…FG gives backing, TheCityUk seeks right legal framework
Multi-million dollars foreign capital is expected to flow into Lagos to further strengthen infrastructural development, amplify businesses and create more jobs, as the state government advances talks with TheCityUK for the take-off of the Lagos International Finance Centre (LIFC).
The Lagos State government, in partnership with EnterpriseNGR, this week signed a Memorandum of Understanding (MoU) with TheCityUK and the Foreign Commonwealth and Development Office for the development of the LIFC.
The LIFC, whose council had earlier been inaugurated by Governor Babajide Sanwo-Olu, has received the backing of the Federal Government, with Wale Edun, Nigeria’s minister of finance and coordinating minister of the economy, saying the centre will position the country as a leading global financial hub.
The LIFC is “a strategic move to enhance Nigeria’s financial sector and attract international investment,” Wale Edun said on Tuesday in Abuja. TheCityUK has, however, emphasised the need for the right legal framework and regulatory environment to drive the success of the initiative.
At a follow-up meeting in Lagos on Wednesday with the officials of EnterpriseNGR and TheCityUK, Abayomi Oluyomi, Lagos State finance commissioner, said the government was optimistic that it would attract new investments and the much-needed international capital to bridge the state’s over N10 trillion infrastructural gap.
Oluyomi, who disclosed that 70 percent of Lagos’ revenue was from internally generated revenue (IGR), with only 30 percent representing federal transfers and other sources, noted that the needed an initiative like the LIFC to drive its development agenda and meet the needs of its population estimated at over 24 million people.
“We have an audacious ambition in Lagos that is predicated on functional infrastructure. So, we need something that will push us up, that will give us serious, rapid progress, and that is capital, and where do we see capital coming from? It’s from international investors, global investors. The engine for these global investors is the LIFC. With the LIFC, that kind of growth we’re looking for is achievable.”
Ope George, the commissioner for economic planning and budget, in his presentation at the meeting, said the LIFC was a bold step for Lagos to accentuate and achieve its goal of becoming a global finance hub.
“We hope to become a globally recognised finance hub, and the collaboration with TheCityUK for the LIFC will position Lagos to provide financial solutions in Africa,” George said.
He noted that the success of the LIFC would be measured by the level of international capital attracted, adding that foreign and domestic investors would leverage the initiative to situate their businesses in Lagos and help increase the state revenue.
Anna Rogers, director, international development, TheCityUK, described the LIFC as a fantastic idea that will attract foreign investors and capital not just into Lagos but Nigeria generally.
Noting the willingness of TheCityUK to partner with Lagos in making the LIFC a reality, she said: “The international community is excited about this, and it is encouraging to see how busy the Lagos State government is driving this. It will create additional jobs and bring huge economic benefits to Nigeria.”
She, however, noted the need for Lagos to liaise with the national authorities and bring everyone to the table – emphasising the role of the Federal Government about laws and regulations that give confidence to international investors to invest in the country.
Rogers also stressed the need for the right legal framework, regulatory environment and globally acceptable operational standards, visa policy, and business-aided executive orders, all of which make the environment a lot more attractive to investors.
