid N10m ransom to the kidnappers but they have yet to get their children back.

“Security operatives in Lagos seem to be clueless about the whereabouts of the abducted pupils.

“Insecurity is increasing in Lagos at a worrying rate; apart from kidnapping, which is becoming frequent, cult killing is also becoming rampant in some parts of the state.

“While peace does not necessarily drive growth and development, insecurity disrupts it. The Lagos State Governor, Akinwunmi Ambode’s goal of making Lagos Africa’s third largest economy is under threat.”

According to him, Lagos has been able to diversify its economy and largely reduce its dependence on oil allocations from the Federal Government.

“The state generates revenue from a variety of sources, including transport, manufacturing, construction and wholesale and retail. To continue growing its economy, Lagos faces challenges such as rapid population growth, urbanisation, as well increasing demands for infrastructure,” Akinleye said.

He also said that the challenges could not be addressed only by widening the tax net, but also by making the state a perfect investment destination.

“Although Lagos has huge potential, much will not be achieved if the current security challenges are allowed to fester further.

“Insecurity makes investors nervous. Therefore, a safer Lagos with its numerous potential will remain an investment destination that can achieve the governor’s dream of a top three African economy by 2020,” he said.

He said, “At this level, Lagos sits comfortably as one of the top ten economies in Africa by GDP. Should Nigerian states start fending for themselves, only Lagos and a few others would be able to survive.

“Lagos generated more than $940m internally in 2016, exceeding the combined Internal Generated Revenue of 30 states in Nigeria.”

He added, “The city-state remains a major economic focal point in Nigeria, generating around 10 per cent of the country’s GDP.

“It continues to grow its revenue as investment flows rise with expanding opportunities in several sectors. Economic growth in the Nigerian port city seems to be boundless but whatever brightness the future holds can only illuminate as far as the dark forces of insecurity recently rampaging Lagos would allow.”

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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Peter Obi Advocates for Full Government Backing of Dangote’s $21bn Refinery Project

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Peter G. Obi

Peter Obi, a prominent Nigerian politician and public figure, has called for unwavering support for the Dangote Refinery amid recent conflicts between Dangote Industries and government agencies.

In a passionate appeal, Obi said the current disputes extend beyond political and personal differences, touching upon the broader interests of Nigeria’s economy and its future prosperity.

In his statement on X.com, Obi highlighted the refinery’s immense potential to drive economic growth and create employment opportunities.

With an estimated annual revenue potential of approximately $21 billion and the capacity to generate over 100,000 jobs, the Dangote Refinery represents a cornerstone of Nigeria’s industrial advancement and economic stabilization.

“The recent challenges faced by Dangote Industries should not overshadow the vital role this enterprise plays in our national economy,” Obi asserted.

“Alhaji Dangote’s contributions are monumental, and it is essential that we rally behind his ventures, particularly the refinery, which is set to make a significant impact on our fuel crisis and foreign exchange earnings.”

The refinery, with its strategic importance, stands as a beacon of hope for Nigeria’s fuel supply and overall economic development.

It is poised to address long-standing issues in the energy sector, provide substantial revenue streams, and enhance the country’s economic resilience. Given these benefits, Obi stressed that any actions hindering the refinery’s operation would be counterproductive.

Obi also commended Alhaji Dangote for his remarkable achievements across various sectors, including cement, sugar, salt, fertilizer, infrastructure, and more.

“Alhaji Dangote embodies patriotism and commitment to Nigeria’s growth. His extensive industrial activities are not only a testament to his entrepreneurial spirit but also a vital contribution to Nigeria’s economic landscape,” he added.

Despite the challenging business environment, Dangote’s diversified industrial investments demonstrate a commitment to Nigeria’s industrialization and job creation.

Obi urged the Federal Government and its agencies to offer full support to Dangote Industries, recognizing the broader economic benefits and the positive impact on national welfare.

“The success of Dangote Industries is intrinsically linked to the success of Nigeria and Africa as a whole. We cannot afford to let such a crucial enterprise falter,” Obi warned. “Every sensible and patriotic government should view enterprises like Dangote Industries as national treasures that deserve robust support and protection.”

Obi’s appeal underscores the critical need for collaboration between the government and private sector leaders to ensure the successful operation of key projects like the Dangote Refinery.

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Dangote Accuses NNPC and Oil Traders of Secret Operations in Malta

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Aliko Dangote, chairman of Dangote Industries Limited, has leveled serious allegations against personnel from the Nigerian National Petroleum Company (NNPC) Limited and certain oil traders.

Speaking at a session with the House of Representatives, Dangote claimed that these parties have established a blending plant in Malta, raising concerns about the integrity of Nigeria’s fuel supply.

Dangote described the blending plant as lacking refining capability, instead focusing on mixing re-refined oil with additives to produce lubricants.

“Some of the terminals, some of the NNPC people, and some traders have opened a blending plant somewhere off Malta,” he stated.

He emphasized that these activities are well-known within industry circles.

Addressing the drop in diesel prices, Dangote argued that locally produced diesel, with sulfur content levels of 650 to 700 parts per million (ppm), is superior to imported variants.

He linked numerous vehicle issues to what he described as “substandard” imported fuel.

He called for the House of Representatives to set up an independent committee to investigate fuel quality at filling stations.

“I urge you to take samples from filling stations and compare them with our production line to inform Nigerians accurately,” Dangote insisted.

The accusations come amid an ongoing dispute between the Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Farouk Ahmed, NMDPRA’s chief executive, had previously claimed that local refineries, including Dangote’s, were producing inferior products compared to imports.

Also, the House of Representatives has initiated a probe into allegations that international oil companies are undermining the Dangote Refinery’s operations.

In response to the escalating tensions, Heineken Lokpobiri, the Minister of State for Petroleum Resources, intervened by meeting with key stakeholders including Dangote, Ahmed, and other top officials from the Nigerian petroleum regulatory bodies.

The discussions aimed to address claims of monopoly against Dangote, which he has strongly denied, and to ensure that all parties operate transparently and fairly.

This development highlights the complex dynamics within Nigeria’s oil industry. The allegations and subsequent investigations could impact market stability and investor confidence.

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Africa’s Richest Man, Aliko Dangote Ready to Sell Refinery to Nigerian Government

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Aliko Dangote, Africa’s wealthiest entrepreneur, has announced his willingness to sell his multibillion-dollar oil refinery to Nigeria’s state-owned energy company, NNPC Limited.

This decision comes amid a growing dispute with key partners and regulatory authorities.

The $19 billion refinery, which began operations last year, is a significant development for Nigeria, aiming to reduce the country’s reliance on imported fuel.

However, challenges in sourcing crude and ongoing disputes have hindered its full potential.

Dangote expressed frustration over allegations of monopolistic practices, stating that these accusations are unfounded.

“If they want to label me a monopolist, I am ready to let NNPC take over. It’s in the best interest of the country,” he said in a recent interview.

The refinery has faced difficulties with supply agreements, particularly with international crude producers demanding high premiums.

NNPC, initially a supportive partner, has delivered only a fraction of the crude needed since last year. This has forced Dangote to seek alternative suppliers from countries like Brazil and the US.

Despite the challenges, Dangote remains committed to contributing to Nigeria’s economy. “I’ve always believed in investing at home.

This refinery can resolve our fuel crisis,” he stated, urging other wealthy Nigerians to invest domestically rather than abroad.

Recently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority accused Dangote’s refinery of producing substandard diesel.

In response, Dangote invited regulators and lawmakers to verify the quality of his products, which he claims surpass imported alternatives in purity.

Amidst these challenges, Dangote has halted plans to enter Nigeria’s steel industry, citing concerns over monopoly accusations.

“We need to focus on what’s best for the economy,” he explained, emphasizing the importance of fair competition and innovation.

As Nigeria navigates these complex issues, the potential sale of Dangote’s refinery to NNPC could reshape the nation’s energy landscape and secure its energy independence.

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