LAGOS // Potential UAE investors in Nigeria are being reassured that the country remains open for business despite worries about security risks.
The message from business leaders in Nigeria comes as a number of Emirates executives prepare to visit to assess the investment climate in Africa's largest consumer market.
"Terrorism is an issue, but it's not as big an issue as people think, as with the right research and planning you can mitigate against risk," said Ken Igbokwe, the managing partner of PricewaterhouseCoopers Nigeria.
He pointed out that the violence was in isolated pockets, mainly in the north, while the rest of the country was stable.
A heavy focus on terrorism and other challenges facing Nigeria was not helping foreign perceptions of the country, said Olusegun Okunnu, a Nigerian economist and a member of a task force set up by the government to monitor oil revenue.
"Perception of Nigeria is key," he said. "A lot of the western media don't present the good side or opportunities."
With a population of about 160 million, vast oil wealth, cheap labour, and a rapidly emerging wealthy class, Nigeria has been rated as one of the most promising emerging markets.
But terrorism clouds its future.
The terror group Boko Haram has carried out a series of deadly attacks in the past two years. It said it was behind bombings of three churches last month in the state of Kaduna, attacks in which at least 50 people were killed.
Foreign investment will be harmed if terrorism is not curtailed, Baroness Chalker warned on Friday. She is the coordinator of the Honorary International Investors Council (HIIC), a group of foreign investors advising the Nigerian government.
A delegation of UAE businessmen including executives from the Sharjah-based conglomerate Mulk Holdings and Danube Building Materials plans to visit Nigeria after Ramadan.
Mulk Holdings, which has interests in solar-panel manufacturing, sees "immediate opportunities" in the renewable-energy industry in Nigeria, said the chairman, Shaji Ul Mulk. Solar technology offers a possibly cheaper power alternative than the country's current costly generators.
But Mr Mulk is mindful of potential risks. "The decision (to invest) will be based to a large part on a security point of view," he said.
Ties between the UAE and Nigeria are growing. Bilateral trade between Nigeria and Dubai swelled four times to about US$572 million (Dh2.1 billion) between 2005 and 2009, the latest period for which trade data is available.
Since then the flow of goods is believed to have risen further as Dubai services a growing chunk of the south-south trade between Asia and Africa. Significant amounts of that is bound for Nigeria.
Investment, however, has been less forthcoming. The telecommunications operator Etisalat's presence is perhaps the most high-profile business link between Nigeria and the UAE.
Mining and minerals, infrastructure and agriculture are among the "shopping list" of sectors into which Ibrahim Auwalu, Nigeria's new ambassador to the UAE, said he would like to tempt investors.
Nigeria needs much more foreign investment.
President Goodluck Jonathan's government is trying to push through reforms to find jobs for the estimated 24 per cent of the working age population that is out of work.
He is also attempting to tackle terrorism, sacking his national security adviser and defence minister after the latest bombings.
The heavy presence of army and police on the streets of the capital, Abuja, reflects the government's heightened sense of caution.
Nigeria is also trying to get to grips with a spate of oil bunkering - the theft of crude - as well as the long-running problem of corruption. If not addressed, bunkering could also deter investment, Baroness Chalker said last week.
But for those investors willing to take the plunge, the potential rewards are high.
"It's the wild west, but the market is also straightforward," said one South African businessman in Lagos. "If you make spoons, you can sell millions of them."
UAE businesses have to decide whether the rewards outweigh the risks.
tarnold@thenational.ae
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COMPANY%20PROFILE
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The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
What went into the film
25 visual effects (VFX) studios
2,150 VFX shots in a film with 2,500 shots
1,000 VFX artists
3,000 technicians
10 Concept artists, 25 3D designers
New sound technology, named 4D SRL
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
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Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
MATCH INFO
Europa League final
Who: Marseille v Atletico Madrid
Where: Parc OL, Lyon, France
When: Wednesday, 10.45pm kick off (UAE)
TV: BeIN Sports
UAE currency: the story behind the money in your pockets
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
SCORES IN BRIEF
Lahore Qalandars 186 for 4 in 19.4 overs
(Sohail 100,Phil Salt 37 not out, Bilal Irshad 30, Josh Poysden 2-26)
bt Yorkshire Vikings 184 for 5 in 20 overs
(Jonathan Tattersall 36, Harry Brook 37, Gary Ballance 33, Adam Lyth 32, Shaheen Afridi 2-36).
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
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How to help
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Anghami
Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
Sector: Entertainment
Size: 85 employees
Stage: Series C
Investors: MEVP, du, Mobily, MBC, Samena Capital
MATCH INFO
England 2
Cahill (3'), Kane (39')
Nigeria 1
Iwobi (47')
The Florida Project
Director: Sean Baker
Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe
Four stars
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
The%20specs
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
