Brand equity: It’s no more Africa, it’s now Nigeria

What could make over 1000 delegates including top foreign business executives attend the World Economic Forum in Abuja recently, at a time the echoes from Nigeria was insecurity. Even the locals from other parts of Nigeria were frightened and cautioned by their relatives to be careful, how much more international investors. Their deep interest boils down to one thing, Nigeria has become a cynosure for investment as return on investment (RoI) looks good.

Much attention is now focused on Nigeria. Trevor Ward, principal of the W Hospitality Group, a specialist consultant in the hospitality and leisure industry, said in a report that “Nigeria is where the action is and will continue to be.”

When foreign investors think Africa, they think Nigeria because, according to Obadiah Mailafia, an economist, the country’s “size and incalculable potential is intimidating.” Marcel Roach, Schneider Electric country president for Anglophone West Africa, whose company has been targeting Nigeria, said “today Africa is the continent of the future and when we speak of Africa if you are not in Nigeria, you are not in Africa.” The re-basing has confirmed the confidence on Nigeria’s economy, he said. Schneider is a global company with operations in over 100 countries worldwide.

Nigeria is Africa’s largest population and consumer market. The potentials of the country became more glaring when it recently emerged as the largest economy in Africa, with a GDP of $510 billion. Some Nigerians, perhaps based on lack of understanding of the re-basing, tried to juxtapose the re-basing with the economic situation on the ground, saying that Nigeria’s revalued GDP, which is now the highest in Africa, does not reflect on the citizens as there is still poverty and poor infrastructure.

The re-basing, according to analysts, is not a measure of income but some Nigerians see it so and question its effect on Nigerians’ life. In his explanations of the re-basing, Opeyemi Agbaje, a columnist and CEO of Resources and Trust Company, said “GDP re-basing is not a measurement of income but of economic output and production.”

Agbaje, who does not see why the re-basing should attract controversy, further explained that “what GDP re-basing does is to give us a more accurate picture of the current state of the economy,” saying it was a measure consistent with global practice.

Nigeria was using a base year of 1990 to quantify output contrary to global practice of re-basing every five years.

Liyel Omoke, governor of Cross River State, said “one thing I can see is truly the world is truly looking at Nigeria, and the world is seeing what we are not seeing. Looking from outside, they are fascinated by the continent and the potentials and we need to understand that as a government and key into that by putting in place the right regulatory policies, environment for the opportunities to be exploited to the advantage of the investors as well as the country. From what they see, even the seaming youth population is a potential.”

Analysts say Nigeria is also Africa’s largest oil producer, largest telecommunications market, the second largest beer market, largest cement market, as well as the largest exporter of LNG. “Nigeria received the largest remittance in Africa from its citizens residing overseas of $21 billion in 2013, according to the World Bank, helping to beef up consumer spending and incomes. The boom in the services, which makes up about 50 percent of GDP, can be seen in the growth of Nigeria’s hotels sector.”

Nollywood from nowhere hitherto is contributing largely to the economy.

Investments are flying across Africa with much of it perching on Nigeria, but only a few states are deliberately drawing down the investments while other state governments either don’t care as they allow the investments free landing. Those who don’t care rely on Abuja feeding bottle. Of course, the citizens of those less concerned states dare not criticize since Federal Government is always the centre and responsible for any lack of development.

But in his reaction, an analyst, Kayode Oladele, said: “All states should exist to carry out certain responsibilities. States do not exist for nothing; they have fundamental roles to play in the lives of the people that agree to come under its sovereignty. The fulfilment of these responsibilities means that such a state is keeping its part of the “social contract” with the people.” With growing clamour for true federalism, all states need to buckle up.

Nigeria’s growth trajectory is upbeat but the insurgents and their sponsors do not understand this. They wish Nigeria remains perpetually on ground or is compared to failed states. Boko Haram and their sponsors from their natural history don’t understand development. If they would realise the harm they are causing on the Nigerian brand, they would not attempt what they are doing. The emerging growth will be inclusive for those who are peaceful.

To sustain the growth trajectory, Nigeria needs good governance, right policies and allow the private sector to drive economic growth. Nigeria needs to privatise all those institutions that government has held tight over the years without any appreciative impact.

With right environment including the commendable privatisation of electricity, Nigeria is expected to boom now and in the nearest future.

Daniel Obi