Come and build power plants: Nigerian top envoy

By Kim Se-jeong

Nigeria’s top envoy, during his visit to Seoul last week, encouraged Korean businesses to invest in his country.

“Nigeria is undergoing economic and political reform” which is going to create an even friendlier environment for foreign investors,”said Henry Odein Ajumogobia, Nigeria’s foreign minister, speaking in a room full of Korean business representatives in Seoul, last Tuesday.

Accompanying him were four officials in charge of Nigeria’s power, port, infrastructure and transportation sectors, all of which are in a great need of foreign investment.

Maintaining a reliable supply of electricity has been a grave challenge for the country.

Having replaced President Umaru Yar’Adua in his sickbed in January, the new leader Goodluck Jonathan vowed to fix the country’s three biggest problems, which included securing a supply of power.

According to Yusuf Suleiman, the transport minister, nearly 30 to 40 percent of households run without electricity.

“Although we spend oil money on building power plants, roads and schools,” the result is invisible because of a rapid growth in demand.”

Oil reserves found in the 1950s has been the main bread earner for the country _ nearly 80 percent of national income comes from oil exports.

Militant groups had obstructed distribution of the oil revenue, and it was only very recently when political and financial reforms were undertaken and the necessary cash to supply power became available.

A big fear for foreign investors is security. A longstanding conflict between the Muslim north and Christian south is a source of political unrest.

The Korea Trade-Investment Promotion Agency, which runs an office in Nigeria, said security has become much better. In terms of business, Nigeria has immense potential and popularity.

Abundant natural resources and a large domestic market with a population of 158 million has made Nigeria, along with South Africa, one of the most favored investment destinations in Africa.

The upcoming presidential election early next year could completely crash what’s now a relatively stable democracy.

Korean investors represented by conglomerates such as LG and Samsung contribute to keeping Korea as a big investor, but competition is getting fierce.

China has been a strong player, and Japanese products have begun to rush in. Korea is currently exporting automobiles, electric appliances and machinery worth nearly $800 million, while importing oil and natural gas from Nigeria.