Lagos: City of Opportunities An Investor's Guide

Lagos: City of OpportunitiesAn Investor's Guide

Consulting

Strictly Private and Confidential

September 2015

1 Nigeria - Overview 1

2 A Profile of Lagos State 3

3 Business Climate 18

4 Investment Opportunities 38

5 Investment Incentives 72

6 Appendices 78

PageSection

Table of Contents

PwCSeptember 2015

Nigeria - OverviewSection 1

1Lagos: City of Opportunities • An Investor's Guide

PwCSeptember 2015

NigeriaNigeria has the largest economy in Africa


Section 1 – Nigeria - Overview

Country Nigeria

Capital Abuja

Number of States 36

Independence October 1, 1960

President Muhammadu Buhari

Population ≈178.5 million (2014)

GDP ≈ $568.5 billion (2014)

Currency Nigerian Naira ( N)

Land Mass 923,768km2

Official Language English

Religion Christianity, Islam

Average Temperature 25°C - 30°C

Time Zone GMT +1

Dialling Code +234

Source: World Bank, Central Bank of Nigeria, Central Intelligence Agency

Macro Economic Indicators

Exchange Rate $1 =N196.50 (August, 2015)

Prime Lending Rate 17.3% (July, 2015)

Inflation Rate 9.3% (August, 2015)

BornoYobe

Adamawa

Jigawa

Bauchi Gombe

plateau

Kano

Taraba

KastinaZamfara

Sokoto

Kaduna

Nassarawa

Benue

Niger

Kebbi

Kwara

Kogi

Abuja

Cross River

Enugu

Oyo

Osun

Edo

Rivers

Imo

Ogun Lagos

Ekiti

Ondo

Delta

AkwaIbom

Bayelsa

Ebonyi

AbiaAnambra

Ø Largest economy in Africa

Ø Largest oil producer in Africa and 13th in the world

Ø Urban population of 47%Ø Over 250 ethnic groups

Key Highlights

Map of Nigeria Showing Major Ethnic Groups

HausaIgbo Yoruba

PwCSeptember 2015

A Profile of Lagos StateSection 2


PwCSeptember 2015

Lagos at a glance Lagos is the commercial capital of Nigeria and the economic hub of West Africa

Country Nigeria

State Lagos

Capital Ikeja

Governor Akinwunmi Ambode

Slogan Centre of Excellence

Location South West Nigeria

GDP ≈ $136.6 billion (2015)

Land mass 1380 square miles ~3577 Km2

Population 21 million est.(2014)

Population Density 4,193 persons per km2

Religion Christianity, Islam

Language Official: English, Others: Yoruba, Igbo, Hausa

Culture Pottery, sculpture, mat weaving, basket weaving, hair plaiting, and raffia works.

ClimateDry season: November - MarchRainy season: April - OctoberAverage temperature: 24°C- 36°C

HistoryLagos State was created on May 27, 1967 and became the federal capital ofNigeria on April 11, 1968. It remained the capital until 1991 when thegovernment seat was moved to the Federal Capital Territory, Abuja. Inspite of the movement of the capital to Abuja, Lagos still remains thecommercial capital of the country and the economic hub of West Africa t0date.


Section 2 – A Profile of Lagos State

The Third Mainland Bridge which measures 11.8km is the longest bridge in West Africa and the second longest in Africa

The name Lagos means “Lakes”. It was named by Rui de Sequeira, a Portuguese explorer in 1472.

Third Mainland Bridge, Lagos

Source: The Punch, Lagos State Government

PwCSeptember 2015

EconomyLagos State is the commercial powerhouse of Africa, making it the premier investment destination on the continent

The GDP of the formal economy of Lagos is estimated to be $136.6 billioncontributing 25% to the GDP of Nigeria as at August 2015. The GDP hasan estimated growth rate of 10% and it is expected that by 2025 the GDP

will be $355billion.

The state’s contribution can be attributed to the following factors:

• Large investments by both local and foreign investors

• Sound fiscal policies by the state government

• Favourable business and economic conditions

• Its prime location in West Africa, serving as an access point to manyother markets in Africa



Source: World Bank, Lagos State Ministry of Finance, Central Bank of Nigeria, PwC Analysis, Lagos Bureau of Statistics

GDP: ≈ $136.6 billion (2015)Exchange Rate: $1 – N196.50 (August, 2015)

Population: 21 million est. (2014)GDP per Capita: $6,238 (2014)

0

50

100

150

200

250

300

350

400

USD

Bil

lion

s

Projected GDP growth for Lagos, 2014-2025

PwCSeptember 2015

EconomyLagos contributes about 25% of Nigeria’s GDP



The global oil crisis that is currently affecting oil producing nations has hada subdued effect on Lagos. The state’s economy is diversified and not solely

dependent on oil revenuefrom the federal level.

4% 4%8%

9%

20%

26%

29%

Financial Institutions

Telecommunications

Wholesale & Retail

Others

Building & Construction

Road Transport

Manufacturing

Breakdown of the main sectors and their contributions to the state’s GDP for 2012

Lagos State’s Internal Generated Revenue (IGR) for 2014 wasapproximately $1.4billion, more than three times the amount generated byRivers State, the second highest state.The high IGR positions Lagos for strong growth improving the standard ofliving which will increase the incomes of the population and furtherboosting the state’s economy. It currently takes 28 days to start a businessin Lagos and over the last year, the ease of getting credit has improved by30%, thereby easingthe process of investing in Lagos.

Source: World Bank, Lagos State Ministry of Economic Planning and Development, PwC Analysis, Lagos Bureau of Statistics

0

500

1,000

1,500

2,000

2,500

Lagos Rivers Delta Enugu Oyo Akwa Ibom

Kaduna

USD

Mil

lion

s

Major States in Nigeria

Internal Generated Revenue (2012-2014)

2012

2013

2014

PwCSeptember 2015

EconomyAt present, 18 of the Fortune 100 companies operate in Lagos state



Lagos State is home to a multitude of multinational companies because ofits favourable economic conditions and vast population. This combinationprovides a large market for any product or service that is launched in the

state. Outlined below are a few of the companies present in Lagos:

Source: PwC Analysis, Fortune500

Lagos State’s GDP is comparable to that of other countries as shown in thechart above. Furthermore, the state’s GDP is equivalent to that of 19African countries combined. As Africa’s primary financial hub with a sound

banking framework, Lagos presents local investors with easy access tocredit as well as a safe framework for all to perform financial transactions.

-

50

100

150

200

250

300

350

Atlanta, Georgia

Singapore Lagos, Nigeria

Kenya GhanaU

SD B

illi

ons

GDP of Lagos Compared to Other Countries and States (2014)

PwCSeptember 2015

-

5

10

15

20

25

30

35

40

Mil

lion

s

years

Population of Lagos State from 1975 with Recent Projections

past projections

PopulationLagos is currently the most populous city in Africa

Population

Lagos State has a population of 21 million as at January 2015, making itAfrica’s largest city and the 3rd largest city in the world. The populationhas an average annual growth rate of 3.2% and is estimated to be over 30million by 2025. This large population creates a viable market for

manufacturing and retail of consumer goods and other services. Lagos alsohappens to be the most learned state in Nigeria with over 45% of theskilled manpower in Nigeria located in Lagos. The state has a literacy rateof 92% that is significantly higherthan the national average of 56%.



Source: Lagos State Bureau of statistics, PwC Analysis

30%

48%

16%

12%

0-14yrs15yrs-44yrs45yrs-64yrs65 & above

Population Distribution of Lagos State (2011)

labourforce

PwCSeptember 2015

Political The state has enjoyed smooth transition between government for many years



Lagos State is comprised of 20 local government areas, five businessdistricts and three arms of government; the executive, the judiciary and thelegislature.

The ruling party, All Progressives Congress (APC) has been in power inLagos State since the first democratic election of 1999. Despite the fact thatthe opposition party, Peoples Democratic Party (PDP) maintained control

at the federal level from 1999 until May 2015, Lagos State has been able todrive its policies through at both the state and federal level. The state hasenjoyed political stability and smooth transitions between government,ensuring consistencyof policies.

We have outlined a few of the political reforms that the government islooking to implement in the state, as these reforms are an avenue forinvestments.

Source: UNESCO

Political Economy Reforms Political Economy Reforms

Provide world class social and

physical infrastructure

Improve urban living

Harmonise Public Private Partnerships

(PPP’s) in healthcare

Expand the Lagos home ownership mortgage

scheme

Removal of multiple taxes

Implement a fully integrated transport systemRuling party: All Progressives

Congress (APC)Official Seal of Lagos State

PwCSeptember 2015

Physical Infrastructure Lagos state has the most developed physical infrastructure in Nigeria…

Transport

• Lagos is home to the busiest airport in West Africa, Murtala Muhammed Airport, with over 6million passengers annually . It is ranked 5th to OR-Tambo airport in South Africa, busiest in Africa with about 18m

passengers annually.

• The state has a Bus Rapid Transit (BRT) system that transports over 200,000 passengers daily which is equivalent to the number of passengers the New York City bus system transports daily.

• Lagos has Nigeria’s first cable stayed bridge that is geared towards

reducing congestion and travel time between Lekki and Victoria Island by 20 minutes daily. Also, a light rail system is currently under construction.



Bus Rapid transit

Apapa Terminal

Murtala Muhammed International Airport

Freight: The Apapa Terminal is the busiest container terminal in West Africa with about 625,000 Twenty-foot Equivalent Unit annually and forth largest in Africa ( 1st Port of Durban – 2.7 million TEUs).

Power: The various power projects in Lagos State include: Island power ($16m project to generate 9.7Megawatt), Akute power ($25.5m project to generate 12.15 Megawatts)

Source: Lagos State Government, Lagos State Metropolitan Area Transport Authority,

PwCSeptember 2015

Physical Infrastructure Contd.…which continues to attract massive Foreign Direct Investments (FDI)



Foreign Direct Investment

Lekki Free Trade Zone showing the refinery, seaport and industrial park

Project Name Cost$ Billion

Completion Date

Description

Lekki Deep Seaport

$1.65 2019 • Deepest seaport in Sub-Saharan Africa

• Capacity of 2.7 million Twenty-foot Equivalent Units (TEU’s)

• Larger capacity than the Durban port in South Africa

Badagry Creek IndustrialPark

$1.3 2018 • Provide convenience for unpacking, storage and distribution of imported goods

• Collecting, packing and processing goods for export

DangoteRefinery and Petrochemical Park

$12 2018 • Located in Lekki Free Trade Zone (LFTZ)

• Capacity of 650,000 barrels per day

• Larger capacity than ConocoPhillips Wood River refinery, USA

Source: Bloomberg, The Guardian

PwCSeptember 2015

Legal FrameworkLagos has a robust and effective legal environment that protects both local and foreign investors…



Development of Free trade zones

Double Taxation treaties

Tax Holidays

Public Private Partnerships

Limited Liability Reviews

Land Reform Act

Legal Reforms

Source: World Bank Data

Taxation17 Forms of taxes

Corporate tax rate of 30%

Effective tax rate of 32.7%

12 illegal taxes have been removed

Free trade zone provide tax holidays

Pioneer Status tax holiday up to 5 years

PwCSeptember 2015

Legal Framework Contd.… and an effective tax rate that is globally competitive



Source: World Bank Data

18Steps

It takes an average of 169 days in Johannesburg to complete a

licence procedure, London 105 days, Accra 201days and 89

days in New York.

days116

Obtaining LicenceIn Lagos

8Steps

Starting a businessIn Lagos

527 days

Comparison of Effective tax rate among mega cities and Number of days to enforce a contract

Lagos

London

Johannesburg

447 days

32.7%

437 days

33.7%

28.8%370 days

New York

45.8%

PwCSeptember 2015

EnvironmentLagos state is transforming into a Megacity…

Lagos State has a total landmass of 1380.7 square miles (3577 square kilometres) and is bound on the south by the Atlantic Ocean. Lagos is a state of aquatic splendour as over 30% of the land mass comprises of

lagoons, creeks and islands.

Transformation to a Megacity

Lagos, Nigeria’s Mega city is a dynamic city that is transforming as the

government intensifies its effort to tackle it’s environmental challenges. The most recent initiative to achieve the government’s plan is the Eko Atlantic City.

Proposed Eko Atlantic city, “Africa’s Dubai”

• A Multibillion dollar Project

• A permanent solution to protect Victoria Island Lagos from flooding

• 10 sq. km of extracted land from the Atlantic Ocean

• Projected to have 250,000 residents and 150,000 commuters

• Premier destination for investor’s in Africa



Proposed: Eko AtlanticSource: The Conversation, Revised Lagos State Plan, US Trade and Investment with Sub-Saharan Africa, 5th Report, Lagos State Government

Victoria Island , Lagos

PwCSeptember 2015

Environment Contd.…with major areas being decongested and converted to gardens



Operation green Lagos

Oshodi in Lagos State: Before transformation

Oshodi in Lagos State: After transformation

Greenery

Landscaping and beautification ofLagos state via the “OperationGreen Lagos” and replacement ofgarbage dumps with garden.

Decongestion of Major Areas

Lagos, Africa’s model city hasundergone a lot of transformation.Oshodi, the biggest transformation

is one of the major areas with5million people visiting or passingthrough on a daily basis. Thegovernment reduced the traffic

gridlock by demolishing illegalstructures and evicting squatters.

Source: Public Information

PwCSeptember 2015

Art & Culture…with its Eyo Festival attracting millions of viewers annually

The Eyo Festival is a colourful Yoruba festival

unique to Lagos that has survived over fi fteen

decades.

Ø It was held to escort the soul of a departed

Lagos King Chief and to usher in a new

king.

Ø Recently, Eyo Festival is usually staged in

honour of a dead Lagosian, who must have

contributed to the growth and

development of the city in their lifetime.

Ø Motorcycles, Bicycles, Sandals, certain

hairstyles (suku) and smoking are

prohibited during the festival.

Ø It attracts tourist which generate a lot of

revenue for government and small

businesses around the Lagos Island venue

of the Eyo festival.



Source: National Mirror

PwCSeptember 2015

Art & Culture Contd.Lagos has a rich cultural heritage…

Lagos state has a long history of cultural characteristics which has been nurtured all along by

its indigenous peoples. The arts and craft of the state include pottery, sculpture, mat weaving, basket weaving, hair plaiting,

and raffia works.



Sculptures

Painting

Hair plaiting

Pottery

Rafia Works


PwCSeptember 2015

Business ClimateSection 3


PwCSeptember 2015

An Overview of Lagos Business ClimateLagos State fosters a conducive environment that allows businesses to thrive


Section 3 – Business Climate

• Approximately 60% of industrial investments in Nigeria come into Lagos State

• About 90% of companies in Nigeria across most industries have chosen to locate their headquarters in Lagos.

In the banking industry all commercial banks except one have their HQ in Lagos

Why are investors attracted to Lagos?

Wealth is being generated and the income levels of Lagosians is rising

New investors are able to benefit from the environment already created by previous investors.

Ease of starting a business compared to other states

Availability of cheap and highly skilled labour

Access to different markets locally and internationally

Large population of high and middle income earners

Changing consumer patterns

Safe and efficient banking network

Competitive tax rates Stable political environment

Source: Lagos State Government, PwC Analysis

PwCSeptember 2015

Legal Framework for Businesses in NigeriaLagos State’s legal framework is conducive for every business type

Types of Business

Private Limited Liability

Company(LTD)

PublicLimited Liability

Company(PLC)

Unlimited Liability Company(UNLTD)

Company Limited

By Guarantee(LTD/GTE)

Incorporated Trustees

Foreign Company

� Shareholders: 2 – 50� Shares not transferable� Authorised share capital must not

be less than 10,000� At least 25% of authorised shares

must be allotted at incorporation

� Minimum of 2 directors and 2shareholders

� Directors and Shareholders can beof any nationality and need not beresident in Nigeria

� Liability is limited to amount ofrespective guarantee

� Trustees may register Religiousorganisations, Non-GovernmentalOrganisations without LegalPractitioners, Chartered Secretaries orChartered accountants

� In event of wining up or dissolution,properties shall be transferred toanother institution having similarobjects as agreed by the members of theassociation

� Shareholders: 7 with no maximum limit� Shares are transferable� May be quoted on the Stock Exchange� Authorised share capital must not be less

than 500 ,000� Subscribers must take at least 25% of

share capital

� Shareholders are personally liable forthe business liabilities

� Unlimited Liability Company may be re-registered as Private Liability companylimited by shares but cannot be re-registered as a Public company

� May own up to 100% of any Nigerianbusiness except the Maritime sector

� Mandatory to incorporate Nigerianbranch 0r subsidiary

� May set up representative office whichhas to be registered but cannot engage inbusiness

� May incorporate a Nigerian branch bygiving Power of Attorney to a Solicitor inNigeria



Source: Companies and Allied Matters Act (2004)

PwCSeptember 2015



-

5

10

15

20

2010 2011 2012 2013 2014 2015

Per

cen

tage

(%)

Inflation Rate Jan 2010 – Jun 2015 (Nigeria)

Inflation

Foreign Exchange and InflationOver the last five years, the inflation rate has declined at a CAGR of -8.82%. As at August 2015, the rate was 9.3% compared to India’s and China’s of 6.1% and 1.6% respectively. This is as a result of the Naira devaluation which has increased the real cost of goods as the country is reliant on imports. The total loan given by commercial banks to private investors is 14.5% of the GDP.

The Central Bank of Nigeria (CBN) has recently implemented certain measures to mitigate the weakening of the currency:• Restriction on depositing foreign

currency cash into domiciliary accounts

• Restrictions on the types of business' that are able to convert using the CBN rate

The current weakness of the Nigerian naira makes export cheaper and more competitive in the international market.

Financial factors affecting businessThe declining inflation rate encourages inward investment in Lagos State

100 120 140 160 180 200 220 240 260 280 300 320

2013 2014 2015

Nai

ra (

N)

Exchange Rate: Naira v USD and GBP, Jan 2013 – Jun 2015

US Dollars Pounds

Source: Central Bank of Nigeria, Trading Economies

PwCSeptember 2015

TaxesLagos state tax system remains a fulcrum for business development

All Limited Liability Corporations are required to pay their taxes to the Federal Government (FG) through the Federal Inland Revenue Service (FIRS)

Key taxes to note include:• Business Premises Levy is N10,000 for registration with an annual

renewal fee of N5,000• Pay As You Earn states that it is the duty of the employer to remit

its employees tax to LIRS• Capital Gains Tax is paid on the sale of a qualifying capital

expenditure• Other forms of taxes include Withholding tax with varying rate

depending on type of transaction; Advertising tax; social security contributions.

• There are 17 forms of taxes in Lagos State and 47 different payments to be made to remit all taxes

• It takes about 6 weeks to compute and file taxes annually



32.7%Effective Tax

Rate

WithholdingTax

5%

Paying Taxes in Lagos State

Capital GainsTax

Personal Income Tax

7% -24%

10%

ConsumptionTax

5%

Source: World Bank

PwCSeptember 2015

Population and WorkforceLagos enormous population and large workforce creates a diverse market for business sustainability



Lagos is the largest city in Africa owing to an exploding population of 21 million that grows by 9 people every 10 minutes. It has the highest rate of urban migration in Nigeria and is home to 24.7% of the urban population. As a result, it has a large and diverse market for consumption of manufactured goods.

Lagos State has a large workforce that increases rapidly as more people troop in from various areas of the country with vast skills. The migration of skilled workers creates more labour for the growing industries of the state.

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

0-14 15-24 25-44 45-64 >65

Population Distribution of Lagos Showing Age and Gender (2011)

MaleFemaleTotal

65.3%

34.7%

work force

dependent population

Age (15 -64)

Percentage of work force in Lagos State(2011)

10%

21%

26%

43%

Education Level of the Population (2011)

None

Tertiary Education

Primary Education

Secondary Education

Source: National Bureau of Statistics, PwC Analysis

PwCSeptember 2015

LabourCheap and readily available labour makes Lagos a destination for investment opportunities



65% of population is active workforce

Growth rate of 3.2%

N18,000 ($91) minimum

wage

Lagos, Nigeria

Shanghai, China

67% of population is active workforce

Decline rate of 9.5%

HK$2,500 ($322)

minimum wage

Nigerian Labour LawsLabour act of 2004

Factory act 2004

Pensions act 2004

Trade dispute act 2004

National minimum wage act 2004

National housing fund act 2004

Employee housing scheme2004

Trade union amendment act 2005

Local content act 2010

Employees compensation act 2010

Urban Labour cost $9,000

Urban Labour cost $1,500

Source: Nigerian Constitution

PwCSeptember 2015

Income distributionLagos state is home to a rapidly growing middle class



Lagos has the highest standard of living in Nigeria with a rapidly growing middle class. 61% of the millionaires in Nigeria Live in Lagos (about 9,500 people). The high purchasing power of the population gives it the ability to absorb any product or service brought into the state.

Source: PwC Analysis

EpeIkorodu

Ibeju LekkiLagoon

Eti OsaBadagry

Ojo

Ikeja

Ibeju Lekki

AlimoshoKosofe

OshodiIsolo

Amuwo-Odofin

Mushin

Surulere

Ajeromi -Ifelodun

Apapa Lagos IslandLagos Mainland

Agege

Ifako Ijaye Shomolu

*The income distribution analysis is based on the average annual rent for 3 bedroom apartment in Lagos with the assumption that the annual rent individuals are willing to pay indicates their purchasing power

Key

High Income Middle-High Income Middle IncomeLow-Middle Income Low Income Water

- > $35, 000- $5,000 - $35,000- $5,000- $2,500 - $5,000- < $2,500

PwCSeptember 2015


GDP

Demand

Internet

Technology

Lagos GDP per capita ($6,238) is approximately double the national average

The highest income earners in Africa reside in Lagos, and the GDP per capita is double the national average as at August 2015.

Increasing consumer demands and methods of consumption

The middle-class is growing rapidly, creating a market for better quality goods and services.

National mobile internet penetration rate is at 50%

This has changed the way customers interact with businesses and has increased the exposure and awareness of the population

Increase in technology adoption in Lagos

Lagos offers easy access to technology and a large market with buying power suitable for investment. Investors are taking advantage of the changing patterns. Companies like Jumia and Konga have created online platforms to cater to the needs of the population.


Consumer PatternsAdvances in technology has improved the way consumers and businesses interact in Lagos state

PwCSeptember 2015



Register for personal income tax with the Lagos State Inland Revenue service (LIRS) for the purposes of Withholding tax

Register for income tax with the Lagos State Inland Revenue Service (LIRS)

It takes eight steps and approximately 28 days to start up a business in Lagos

Pay stamp duty to the federal Inland Revenue Service (FIRS)

and prepare the required incorporation documents

Step 2 – Day 6-12 Conduct a name search and reserve a unique company name at Corporate Affairs Commission (CAC)

Step 1 – Day 1- 5

Sign the declaration of compliance in the presence of a Notary Public

Step 3 – Day 13

Register the company and pay the filing fees at the CAC

Step 4 – Day 14-24

Register the business premises with the Lagos state Government and pay

the levy at any commercial bank

Make a company seal or stamp

Step 5 – Day 24

Step 6 – Day 25-28

Step 7 – Day 27- 28

Step 8 – Day 28

Starting a BusinessLagos State offers an enabling environment for business set-up

• The cardinal business law in Nigeria is the Companies and Allied Matters Act 1990.

• The principal law in Nigeria that regulates foreign investments is the Nigerian Investment Promotion Commission Act. Highlights of the act are:

• 100% foreign ownership

• Allows investment without restriction

• Permits investment in financial securities

• Allows repatriation of profits to home country

Fundamental Laws for Starting a Business

Source: World Bank, Companies and Allied Matters Act (2004), Nigerian Investment Promotion Commission Act

PwCSeptember 2015

Legal ReformsLagos state government has undertaken key reforms to ensure that investors are legally protected

2005 2009 2011 2015

Limited Liability Partnership:

Partners in business can choose to have

limited liability so one partner is not

responsible for the negligence of others.

Creation of public private partnership office: This was a major reform that has

enhanced individual participation in infrastructural development in the state.

Land Reform Bill: The new law allows easier access to proprietary

interest in land. It has also reduced land transaction fee from 13% to 3% of cost. The land Use act of 1978 is still in use which allows up to 40 years lease

of industrial plots.

Public Private Partnership: This reform was implemented to facilitate partnership with

investors in Lagos state. The China-Africa Lekki Investment Ltd. is one of the products of

this reform.



Source: Lagos State PPP Office

PwCSeptember 2015

Access to MarketLagos has some of the largest markets in West Africa and serves as gateway to international communities



As the commercial hub of the country, Lagos serves as a key access point to many markets both within the state and outside the state. One of the largest markets in West Africa, Idumota market is located in Lagos. There are also many other markets in the state that specialize in different goods.

Lagos also serves as an access point to other international markets for investors looking to market their products in other countries.

Location of major market

Market Main Goods SoldAlaba Electronic goods

Alade Clothes & accessories

Balogun Fabrics & shoes

Computer Village Computers & Laptops

Idumota Distribution & production of movies

Ladipo Auto parts

Mile 12 Cheap farm produce & raw goods

Source: Lagos Waste Management Authority, Public Information, PwC Analysis

EpeIkorodu

Ibeju LekkiLagoon

Eti OsaBadagry

Ojo

Ikeja

Ibeju Lekki

AlimoshoKosofe

OshodiIsolo

Amuwo-Odofin

Mushin

Surulere Ajeromi -Ifelodun

Apapa Lagos IslandLagos Mainland

AgegeIfako Ijaye

Shomolo

KeyLocal Government AreaWater

PwCSeptember 2015

Free Trade Zones (FTZs)Lagos state free trade zones are connecting Africa to the world

Lagos has 5 FTZs, the highest number in Nigeria, where investors are granted100% incentives by the Nigerian Government . Lekki Free Trade Zone (LFTZ)• The largest of Lagos’s FTZs

• Projected to be completed by 2017• Access to international airports• Expected investments of $25 billion from over 60 firms • Will have a $1.4bn deep seaport, (deeper than 70% of deep sea ports

worldwide) and is capable of harbouring the largest ship in the world• Home to a $12bn refinery designed to be the largest petrochemical

complex worldwide with a capacity of 650,000 barrels a day.



0

5

10

15

20

25

30

EECV-Quay Port of Rotterdam

(Holland)

Terminal of Portal da

Madeira (Brazil)

Lekki deep seaport (Lagos,

Nigeria)

Port of Singapore

Dra

ft S

ize

(m)

Lekki Deep Seaport and the average depth of the World deep seaports

Average depth of deep seaport

Source: This Day, Lagos State Development Plan

PwCSeptember 2015

PowerLagos’ physical infrastructure facilitates business development

0

20

40

60

80

100

120

140

160

180

200

2009 2010 2011

Un

its

in M

egaw

atts

Agriculture Industry Transportation Residential

Sector energy consumption in Lagos State from (2009-2011)

31

45%45% of the total electricity produced in Nigeria is consumed in Lagos


Lagos: City of Opportunities • An Investor's Guide

Lagos is the only state in Nigeria with a Ministry of Energy and Mineral Resource and has the most aggressive energy development agenda in the country.

The state is strategically increasing power supply in a sustainable and socio-economic manner, with the following key highlights:

• Lagos State has the largest number of well maintained public lighting network in the entire country (2013)

• Lagos State is presently the only state in Nigeria whose electricity supply need is met through two distribution companies, namely Ikeja and Eko distribution companies with over 42.75MW of electricity through public-private partnership

Source: Nigeria Association of Energy Economics

PwCSeptember 2015

TransportationLagos has the most developed transportation infrastructure in Nigeria



28 3510 4 18 7

290

196 195

30

150

100

0

50

100

150

200

250

300

350

Porto Sao Paulo Lagos Adelaide Brisbane Jakarta

No

of P

asse

nge

rs (‘

00

0)

Transport Network (BRT)(Lagos) vs. Other Urban Cities

Peak hour one-way Daily two-way

• Transportation in Lagos State has improved and the state has some of best road networks in Nigeria. The increased efficiency and productivity of the transport system makes Lagos comparable to other megacities in the world.

• The average commuting time and cost of transportation has decreased significantly leading to overall economic growth of the state and social well-being of the citizenry.

• The government has proposed improvements to the transport system that would be make it more affordable and customer-friendly.

68%

19%

9%

3% 1%

% Observed mode of share of motorized trips in 2011

Unregulated BusCarMotorcycleBRTWater Transport

44%

21%

17%

16%

2% 1%Forecast mode share of motorized trips by 2020

Buses mostly franchisedRail CarBRTWaterMotorcycle*

Source: World Bank, Lagos State Development Plan, Lagos State Metropolitan Area Transportation Authority

PwCSeptember 2015

Telecommunication and Air TransportLagos airport accounts for 74% of Nigeria’s annual international passengers

3.6

3.8

4

4.2

4.4

4.6

4.8

5

Lagos state Abuja Rivers State

Inte

rnet

bro

adba

nd s

peed

(MBP

S)

Internet Broadband Speed in Major States of Nigeria



TelecommunicationThe 20th century till date only witnessed the development of appropriate improved technologies for achieving optimum quality of service and adequate quantity of facilities and services, to meet the realities and needs of the age. Today, Lagos is home to all the giant mobile telecommunication companies in Nigeria and Africa, Lagos also has the highest broad band speed in Nigeria.

Air TransportLagos airport is the busiest airport in West Africa and accounts for about 74% of the country’s annual international passengers(2010). One in every three international flights into Nigeria passes through the Lagos airport.

0

0.5

1

1.5

2

2.5

3

3.5

4

Nu

mbe

r of

Pas

sen

gers

in M

illi

ons

International Passenger Traffic by Major International Airport (2010-2013)

2010201120122013

Source: Nigerian Communications Commission, National Bureau of Statistics

PwCSeptember 2015

Political EnvironmentPeaceful and smooth transition between governments has increased investors’ confidence

Lagos Politics

The Lagos state government has been under democratic leadership since 1999, it has been ruled by the APC which has until May 2015 been an opposition state to the Federal government ruled by PDP. • Lagos recorded only 2 deaths in the post election violence of April

2015.• In terms of election dispute resolution, the number of election

petitions filed at the tribunals bears witness to the credibility of the 2015 General Elections.

• Lagos had just one (1) election petition compared to Delta state with 40 petitions



Lagos Politics at a Glance

Governor Akinwunmi Ambode

Party All Progressive Party (APC)

Tenure May 2015 till date

Immediate Past Governor Babatunde Fashola (SAN)

Governance Executive system of government

Legislature 41 members

Speaker Hon. Mudashiru Obasa

0

500

1000

1500

2000

2007 2011 2015

Num

ber o

f Pet

ition

s

Election petitions

Featured headlines of Nigeria

Africa's biggest economy and most populous country, plagued by corruption, and facing major security challenges in the NorthEastprosecuted by the terrorist group Boko Haram.

A powerhouse nation that can hold credible elections

Before After (April Elections)

Source: Lagos State Government, Public Information

PwCSeptember 2015

Security & HousingThe State Government is committed to creating a safe and conducive environment for Lagosians

Working hours

Public workers ( civil servants) 8am – 4pm

Private business (corporate workers) 8am – 5pm

Private business ( retail traders) This varies according to the traders form of business. They resume as early as 6am and close as late as 10pm.



Housing

The large and growing population of Lagos State creates a housing constraint. The proposed Eko Atlantic City according to the Lagos State Government, will provide no fewer than 1,200 houses. This is a minimal reduction in the housing deficit, and further opportunities exist for investment in mass housing.

Eko Atlantic will also include large-scale residential, commercial, financial and tourist developments, easing the burden on the exhausted infrastructure.

Security

Although the threats of insecurity are present in Nigeria, these threats are limited to the North Eastern region of the country, which is more than 6000km from the commercial power house of Nigeria; Lagos.

There has been minimal threats to security in Lagos. Despite the relatively safe environment, the state continues to create initiatives to maintain the security of people in Lagos, one of which is the Safe City Project.

Key HighlightsGeneral Business Practices

01

02

03

Establishment of the Lagos State and Equipment Trust Fund

Provided equipment and resources for effective operations of security agencies

Addition of over 350 vehicles to the Rapid Response Service (RRS) fleet to improve crime prevention

Source: Lagos State Government, PwC Analysis

PwCSeptember 2015

Environment - Waste Management & DisposalLagos state is transforming itself from being labelled one of the dirtiest city in the world to being the largest producer of compost in Africa



Previous Statistics in Lagos

• Classified as one of the dirtiest city in

the world .

• Generates about 11,000 metric tonnes

(400 trailer loads) of waste daily i.e.

0.65kg/person/day

• Plans to progressively increase its

annual recycling rate from the 18%

(2011) to 60% in 2025.

Government Actions

• Increased percentage of

monthly state recurrent

expenditure on waste

management from 2.5% in

2005 to 12% in 2011.

• Introducing recycling banks

to collect glass, paper and

plastics in selected

communities across the city.

• There are also future plans

under the Basel Convention

to introduce recycling banks

for the collection of

electrical items in the near

future.

Improvement

• New waste disposal/collection trucks

with reduced fuel consumption of 30%.

• Improved turn around time of

collection trucks

• Reduced road traffic congestion

• Now the largest producer of compost in

Africa, converting 600tonnes of waste

to compost(organic fertilizer) per day

reducing significantly the importation

of fertilizer in Nigeria.

Source: Lagos State Waste Management Authority

PwCSeptember 2015

Mineral DepositsLagos state has a number of mineral resources



Silica Sand/ Glass sandUses: Glass Industries: windows, gars and bottlesLocation: Badagry, Eti- Osa, Ibeju-Lekki

PineappleUses: Food, drinksLocation: Ojo, Alimosho, Badagry

BitumenUses: Fuel oil, diesel, asphalt, sulphur, ammonia Location: Epe

ClayUses: Ceramics, sanitary ware, insulators, burnt bricks, china ware, tiles, roofing sheetsLocation: Ikeja, Ikorodu

RiceUses: Food, cake, alcoholicsLocation: Itoikin, Lekki, Epe And Eti-Osateka

MaizeUses: Corn Flakes, CustardLocation: Badagry, Epe

Source: Lagos State Government

PwCSeptember 2015

Investment OpportunitiesSection 4


PwCSeptember 2015

Investment Opportunities in Lagos StateLagos has numerous investment prospects with desirable rewards


Section 4 – Investment Opportunities

Real Estate E-CommercePowerRetail

• Increasing demand for electricity.

• Inadequate supply to meet demand

• High returns on investment with minimal risk

• Large and rapidly growing population

• Housing unit deficit• Relatively low

investment risk

• Increasing demand for consumer goods

• Rising income level of consumers

• High level of internet penetration

• Increasing online purchases

• Viable and tested market

Transport

• Inadequate transport network

• Low transport capacity to cater for the current population

Waste Management

• Huge quantity of waste generated

• Untapped market with high potential for profitability

Entertainment

• Third largest movie producer in the world

• Available supporting facilities for ease of set up

city of opportunity in Africa in 2015

7th

2nd Most visited city in Africa in 2013

Economic Hub of West Africa

Source: Master Card Index

Health

• Increasing awareness of health services

• Huge market to be covered

PwCSeptember 2015

Real EstateLagos is experiencing a huge boom in population and as such requires more housing



Lagos accounts for over 22.5% of all real estate activities in Nigeria

Urban Population of 20%

73% of households live in one-room

apartment

Housing deficit of 5 million units

Housing Demand is growing at 20%

annually

Real Estate contributes 2% to

Lagos GDP

80% of households live in rented apartments

Key Drivers

• Increasing population with annual growth of 3.2%

• The Nigerian Mortgage Re-financing Company is providing

increased access to liquidity and long-term funds.

• The Federal government has made $300 million available to

support real estate development.

Source: National Bureau of Statistics, Lagos State Government, International Federation for Housing & Planning

PwCSeptember 2015

Real EstateLagos real estate is relatively unsaturated, this makes it an attractive investment destination



Source: Nigerian Real Estate Market Outlook 2015, Knight Frank Africa report 2015, OECD

Current Situation in Real Estate

Housing deficit 5 million units

Housing demand 20% growth/ annum

Av. Population growth Over 1,500 people/day

Influx of Expatriates About 10,000/annum

Growth of malls 1- 13 malls within 9years

Contribution to mortgage

2.5% of monthly wage

Recent development 72 houses built to meet demand for low cost housing

Investing in Residential Housing• A substantial percentage of every individuals’

wage is contributed to a fund controlled by the Federal Mortgage Bank of Nigeria to provide mortgages to low-income families and to support the development of low cost homes. The recently completed low cost residential houses in the state has further emphasized this opportunity, as more people are now able to afford a mortgaged home.

• With the high Influx of expatriates, over 1,200 luxury houses are in demand. Upon construction, apartments are immediately rented due to demand and citizens ability to pay. Also, the rising middle class will further amplify the current state of demand.

Key Players

Investing in Malls

• The annual growth in the retail sector of 7.4% has had an implicit effect on the high demand of modern malls. The Palms Lekki mall has expanded to about double its current size to meet the current situation.

Investing in Office Buildings• Lagos being the economic hub of

West Africa houses the headquarters of over 90% of companies in Nigeria , this shows the need for construction of office space to meet current demand.

Key PlayersKey Players

PwCSeptember 2015

Real EstateLagos State real estate market has an average return on investment of 30%



Source: Actis, PwC Analysis, A.T. Kearney

Low cost housingRequired Investment per housing unit$30,000-$60,000ROI: 6% - 9%Rental yield: 8%Payback Period: 14 years

Opportunities Return Rating

1 Low cost housing

2 Luxury Housing

3 Malls/ Retail Stores

4 Office/ Commercial housingLuxury housingRequired Investment per housing unit$150,000-$2,000,000ROI: 34% - 36%Rental yield: 8%Payback Period: 3 years

Malls/ Retail storesRequired Investment per m2

$3,500 - $5,000ROI: 13% - 16%Rental yield: 11%Payback Period: 6 years

Office/ Commercial HousingRequired Investment per m2

$4,000 - $5,000Average ROI: 14% - 18% Rental yield: 10%Payback Period: 6 years

*Land and building materials account for 54% of investment required

Low returnModerate return

High return

ReturnIn

vest

men

t R

equi

red

Low High

1

4

2

3

PwCSeptember 2015

Real Estate The level of risk associated with real estate investments is relatively low

Risks Risk Rating

1 Property Legislation

2 Tenancy



Property Legislation• Land titles are prone to political interference due to the vast powers of

governors over state land allocation. 65% - 70% of land is still held under customary title ownership and rights for land are vested in the office of the Governor of Lagos state..

Tenancy• Foreclosure laws are complex in Lagos and would take longer period to

settle tenants’ default. The implication of this is that the developer would not recover full investment in a situation of tenants default .

Low riskModerate risk

High risk

Source: Global Property Guide

Financial impact

Like

lihoo

d

1

Low High

2

PwCSeptember 2015

RetailLagos state retailing industry is growing rapidly



8%

Source: Business Day, Lagos State Government

Wholesale & Retail is one out of the seven sectors that emerged as a major driver of Lagos Economy contributing over 8% to Lagos GDP

+ + =Large and

growing urban population of

20%

Increased consumer

spending to $933 per capita

Increasing household

consumption to $699 per capita

Increased profitability

PwCSeptember 2015

RetailAverage household spending on household appliances was three times higher in Lagos than elsewhere in the country in 2013.



Source: BMI Research, Financial Times, Statista, Trading Economics

Current Situation in Retail

Growth potential $40 billion in food & consumer goods

Consumer spending 230% increase by 2030

Population growth 3.2% per annum

Growth of malls 1- 13 malls within 9years

Mall Visits Average 700,000 persons/month

Store sales 19% growth year on year (2013)

Spending per capita $933 (34% increasefrom 2009)

Investing in Supermarkets• The impulse for modern supermarkets rising

with a need to meet the demand of the growing population.

• The consumer spending is projected to exceed $45.6 billion by 2030 having a multiplier effect that would lead to opening of more supermarkets to satisfy demand. Large retail outlets and departmental stores are to be set-up to capture this growth.

Key Players

Investing in Restaurants/ Food Retail• Consumers in Lagos are demanding

convenience which supermarkets can take advantage of by increasing their ready to eat food items in their fresh foods departments.

• There can also be an establishment of quick-service restaurants to close supply-demand gap as consumer spending per capita has increased over the years.

Investing in Clothing retail• Lagos is home to high-end and

low-end clothing retail. The development of more malls have prompted the start-up and expansion of clothing retail


PwCSeptember 2015

RetailThe expansion in retail space is necessitated by the need to care for the cravings of the emerging middle class



Source:: Annual Reports, BMI

Restaurants/ Food Retail Required Investment $5 million-$10 millionROI: 21% - 28%Payback Period: 4 years

Mass Grocery RetailRequired Investment$20 million - $25 millionROI:32% - 35%Payback Period: 3 years


1 Mass Grocery Retail

2 Food

3 Clothing Retail

Clothing RetailRequired Investment $50,000 - $60,000ROI : 18% - 21%Payback Period: 5 years

Investment required is made up of amount spent on up-front rental payments plus cost of initial inventoryRent per annum ranges from $500 - $800 per m2


High return

1

2

ReturnIn

vest

men

tR

equi

red

Low High

3

PwCSeptember 2015

RetailThe risk associated with Lagos retail industry is relatively low

Risks Risk Rating

1 Regulatory Changes

2 Distribution or Supply Failure

3 Increasing competition

4 Commodity Price



Regulatory changes• The legal framework affecting retail businesses is subject to change by

regulatory bodies and this might affect the operation of the business.

Distribution or supply failure• A major risk is attributable to the incompetence of suppliers to buffer up

inventory level to meet required sales volume.

Increasing competition• The steady increasing interest in Lagos from a variety of foreign brands

has tightened market competition, there is risk of early market saturation

Commodity price• The prices of goods might be subject to union regulations thus setting a

limit on enterprise internal price control


High risk

Financial impact

Like

lihoo

d

1

Low High

2

3

4

PwCSeptember 2015

E-commerceLagos e-commerce is the next frontier for the emerging markets



Source: Company Reports, Business Day

Key Drivers

• Internet penetration of 60% of population in Lagos

• Increased online shopping awareness

• Increased internet broadband speed – 6mps

• Improved logistics and transport system in Lagos

• Literacy rate of 92%

Online shopping has increased from 15% to 63% of Internet users in Lagos

60% of online shopping is done through mobile phones

Consumer Online expenditure is projected to be $297 million by 2018 which is two times its current size

High literacy rate of 92% in Lagos is a solid basis for ecommerce business to thrive in an emerging market

In Lagos state, 3 out of 5 people use the internet. This is directly related to number of potential consumers in E-commerce

Key Players

Industry Highlight

PwCSeptember 2015

E-commerceOnline shopping is an unstoppable wave in the evolution of retail in Lagos



Source: Online Shopping Report, NCC

Current Situation in E-commerce

Internet Penetration 3 out of 5 people use the internet

Literacy rate 92% of population

Industry growth 25%/annum

Online expenditure $297 million by 2018

Online shopping awareness

63% of internet users now shop online

Online Visits 70,000 persons daily

Top purchase 1 in every 2 online purchase is clothing &household appliances

Investing in Online store• The growth in consumer expenditure is

expected to double its current size. This indicates the demand gap to be covered by establishment of more online stores. The necessary platforms are available to support the efficient running of online stores ranging from warehouse space to effective logistics.Key Players

Investing in Online booking services • The support service of e-commerce

general merchandise includes logistics and delivery, the growing merchandise business has had a causative effect and thus creates the need for logistics services in order to aid faster delivery.

Investing in Logistics/ Delivery system• Lagos being a megacity attracts over

1 million tourists annually. These tourists are in need of accommodation and navigation around the city. The creation of an online service for hotel and travel bookings is needed as there is a large market gap to be covered in providing such e-commerce services.


PwCSeptember 2015

E-commerceThe returns made on e-commerce businesses is encouraging with an average ROI of 13%



Source:: Annual Reports, BMI

General MerchandiseRequired Investment$30 million - $50 million

• Cost of lease/ purchase of warehouse• Cost of inventory • Cost of website development including labour

ROI:7% - 9%Payback Period: 11 years

LogisticsRequired Investment $1 million - $2 million

• Cost of purchase of motorcycles• Cost of office set-up; rent inclusive

ROI: 14% - 18%Payback Period: 6 years


1 General Merchandise

2 Logistics

3 Travel, Vacation & Hotel Bookings

12

Travel, Vacation & Hotel BookingsRequired Investment $0.5 million - $1 million

• Cost of license• Insurance cost for customers’ financial

protectionROI : 14% - 21%Payback Period: 5 years

3


High return

ReturnIn

vest

men

tR

equi

red

Low High

PwCSeptember 2015

E-commerceE-commerce business in Lagos can be moderately risky

Risks Risk Rating

1 Dependence on ISP

2 Credit card Fraud

3 Intellectual property flight

4 Customer distrust



Dependence on ISP• The risk involved that there could be major network downtime

which might reduce customer online purchase

Credit card fraud• Online crime poses a risk to e-commerce in Lagos, customers

personal banking details could be stolen and thus lead to litigation against the business

Intellectual property flight• This is the risk that employee involved in the business would

move to a competitor

Customer distrust• The online business in Lagos is still marred by distrust due to

the fact that the early starters and market leaders have over time provided customers with reasons to distrust e-commerce due to non-delivery, sub standard product delivery


High risk

3

21

4

Return

Inve

stm

ent

Req

uire

dLow High

PwCSeptember 2015

PowerLagos has a high demand for power that out-ways its supply



19.50%

80.50%

Supply*Demand

Supply(MW)

National grid 1000Egbin 730 AES 170IPP 48Renewable* 5Total 1,953

Lagos Energy Demand Outstrips Supply

*Only solar considered

Source: Nigeria Electricity Regulatory Commission (NERC),, Public Information, PwC Analysis, BMI

Key Drivers

• Increase in demand for power due to rising population of 3.2%annually

• Inadequate supply of power from generating companies (GENCO’s) as a result of their inability to generate enough capacity

• Inadequate and low capacity transmission lines which is responsible for about 20% of energy lost during transmission

Industry Highlights

Power Demand ( Current): 5, 000 MW (2015)

Projected Demand: 10, 0000 MW (2020)

Power Supply (Available): 1,953MWMW

AES energy (USA) $225 million and $407.3 million Korea Electric Power Corporation (KEPCO) investment in the sector

Dangote Group has invested about $12 billion in the construction of refinery/petrochemical complex (Largest in the world)

PwCSeptember 2015

PowerLagos state is still in need of over 8,000MW of electricity



Current Situation in PowerPower supply 2,000MW

Power demand 10,000MW

Electricity consumption per capita

800MJ/inhabitant

Proportion of households with access to electricity

40%

Energy lost through transmission

20%

Recent improvements The current IPPs have produced a combined capacity of about 48MW (2015)

Investing in Generation• As population of Lagos State grows

exponentially, energy demand is climbing to new heights. The existing IPPs have a combined capacity of about 48MW, a sharp contrast to the estimated 10,000MW requirement for the state.

• Lagos offshore wind (Lekki axis) has potential for harvesting strong wind energy throughout the year (Average of 4.7m/s at 30m height) and the solar radiation, 4.8KWh/m2/day can also be harnessed for solar power generation

Key Players

Investing in Transmission• The existing transmission lines are of low

capacity and old and about 20% of energy is lost during transmission. This has implicit effect on power demand by Lagos residents.

• The proposed unbundling and sale of Transmission Company of Nigeria (TCN) to interested private investors presents a huge opportunity for investment

Investing in Distribution• The existing transformers are over

loaded and not adequate with just only 15% being able to supply for its rural electrification programme over the years

• The distribution companies are servicing only 26% of its population

Key PlayerKey Players

PwCSeptember 2015

PowerThe return on investment in power ranges from 10% to 35%



Source: Nigeria Electricity Regulatory Commission, PwC Analysis

• Average investment required: $ 400 million - $500 million

• ROI : 25% - 30%• Payback period of 5 years• 52% of the investment required would be spent on

transmission cable accessories, fuse and insulators

Gas power plant• Average investment required per KWh is $65,000 -

$80,000 • ROI: 30% - 35%• Payback period: 5 years• 60% of the investment required would be spent during

the construction period

• Average investment required: $150 million - $200 million

• ROI: 10% - 20% • Payback period: 5 years• 45% of the investment fund would be spent on

transformers, mini-substations and switch gears


1 Generation

2 Transmission

3 Distribution

Renewables• Capacity: 400MW offshore wind power • Required Investment per KWh is $6,000 -$10,000• ROI: 18% - 25%• Capacity: 125KVA solar plant• Average investment required:$1.5million -$2.8million• ROI: 20% - 25% with payback period of 10 years• 75% of the cost would be for turbines or solar panels

Transmission

Distribution

Generation

2

1

3

Return

Inve

stm

ent

Req

uire

d

Low High


High return

PwCSeptember 2015

Power The level of risk associated with power investments is relatively high



Gas supplyOne of the main challenges currently faced by generating companies is insufficient gas supply. Energy companies are reluctant to incur large investment costs unless a cost-reflective tariff is put in place.

Transmission lossesTransmission loss is currently a major challenge. About 20% of energy is lost through transmission due low capacity of transmission cables

Revenue generationThis also constitute a risk to investors as many customers are not wiling to pay for electricity being used and many carry out illegal connection that indirectly affect the investor’s return

VandalismIllegal destruction of gas pipelines and other power generating equipment is a risk that an investor may likely to contend with

Risks Risk Rating

1 Gas supply

2 Transmission losses

3 Revenue generation

4 Vandalism


High risk

1

32

4

ReturnIn

vest

men

tR

equi

red

Low High

PwCSeptember 2015

TransportLagos State transport system provides efficient conveyance for goods and services



Source: Business Monitor International (BMI)

Industry Highlights

• Lagos airport accounts for about 83% of international flight arrivals in the country

• Lagos freight traffic is projected to increase by 10-14 times over the next 30 years

• Lagos port accounts for about 70% of total cargo freight into the country and its forecast t have a real growth of 5.3% in the next 4 years

• Lagos rail transit is forecast to have a real growth of 110% in the first 8years and an annualized growth of 9.8%

• Lagos has a high end transportation service , called Uber transport system that moves riders from one location to another in a more comfy and luxurious atmosphere

• Lekki deep seaport estimated to cost $1.6 billion which could be the gateway to West Africa market, is being constructed to decongest Apapa port and Tin can island

• Ropeways Transport Limited investment of about $275 million in cable cars project to cover about 12.8km

Key Drivers

• Freight congestion of Apapa terminal (the busiest port terminal in West Africa) as well as increasing demand for consumer goods through Lagos ports

• Projected air freight traffic and increasing demand for additional domestic airports, heliports and helipads in fast growing areas such as Lekki and the Badagry axis

• Ever growing population and increasing demand for reliable and efficient public transport system

PwCSeptember 2015

Transport There is a need for improvement in transportation as the population of the state continues to grow



Current Situation in Transport

Total traffic passenger 7 million passenger trips/day

Road network density 0.6km/1000 population

Projected freight traffic forecast

increase by 10-14 times over the next 30 years

Projected rail transit forecast

110% in the first 8years and an annualized growth of 9.8%

Total of cargo freight into the country

70% and forecast real growth of 5.3% in the next 4 years

Recent development Stimulation of private sector investment in ferry services

Investing in Bus Rapid Transit• The existing BRT system serves about

200,000 passengers daily which accounts for about 3% of total daily road users in the state. Passenger demand for BRT has thus, surpassed the available buses and it is estimated that over 300 buses would be needed to fully satisfy the demand.

• The road network density of 0.6km per 1000 population is low by the standard of other mega cities and increase volume of vehicular movement demands for the provision of a corresponding high number of functional road infrastructures.

Key Players

Investing in Rail

• The existing roads are very overcrowded with Lagos residents spending up to 6 hours of their work day commuting in heavy traffic and this drives the need for construction of 193km inter-modal light rail system across 5 corridors in the state

Investing in Ferry Services• Lagos is covered by 1/5th of

water but just only 10% of the population use it to get around the city on a daily basis

• Opportunity exist for ferry shuttles between Lagos Island and the Mainland as well as within the riverine areas

Key PlayerKey Players

PwCSeptember 2015

TransportThe return on investment in transport ranges from 12% to 35%



Rail Transport• Average required investment cost per km: $70 million -

$100 million• ROI : 30% - 35%• Payback period of 5 years• Construction and finance cost would account for 60%

Road Transport (Bus Rapid Transit)• Average required investment cost per km: $2 million -

$12 million*• ROI: 12% - 22%• Payback period: 5 years• The cost the buses and stations would account for 65%

Cable Cars• Average required investment cost per km: $70 million -

$100 million • ROI: 15% - 22%• Payback period: 5 years• Construction and finance cost would account for 60%

*Depending on the capacity of the BRT (Low , medium or high)



1 BRT

2 Cable car project

3 Rail

2

1

3

Return

Inve

stm

ent

Req

uire

d

Low High


High return

PwCSeptember 2015

TransportThe level of risk associated with transport investments is relatively low



Risks Risk Rating

1 Road infrastructure

2 Traffic congestion

Road infrastructure There is an estimated 100 people moving to Lagos daily, road infrastructure is not adequate to support the growing population and this is a risk that an investor would need to contend with in other not to affect his business

Traffic congestionLagos is famous for its traffic gridlock with more than 240 vehicles per km compared to a national average of 11 vehicles per km. The roads are not enough and this may affect the ridership of cars and buses

1

2

Return

Inve

stm

ent

Req

uire

d

Low High


High risk

PwCSeptember 2015

HealthLagos has the highest number of healthcare uptake in Nigeria



Industry Highlights

• Lagos has 291 public healthcare facilities and 2,071 private healthcare facilitieswhich constitute about 7% of the healthcare facilities in the country (2012)

• Health insurance penetration rate has increased from 0.43% in 2005 to about 3.46% in 2014.

• Lagos has the strongest awareness and highest number of insurance users in Nigeria

• Lagos informal sector has the highest number of non-insurance users (63%) while the formal sector accounts for about 15% (2013)

• Lagos boasts of fattest growing 4 million middle class house holds with increasing purchasing power

• Regulation on Group Life insurance has given a boost for investors confidence in life insurance in the state

• Access to improved drinking water source in Lagos State is about 73.5% (2011) while access to improved sanitation is 62.1% (2011)

Key Drivers

• Increasing demand for healthcare due to large population

• Shortage of good quality physicians and low insurance penetration

• Assent of the health bill at both state and federal level which mandates the scheme for all residents in both formal and informal sectors

• Rising consumer incomes and a corresponding ability to purchase health care

PwCSeptember 2015

HealthLagos health sector presents a growing and untapped market opportunity for many investors



Current Situation in Health

Infant Mortality Rate 75/1,000 live births

Non-health insurance users

Informal sector is 63%and formal sector 15% (2013)

Health penetration rate

Increased from 0.43% in 2005 to about 3.46% in 2014.

Public health workers Doctors-1,265, Nurses-3,372, Pharmacists-209

Private health workers Doctors-1,342, Nurses-2,134, Pharmacists-47

Recent development Assent of the health insurance bill which mandates the scheme for all residents in both formal and informal sectors in the state

Investing in Health Financing Entities

• Given Lagos enormous population, growing middle class (20% of the population) and huge potential upside, health financing entities such as health management organizations (HMOs), medical plans and insurance companies are relatively underdeveloped

• Health insurance penetration is still very low (3.46% in 2014) despite witnessing an upturn in the number of users compared to other mega cities peers such as New York and Texas which had a penetration of 33.6%% and 18.4% respectively in 2013.

Key Players

Investing in Diagnostic Centres

• Given the increasing demand for health services such as diagnostic treatment and care, including large facilities that use cutting-edge technology, growth opportunities exist throughout the spectrum of health service providers

Investing in Pharmaceuticals

• The existing manufacturers of pharmaceuticals, medical supplies, medical equipment, and biosciences are not adequate in the state due to its population exploding growth


PwCSeptember 2015

Health The return on investment in the health sector ranges from 10% to 32%



• Average required investment: $50 million - $373 million• ROI: 10% - 18%• Payback period: 1 years• The cost of managing the various health service

providers would account for about 40% of the total amount needed for the project


1 Manufacturing2 Hospitals

3 Health insurance

• Average required investment : $50million - $ 150 million• ROI: 15% - 22%• Payback period: 4 years• Land, medical equipment and people would take 52% of

the total amount needed for the project

• Required investment : $ 67 million - $ 139 million• ROI: 15% - 32%• Payback period: 5 years• The cost of property, plant and equipment would account

for about 62% of the total amount needed for the project

2 1

3

Return

Inve

stm

ent

Req

uire

d

Low High

Investing in Health Financing Entities

Investing in Pharmaceuticals

Investing in Diagnostic Centres


High return

PwCSeptember 2015

Risks Risk Rating

1 Discontinuation of reforms

2 Human resources

3 Infrastructure

4 Long-term investments

HealthThe level of risk associated with investments in health is relatively moderate



Human resourcesThere is shortage and dearth of qualified staff which is a key determinant in the size, viability, and growth rate of the health sector.

Discontinuation of reformsThe regulator has been a significant force in reshaping the health insurance industry and if the regulator does not follow through inits vigour and push, the industry might not reach its full potential.

InfrastructureThere is no good infrastructure in place to ensure a complete flow among the different value chains in the sector.

Long-term investmentsDue to the nature of the business, many health service providers require long term investments, particularly in the case of equity or project financing for larger organizations such as hospitals. Investors may identify greater risk with longer-term investments

2

13 4

ReturnIn

vest

men

tR

equi

red

Low High


High risk

PwCSeptember 2015

EntertainmentLagos is the premium destination to experience entertainment in Nigeria



Key Drivers

• A large and growing population of about 21million contributes greatly to the increasing demand for entertainment facilities in the state.

• Nollywood is the 2ndlargest film producer in the world after Bollywood in India producing 50 movies/week due to the relatively cheap cost of movie production.

• The Nigerian film industry is estimated to have an annual revenue of $590million due its growing global audience.

• A significant number of movies released in recent times are high-budget films leaving the cinemas with more movie premieres and fresh offerings that will sustain patronage of the cinema houses across the state.

Source: Master Card Global Index, Business Day News paper

Lagos is a city of aquatic splendour with 0ver a dozen beaches and resorts for relaxation and recreation.

The National museum described as a place where history comes to life contains one of the largest collection of art that showcases the rich culture of Nigeria.

Lagos has a National theatre that houses the largest drum in Africa which is also the venue for the second world black and African festival of arts and culture.

The music industry of Nigeria is the most

dominant in Africa producing over 550albums yearly with most of the key performers based in Lagos

Key Highlights

PwCSeptember 2015

EntertainmentLagos has ample opportunities for investment in the entertainment industry



Source: The punch News paper, Nollywood

Current Situation in EntertainmentAnnual revenue of Film industry

$590 million

Film production 50 movies/week

Music Industry 550 albums/annum

Number of cinema/screen

5 cinema/ 30 screens

Number of Amusement parks

<5

Number of Beaches and Resorts

>12

• Nollywood is the second largest producer of movies in the world larger than Hollywood in US with Lagos being its centre of production and distribution. However, the viewer ship of these movies have been greatly hindered by the few number of cinemas in the state.

• Lagos is currently undersupplied with over 500,000 people/screen although Silverbird, with chains in West Africa continue to expand with over 10 cinemas and 50 screens across the country. A one-stop entertainment centre comprising of a cinema and a shopping mall can be built to maximize profitability through a synergy effect.

Investing in Cinema

Key Players

Key Player

Investing in Beaches and Amusement parks• Lagos attracted over 2 million visitors

in 2013 (Master Card Index). This can be utilized through the development of the beaches by providing accommodation facilities such as romantic get away & sporting activities for holiday lovers and tourists

• Lagos has a growing need for amusement parks and the government is currently encouraging foreign investors to partner with them in reducing the demand gap.

Investing in Film Production and Distribution• The improving distribution structure of movies in

Lagos will play a significant role in driving its box office revenue from its current US$103 million (2014) to its potential size of US$207 million (2019). A number of movie producers are opting to distribute their content through digital channels leaving an opening for set up of more distribution companies.

• The Nigerian film industry revenue is in excess of $500 million/annum well above South Africa’s total output of $370 billion. Although the production of movies is relatively cheap ($25,000 - $70,000),production of high quality movies is on the rise with increasing potential for profitability.

Key Players

PwCSeptember 2015

EntertainmentThe average return on investment is 18%




1 Cinema and mall

2 Film production

3 Beaches and Amusement Parks

Cinema Investment required: $1million -$1.5million Spent largely on building the cinema and establishing the screens.ROI: 12%Payback period: 8years

Film Production

Investment Required for film production;Low budget: $25,000 -$70,000 High budget: $100,000- $250,000Spent largely on equipment for filmingROI- 20% - 40% Pay back period: <1 year

Beaches & ResortsInvestment required: $ 200,000 - $ 300,000Spent largely on the development costROI: 8% - 10%Payback period: 10 years


Return

Inve

stm

ent

Req

uire

d

Low High


High return

1

2

3

PwCSeptember 2015

EntertainmentThe level of risk associated with entertainment investments is relatively moderate

Risks Risk Rating

1 Piracy

2 Patronage



Piracy• The World Bank estimates that for every legitimate copy of movies sold by

the Nigerian film industry, nine others are pirated.

• The Nigerian Copyright Commission (NCC) estimates that the Nigerian film industry is losing over $1 billion annually to piracy.

Patronage• People are more willing to view movies online for free than pay a fee, this

poses a risk of cost recovery with increasing internet penetration.• Lagos residents are cautious in using payment platforms online due to

weak internet security.


High risk

Source: Nigerian Copyright commission

Financial impact

Like

lihoo

d

1

Low High

2

PwCSeptember 2015

Waste ManagementLagos State generates the largest amount of waste in the country



Source: Lagos State Waste Management Authority

Key Drivers• The growing population of the state generates a huge amount of

waste to be recycled (about 17%of the total waste generated in the country).

• Only a small percentage of waste is currently being recycled (18%), this leaves a large market to be penetrated.

• Increasing awareness of residents on waste management procedures such a as the separation of waste through deployment of about 1,000recycling banks in the state by the waste management authority.

• About 60% of the waste generated in Lagos remain uncollected.

Estimated to provide 500,000 jobs

Generates 11,000 metric tonnes of waste daily

Largest producer of compost in Africa converting 600 tonnes of waste into compost.

Over 50% of the waste generated in the state(biodegradable waste) can be used for composting

Projected population to be over 30million in 2025 with o.5kg-0.65kg of waste generated /person/day

Government plans to progressively increase waste processing capacity from 18% in 2011 to 60%in 2025

Key Highlights

PwCSeptember 2015

Waste ManagementThe state continues to adopt the waste to wealth strategy



Source: Lagos State Waste Management Authority, The Punch News paper, Business Day Online

Current Situation in Waste Management

Waste generated 11, 000 tonnes/ day

Waste per capita 0.65kg/person/day

Current recycling capacity

18%

Recyclable waste 25%

Waste collection 40% of waste generated

Waste Recycling

Waste to Energy

Waste Composting Waste Collection• A huge amount of waste is

generated in the state of which a quarter of it can be recycled. Lagos state currently has a recycling capacity of about 18% with the potential to reach 60% in 2025. An integrated recycling plant to recycle plastic, Paper, glass and metals is needed to arrive at its full recycling potential.

• E-waste in the state amounts to over 50,000 tonnes. The State has a disposal site covering over 2 acres of land for the collection this waste.

Key Players

Key Player

Key PlayersKey Player

• The state has plans to generate 50MW of electricity from waste by capturing gas at waste disposal sites. This will be done at the two major land fills of the state one of which receives about 40% of the waste disposed in the state with a potential to generate 25MW-30MW of electricity. The state has currently been able to generate 5MW of electricity through partnership and seeks to improve on this with further investments.

• Lagos being the largest producer of compost in Africa converts 600 tonnes of waste into compost daily. Of the waste generated in the state, organic waste is over 50% with only 10% of this currently being recycled. The current plant converts 850 metric tonnes to 250bags of 25kg each to fertilizer daily. The country is estimated to require 50 million tonnes of waste yearly with less than 10 million being supplied. The fertilizer generated can be sold within the country to a large market of local farmers.

• Lagos state requires about 800 waste collection trucks for efficient transport of refuse. The state currently operates less than 500 trucks with the input of local companies. This leaves a shortfall of over 300 trucks.

PwCSeptember 2015

Waste ManagementThe average return on investment is 30%




1 Waste Recycling

2 Waste to Energy

3 Waste Composting

4 Waste Collection

Waste CompostingInvestment Required: About $20 millionSpent largely on construction of compost plantROI: over 30% Payback period: 10 years

Waste RecyclingInvestment Required:• About $12,500 (small scale) • Over $50,000 (large scale)Spent largely on setting up the recycling plantROI: Over 30% Payback Period: 3 years

Waste CollectionInvestment Required: $150,000/unit of collection truck ROI: 10% - 15%Payback period: 10 years

Waste to EnergyInvestment Required: $15million - $ 20 million ROI: over 30%Payback Period: 3 years


Return

Inve

stm

ent

Req

uire

d

Low High

1

23

4


High return

PwCSeptember 2015

Waste Management The level of risk associated with waste management investments is relatively low

Risks Risk Rating

1 Fluctuating international prices

2 Government regulations



Fluctuating International price• China the largest importer of waste reduced its importation by 11.2% in

2013 as compared to the previous year. This reduction in demand of waste led to a reduction it the overall international prices of waste.

Government Regulation• All investors are required to partner with the Lagos State Waste

Management Authority (LAWMA) to conduct business in the waste management sector.


High risk

Financial impact

Like

lihoo

d

1

Low High

2

PwCSeptember 2015

Investment IncentivesSection 5


PwCSeptember 2015

Introduction

In creating a conducive business environment, the Lagos State government has put in place a wide range of fiscal incentives. Some of the main incentives are import concessions, tax exemption for exported products and tax reductions for qualifying companies


Section 5 – Investment Incentives

Trade Incentives & TaxLagos State has a robust tax system coupled with favourable trade incentives

5

30%

Real Estate Retail E-commerce

Power Transport

Entertainment

Health

@

Source: Pwc Data Card 2015, NIPC Act

Waste Management

Companies Income Tax (CIT)

All companies are to pay taxes to the Federal Inland

Revenue Service

The Nigerian Investment Promotion Commission (NIPC) allows 100% foreign ownership of business in any sector

PwCSeptember 2015

Trade Incentives & TaxOther taxes payable in Lagos State include:



5

2%

Education Tax (ET)

IT Taxes are paid by companies with turnover of above $500,000

Withholding Tax (WHT) Value Added Tax (VAT)

Capital Gains Tax (CGT) Information Technology Tax (IT Tax)

5

10%

5

10%5

5%

5

1%

PwCSeptember 2015

Sectorial IncentivesCompanies that take advantage of the incentives will be able to set up proper structures….

Sector Trade Incentives Tax Regulatory Bodies

Real Estate Lagos State is willing to offer these incentives to encourage investment inthe housing sector:• Subsidizing statutory fees for PPP participants• Fast-tracking the issuance of land titles, to enable investors obtain

funding quickerTax related incentives also include:• Zero tax on rental income during pioneer period• Pioneer status incentive when certainrequirements are met.• Capital gains from property disposed within 3-5 years is not subject to

tax

• CGT – 10% • WHT- 10% • Stamp duties –

2%• Property levy :-Residential – 0.5%-Malls – 1.25%-Industrial – 0.5%

• Federal Ministry of Lands,Housing and Urban Development

• Federal Housing Authority• Lagos State Real Estate

Transaction Department• Real estate Developers

Association of Nigeria• Nigerian Institute of Estate

Surveyors and Valuers

Retail Tax related incentives include:• Exemption from capital gains tax on disposal of assets• Zero VAT on basic food items

• CIT - 30%• ET - 2%• WHT - 10%

• Standard Organisation of Nigeria

• National Agency for Food and Drug Administration and Control

E-commerce Tax related incentives include:• 50% reduction in WHT on dividends payable to an investor in Venture

project company• Capital allowance of 100% spread over 5 years• Zero capital gains tax on capital disposal within 5 years

• CIT - 30%• ET - 2%• Custom duties -

5 %-75%

• National Information Technology Development Agency

• National Electronic Commerce Council

Power There is up-front funding in form of capital subsidies to cover part of the initial capital cost by the Nigeria Gap Fund for PPPTax incentives also include:• Zero duty on purchase of power generation equipment• 20% capital allowance for 5 years• Tax holiday of 5-7 years granted to companies that manufacture

transformers, meters, control panels, switchgears, cable and other electrical related equipment.

• CIT - 30%• ET - 2%• WHT - 10%

• Nigerian Electricity Regulatory Commission

• Federal Ministry of Power• Lagos State Electricity Board



Source: NIPC Act, Lagos State investors handbook, Venture Capital Incentives Act

PwCSeptember 2015

Sectorial Incentives……to enable them accomplish their objectives as early as possible

Sector Trade Incentives Tax Regulatory Bodies

Transport Lagos State government is willing to enter into a PPP arrangement in the operation of water transportationTax related incentives also includes:• Initial capital allowance of 30% on purchase of vehicles• Restriction of tax charged for shipping and airline companies to activities

carried out in Nigeria• Tax holiday of 5-7 years for ship building, maintenance of vessels,

manufacturing and maintenance of aircraft• Exemption from VAT for commercial vehicles and spare parts purchased

• CIT - 30%• ET - 2%• WHT - 10%

• Lagos MetropolitanTransportation Authority

• National Union of Road Transport Workers

Health Companies involved in the formulation and manufacture of pharmaceuticals qualifies for pioneer status incentive.Tax related incentive includes:• Tax holiday of 3-5 years

• CIT - 30%• ET - 2%• WHT - 10%

• National Agency for Food and Drug Administration and Control

• National Health insurance Scheme

• Nigerian Medical Association• Lagos State Ministry of Health

Entertainment Tax related incentives include:• 25% of income derived from tourism by hotels in convertible currencies will

be exempted from tax• Tax holiday of 3 – 5 years• Import duty exemption on tourism related equipment.• Provision of land for tourism development at concessional rates. • Availability of soft loans with long period of moratorium.

• CIT - 30%• ET - 2%• WHT - 10%

• National Film & Video Censors Board

• Nigerian Copyright Commission• Nigerian Broadcasting

Corporation• Lagos State Ministry of Tourism

and Inter-Governmental Relations

Waste Management

Lagos State government has provided:• Rent free land at construction stage in free zone areas• Repatriation of foreign capital investment with capital appreciation on

investment• Import duty –free raw materials input

• CIT - 30%• ET - 2%• WHT - 10%

• Lagos State Waste Management Authority

• Lagos State Environmental Protection Agency



Source: Pwc Data Card 2015, NIPC Act, Lagos State investors handbook

PwCSeptember 2015

Other General IncentivesAs part of the efforts to provide an enabling environment the government has passed aggressive incentives for investors to benefit

Incentive Details

Lekki Free Trade Zone (LFTZ)

The State Government has obtained approval from NEPZA, for the development of the free trade zone. A minimuminvestment of $500,000 is required byapproved enterprises to operate in the free tradezone.The incentives for LFTZ include:• Exemption from all forms of federal, state and local government taxes, levies and rates.• Duty free import of capital equipment, machinery, raw materials components and spare parts• Freedom from legislative provisions pertaining to taxes, levies, duties and foreign exchange regulations• Up to 100% foreign ownership of businesses• Repatriation of foreign capital investment at any time with capital appreciation of the investment• Unrestricted remittance of profits and dividends earned by foreign investors• No import or export licences required in the zone.

Labour Intensive Mode of Production

Industries with high labour/capital ratio are entitled to tax concessions. • 100 persons – 6% tax concession• 200 persons - 7 % tax concession• 1,000 persons or more - 15% tax concession

SME Incentives • SMEs have a 10% reduction in tax rate to be paid in the first 5 years of commencing business• Dividends from small manufacturing companies are exempted from tax for the first 5 years of business operations.

Pioneer Status • Five-year tax holiday in respect of industries located in economically disadvantaged local government area of the Federation

Research & Development Incentive

• Up to 10% of profits set aside as reserve for Research and Development qualify as allowable expenses• Up to 120% of expenses on Researchand Development are tax deductibleprovided that such research and

development activities are carried out in Nigeria and are connected to the business from which income or profit is derived



Source: Lagos State investors handbook, NIPC Act

PwCSeptember 2015

AppendicesSection 6


PwCSeptember 2015

Key Regulatory Bodies


Section 6 – Appendices

Sector Regulatory Bodies

Manufacturing • Standard Organisation of Nigeria (SON)• National Agency for Food and Drug Administration and Control (NAFDAC)• Federal Environmental Protection Agency (FEPA)• Consumer Protection Council• Pharmacist Council of Nigeria

Financial Services • Central Bank of Nigeria (CBN)• Nigeria Deposit Insurance Corporation (NDIC)• Securities & Exchange Commission• National Insurance Commission (NAICOM)• National Pension Commission (PENCOM)

Transport • Lagos Metropolitan Transportation Authority

Building and Construction • Lagos State Building Control Agency (LASBCA)

Telecommunication • Nigerian Communication Commission (NCC)

Agriculture • Lagos State Agricultural Development Authority

Source: Lagos State Government

PwCSeptember 2015

Index

Term DefinitionApprox. Approximate

°C Degree Centigrade

BRT Bus Rapid Transit

CAC Corporate Affairs Commission

CAGR Compound Annual Growth Rate

CBN Central Bank Nigeria

CGT Capital Gains Tax

CIT Companies Income Tax

Est. Estimated

ET Education Tax

FDI Foreign Direct Investment

FG Federal Government

FIRS Federal Inland Revenue Services

FTZ Free Trade Zone

GBP Great British Pound

GDP Gross Domestic Product

HMO Health Management Organizations

HQ Headquarters

IGR Internally Generated Revenue

IPP Integrated Power Project


Section 6 – Appendices

Term DefinitionITT Information Technology Tax

Km Kilometre

KVA Kilo Volt Ampere

KWh Kilo Watt hour

LAWMA Lagos State Waste Management Authority

LFTZ Lekki Free Trade Zone

LIRS Lagos State Internal Revenue Service

M Metre

M/S Metre per second

MJ Mega Joule

MW Mega Watts

NCC Nigerian Copyright Commission

NIPC Nigerian Investment Promotion Commission

PPP Public Private Partnerships

ROI Return on Investment

TCN Transmission Company of Nigeria

TEU Twenty foot Equivalent Unit

VAT Value Added Tax

VPC Venture Project Company

WHT Withholding Tax

Lagos: City of Opportunities An Investor's Guide

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