Viewpoint

February 25, 2011

PDP and infrastructure development (2)

By Abiodun Dina

THIS becomes critical though, considering the vantage  position of  Lagos  as the former federal capital of Nigeria and the commercial hub of  Nigeria, which has continued to make it attractive to immigrants from both within and outside Nigeria in search of a better life. Lagos houses both the busiest sea ports and airports in Nigeria and serves as the headquarters to most corporations and national conglomerates.

Specifically, there are 2000 industrial complexes in Lagos (65 per cent of Nigerians total), 10,000 commercial ventures (70per cent of  the national figure) and 22 industrial estates spread across the state.

The State is also home to the Nigeria Stock Exchange  and base to 200 out of the 250 listed firms. Lagos contributes more than 30per cent of Nigeria’s GDP and 65per cent of national VAT. It has been estimated that an average of 6,000 people  enter Lagos daily, out of which about 50 per cent of this population stay put. Ironically, Lagos is the smallest state in Nigeria, yet it has a population of about 18 million.

In the world today, about 1.3 billion people live in cities and Lagos State is one out of the 19 mega-cities. With  a population growth of six per  cent, Lagos has been projected to emerge as the third largest mega city in the world after Tokyo in Japan and Bombay in India by year 2015 with a population of 24.5million (UN-Habitat).

While there is a correlation between the level of  urbanization and the level of development because rapid urbanization attracts large market, it  should, however, be noted that a large population, if not well harnessed, can become a liability rather than an asset. There is no doubting the fact that the Lagos State Government is aware of the compelling need for infrastructure upgrade and renewal to meet the needs of the ever growing population. This much was admitted by  Governor Babatunde Fashola in his 2011 budget speech when he acknowledged  Public-Private Partnership as one of the instruments to be utilised  by the State Government  in the delivery of public infrastructure and services.

Public-Private Partnership is not new  in  Lagos State though.  The State Government has been collaborating with the private sector in various ventures and projects for many years.  Right from the administration of Asiwaju Bola Tinubu, the State Government went into partnership with AES Nigeria to build an Independent Power Plant to generate 270MW for Lagos residents.

Though the power generated was consumed locally but transmitted to the national grid because of some challenges in the operational framework in the energy sector, however, the initiative still  added 270MW power to the national grid.

The State Government has also made some major strides in the transportation sector, particularly the Bus Rapid Transit (BRT), the first of its kind in sub-Saharan Africa. The transport system which has about 200,000 daily ridership has helped in reducing travel time by 30 per cent and creating over 5,000  direct and indirect employment.

Presently, work has commenced on one of the Light Rail Transit System, the Blue Line which is a 27-kilometre rail line from Okokomaiko to Marina. The Lagos Sate Government is to design and build the rail line infrastructure, while a concessionaire is to operate and maintain the service, including rolling stock.  The project which has presently generated about 2,000 jobs during construction works at the first phase, is expected to generate about 50,000 jobs on completion in 2012.

Beyond the Akute Power Plant Project which is an independent power plant to generate 12.15 uninterrupted power supply for the State Water plants at  Adiyan/Iju, work is presently at advanced stage to build a 15MW independent Power Plant at Lagos Central Business District to provide power uninterrupted power supply for Judicial and Health facilities as well as 30 streets within the district. In the same vein a number of health facilities, particularly pharmacies and mortuaries, are managed and operated by the private sector across public hospitals in the State.

Mr. Dina, an author,  writes from Lagos.