Gov. Babajide Sanwo-Olu of Lagos State says the state plans to attract the right investors to improve its infrastructure.
He told the News Agency of Nigeria (NAN) on the sidelines of the Africa Investment Forum, Market Days 2024, taking place in Rabat, Morocco.
This year’s theme is ‘Leveraging Innovative Partnerships for Scale’.
The forum, running from Dec. 4 to Dec. 6, has attracted thousands of global investors, African business leaders, and government representatives.
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It aims to advance high-impact projects and enhance networking among global leaders in business and development.
Sanwo-Olu said being at the event offered the state government another opportunity to understand investors’ requirements to secure funding for public-private projects.
“In here is a broad spectrum of financial institutions and multilateral agencies that they have been able to put together. What you need is to have the right set of people in the room.
“Once you have the right set of people in the room and you have projects that could be funded by the private sector, by investing public, it will give you the opportunity to understand what they require, what they need.
“What are their appetite? Which growth area they’re looking at. What industry interests them.
“That way, you will be able to quickly actualise your own ideas, your own visions and plans. They become quicker to execute. You probably will not have all the money you need from your yearly budgetary system,” he added.
The governor noted that the state government was unlikely to have all the money needed from local financial institutions.
According to him, sometimes some of the national funders come with long-term cheaper funds that will meet the long-term type of investment that will be required.
“And so, being to an investment like this, we know that over the last six years when it started, they usually take it from just signing ordinary MoU to actually executing; taking it to execution of projects,” he added.
The governor urged investors to immerse themselves in the local environment to understand its realities, noting that while no environment is perfect, engagement helps investors assess and manage risks effectively.
He said it would be hard to get the same large number of investing institutions at the forum at any other one location.
“So, this is an opportunity. And it’s only when you come around that you will understand what they require. The environment will always be dynamic.
“The environment will always be changing, but it’s only when you are with the investors and they understand what your issues are. Then they can take further risks.
“Risk assessment is a function of risk dimension, how you dimension risk, how you allocate risk, and how you’re able to manage those risks.
“That’s what interests investors. And that’s what people usually want to see,” he said.
Sanwo-Olu addressed concerns about divestment, stating that it is a natural part of the investment cycle.
“Money is always fungible. Investors would always go to places where they were needed the most,” he said.
Sanwo-Olu, however, added that divestment was not in itself a bad thing, because people had gone into those investments for a certain quantity expectation of return.
“Once you’ve made some of those returns, they really could divest, but you must always ensure that your environment is attractive enough for new investors to come in.
“So, you don’t expect people to, probably, stay there and to perpetuate their investment forever.
“People will want to move in and go out at times, but you must be able to have a bouquet of options for people.
“For them to always want to come back, and come back to your destination as a preferred destination. You know, that’s what the world is.
“The world has taught us well. We are a global player. So, we all need to oil our game. We all need to step up,” he said.
The Africa Investment Forum has mobilised nearly 180 billion dollars in investment interest since its launch in 2018.
