In Lagos, dreams come true. Servants become masters, and vagrants become homeowners. Such transformation can happen in a matter of years, or even months.

Zion Orubebe left his Rivers State home for Lagos in 2015. He had graduated from Rivers State University in May 2013 but was jobless for two years.

Prodded by a Lagos-based friend, Orubebe moved to the state in October of 2015.

“I had only N3,000 ($15 at that time) when I came here,” he told BusinessDay.

He went into a babies’ clothing business at the International Trade Fair Complex the following year.

“I sold a piece of land, used some money to pay for a quarter-sized shop and the rest, about N500,000 ($2,538), for business,” he said.

From 2016 to 2024 is just eight years, but it is now like a century. Orubebe has transformed.

In 2019, he became an importer. In 2021, he shifted to export business, shipping out products to Burkina Faso, Senegal and the Central Africa.

By 2023, he had joined an exclusive class of the wealthy: seven shops at Trade Fair Complex, three commercial vehicles, two houses and two private cars. He now lunches at a French restaurant at the posh Ikoyi area of Lagos.

“I came to Lagos as a pauper but I am now a multi-millionaire,” he said.

Orubebe’s story captures the spirit of Lagos: a spirit of enterprise and a reward to boot.

A number of people come into the state from all parts of Nigeria almost empty-handed and leave – or continue to stay- as mega millionaires.

State records say 6,000 persons enter Lagos every day from every part of Nigeria and even Africa. Onyeka Udemezue is one of them. He moved to Lagos from his native Abia State in 2019 when his business shut down due to a fire incident.

Fast-forward to 2024, Udemezue has set up a nylon factory at his Ikorodu base. Apart from owning the land and the building, he employs over 15 staff members. His wife owns a supermarket in the state.

“Lagos is tough, but so is it rewarding,” he told BusinessDay.

The mega size

Lagos State’s gross domestic product (GDP) is estimated at $137 billion – $145 billion. Forget whether it is fourth or fifth largest on the continent, pay attention to what that size means: Bigger than Kenya’s $113.4 billion econom, Ghana’s $74 billion GDP, and Ethiopia’s $127 billion economy.

It is larger than no fewer than 40 African nations in terms of economic size.

A city of millionaires

It is a city that makes millionaires like a manufacturer makes shoes.

Henley & Partners’ 2024 Africa Wealth Report 2024 said Lagos has 4,200 millionaires (in dollars).

Lagos may have dropped from fourth to fifth in 2024 due to currency devaluation, but it still has 4,200 people who are worth N1.5 billion or above.

It is also home to Nigeria’s richest man, Aliko Dangote. For the records, Dangote did not come to Lagos as a pauper, being a great-grandson of Alhassan Dantata, the richest man in West Africa at the time of his death in 1955.

But Dangote’s story can never be complete without Lagos. He came to Lagos in 1977 with a loan from his uncle to expand his business. From there, his wealth spread, shooting him to where he is today.

His sugar plant is in Apapa. His $20 billion refinery is in Lekki. No matter where other Dangote’s businesses are sited, their headquarters are in Lagos.
Billionaire, Mike Adenuga, and his Globacom are in Lagos.

Billionaire Femi Otedola, executive chairman of Geregu Power and a host of other companies, is in Lagos.

Billionaire Abdul Samad Rabiu, chairman of BUA Group, is in Lagos. Billionaire Cosmas Maduka and his Ford assembly plant are in Lagos. Billionaire Tony Elumelu and his companies are in Lagos. Billionaire Jim Ovia and his firms are in Lagos. The list is endless.

“Being a commercial city throws up a lot of opportunities for people who are enterprising,” said Muda Yusuf, who was director-general of Lagos Chamber of Commerce and Industry (LCCI) for many years before setting up his Centre for the Promotion of Private Enterprise.

The headquarters are in Lagos

Every serious business has its headquarters or at least a major branch in Lagos. Headquarters of all the major financial institutions from banks to insurance companies are in Lagos.

Serious manufacturers are either at Amuwo-Odofin, Apapa, Iganmu or Ikeja. Nigerian Breweries, Guinness, Flour Mills of Nigeria, Dangote Group, BUA Group, name them.

Telecoms giants such as MTN, Airtel, Globacom are in Lagos. Investment banks, importers, exporters, maritime companies, big farmers, oil and gas companies, among others, are in Lagos.

The Nigerian Exchange Limited is in Lagos. Government regulators such as the Nigerian Ports Authority, and many others, are in Lagos.

Lagos has the highest concentration of small businesses in Nigeria, with about 8 percent share of over 40 million MSMEs. According to the National Bureau of Statistics (NBS) and the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) 2017 data, Lagos has 3.224 million small businesses.

Stable governance

Governance in Lagos has been stable. Only one political family of President Bola Tinubu has ruled the state from 1999 till today. From Tinubu himself to Babatunde Fashola, down to Akinwumi Ambode and Babajide Sanwo-Olu, all have been from the same political party.

Tax revenues have risen from N14.6 billion in 1999 to N651.2 billion in 2022. The state generated N400 billion in the first six months of 2023, the NBS said.

Investors are also betting on the state. Out of a total of N508.98 billion real sector investment made in Nigeria in 2017, Lagos received N235.61 billion, representing 46 percent, the highest in the country, according to data by the Manufacturers Association of Nigeria (MAN).

Of the N552.64 billion investment in 2018, Lagos welcomed N287.16 billion, representing 52 percent, highest in Nigeria. Also, of a total of N496 billion investment made in 2019, Lagos received N180.63 billion, representing 36 percent, the highest in the year.

“Stability has helped Lagos retain its masterplan and economic blueprint,” said Ifeanyi Okeleke, CEO of Kenfrancis Farms.

“It sends a positive signal to investors that things can’t suddenly[b][/b] turn upside down. However, it has also upended the opposition in the state.”

What drives Lagos

It is easier to identify why Lagos is working. A population of about 20 million is seen as a big market. Of all the 16 million international passengers airlifted in 2022, about 6.526 million, representing 40.3 per cent of the total passenger volume, passed through Murtala Mohammed Airport Lagos, said the Nigeria Civil Aviation Authority (NCAA). The seaports are in Lagos.

“The population of Lagos is huge and concentrated. If you are a city of ports, naturally, economic activities will increase. Also, Lagos is a coastal city, and coastal cities are a magnet because their position boosts economic activities,” Yusuf, earlier quoted, said.

A disorganised city

In spite of all the upsides, Lagos is not a bed of roses. This reporter found in 2021 that agberos or revenue touts collected N123 billion from commercial vehicles, tricycles (and motorcycles) but remitted nothing to state coffers. The only thing that has changed since 2021 is that commercial motorcycles have been banned.

Small businesses pay countless taxes to touts and the state government appears to be helpless.

“You pay for ‘ground fee’ before you start a business, pay the local government levy, lock-up shop fee, shop permit, parking permit, radio and TV levies,” said Omolola Adetunji, a small-scale trader at Oshodi.

“Sometimes, you can pay to eight to 10 groups in a day – with only two or three issuing official receipts,” she added.

Lagos is a state with several mega millionaires, but it is also a state where you find the hopeless and the urchins. Beggars, whether genuine or not, litter the streets from Ojuelegba to Igando. People needing medical treatment – some with protruded stomachs and swollen legs – are in the streets seeking alms. Women beg for alms with babies in the streets, markets and even on the roads.

Traffic clogs the state from Iyana Ipaja to Oshodi, with 6.5 million vehicles striving for space. The state generates 26 million tons of carbon emission, according to Taibat Lawanson, professor of Urban Management and Governance at University of Lagos.

The cost of living is very high. Rents at places such as Oke-Afa, Ejigbo, Festac, Oshodi, among others, have jumped by over 100 percent in three years. A two-bedroom at Oke-Afa, which was N400,000 in 2021 now goes for N1 million to N1.2 million. This explains why many live under bridges. Some analysts estimate that five million residents will be homeless by 2025.

Food can be very expensive for the poor.

“In October 2023, food inflation on a year-on-year basis was highest in Kogi (41.74 percent), Kwara (38.48 percent) and Lagos (37.37 percent),” the NBS said in October 2023.

Development is concentrated in the state and rarely spreads to others.

The state is overpopulated, with people competing for everything. It can also be dirty and polluted.

It ranked 133rd in world’s most polluted cities in the 2023 World Air Quality Report by IQAir.

It is also susceptible to flood, being a coastal state.

Furthermore, in New York, Paris, London and other major world’s cities, foreigners or ‘outsiders’ play significant political roles. Sadiq Khan, London Mayor, is originally from Pakistan. Blessing Adeyemi Mobolade, a Nigerian, is a mayor of Colorado Springs in the United States. However, this may not happen in Lagos.

Its political season can be chaotic. In 2023 elections, people were prevented from voting in the governorship election because they were from a particular region and could swing the election.

“We are worried about our investments, our rights and children in Lagos,” said Nnanna Ukoha, an ex-banker, now an investment banker in Lagos.

However, Lagos State government has tried to douse the tension and assured that it is not discriminatory, but concerns still remain.

The presidency says the suspension of taxes on importation of food commodities is not yet official.

In a chat with TheCable on Monday, Bayo Onanuga, presidential spokesman, said the measures are still under consideration.

“The measures are not yet official,” he said.

In a statement released earlier, Abubakar Kyari, minister of agriculture and food security, said duties, tariffs and taxes on imported maize, husked brown rice, wheat and cowpeas — through land and sea borders — have been suspended.

Kyari said a 150-day duty-free import window for food commodities will be enforced as part of measures to be implemented over the next 180 days to ameliorate food inflation in Nigeria.

He said the measures are part of the accelerated stabilisation and advancement plan recently presented to President Bola Tinubu by the economic management team (EMT) under the Presidential Economic Coordination Council (PECC) constituted by the president in March.

The minister said multiple taxes and levies, infrastructural challenges and “sheer profiteering by marketers and traders” have contributed to rising food prices.

In a now-deleted post on X, Onanuga had also announced the measures.

The minister also hinted that the ministry was working with security agencies to deploy surveillance and ensure that rail infrastructures are not vandalised.

The Nigerian government is planning to seek funding assistance from the Chinese government for the construction of the Ibadan-Abuja and Kaduna-Kano rail projects.

The Minister of Transportation, Senator Said Alkali made this known on Monday during an inspection of the Kaduna-Kano rail projects by the National Assembly joint committee on land transport.

He explained that Vice President Kashim Shettima was expected to engage with Chinese President Xi Jinping to secure funds for the rail projects, following directives from President Bola Tinubu.

Alkali asserted that the funding issues had stalled progress, stressing that the Federal Government had secured funds for the Kano-Kaduna segment.

The minister also hinted that the ministry was working with security agencies to deploy surveillance and ensure that rail infrastructures are not vandalised.

He said, “The President is desirous in ensuring that these projects are completed and being put into use because transportation is an enabler of economic growth and a gateway to the nation’s economy. It is, of course, one of the eight priority areas of the present administration.

“The president has directed the Vice president to engage President Xi in a bilateral discussion on the financing of Ibadan-Abuja and Kaduna-Kano rail projects. So far, Kaduna-Kano has been released. We are just trying to cascade the final stage for the drawdown of the loan so that they will have the financing. That of Ibadan to Abuja is also under very serious engagement with the Chinese government.

“The Ministry and the Nigerian Railway Corporation are working hard to ensure that these vandals do not destroy our properties. We are deploying so many major surveillances in conjunction with the security agencies to ensure that these properties are not allowed to be vandalised.”

Crazy Bills: Enugu DisCo to refund N11.8b to Southeast customers

The Enugu Electricity Distribution Company (EEDC) is to refund over N11 billion to customers in the southeast region, being the sum it over-billed them between January to September 2023.

This is contained in an order by the Nigerian Electricity Regulatory Commission (NERC), which insisted that the EEDC over-billed 1,011,402 customers within the period through overestimation.

At the billing cycle for energy consumed in February 2024, NERC said EEDC shall credit the accounts for all customers that were over-billed between January to September 2023 based on the Commission’s assessment as contained in Schedule 1.

The commission lamented that the persistent non-compliance with the order on capping of estimated bills by the EEDC for the period January-September 2023 had led to widespread customer dissatisfaction, which had aggravated customer apathy to pay their bills, thereby contributing to the liquidity issues in the NESI.

A check on order no 2024/006 by the NERC indicates that the sum of N11,866,263,420.31 was over-billed from customers between January and September 2023.

According to a performance review done by the NERC within the period under review, the EEDC failed to comply with the monthly caps as estimated bills approved by the commission.

“Upon completion of the review, the commission issued an RD stipulating a 14-day compliance deadline which expired in August 2023.

“The RD also notified EEDC that further regulatory actions shall be taken in accordance with the KPI Order for subsequent non-compliance. The continuous failure of EEDC to adhere to the commission’s monthly caps for estimated billing has led to significant over-billing of customers,” the NERC noted.

While outlining the monthly over-billings, the NERC noted that 203,375 customers were over-billed N1,933,495,624 in September; 188,298 customers were over-billed N1,745,269,356 in August, while 169,867 customers were over-billed N1,700,205,554 in July, among others.

The commission ordered as follows: “At the billing cycle for energy consumed in February 2024, EEDC shall reconcile the accounts and issue credit adjustments for all customers that were over-billed between January-September 2023 based on the Commission’s assessment as contained in Schedule 1.

“EEDC shall submit its billing data for the February 2024 cycle (and any other relevant information) to the Commission as evidence of compliance with the provisions of section 11(A)(6) of this Order, no later than the 31st of March 2024.

“EEDC shall publish, in 2 (two) National dailies, citing the provisions of this Order, the list of credit adjustment beneficiaries (follow the sample contained in Schedule 1), and the same concurrently posted on its website, not later than the 31st of March 2024.”

To forestall further non-compliance, the NERC ordered a deduction of N1,186,626,342, which is equivalent to 10% of the naira value of the total over-billing for the period January – September 2023, to be applied to EEDC’s annual OpEx over a rolling 12-month period during the next tariff review.

It warned that notwithstanding the provisions of section 11(B)(6), and pursuant to the provision of section 34(2)(F) of the EA 2023, the Commission may deduct a greater percentage of the total over-billing from EEDC’s admin OPEX where non-compliance with capping Orders persists.

Efforts to get a reaction from the EEDC on the development on Monday proved abortive. Spokesperson of the Company, Emeka Eze, declined to speak on the matter.

The Chairman, Board of Directors, Nigerian National Petroleum Corporation and chieftain of the All Progressives Congress, Chief Pius Akinyelure, has urged Nigerians to return to farming in order to solve the food scarcity in the country.

Akinyelure stated this on Saturday at his hometown in Idanre, Idanre Local Government Area of Ondo state at an event organised by Idanre Development Assembly to honour and celebrate reputable sons and daughters of the community.

According to the chairman of NNPC, one of the ways to face the current economic hardship was by going back to the farm.

He said “If we don’t go back to the farm, where will we get food? We will be importing and the cost of importation is too high. So the only way out is to go back to the farm, make sure there is security for the farmers so that they are not driven away from their farm and then we can have enough food to feed our nation.”

Stressing the importance of farming, the APC chieftain noted that refusing to go back to the farm “will result in us importing food which is very expensive due to the high cost of importation.”

He stressed that adequate security should be provided to ensure that farmers can cultivate their farms in peace and are not been driven away from their farms.

Akinyelure who expressed his gratitude for being celebrated said the event has also been used as an opportunity to inform the government about areas where the community was lagging in order to address the challenge.

In his remark, the Ondo State governor, Lucky Aiyedatiwa, who was a special guest of honour at the occasion, said the award given to Akinyelure was a well deserved stressing that such an event would serve as a motivation for others to do well.

Aiyedatiwa noted that such a rare honour was bestowed only because the people of Idanre recognise Chief Akinyelure and the other celebrants worth and the many impacts they have made at local and national levels.

Stressing that Akinyelure’s legacy will be remembered for many years to come, the governor also praised his humanitarian services, noting that “the award serves as a lesson to everyone to serve their community, state, and nation selflessly.”

The chairman of the organising committee of the event, Mayorkun Akinmoladun said the event was mainly to appreciate the effort of their past heroes and living ones and to celebrate them.

He said, “Today’s event is very remarkable, we thank God for the lives of our aged ones, past heroes and living ones. We did this to appreciate what they have done, those in the past, to also encourage those that are still in office or in one capacity or the other to be able to do more for their community.”