Case Studies, Case Studies, Case Studies
I have been feverishly writing case studies for business ethics in Nigeria, meeting with firms and analyzing our survey data. I also had the opportunity to meet with and interview several associates in the Central Africa office of the firm I will be working for full-time back in the states.
LEAP is working on a cutting-edge initiative called Nigeria 2025 (Naija Junction) which presents 4 potential future scenarios for Nigeria. The scenarios range from best to worst-case scenario. One scenario is “Jaga-Jaga Republic” where things fall apart, the economy becomes pure resource extraction, malaria and HIV ravage the country and formal government collapses into lawless areas governed by warlords naming their settlements Arewa, Biafra, Oduduwa and Niger Delta. Another scenario is “We Don Win” where Nigeria takes advantage of the high prices of commodities to diversify its economy, GDP growth exceeds 10%, the Niger Delta issue is tackled effectively and Nigeria becomes a model for West Africa and the developing world.
One of the biggest challenges to doing business in Nigeria is the high cost of power. Currently, most business in Lagos utilize private electricity generators 75% of the time because public utilities are unreliable. These generators are very expensive because they are not manufactured in Nigeria and they consume a lot of diesel. There is a great business opportunity if someone can find an innovative way to produce electricity with locally manufactured fuels and electricity generators. The Power Holding Company of Nigeria (formerly NEPA) is a source of national shame. Nigerians say, “How can we be such a rich country, supplying power to neighboring countries and still have such frequent power outages?”
Last weekend, I spent time with some friends from Benue state who speak the Tiv language. We ate bushmeat pepper soup with grass-cutter (cane rat) and alligator accompanied by semovita. Popular beverages in Nigeria are also very different from those drunk in the US. Tonic and bitter lemon drinks with quinine are very popular here because they are thirst-quenching. Drinks with quinine also have the added benefit of being anti-malarial. Malts like Amstel Malta and Maltina are popular with the mass market as drinks that signal status especially among ladies who don’t drink alcohol. Blackcurrant drinks like Ribena are also very popular with children and parents because they are nutritious. The high-end of the market in Lagos is starting to drink more Red Bull, Lucozade and other energy drinks during the day as well as mixing Red Bull primarily with red wine in nightclubs.
In my spare time I have been working on a new documentary about a typical Lagosian man who lives in the old abandoned Chinatown in Ikoyi. During the week he sells cell phones, SIMs and recharge cards and he is learning how to play polo on the weekends. Many Lagosians, even those with low income, have 2-3 phones, so telecommunications is a promising business.
Last weekend, a construction vehicle smashed into a pipeline resulting in an explosion that killed over 100 people in the Ijegun neighborhood of Lagos. In light of several natural disasters in Asia, this didn’t get much media coverage, but I was surprised that no one I spoke with back in the states heard about this. Despite major traffic jams, crime and urban planning problems in the city, the leadership here is well respected. At a nightclub in the Yaba neighborhood on the weekend after the blast, University of Lagos students were dancing to songs praising Lagos State Governor Babatunde Fashola singing, “Fashola, he’s the man for the job. He’s good for us. He’s good for Lagos.” Tonight I will meet up with some friends to watch the Manchester United versus Chelsea game. These two teams and Arsenal are the most popular football teams in Nigeria. Thanks for all the comments.