Nigeria's President Umar Yar'Adua's official visit to Beijing in February has born significant fruit, in light of recent announcements that China's export credit guarantee agency, Sinosure, has pledged between US$40bn and US$50bn of investments for Nigeria's infrastructure. During the visit, China's President Hu Jintao and President Yar'Adua committed to strengthening the evolving strategic partnership between China and Nigeria. The two leaders said that Public Private Partnerships (PPP) for investments in infrastructure will have a key role to play in strengthening this bond. Although an investment of the scale pledged by Sinosure will be a blessing for Nigeria's crippled power sector and transport infrastructure, we maintain some reservations regarding the feasibility of establishing transparent and effective PPPs, given the rampant corruption plaguing the country, chronic institutional deficiency and recent accusations of missing funds in the Nigerian power sector. During a press conference in Abuja on March 29, the Nigerian Finance Minister Shamsuddeen Usman said that a Memorandum of Understanding (MoU) had been signed between the African Finance Corporation on behalf of Nigerian financial institutions, and Sinosure, committing the funds for financing projects in Nigerian infrastructure, according to an online report in AllAfrica. Although no specific details have been released regarding the direction of the investments, the Financial Times (FT) and Bloomberg report that the power and transport sectors are likely to receive the lion's share. Furthermore, according to the FT, the investments will take place over the next three years. Certainly, Sinosure's involvement facilitates the implementation of such large scale investments and further cements the strategic partnership between Africa's largest oil producer and world's second largest oil consumer. Of Strategic Importance
Source: BMI
This development further highlights that China is still actively pursuing, perhaps more assertively than ever, its strategy of funding large scale infrastructure projects in return for lucrative oil deals. Africa has been the epicentre of China's strategy to enhance its energy security as the Asian giant is vying to diversify its supplies away from the Middle East. Thus far, this course of action has paid dividends for China, which has managed to gain access to most of Africa's oil states and oil blocks. It has also proved to be of major benefit for the infrastructure sectors of many states, which have sought to benefit from readily available Chinese government credit, in return for granting access to their oil and gas and mining sectors. Angola, Sudan, Ethiopia, Congo, Somalia and of course Nigeria, are but some of the African states where China is funding infrastructure projects (in transport, power and/or telecoms) in return for contracts. This coming week, according to Minister Usman, a delegation from the China National Petroleum Corporation (CNPC) will visit Nigeria to explore investment opportunities and contracts in Nigeria's oil industry, both in the upstream and downstream segments. AllAfrica quoted him as saying 'Their [China's] interest is in our oil, but they also have interest in putting their money where their mouth is.' We have previously stated that we believe one of Nigeria's greatest priorities should be to develop its decaying power sector. A reliable power infrastructure is a key component of attracting foreign direct investment and the lack of it [reliable power infrastructure] in the country has impeded the flow of foreign investments in the non-oil sector. The new government of Yar'Adua has often stated its willingness to invest in the sector and add more capacity. PPPs are emerging as the modus operandi to finance infrastructure projects and the Nigerian government has repeatedly stated its eagerness to develop them. The Chineseinvestment may be the first trial to assess the viability of PPPs taking root in Nigeria. However, as more scandals surface it will make it harder for the government to persuade investors (other than the Chinese) to put their money in such an opaque sector. Bloomberg states that an official government investigation has been launched to investigate why the US$10bn spent during the time of the previous government failed to produce any meaningful results. We believe Nigeria has the potential to become a powerhouse and drive African growth. According to BMI forecasts, between 2008 and 2012, the Nigerian economy will grow by an annual average of 8.6%. Investment into the country's infrastructure has the potential to (theoretically at least) produce multiple benefits from increasing levels of investment to boosting trade and rural development. However, institutional incapacity and rampant corruption underline the danger that the funds made available to the government and financial institutions may fall short due to limited absorptive and institutional capacity and, as in the case of the power sector, produce limited results. infrastucture3_20080402_gif Document EMDN000020080403e44200006
Atcon to Hold Summit On Local Content Devt by Peter Ailuorio
669 words
2 April 2008
09:12 AM
All Africa
AFNWS
English
(c) 2008 AllAfrica, All Rights Reserved Lagos, Apr 02, 2008 (Leadership/All Africa Global Media via COMTEX) -- The Association of Telecommunications Companies of Nigeria (ATCON) has said that the stakeholders' summit on Nigerian Content Development in the ICT Sector will hold on Friday, April 11, 2008. The event will take place in the Diamond Hall of the Golden Gate Chinese Restaurants, Ikoyi, Lagos. Over the years, the Nigerian Information and Communications Technology (ICT) sector has continued to grow in leaps and bounds. However, despite the high rate of ICT professionals in Nigeria, adequate attention has not been given to the issue of developing and building local contents. Nobody can safely deny the fact that attempts are being made by a few concerned professionals in the area of developing local content in the software aspect of ICT in Nigeria. Arguably, not much progress could be said to have been made in the angle of local hardware components in ICT infrastructure. ATCON strongly believes that for Nigeria to truly boast of technological advancements in the ICT sector, concerted efforts must be geared towards initiatives that would facilitate and enhance local content development both in the software and hardware aspects of ICT. To ensure effective involvement of public policy makers in this very important summit, ATCON has enlisted the active participation of public institutions and private sector organisations such as Ministry of Information & Communication, Ministry of Science & Technology, National Information Technology Development Agency (NITDA), Nigerian Communications Commission (NCC), Universal Service Provision Fund (USPF), ICT professional Associations, ICT operating companies, banks and non-bank financial institutions, local and foreign development agencies, ICT solutions providers, Small & Medium Enterprise Development Agency of Nigeria (SMEDAN), Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines & Agriculture (NACCIMA), the mass media, high networth individuals amongst many others. ATCON is of the opinion that for the ICT sector in Nigeria to develop fast and catch up with that of leading ICT nations of the world, concerted efforts have to be geared towards developing some amount of local contents both in the software and hardware components of ICT infrastructure. It also feels strongly that our local ICT infrastructure providers should be granted some measure of protection against their multinational counterparts whose corporate strength and investment muscle could pose serious threats to the survival of the local players. The local hardware and software developers must be given adequate support to enable them grow, expand and continue to provide employment to millions of Nigerians, thus helping to eradicate poverty in the land. ATCON believes that the establishment of an enabling environment will encourage existing and potential local investors to venture into the development of Nigerian content in our ICT sector. This will eventually register Nigeria in the league of global leaders in the ICT sector. Dignitaries expected to attend and participate in the summit include the minister of state for communications, Alhaji Ibrahim Dasuki Nakande; minister of science & technology, Mrs. Grace Ekpiwhre; executive vice chairman, Nigerian Communications Commission (NCC), Engr. (Dr.) Ernest Ndukwe; director-general, National Information Technology Development Agency (NITDA), Prof. Cleopas Angaye; chairman, VisaFones Limited, Mr. Jim Ovia; chairman, Zinox Technologies Limited, Chief Leo Stan Ekeh; as well as chief executive officer, Omatek Computers Limited, Mrs. Florence Seriki. Other industry experts billed to participate and contribute to discussions on the theme of the summit include Engr. Chris Uwaje, CEO, Connect Technologies; Engr. Titi Omo-Ettu, CEO, Telecom Answers Associates; Engr. Gbenga Adebayo, chairman, Association of Licensed Telephone Operators of Nigerian (ALTON); Mr. Ogugua Chioke, chairman, GSM Association of Nigeria; Engr. Sam Adeleke, president, Internet Services Providers Association of Nigeria (ISPAN) and Prof. Charles Uwadia, president, Nigeria Computer Society (NCS). Others are Engr. Adebayo Banjo, CEO, Disc Communications; Mr. Simeon Agu, president, Institute of Software Practitioners of Nigeria (ISPON), Dr. Jimson Olufuye, president, Information Technology Association of Nigeria (ITAN); Mr. Lanre Ajayi, president, Nigerian Internet Group (NIG) and Mr. Ndukwe Kalu, chairman, Nigerian Internet Registration Association (NIRA). Document AFNWS00020080402e442000sg Salmagundi Conference Lévy, Bernard-Henri; Schell, Jonathan; Barber, Benjamin; Elshtain, Jean; Lears, Jackson; Forché, Carolyn; Massing, Michael; Glotzbach, Philip; Boyers, Robert