As we celebrate the Geometric Power Aba, let me remind everyone of something even as catalytic for the economic development of Abia State. Yes, the Enyimba Economic City (EEC), a 9,464 hectare tax and duty free special economic zone in Greater Aba, Abia State, is a vibrant integrated city with growth sectors covering Manufacturing, Logistics, Healthcare, Entertainment, Education, Innovation, Technology hub, Commercial, Lifestyle, Residential, Aviation, and more.

In Nigeria today, there is no comparison, and the world is converging: “Today India and Nigeria do about $11 billion volume of trade and it is fluctuating between $11 to $15 billion.  So with this new Economic City, we are targeting towards increasing this trade between the two countries to $20 billion. And we are proud to say that there are more than 76 Indian companies, who have registered their interest, setting up their manufacturing facilities inside Enyimba and these companies are from diverse sectors,” Vishal Jhadav.

24/7 Electricity + Economic City = Opportunities for All.

We’re Abians, we #1 on naming order in Nigeria, and we’re going for #1 on opportunity. I call the world to invest in our state. With one of the highest literacy rates in the world (more than 95%) with uncommon spirits of innovation, Abia has the human capital to execute your mission. Feel free to share your vision with Abia, and we will explain how Abia is the best location for that in Africa.

Abia >> prosperity through enterprise. #InvestInAbia

Ndubuisi Ekekwe

Co-chair, Abia State Economic Transformation Council

Member, Abia State Global Economic Advisory Council

As we celebrate the Geometric Power Aba, let me remind everyone of something even as catalytic for the economic development of Abia State. Yes, the Enyimba Economic City (EEC, a 9,464 hectare tax and duty free special economic zone in Abia State, is a vibrant integrated city with… pic.twitter.com/X6SQ07yI2x

— Ndubuisi Ekekwe (@ndekekwe) March 3, 2024

Comment: Prof, is there a timeframe for activities to take off in this Enyimba city project? Also, is this model after Tinapa?

My Response: Enyimba City is modeled after the Shenzhen City of China. It goes beyond building offices, houses and factories. The key is the human spirit and the culture of the area. We do believe that the Aba spirit of CAN DO will breed the air of Enyimba City because Enyi means pride and pride comes with success.

When people have a spirit of building and making things, projects like Enyimba City will make sense. So, it is not about the buildings, the key is the culture of the people. Abia’s slogan is clear: prosperity through enterprise.

“It may feel as if everything has gone online, but 90% of purchases still happen in person” – Stripe (2022). That is from Stripe, one of the world’s largest payment companies, valued at least $70 billion. Add this – “According to research done by The Fletcher School and Mastercard, of the […] billion of [Naira] funds flow from consumers to businesses in Nigeria, 98 percent is still based on cash” (2018). Let us assume that number is now 75% and for all transactions.

In addition, the Nigeria Inter-Bank Settlement System (NIBSS) noted that the total value of instant payments (i.e. electronic payment) in 2023 was N600. 36 trillion ( i.e. $1 trillion). If we model that all payments from  cheque, cash and electronic payments  are worth $2 trillion, we can have a conversation on the state of fintech and digital banking in Nigeria.

So, Nigeria’s budget is about $30 billion but transactions in value are $2 trillion. Largely, the citizens have the funds even though the government does not have access to the funds as the economy is inherently informal in nature. The implication is this: Nigeria’s government could be “poor” but that does not mean the SMEs and the citizens are all since the value of transactions show a dynamic economy.

Let us do some comparison. I posit that South Africa, which has a budget of $112 billion (it has a more formalized economy) does not have as many transactions as we do in Nigeria. So, in South Africa, the government has the money for the budget while in Nigeria, the citizens keep their funds. That explains the disparity in the national  budgets! Also, in South Africa, one bank can buy all the banks in Nigeria’s stock exchange with space to spare which implies that if Nigeria formalizes its enterprises, our banks and fintechs will capture more value; more room to grow.

Then add that in this age of AfCFTA and PAPSS, a cross-border, financial market infrastructure enabling payment transactions across Africa, Nigeria will likely capture more value as being the most mobile African country, convergence can happen in Naira optimally.

Good People, Nigerian’s fintech sector has a lot of growth ahead.

“It may feel as if everything has gone online, but 90% of purchases still happen in person” – Stripe (2022). That is from Stripe, one of the world’s largest payment companies, valued at least $70 billion. Add this – “According to research done by The Fletcher School and… pic.twitter.com/47R6LTg9t1

— Ndubuisi Ekekwe (@ndekekwe) March 3, 2024

In a resolute declaration of Nigeria’s commitment to combat corruption and enhance its business environment, President Bola Tinubu addressed Qatari investors at the Nigeria-Qatar Business and Investment Forum in Doha on Sunday.

The President urged investors not to succumb to bribery demands and pledged decisive action against any official engaging in corrupt practices.

“I am here to give you the assurance that reforms are going on; forget about whatever you heard in the past. Whatever is the obstacle or problem that some of you might have experienced; it is in the past because there is no obstacle in the future,” Tinubu said.

“Do not offer a bribe to any of our people, and if it is requested or taken from you, report to us. You will have access to me. Nigeria will no longer be defined by the past, but by what we do now and moving forward. Do not let perceptions become a hindrance to your will to invest. Nigeria is serious about revolutionizing investment promotion.

Acknowledging past challenges, Tinubu assured investors of ongoing reforms aimed at fostering a conducive investment climate. “Forget about whatever you heard in the past. Whatever obstacles existed are now a thing of the past,” he affirmed.

Highlighting the government’s strides against corruption and insecurity, Tinubu lauded the appointment of Nuhu Ribadu, a renowned anti-corruption advocate, as National Security Adviser.
“We have a man who has won many global awards for anti-corruption as an anti-corruption czar,” Tinubu remarked.

In the statements, which were made during a meeting with His Highness, Sheikh Tamim bin Hamad Al Thani, Emir of Qatar, President Tinubu emphasized Nigeria’s openness to investment and underscored the country’s ongoing reforms.

Tinubu hailed the potential of Nigerian youths as invaluable partners for Qatari industries, citing their energy, talent, and reliability. He emphasized Nigeria’s readiness for serious business despite short-term challenges, lauding the government’s collaborative approach to implementing solutions.

In response, Sheikh Tamim bin Hamad Al Thani expressed confidence in Nigeria’s potential and affirmed Qatar’s willingness to explore investment opportunities.

“The investments we make belong to future generations. We are open to creating new opportunities in Nigeria,” Sheikh Tamim remarked, signaling Qatar’s commitment to bilateral cooperation.

President Tinubu appointed Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, to lead discussions with Qatari authorities on investment identification and implementation. Additionally, the Minister of Solid Minerals Development, Dr. Dele Alake, presented opportunities in Nigeria’s mineral sector during bilateral deliberations.

The forum culminated in the signing of seven bilateral agreements spanning education, employment regulation, business council establishment, youth and sports cooperation, tourism, combating illicit trade, and narcotic substances. Nigerian ministers and Qatari officials inked the agreements, symbolizing a significant step towards deeper economic cooperation between the two nations.

In attendance were high-ranking officials including Coordinating Minister of Health and Social Welfare, Professor Muhammad Ali Pate, Minister of Trade, Industry, and Investment, Dr. Doris Uzoka-Anite, and Minister of State for Petroleum Resources (Gas), Mr. Ekperipe Ekpo, among others.

However, analysts have warned that Nigeria’s antecedents, including recent measures such as the clampdown on Bureau de Change operators (BDCs) and cryptocurrency exchanges, could pose concerns for potential investors. These actions have raised uncertainties regarding the government’s approach to economic policies and regulatory frameworks, potentially deterring foreign investment.

The crackdown on BDCs, which occurred in response to concerns about currency speculation and illicit financial activities, has sparked concerns about the stability of Nigeria’s foreign exchange market and the ease of doing business in the country. Similarly, the ban on cryptocurrency transactions has created uncertainty among investors and entrepreneurs operating in the digital asset space, as it raises questions about the regulatory environment for innovative financial technologies.

While President Tinubu’s assurances and pledges to combat corruption and create a conducive business environment are commendable, investors may remain cautious until they see concrete actions and consistent policy implementation. The success of Nigeria-Qatar economic cooperation hinges not only on diplomatic engagements and bilateral agreements but also on the government’s ability to address investor concerns and foster a transparent and predictable regulatory environment.

Despite these challenges, the bilateral engagements between Nigeria and Qatar represent a significant opportunity for both countries to deepen economic ties and explore mutually beneficial investment opportunities. Economic experts said that by addressing investor concerns and demonstrating a commitment to reform and transparency, Nigeria can attract much-needed foreign investment to drive economic growth and development.