Tolu Odugbemi presents to Business in Africa Pays: Nigeria 2014 explaining why you shouldn't be afraid of investing in the region. Tolu discusses corruption and power cuts and how you can overcome the challenges of competing in this burgeoning market. You can listen to an audio recording of Tolu's presentation on our website: http://businessinafricapays.com/utilities-ict-power-water-foundational-infrastructure/ Or visit our home page: http://www.businessinafricapays.com

1. BUSINESS IN AFRICA PAYS: NIGERIA
ONE DAY INTERNATIONAL CONFERENCE
NORTON FALGATE, BISHOPSGATE COURT, LONDON,
28 JANUARY 2014
Utilities: ICT, Power & Water – foundational
infrastructure
By Tolu Odugbemi
Client Manager - Nigeria, Africa Matters Limited
1

2. OUTLINE
• Who are AML and what do they do?
• Nigeria’s opportunities
• Infrastructural deficits
• Opportunities in ICT
• Opportunities in power
• Opportunities in water
• Frequently cited misconceptions
2

3. WHO ARE AML?
Africa Matters Ltd (AML) is a professional consultancy that helps organisations
manage their risk and improve their performance in Africa.
Founded in 1997 by AML Chairman Baroness Lynda Chalker, former UK Minister
for Africa and Overseas Development 1989 – 1997.
Our clients are from all sectors including:
• Oil & Gas Majors,
• Mining companies,
• FMCG companies,
• Agricultural investors,
• International investment banks
• and private equity houses.
Also work directly for three African governments helping manage their presidential
level international investor round tables.
3

4. WHAT AML DOES
We offer solutions in:
• Market entry
• Strategic community engagement
• Key stakeholder mapping, engagement and verification,
• Due diligence
• And political risk management.
Our focus is to give clients the information to make the right decisions and
take the right actions wherever needed in Africa.
4

5. NIGERIA’S OPPORTUNITIES
•
•
•
•
•
Large population but diverse markets
Growing economy but requiring significant skills investment
Infrastructural deficits but plenty of latent demand
Government desire but needing greater bureaucratic effectiveness
Entry point to West Africa but lagging regional integration
5

6. INFRASTRUCTURAL DEFICITS
•
•
•
•
•
•
Inadequate electric power generation capacity and sub-optimal delivery
systems
Ineffective, though qualified and slowly improving, transport networks
and systems
Improved communications but limited to major urban areas
Opaque land property rights ownership
Information deficits
Multiple and ineffective bureaucracies to navigate
6

7. OPPORTUNITIES IN ICT
•
•
•
•
Government policy – ICT Masterplan, Broadband Masterplan
Regulation – NCC, NITDA
Opportunities
• Mobile services
• E-commerce
• Software development for mobile and electronic platforms
• e-Government & m-Government
Limitations and threats
• Limitation 1: Policy and priority uncertainty due to national and
state-wide elections in 2015
• Limitation 2: Skills and capacity building for domestic workforce
• Threat: Intellectual property rights
7

8. OPPORTUNITIES IN POWER
•
•
•
•
Just concluded privatisation of generating and distributing companies
with more to come
Government focus has turned to improving transmission network
Opportunities
• Generation – gas driven, renewables, hydropower
• Distribution – smart metering, smarter appliances, service
contractors to distribution companies
Limitations and threats
• Limitation 1: Financing
• Limitation 2: Skills and capacity building for domestic workforce
• Threat 1: Unprofitable service tariffs for investors
• Threat 2: Consistent energy input particularly for gas driven power
plants
8

9. OPPORTUNITIES IN WATER
•
•
•
•
Most residential, commercial and industrial users provide their own
water
Public water utilities lag private and personal solutions
Opportunities
• Private water treatment solutions
• Private and public residential and commercial projects
• Water conservation technologies
• Hydro-energy for irrigation & power
Limitations and threats
• Limitation 1: High capital costs
• Limitation 2: Low market sophistication despite great needs
• Threat 1: Rapidly growing, urbanising population
• Threat 2: Why pay for water??
9

10. ADDITIONAL INFORMATION
• Geographical areas of investment to monitor
• Lagos
• Edo
• Niger
• Abuja FCT
• Example success stories
• Wakanow
• Webuyam.com
• Capable local partners
• What will Nigeria look like in 25 years (target year: 2040)?
10

11. FREQUENTLY CITED CONCERNS ADDRESSED
•
•
•
•
•
•
Corruption
Legislation, policy and government commitment
Financing capabilities
Property rights
Dispute resolution
Competent Partnerships
11