Opportunities INVESTMENT TRENDS T HIS ISSUE. 2 A New Perspective 4 The Quasi Leverage 5 Investing in Infrastructure 6 What s New?

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1 INVESTMENT TRENDS May, 2010 Volume 1, Issue 1 Opportunities T HIS ISSUE 2 A New Perspective 4 The Quasi Leverage 5 Investing in Infrastructure 6 What s New? Abuja Investments Company Limited 4 Nkwere Street, Garki 2 P. M. B 302 Garki, Abuja +234 (9) info@abujainvestments.com

2 A NEW PERSPECTIVE ~Message from the CEO Abuja, by conception and development, is an ideal city. It is a beautiful, green city that has experienced very rapid development in the last 20 years. What is mainly responsible for this growth is a strong vision of a diverse but unifying city, comparable to the best anywhere in the world, and the emergence of business opportunities across the city. The Federal Capital Territory Administration is driving growth by diversification and liberalization of the local economy as well as increased engagement with the business community as partners for sustainable and aggressive development of city infrastructure. As the private sector arm of the Federal Capital Territory Administration, Abuja Investments Company Limited (AICL) is at the forefront of this drive. AICL is positioned to be a trustworthy and reliable partner of choice for businesses and investors. Utilizing best practices in corporate governance, leveraging off technology, research and development and our capacity to think outside the box ; AICL is taking advantage of a myriad of local and global economic opportunities and at the same time, creating lucrative prospects for all. The future promises further global integration, more robust economies, and new challenges as well as innovative solutions and AICL, in line with its vision of performance as a World Class investment company, is positioned to be a trustworthy and reliable partner of choice for businesses and investors. Yes, we are ready! Dr. Abdu Mukhtar Group Managing Director/Chief Executive Officer Page 2

3 A HOY! We welcome Senator Bala A. Mohammed as he takes on the helm of affairs for the Federal Capital Territory. Senator Bala Mohammed is a distinguished member of the Senate representing Bauchi South Local Government Area. He schooled in North East College of Arts and Science, , and progressed to the University of Maiduguri graduating with BA (Hons) English. Prior to his appointment as FCT Minister, Senator Bala had worked in the public service for over 16 years as an administrator serving in various capacities under the Ministries of Internal Affairs, Solid Minerals, Transportation, Aviation, Power and Steel. Retiring as Director of Administration in the Nigerian Meteorological Agency, he decided to take on a more focal stand in helping his community and served as a Senior Special Assistant to the Bauchi State Governor and was then elected into the upper house of the National Assembly in FCT Minister Senator Bala A. Mohammed As he assumes office, he has indicated his intentions to reform and streamline land acquisition, speed up the development of infrastructure in the districts of the phase 2 and phase 3 areas of Abuja, providing planned, premier real estate for developers and investors and industries. Another area of priority will be the upgrade of existing utility service provision in the Municipal area. As a public administrator in the major sectors of the Nigerian economy, he will be expected to bring favourable leverage to investments in these sectors. His wealth of knowledge and versatile expertise is an invaluable asset to the Federal Capital Territory Administration. Page 3

4 T HE QUASI LEVERAGE -Mohammed S. Ahmed [Office of the CEO]* Established by the Federal Capital Territory Administration (FCTA) in 1994 as Abuja Investments and Property Development Company Limited (AIPDC) the charter of the firm was to serve as a tool for direct government involvement in commercial enterprise while leveraging on the inherent efficiencies and competitiveness of the private sector. In the last five years, the company has consistently increased revenues, achieved profitability after a decade of losses... In the first decade of its existence, AIPDC was largely ineffectual in meeting the purpose of its establishment. The company constituted a drain on the purse of the FCT while adding only marginal socio-economic benefits to the Territory. In 2004, the company began a radical overhaul of its operations, structure and culture. An ethos of private-sector competitiveness, profitoriented attitude and professional service delivery was instilled into the corporate culture. This gave birth to two firms Abuja Investments Company Ltd (AICL) and Abuja Property Development Co. Ltd (APDC) which was structured as a subsidiary firm. The direct results of this transformation have been of immense benefit to AICL and its shareholder the FCTA. In the last five years, the company has consistently increased revenues, achieved profitability after a decade of losses, substantially grown its assets and recorded a turn-around in shareholder funds from a negative position to over N10 billion. The financial performance has been capped by achieving the first dividend payout to the FCTA, amounting to N250 million at the end of the last financial year. Today AICL has emerged as a strong commercial asset holding company serving the needs of the FCTA and the residents of the Federal Capital Territory. The company has led the way in the provision of social infrastructure facilities on a sustainable commercial footing while reducing overall government expenditure through the Public-Private-Partnerships (PPP) and Build-Operate-Transfer (BOT) frameworks. AICL is uniquely positioned to play a central role in facilitating a healthy relationship blending the best of the public and the private sectors, business and social services, the government and the governed. By leveraging on its strategic location at the nexus of the private and public sectors, Abuja Investments is able to provide an extensive range of business services to potential investors in the FCT and beyond. Utilizing its significant competitive advantage in the fields of government relations, business facilitation, equity partnership, advisory services and project management, AICL has become the partner of choice for both local and foreign investors wishing to establish innovative business enterprises within the FCT. Building Global Business Partnerships Page 4

5 I NVESTING IN INFRASTRUCTURE -Mohammed Maikudi [Business Development] * A growing concern that the nation is under-investing in its physical infrastructure has focused attention on the Federal Governments role in creating mediums for the adequate development of National Infrastructure. The fundamental need for solid infrastructure means that governments will find a way to finance infrastructure development investments regardless of economic conditions with the exception of full out depression. Investing in Infrastructure is the way forward Investing in infrastructure in Nigeria and Abuja is the way forward. The penchant for infrastructure investments stems from the fact that infrastructure businesses are the foundation for economic activity, it encompasses fundamental essentials we use everyday: power grids, parking lots, bridges, water utilities, airports, cell phone towers etc. Infrastructure is what one would consider as one of the rudiments that define modern civilisation. The aftermath of the recent earthquake in Haiti highlights the importance of our daily infrastructure necessities. Infrastructure is notoriously difficult to define because it can include such a wide array of physical assets, but likewise, under any definition, infrastructure investments encompasses spending on a variety of projects. Transportation networks and various utilities promote other economic activities: an adequate road, for example, facilitates the transport of goods from one point to another and thereby promotes economic activity; utilities that provide such services as electricity, telecommunications, and waste disposal are also essential to modern economies. We are beginning to witness the emergence of infrastructure as its own asset class. The appeal of infrastructure investments is obvious, high barrier to entry make direct competition difficult; infrastructure assets are also physical and localised, which makes it less susceptible to competition found in other industries as a result of outsourcing and importation of goods cheaper than those produced locally. Because of infrastructure assets are economic necessities, have high predictable revenue streams, and require huge capital expenditures to build, they can provide excellent longterm income with reasonably low volatility, even in emerging markets such as ours. Even as governments become unwilling or unable to fund the annual increase in global demand for infrastructure, the private sector is stepping in to fill the gap, creating growing investment opportunities. Given recent returns in infrastructure, we should expect greater returns to continue coming from investments in the very mechanisms that make a global economy work. Page 5

6 W HAT S NEW? Fairway Estate [Games Village] Abuja Eight luxury penthouse apartments are currently available for off-plan purchase in the Games Village District. For further enquiry please contact: Abdulkarim Musa amusa@abujainvestments.com Real Estate & Infrastructure Dept. The AICL Fairway Estate Lifestyle Leasing Abuja leasing company limited (ALC) introduces the own-easy lifestyle lease products to prospective customers. Our products are designed to enable individuals and corporate organizations procure items such as office equipments (printers, photocopiers, computers, fire proof cabinets), Household appliances (television sets, settees, Home theatres, Air conditioners), vehicles both brand new & used, trucks, pick ups, motorcycle etc, with utmost ease. ALC professionals are readily available to meet with prospective customers to discuss their various needs, because we believe no two customer s needs are the same, we have tailored our services to cater for the unique needs of our customers. Features & benefits of leasing with ALC; Attractive and competitive interest rates Flexible & Convenient repayment plans Unequalled processing time Comprehensive insurance cover on all leased items Competitive interest rates For enquires please call: Page 6

7 Going Global The AICL Brand Launch & Business Expo was held at the International Conference Centre, Abuja on the 26 th of January Having undergone a recent corporate restructuring exercise, the company revealed its new corporate identity to the general public. The Business Expo created a forum where investors and regulatory authorities exchanged ideas to help foster a better working relationship. E VENTS R-L: Mr. Hakeem Belo-Osagie (Chairman Board of Dir. AICL), Dr. Abdu Mukhtar (CEO, AICL) and Bello Garba at the Expo Roundtable discussions were spearheaded by the African Development Bank, Infrastructure Concession and Regulatory Commission (ICRC), and other prominent speakers. A dinner was held afterwards to honour business partners who have supported the institution over the years. The Firm is indeed repositioned to deliver world class service. Dr. Abdu Mukhtar (CEO AICL) welcoming Mr. Harve Assah (Country Representative ADB) to the Dinner AICL Awardees being honoured at the Dinner Page 7

8 I N MEMORIAM God s finger touched him and he slept ~Lord Alfred Tennyson Late Hakeem Sanusi The entire Staff and management of Abuja Investments Company Limited, announce with saddened hearts the sudden demise of our Board Member Mr. Hakeem Olamide Sanusi on February 22, 2010 after a brief illness. Mr. Hakeem O. Sanusi was a pillar of integrity and a leader in business excellence; his passion and contribution towards infrastructure and regional development have proven invaluable to the Nigerian Economy. Mr. Hakeem was the Executive Chairman/CEO for Urban Development Bank, a member of the ICRC Governing Council and served on the Board of Directors for Abuja Investments Company Limited. We at Abuja Investments Company Limited send out our sincere condolences to his family and to his many friends and colleagues who mourn his loss as we do. Abuja Investments Company Limited Investment House 4 Nkwere Street, Garki II PMB 302, Garki, Abuja Phone: +234 (9) Fax: +234 (9) info@abujainvestments.com *The contributing articles herein express the views of the authors and do not represent the views of Abuja Investments Company Limited unless otherwise clearly stated. Abuja Investments Company Limited is wholly owned by the Federal Capital Territory Administration [FCTA]. Page 8