Nigeria to build new power plants to meet growing energy demand

Nigeria to build new power plants designed by U.S. giant General Electric.

General Electric Co. (NYSE: GE) and Nigeria signed an agreement for the U.S. company to build power plants as Africa’s most populous nation continues to privatize and expand its power generation capacity, Reuters said Monday. Nigeria, which has Africa’s second-largest economy, aims to increase its electricity generating capacity by 10 gigawatts, and GE will potentially invest 10 percent to 15 percent in individual projects.

The memorandum of understanding between Nigeria and the Fairfield, Conn., company is part of an effort to increase the number of Nigeria’s natural gas-fueled power stations, though the company has yet to confirm either the type or number of plants to be built.

Nigeria, which has the world’s seventh-largest natural gas reserves, hasn’t been able to build up capacity for its 162 million citizens. The nation produces one-tenth of the 40,000 megawatts need to provide the populace with power.
Nigeria’s lack of capacity has left much of the useful natural gas trapped underground.

President Goodluck Jonathan unveiled plans 18 months ago to privatize the nation’s electric industry, with state-owned generation and distribution assets sold off; however, strife in Nigeria’s northern sections caused by a violent Islamist insurgency and political disputes put other plans on hold.

The nation’s 7.68 percent growth in gross domestic product was mostly fueled by non-oil sectors, according to Reuters.

Given Nigeria’s population size and growing energy needs this makes sense. Another reason why this makes sense is that Nigeria has, produces, exports lots of gas and oil. Several African nations are looking at using nuclear energy as the best and most practical way to meet their growing energy demands. Nigeria has to look down that road as a way to diversify and not be just reliant on one energy source.

Nigeria to have strong economic growth

Nigeria’s economic outlook for the year looks positive.  Solid growth is forecast for the year.

Nigeria’s economy is expected to grow around 7 per cent this year and next thanks to solid performance in industries outside of its bedrock oil sector, a Reuters poll showed last Thursday. The forecasts, based on a poll of 11 analysts, paint a strikingly positive outlook for Africa’s most populous nation of 140 million people, which has started 2012 on a decidedly shaky footing.

President Goodluck Jonathan was forced to row back on the removal of costly fuel subsidies after a wave of strikes and protests, and Islamist group, Boko Haram has dramatically stepped up a three-year insurgency. The group, whose name means “Western education is sinful” in northern Nigeria’s Hausa language, has killed nearly 1,000 people since 2009, including at least 178 this week in a series of gun and bomb attacks in Kano, Nigeria’s second biggest city.

“The political battle to end the petrol price subsidy in January is in many ways a microcosm of the wider political battle within the political elite over the reform process,” Citibank said in a note.

“Its eventual outcome will be a clear indication of the potential speed with which the current government can implement structural reforms in 2012.” GDP growth in Africa’s most populous nation dipped to 7.4 per cent in the third quarter of 2011, a year earlier, from 7.7 per cent in the second quarter. The government’s forecast for 7.0 per cent in 2011 is in line with  Reuters consensus. Despite the political instability, analysts said the allure of such a huge consumer market will continue to attract investment.

“We expect to see strong growth in Nigeria, bolstered by robust expansion in the non-oil sectors, particularly retail, telecoms and construction,” said Gregan Anderson of London-based risk consultancy, Business Monitor International.

Nigeria has under performed economically last few years.  It has yet to reach its full potential economically given its size and demographics, all which are good solid foundations for growth. Political instability and region tensions among its states, provinces have held back growth and development..  Until Nigeria gets a handle on this, robust growth year after year will be hard to come by.

Finland and Nigeria to boost relations

Both Finland and Nigeria have agreed to deepen and expand relations between both nations.

The Federal Government and its Finnish counterpart are determined to explore economic potentials towards trade and investments in both countries.

Though the volume of trade and investment portfolios have, in recent times, been abysmally low, the Finnish ambassador to Nigeria, Anneli Vuorinen, said at the weekend in Abuja that discussions are currently ongoing at the highest level of governments in Nigeria and Finland to ensure that their bilateral trade relations improve by tapping each country’s areas of comparative socio-economic advantages for their mutual benefits.

To create the needed forum for prospective investors to interact and share ideas and evolve strategies on realising the broad objectives of the new bilateral agenda, the Nigeria-Finland Trade Association, through its business networking platform, Nigerian-Finnish Business Group, has unveiled plans to host two business fora this week, to share information about Finland to Nigerian businesses and stakeholders.

This will precede a high powered trade delegation from Nigeria, which would be led by the minister of commerce and industry, along with some investors, businessmen, stakeholders and authorities, to visit Finland for the purposes of exploring opportunities in energy, environmental technology, mining and construction.

Briefing reporters about the proposed fora, scheduled for Abuja and Lagos between June 1 and 3 respectively, Mrs Vuorinen highlighted the potentials for improved Nigeria-Finnish bilateral relations in the years ahead, saying the events were planned as follow-up to recent exchange of visits by the leaders of governments of both countries.

She listed some of the visits as the March 2009 visit by the honorary president of Finland, Mrs Tarja Halonen, which was reciprocated by President Goodluck Jonathan (then as vice president) in May 2009.

Global leadership Ambassador Vuorinen, who identified Nigeria as a big economy with potentials for global leadership if the problems of corruption and insecurity are tackled head on, listed areas where Finnish companies could help in adding value to the Nigerian economy as climate change and the application of Finnish technologies in renewable energy and clean power production and of the sustainable products, processes and other services on offer by Finnish companies.

According to her, three Finnish companies are already helping to improve the power, mining, and clean environment situations of Nigeria.

Specifically, she listed the companies to include the power company – Wartsila- which currently has more than 15 sites in Nigeria and making up to 340 megawatts (MW) of electricity and the Geological Survey Agency of Finland, which “was involved in making the first geochemical mapping in Nigeria (and all of Sub-Saharan Africa).

On the clean environment technologies, the envoy said Nigeria could also benefit from the Cleantech-Industry of Finland, which could be relevant in the drive toward cleaner environment with the application of the Finnish Waste-to-energy technology in cities like Abuja or Lagos.

Finland has one of the world’s most dynamic and most developed economies.  They have well known global brands such as Nokia the consumer electronics company, and Linux the operating system.  Nigeria should definitely expand trade relations with the Fins given that they have world class companies. Finland benefits as it taps into one of Africa’s largest markets, especially in the growing cell and smart phone sector.  Something which Nokia i’m sure has noticed with great interest and delight.

Pfizer to begin work on $30 million dollar state-of-the-art medical facility in Kano, Nigeria.

Pfizer new health centre to benefit Nigerians, says Kano State Governor

Pfizer has begun work on a state of the art facility in Kano, Nigeria.

Multinational drug firm Pfizer has begun work on a state-of-the-art medical facility in Kano, Nigeria. The hospital, which will cost about $30 million, follows a 1996 Trovan drug test out of court settlement between the government of Kano State and Pfizer Incorporated.

Laying the foundation of the new facility, State Governor Mallam Ibrahim Shekarau said the move by the world’s largest pharmaceutical company, will boost the health care delivery in the state and also conveyed the company’s commitment to ensuring the wellbeing of Nigerians.

Shekarau also passingly touched on the tragedy that unfolded when hundreds of people died or took ill in Kano after being administered by the drug in a surreptitious test conducted by Pfizer undertaken to test the drug’s efficacy and effects. The company, which was later sued by the state and the federal government, had then reached an out-of-court settlement with the two parties.

Pfizer initiative
Speaking on the new facility construction, Chris Loder, spokesperson for Pfizer, said: “The construction of a new state of the art medical centre in Kano is proof positive that Pfizer continues to fulfil its commitments to Nigeria and its people. This event allows the company to further its work on what really matters – improving the healthcare for all Nigerians.”

Equipped with a centre for disease control, a public health laboratory, a diagnostic centre, a micro-biological reference laboratory and residence staff quarters, Pfizer’s new effort has come as some relief for many local people, particularly victims of the 1996 test.

This is a good investment both for Pfizer and Nigeria.  Pfizer gets to develop, build it’s brand in Africa’s most populus nation, which economically has yet to reach its apex and Nigeria gets the upside of foreign direct investment with a state of the art facility.

Nigerian Cement Manufacturer Dangote DANGCEM.LG to Invest $100 Million in Cameron

One of Nigeria’s top companies, Dangote DANGCEM.LG plans on making a substantial investment in Cameroon.

Nigerian cement manufacturer Dangote DANGCEM.LG plans to invest $100 million to build a cement factory in Cameroon, local media cited the group as saying on Monday.

“We have reached an agreement with Cameroonian,” Dangote general manager Aliko Dangote told the official daily Cameroon Tribune. “If the cement business succeeds our group will move into other domains of the Cameroonian industry,” he said.

Cameroon has only one cement producing company, CIMENCAM, with annual output of about a million tonnes from two plants.

While the country has reached other deals with South Korean and Chinese firms to build cement factories, the projects have yet to be launched.

More proof that African companies are leaving home and spreading their wings in-across Africa.  For long term economic stability and growth, Africa needs more MA’s (Mergers and Acquisitions).

Nigerian Named World’s Top Banker

Mallam Lamido Aminu Sanusi, Head of Bank of Nigeria

Lately the news coming from or about Nigeria hasn’t been that positive.  This might change things for the time being in the short-term and give something that the country’s populus might rally around.  Nigeria’s top banker, Mallam Lamido Aminu Sanusi has been named as the Central Bank Governor of 2010 for both the African continent and the entire world, by the prestigious Banker Magazine.

Nigeria is frequently cited as one of the most corrupt countries in the world, but its central banker has won two international banking awards.

Mallam Lamido Aminu Sanusi has been named as the Central Bank Governor of 2010 for both the African continent and the entire world, by the prestigious Banker Magazine.

The editor of the magazine, Brian Caplen, says that few candidate names generate an overall consensus on judging panels, and yet, when it came to finding the best global central bank governor of the year, Mr Sanusi was chosen unanimously.

The 49-year-old was appointed head of the Bank of Nigeria in June 2009.

He has been praised for salvaging a crumbling Nigerian financial sector, including implementing reforms that have put Africa’s most promising market back on the map for global investors.

The magazine’s country representative, Kunle Ogedengbe, stresses that Mr Sanusi embarked on a radical anti-corruption campaign aimed at saving 24 banks on the brink of collapse.

He also pressed for the managers involved in the most blatant cases of corruption to be charged, and, in the case of two senior bankers, convicted.

“The reforms initiated by Mr Sanusi have been necessary to sanitise the banking industry,” Mr Ogedengbe says.

“Had these reforms not been initiated, Nigeria would have entered into another round of banking distress.”

Extensive reformsDespite the political challenge of facing up to powerful people who held considerable sway in the country, Mr Sanusi never swerved from his approach, and won the support of the public as they were made aware of the scale of corruption.

Coming from the north, Mr Sanusi bucked the established trend of appointing southerners

“He has carried out the sort of reforms that most of the central bankers in the world would like to have carried out in their territories,” Lagos journalist Anthony Osae-Brown told BBC World Service’s World Business News.

Two months into his governorship, Mr Sanusi embarked on the bailout of Afribank, Intercontinental Bank, Union Bank, Oceanic Bank and Finbank.

He dismissed their chief executives in a move designed to show that banking is no longer business as usual, but institutions that must serve the economy as a whole.

Another key reform of the banking sector enforced by Mr Sanusi has been to limit the tenure of bank bosses to a maximum of 10 years.

The chief executives will have to leave office at the end of their term regardless of their record.

The implementation of a stricter disclosure policy by the Central Bank of Nigeria has also led to a culture of greater transparency in the sector.

Career pathMr Sanusi began his banking career in 1985 by joining the merchant bankers Icon Limited, a subsidiary of Baring Brothers of London and Morgan Guaranty Trust Bank of New York.

After becoming the head of the central bank, some people dubbed his extensive reforms as the “Sanusi tsunami”.

He defended his actions, saying there was no choice but to attack the many powerful and interrelated vested interests who were exploiting the financial system of the country.

At a February 2010 conference on banking in Nigeria, he described his blueprint for reforming the Nigerian financial system as being built around four pillars.

• enhancing the quality of the banks
• establishing financial stability in the country
• enabling a healthy financial sector evolution
• ensuring that the financial sector contributes to the real economy

Talking later that month, he said that the crash in the capital market had been due to the high level of financial illiteracy on the part of the Nigerian investors.

Parallel interestsIn parallel to his banking career, Mr Sanusi has also contributed to the nationwide debate over Sharia law.

In 1997, he obtained a degree in Sharia and Islamic Studies from the African International University in Khartoum, Sudan.

In an article in September 2000, he noted the problem of reconciling “belief in the universal and eternal applicability of the Sharia with the need to meet the requirements of a particular milieu.”

And at a seminar in Abuja his talk was entitled Basic Needs and Redistributive Justice in Islam – The Panacea to Poverty in Nigeria.

Election loomingNigerian government borrowing has increased around 50% by late 2010, while its spending has been rising in the run-up to the presidential primaries in the middle of January – a contest whose outcome could shape the political and economic landscape for the next few years.

The excess crude account, into which Nigeria saves windfall oil income, has dropped to $300m (£193m) from $20bn at the start of the presidential term in 2007.

The political uncertainty also means major pieces of policy, including some multi-billion dollar investment decisions, are on hold until after the elections.

The biggest decision regards the Petroleum Industry Bill, which will re-write Nigeria’s decades-old relationship with foreign oil firms.

It will redefine the fiscal and legal framework governing investment, including its key offshore fields which are expected to yield most of its future production growth.

Until that bill passes, foreign oil firms will keep multi-billion dollar investments on hold.

Potential investors in the planned privatisation of the domestic power sector, one of the cornerstones of President Jonathan’s policy, are also unlikely to go beyond statements of interest until the elections are over.

But banking reforms continue apace and the five-year tenure of Mr Sanusi means even a change in president is unlikely to derail them.

With this recognition by the international community and people in finance, this can be seen as a turning point in how Nigeria develops a substantive economic development plan that brighten’s the countries prospects of prosperity.  Recently there have discussions to include South Africa in the “BRIC” nations of Brazil, Russia, India and China.  A good strong argument can be made for Nigeria since it has Africa’s largest population of 140 million, on pace to have a Africa’s biggest economy (3x bigger than South Africa as of now) and vast wealth of oil resources, something that South Africa has but not to the degree as Nigeria.  Nigeria’s more liquid markets, makes it the top choice for many eyeing investments in Africa.  Its good that the world is noticing the good work put in my Mr. Sanusi.  The country is on pace to have double digit growth this year, has set up a sovereign wealth fund, is building a free trade zone with China in Lagos, and China is also building an $8 billion oil refinery in the country. All these steps and economic investments in the country are due to competent economic management and they are beginning to pay off for the country.

Nigeria’s Microsat Satellite Passes Pre-Launch Test

Nigeria Microsat Passes Pre-Launch Test.

The replaced Nigerian satellite, NIGCOMSAT-1R, has undergone and passed a major performance test and activities are in top gear for its launch in 2011, an official has said.

Timasaniyu Ahmed-Rufai, the managing director of NIGCOMSAT told a management and media dinner on Thursday in Abuja that the satellite had undergone vibration tests while a simulation of the outer space had been used to test its ability to survive the harshness of the outer space.

The project has now entered an advanced stage of Assembly and Integration Test (AIT) of the platform and payload components indicating that the project is very much on course for the delivery date of last quarter of 2011, the official told his audience.

“However, the minister of finance who also went on the visit to China, requested that the satellite be launched in the early part of the third quarter of 2011,” he said.

Ahmed-Rufai said his group also went to engage the company to provide a backup in the form of NIGCOMSAT 2 and NIGCOMSAT 3 in earnest to forestall the mistake of the past.

“You can be rest assured that once we launch the NICOMSAT-1R, we are going to immediately commence the building of NICOMSAT 2 and 3 in order to provide the necessary back-up,” he added.

“Our aim is a situation where most of the emerging applications become a reality in Nigeria in such a way and manner that it is affordable,” the managing director said.

Rising from the sixth Quarterly Management Review (QMR) meeting in Abuja at the weekend, officials of NIGCOMSAT and China Great Wall Industry Corporation (CGWIC) disclosed that NigComSat-1R will be delivered on schedule.

He hinted that about four other countries were to launch their satellites ahead of Nigeria’s NIGCOMSAT-1R.

Ahmed-Rufai said extra precautionary and quality control measures were being taken to ensure that nothing was left to chance in delivering a robust high performance satellite.

“One of the features of NigComSat-1R is the newly introduced Asian beam meant for content trunking and service delivery to Asia, Europe and Africa,” he told his audience.

“The spacecraft will be operated on geo-stationary orbit of 42. 5*E; and will provide 14 Ku-band active channels, 4 C-band active channels, 8 Ka-band and 2 navigational channels,” the official added.

Ahmed-Rufai assured that with the launch of NigComSat-1R, Nigerians will be able to enjoy affordable broadband and multimedia services.

He also pointed out that despite the arrival of fibre on the shores of Nigeria; satellite was still needed to transmit from landing point in Lagos to other parts of the country.

He said NIGCOMSAT was already preparing a Direct-To-Home (DTH) platform in Nigeria and it would be ready before the launch of the satellite, thus paving way for local DTH companies to emerge.

The NICOMSAT’s foreman said the launch of the satellite would, among other things, be able to ensure securities by detecting activities of bombers.

“If you can guarantee the security of a nation, then you also guarantee investment; as you all know, some areas in Nigeria are not investment friendly because of the security issues,” he added.

The managing director also hinted that before the end of 2011, Nigeria was going to have a comprehensive suite of handset manufacturing.

“We have gone to partner with the biggest Chinese handset company to produce our handsets here in Nigeria and sell locally and internationally,” he said.

“Nigeria is de-industrialising and if we do not embrace production, then we would continue to consume,” he added.

Bottom line: Space exploration and scientific research is here to stay in Africa, especially since countries that are joining the space race like Nigeria, South Africa are moving along in their space capabilities.  Competition is good for both countries and the continent since it will usher in new investments in science and technology. Whether it is South Africa launching its own space agency or space cooperation between the African Union and European Union, the sky is the limit for growth and development on the continent.

Qualcomm to open office in Lagos, Nigeria

Qualcommn has announced that they will open an office in Lagos, Nigeria.  The San Diego-based company said that the office will serve as a hub for the firm’s West Africa business operations, mobile operators and device manufacturers across the region.

Qualcomm Incorporated today announced the opening of a Lagos office by QCOM Wireless Technologies Limited, a wholly-owned subsidiary, to serve as the Company’s hub for West Africa business operations.

The office will provide support to mobile operators and device manufacturers serving countries throughout the region, including Nigeria, Ghana, Ivory Coast, Senegal and Cameroon.Commenting on the Lagos office launch, Alexander Dadson, senior director of business development and managing director of Qualcomm’s West Africa operations, said “Qualcomm supports growth and development of the West Africa ICT sector. Toward this end, we are collaborating with regional partners to make cost-efficient 3G mobile devices and services more readily available.”

Leading research organizations estimate that roughly half of Nigeria’s population lives in rural areas, much of which is beyond the reach of fixed line broadband solutions. The high cost of traditional computing devices, such as desktop computers and laptops, also creates barriers to reaching West Africa’s consumers. Qualcomm’s integrated, single-chip solutions are enabling its partners to offer Internet-capable 3G devices (CDMA2000 and WCDMA/UMTS) that support different tiers of market needs – from high-end smartphones to low-cost handsets. The Company’s Engineering Services Group also works collaboratively with operators to assist in their deployment of cost-efficient wireless networks for both dense urban areas and rural regions.

“Qualcomm is committed to supporting its partners regardless of which 3G CDMA technology path they choose,” continued Dadson. “We also recognize that fulfilling the industry’s promise of anywhere, anytime wireless voice and data services will not be easy; it will take time, resources and close partnerships with policy makers and operators to make this vision a reality.

Our new Lagos office not only reflects Qualcomm’s long-term commitment to the region, but it also allows us to maintain close proximity to the people, governments and important industry events that are driving the West Africa ICT sector forward.”

This a great chance for not just the local Nigerian work force but surrounding  business people around the region to gain international business management and exprience in the global supply business chain from a world wide leading company such as Quallcomm.

Good to see an American firm taking the plunge after consistently seeing Indian firms outpace their western rivals.

Africa in the growing space race

South African businessman Mark Shuttleworth on his last training session before taking off in the Russian Soyuz rocket in 2002.

Many African nations are emerging as viable participants in the  space race, joining other countries such as India, Brazil, South Korea and China. Both Nigeria and South Africa are leading the way for Africa.

Both African countries have opened space agencies to begin their trek to space with an eye on developing space technologies ranging from satellites to other areas such as telemedicine for health, land mapping and telecommunications.

Nigeria established the National Space Research and Development Agency (NASRDA) in 1998 and developed a 25-year roadmap for the Nigeria Space Program. The focus includes basic space science and technology, remote sensing, satellite meteorology, communications and information technology, in addition to defense and security .  Furthermore, three years ago, Nigeria became the second country in Africa, after South Africa, to launch its own satellite.

South Africa has also pledged to develop its astronomy and space sector, and in July 2006, its cabinet approved the South African Space Agency as an institutional vehicle to look at space science and technology.

In a recent ABC news section, South Africa’s space program was mentioned as a sector that could boost their economy. “South Africa aims to become a regional center for space technology, investing in satellite and telescope projects to support its ailing economy,” said Science and Technology Minister, Naledi Pandor.

Africa’s Satellite Potential

The continent of Africa’s growing appetite for  satellite images is honing the attention of South Africa’s SunSpace satellite manufacturing company.

“The international market for very high resolution remote-sensing data is expanding… and Africa obviously has massive potential to sell our technology,” Ron Olivier, executive director business development at SunSpace, told Reuters on Aug 6, 2009.

Oliver estimated the annual global market value for this type of data at 1.2 billion rand ($151.7 million U.S.).

African Astronauts

While the satellite technology industry is expanding the economic potential of Africa, the goal of Nigeria’s manned space program is to send a man to space by 2016 and to the moon by 2030.

Again, South Africa has beaten them to the punch – technically. In 2002, Mark Shuttleworth became the first African astronaut to experience outer-space. He was one of the initiators of the burgeoning space tourism industry becoming the second self funded space tourist. According to the South African Space Program Aerospace Guide, Shuttleworth spent his time onboard the International Space Station (ISS) conducting AIDS experiments and research in order to understand a virus that affects so many Africans and African Americans.

The African Union has approved a feasibility study for the creation of an African Space Agency.

A decision by the African Union to approve a feasibility study for the creation of an African Space Agency prompted debate. A summit of ministers agreed that the study would also draft a common space policy for the 53 member countries. Some commentators argue that a rival to NASA could provide jobs and spin-off technology.  Others said the continent can ill-afford to pour scarce resources into stargazing when millions continue to face poverty, disease and food shortages.

But the future is already here, if unevenly distributed. Astronomers have worked in Cape Town for centuries and in 1820 established the Royal Observatory at the Cape of Good Hope, the first of its kind in the southern hemisphere. Africa has launched several satellites and, in 2002, internet millionaire Mark Shuttleworth flew on a Russian Soyuz rocket to become the first African in space.

The International Astronomical Union (IAU) recently awarded Cape Town its Global Astronomy for Development Office to help take astronomy to the developing world. Africa is also competing with Australia in a bid to host the world’s most powerful radio telescope, able to peer back billions of years in time.

An international panel is expected to announce the winner from the two shortlisted continents in 2012, with the victor hosting the £1.25bn Square Kilometre Array (SKA) telescope, 50 times more sensitive and 10,000 times faster than any other radio imaging telescope built.

The SKA telescope would eventually consist of about 3,000 antennas, half concentrated on the outskirts of Carnarvon in the Northern Cape in South Africa, with the rest distributed in Namibia, Botswana, Mozambique, Ghana, Mauritius, Madagascar, Kenya and Zambia.

Technology and Research is the Cornerstone of any modern dynamic economy and provides the engine of future growth.  In the past South Africa had the worldwide reputation of punching far above its weight in research and development.  In each respective field, the country had a fraction of the qualified engineers and scientists active compared to other countries, but produced world class technologies which at that stage did earn valuable foreign currency (the ones that reached export status).  This is why South Africa’s achievements in this regard should be highlighted:

• South Africa was the world leader on Synthetic Fuels (coupled to a related Chemical Industry)
• South Africa was the Undisputed Leader in large dry cooled power stations. (South Africa now has to buy the  same technology from overseas, from firms like Areva and  Hitachi)
• South Africa was the only country excepting about 6 others who developed home grown Nuclear Industries (with its unique enrichment technologies), only surpassed much later.  For years South Africa was the only Country posessing a really safe nuclear reactor technology (PBMR), which was canned a month ago.
• South Africa was the only country in the Southern Hemisphere with a Space Launch System (SA-3) which was later perfected by Israel as the Shavit. This is now the cheapest access into Space.
• South Africa developed signal coding and decoding (M – Net) while the best the rest of the World could offer was Cable TV.

The point is that precious little new thinking is taking place right now.  I still believe that Africa cannot neglect science and progress. However important education, poverty alleviation and creation of jobs are, Africa still cannot lag behind in scientific research. The benefits of science and research cannot be emphasized enough.

Nigeria To Start Its Own Sovereign Wealth Fund

Nigeria following in foot steps of countries like South Korea, Abu Dhabi, Dubai, Kuwait, China and Norway will start its own sovereign wealth fund.

Nigerian Finance Minister Olusegun Aganga said he wants Africa’s largest oil producer to start a sovereign wealth fund in October, dedicating most of the money to investment in infrastructure.

“We have, just recently, had a beauty parade by all the legal and investment advisers who are keen to assist,” Aganga said in an interview in London. “Within the next day or two, we will be appointing the advisers.”

The fund will replace the Excess Crude Oil Account, which the government has often used to finance expenditure, Aganga said. Part of the new fund will be dedicated to savings that the government can’t touch unless oil prices plummet, while most will finance the construction of roads, railways and ports, in cooperation with private investors, he said.

The Excess Crude account currently has between $500 million and $800 million, which should rise to about $1 billion by the end of the year and will be transferred to the sovereign wealth fund, Aganga said.

“That will be the seed capital,” he said. “A large part of that will go to the infrastructure fund, if not all.”

The infrastructure fund will act “as a catalyst for both local and international investors,” Aganga said.

A third part of the sovereign wealth fund will be a stability fund, which will be similar to the current Excess Crude account, though harder for the government to access, he said.

Here is Olusegun Aganga discussing a range of financial issues.