Tourism promotion and development is a major enterprise in Lagos given its historical and commercial antecedents as a British colonial

capital since1861 and slave port in the 18th/19th centuries. Equally, of note is Lagos scenic 180km Atlantic foreshore and other waterfronts which are fringed with coconuts, mangrove wetland, palm trees and sandy beaches. Also, the Lagos International Airport (Murtala Muhammed Airport), lkeja is a tourist delight and a beauty to behold in terms of infrastructure, security and seamless airport services for travellers. On this, the international Civil Aviation Organization has declared the Murtala Muhammed International Airport, Lagos, the most modern data capturing centre with Airport Operations and Management Systems (AOMS) facility in Africa. (The Guardian, May 30, 2008). ln recognition of the promising prospect of the tourism sector the Lagos State Government invites private sector participation in the development of: Convention Centres Hotels and Motels Restaurants, Casinos and Eateries Holiday Resorts, Amusement/Theme Parks Botanical/Zoological Gardens Trading Outlets- Plazas, Central Business Districts (CBDs), Shopping Malls, etc Waterfronts and Beaches Games and Film Villages Theatres, Cinemas, Museums and Cultural Centres

To achieve these, the State Government is committed to the: Provision of intensive/extensive infrastructure and technical base. Granting of concessionary rates on tourism lands Development of transportation jetties Promotion of local cuisines and festivals Preservation of historical sites and monuments Scheming of Tourism Development Zones at: Beach/Kuramo Waters Victoria lsland, Lagos lkorodu Waterfront Lekki Peninsula ( Kayetoro-Ekeko-Akodo-Lekki) Maiyegun(Lekkl) Beach Resort,Eti-Osa, Lagos Five Cowrie Creek (Walter Carrington Crescent/Ozumba M badiwe Waterfront) Badagry Beach/Marina Epe Marina Plans are underway to transform the entire Badagry Corridor of approximately 16,000 hectares into a prime tourist destination in Africa. To actualize this vision, plans are underway to reconstruct Lagos Badagry Expressway into 8-lane international highway to open the other end of Lagos to profitable investment.

AGRICULTURE Policy Thrust Development of Farm Settlements/Estates. Optimal development of marine aqua-culture. Development of strategic crop production programme (Oil Palm and Coconut) Facilitation of food processing, production and preservation.

Lagos State has a large hectarage of swamps and sizeable arable land for commercial farming, fishery and forestry/wild life conservation which are undertaken in zoned agricultural lands located at ltoikin, lgbonla,Araga-Epe, Lekki,llogboEremi,Ajara-BadagryAgege,Eti-Osa and lkorodu. Crops Production Having regard to climate and edaphic factors, major crops suitable to the State ecological conditions are: Coconut Soya beans Citrus fruits Cassava Vegetables Kolanut Cowpeas Mangoes Rice Plantains Cashew Pineapples Maize Oil Palm

Because of its wetland environment, 400hectares of land are available at ltoikin (Epe) and ltoga(Badagry) for rice cultivation. Other suitable locations are: Tekunle and lta-Oko (Epe), lkoga and Erekiti(Badagry), lse and Akodo (lbeju).Available investment opportunities thus exist in rice milling, processing and packaging as well as by-products waste cycling. ENVIRONMENT AND PHYSICAL PLANNING "The number of people living in Nigeria's Lagos, the fastest growing megacity in the world, is expanding at more than 5% a year. By 2020, there will 12 megacities....and Lagos and all will have achieved metacity status, "U N-Habitat, 2006 Policy Thrust Creation of a safe, friendly and sustainable environment to achieve a model Lagos City-State through: Development of new towns and model cities Ensuring free-flowing drains and pollution control Provision of potable water supply General environment management (com munity-base waste management system)

Systematic physical planning, beautification, markets development, etc

With the above in view and the reality that is a megacity of immense complexity and dynamism, physical planning and environmental management is accorded priority in the State 10- point Agenda. This recognition is also in response to the increasing phenomenon of slums growth which has increased from 42 in the eighties to about 100 presently hence, the need for better management of the environment to reduce hazards and enhance liveability. In this respect, 28 activity centres, incorporating residential, commercial, recreational and institutional facilities are proposed for development. Also, seven new towns are programmed for establishment at lmota, Agbowalkosi, lgbogbo, OkeEletu, lbeju and Epe. POWER Lagos State is the energy load centre of the nation and power supply to Lagos State is ensured by the Power Holding Company of Nigeria(PHCN) THROUGH ITS 1320MW Egbin Thermal Station, the largest of such in Africa. However, because of the dense concentration of industries and population in Lagos, PHCN has not been able to ensure reliable electricity to meet existing power demand of 2000MW.Thus, fired by zeal to sustain economic growth, the State pioneered the AES/YS independent power project (lPP) to provide uninterrupted power supply. The Lagos IPP has commenced the injection of 270MW at its emergency phase to the national grid while an additional 540MW is proposed from a gas fired power plant at Marugbo-Badagry, for which investors are invited to participate. Also, participation is welcomed in the development of a 200MW wind power plant at Lekki, in Lagos, with a large concentration of population and industries combined with the pipeline network of oil and gas, especially the Escravos -Lagos-West Africa Gas Project and the Atlas Cove-Apapa-Ejigbo Oil Pipeline,investors, should take advantage of these and invest in the power sector which is gradually being liberalized by the Nigeria Government under the Electricity Power Sector Reform Law. Possible areas of investments are: Power Stations and sub stations- Thermal, Hydro, Solar, Wind and Renewable Energy Transformers, Meters and Electrical Appliances Gas Plants Natural Gas Pipeline Schemes Oil Refineries

TRANSPORTATION Policy Thrust Provision of sustainable, efficient and safe integrated mass transit system Improved Transportation Infrastructure and Traffic Management System

Introduction of Rapid Rail Transportation

Road transportation accounts for more than 90% of domestic passengers and freights from which the nation loses about 50billion each year in the value of its road assets and motor vehicle operating costs. (Nigeria Bureau of Public Enterprises, BPE). Towards reforming the sector, the Lagos State Government, in collaboration with the World Bank is implementing the Lagos Urban Transport Project (LUTP) designed to create an efficient Integrated lnter-modal Mass Transit System involving land, water and air. To coordinate the transport policies, programmes and actions of all Transport-related agencies as well as the maintenance of physical serviceability of declared roads, Laws No.3,2002 was enhanced to establish LAMATA a World Bank assisted and private sector driven entity for better management of Lagos transport sector. It is recognized that road transportation is the most predominant mode within the State which boasts of a vast network of well developed highways/bridges including the Trans-African Highway (Lagos Badagry-Expressway) and the Lekki-Epe Expressway. The challenges and prospects of road transportation system is more evident in the daily haulage of six million passengers between the Lagos Mainland and lsland in 75,000 unregulated mini buses among others, as revealed by a survey conducted by the Lagos Metropolitan Area Transport Authority (LAMATA). it is in this respect that the operation of Bus Rapid Transit commence itself to discerning investors as demonstrated in the inauguration of the BRT Blue-Line in Lagos on March 17,2008. Ferry Services As an environment of aquatic splendour characterized by several inland waterways, ferry shuttles between Lagos lsland and its Mainland districts and boat operation within the riverine areas are favoured modes for which jetties have been provided at different locations (lkorodu, lkoyi, Ojo, ljegun, Badore, ljede, Oworonsoki). In addition, water transportation enhancement services including waterways dredging for ease of vessels movement and terminals for identified major routes: Ojo-Marina, ljede/ Badore/lkoyi,lkorodu-lkoyi, LekkiOsborne,Milel2- Oworonsoki-Osborne,lddo-Ebute Ero, etc. Maritime Services (Lagos Ports Complex) Given its extensive 180km maritime waterfront on the Atlantic and thus, location along world trade routes which has resulted in the presence of the nation's five seaports(see table) and a dry dock complex in Lagos ,the State has a potential as a major African Shipping hub revenue generation capacity. Lagos is thus strategic to Nigeria's maritime interests for which 'Nigeria, as a country accounts for over 60% of sea traffic in volume and value in the West Africa sub-region', NIMASA (2008). Indeed, the Lagos Ports Complex is Africa's fourth busiest seaport accounting for 7O% of total National cargo freight, and having the following characteristics:

Lekki Port Complex Owing to high volume of national cargo freight being ferried through the Lagos Port Complex and the inability of the existing facilities to meet maritime demands of the population and industrial concerns in Nigeria and West/Central Africa, a privately promoted and state-of-the-art port covering 500 hectares is being developed at Lekki, about 65km east of Lagos to support the Free Trade Zone. Light Rail Transit (LRT) System A key element of the Urban Transit Project is the Light Rail Transit (LRT) system which is the development of the Lagos urban rail network. The LRT system is divided into two segments: the Blue Line, which runs from Okokomaiko (Ojo) to Lagos lsland West (Marina) and covering a distance of 27km, is expected to have annual passenger capacity of 200 million. The second rail system is the Red Line proposed to run from Agbado in Lagos North to the Marina with connection to the Murtala Muhammed International Airport, lkeja. Other proposed lines are the Green, Yellow, Purple, Orange and Brown lines, all with the total of 254km and 82 stations. Investors interested in any aspect of the inter-modal transport system should contact the Lagos Metropolitan Area Transport Authority (LAMATA), Motorways Centre, 1 Motorways Avenue, opposite 7- Up Factory Oregun-lkeja. (www.la mata-ns.com) Aviation Services Lagos is the hub of Nigeria's activities accounting for 82.61% of international and 47.30% of domestic traffic respectively at the Murtala Muhammed Airport (MMA) lkeja, made up of two terminals. Indeed, the functionally and sheer beauty of MMA2(local) with its holding capacity of 4,000 passengers and over 800 cars has led to increase in MMA-1 International traffic which has grown from 1229,621 (2001) to 2,152,315(2006). In consequence, there exists high demand for expansion of terminal buildings, additional domestic airports, heliport or helipad in new growth poles especially the Lekki and Ojo-Badagry axis. Above all, is the need for airport special services providers. Transportation Opportunities Private Sector participation is welcomed in the following transportation: Ferry Services and Hovercrafts Shipping and Ship Building/Repairs Ports Development Domestic Airport/Aerodrome/Heliports Light/Rapid Rail Service or Metroline/Monorail Roads and bridges Development/Tolling (see Appendix B for proposed PSP Roads) Bus Termini/Motor Parks and Transport Complex Development Urban Transport Infrastructure Towing Operations

Articulated Bus and Taxi Operations Motor/Autocycle Assembly Plants Mechanical Workshops/Villages Intra-city Bus Rapid Transit (BRT) or passenger bus service Traffic control and highway management, etc

Overall, investment in transport infrastructure no doubt, is a huge but return on investment is also, attractive. Studies have revealed that an investment of US$l00million in the infrastructure of BRT will yield annual revenue of at least US$50million. Our rail infrastructure development requires US$787million investment and this can return projected annual revenue of US$400. I n the area of water transportation, the four routes we have earmarked for commencement of operations have a capacity to transport 37 million people annually with projected yearly revenue of USS37 million. The public transportation sector of Lagos State is thus, an investors haven which we urge domestic and foreign investors to take maximum advantage of. FREE TRADE/EXPORT PROCESSING ZONE (FTZ) As a littoral State, port city and convergence of economic and commercial activities, the Lagos State Government is committed to the establishment and operations of an Export Processing Zone (EPZ) or Free trade Zone (FTZ) in collaboration with private sector. The Lagos East (Lekki) and Lagos West (Topo-Badagry) provides investors with the most attractive sites for export oriented manufacturers in Africa due to the existence of: Large hectarage of land: 1000 hectares at Lekki and about 253 hectares at Topo lsland-Badagry Developed public infrastructure- power, water, gas, telecommunication (Public/Private) Inter-state/Trans-African Highways (Lagos-Badagry-Seme Expressway,etc Abundant skilled manpower Several specialized educational training institutions Modern aviation facilities -Murtala Muhammed International Airport (MMA), lkeja-Lagos The Atlantic lnternational maritime corridor Financial institutions

Anticipated EPZ IFTZ Services Anticipated EPZIFIZ businesses which must be new technology driven and world standard based, consist of the following: International Banking lnsurance Data Processing Communication Services (BBSN) High Value Spare Parts Warehousing (Aero industry) Holiday and Wellness Resorts

Casino and Gaming industry Banking Central Clearing House V-sat Provider Soft Ware Development General Industries and Trading Warehousing Manufacturing, Assembly and Packaging Logistics Services IPP (Electricity Generation, etc)

A generous regime of incentives has been enacted by government for free trade zones. Tax lnformation Should you be worried about tax bill/ assessment or in need of guidance on resolution of tax matters, please contact:
Office of the Special Adviser (Taxation and Revenue) Lagos State Secretariat (Block19) Alausa -lkeja, Lagos. E-MAl L: satax@lagossatate.govng

REAL ESTATE Investments projects: LAGOS lsland CBD Roads Upgrades Bar Beach Reclamation &Development/Atlantic City Project; USS2bn (PPP Initiative) Traffic and Transportation improvements Environment and Sanitation improvements

Waste Management Waste Generation=3,285,000 Metric Tonnes/yea r Waste Collection=1,250,000 Metric Tonnes per year Budgetary Provisions: 2.5 % (Lagos 2.5%, New York 11%, London 10%) World Bank Std. = 10% for Dcs; 1 The Governor Fashola's administration is running with a ten point development agenda that addresses the infrastructure and economic challenges facing the people of Lagos State, while the critical focus is on the Sanitation/Environmental management, Security and Transportation/Traffic Management. To achieve the objective of an efficient and effective waste management system will require the expenditure of about US$l00million every year for the next few years. This of course is only a tip of the ice berg as equally huge amounts will be required to maintain existing drainage and provide new ones. This is a major concern for investors especially when it is a mega city as considered world over. The Lagos State government is not relenting in its effort to reduce crime to the barest minimum that is humanly possible. For instance, recently the Lagos State Security trust Fund was launched; this is designed to more effectively fund the security needs of the state on a sustainable basis. This accompanied by the re-organisation and

strengthening of the state's anti-crime outfit, the Rapid Response Squad (RRS), through the infusion of additional men, acquisition of new telecommunication equipment, bullet proof vests and uniforms, introduction of new allowances to boost morale and the provision of 250 new patrol vehicles to enhance performance. This is to assure that Lagos State is very safe for the pursuit of your legitimate businesses. Water The estimated demand for pipe-borne water in the megacity is 700 million gallons per day (mgpd), while current supply is about 200 mgpd. Significant opportunities for investment exist in the water sector, which is currently undergoing reform to give the private sector greater involvement. These opportunities include construction of waterworks, distribution and metering. INVESTMENT OPPORTUNITIES IN LAGOS STATE Lagos State, the smallest of the 36 states of the Federal Republic of Nigeria, was created on May 27, 1967 by virtue of Decree No.14, 1967, which restricted the Nigeria Federation into 12 states. Before then, the British annexed Lagos in 1862 and made it the Federal Capital of Nigeria in 1914; an incident which, together with its strategic maritime location and modal role as the hub of national/regional integration, transportation and trade, made Lagos State Nigerias Centre of Excellence and lead megacity of Africa. A peculiar feature of Lagos State is the maze of water bodies which traverse the wetland environment and the 180km coconut-fringed sandy beach fronts the Atlantic Ocean. THE LAGOS MEGACITY Lagos, Nigerias lagoon city and the fastest growing megacity is burgeoning global urban agglomeration which attained megacity in status in 1995 when its population soared to over 10 million people, per UN-Habitat. From its global city ranking of 31st in 1985, Lagos population exploded to 13.4 million in Y2000 to b ecome the worlds sixth megacity and Africas foremost urban and hub of national, regional and global socio-economic and political activities. Even though geographically disjointed, located on poor soil and overwhelmed by its growth, Lagos Gross National Product (GNP) is three times more than any West African Country, (World Bank 2001). Locally, Lagos alone accounts for over 65% of Nigerias GDP and over 70% of National industrial investments. Spatially, the Lagos Megacity region, covering 154,000 hectares (2000) approximates to 17 of the States 20 local Government Areas and Impinges imperceptibly on four local government areas of the adjoining Ogun State. The megacity, which has an average population density of 20,000 sq. Km. against national average of 1,308 (2005) serves as the springboard for innovation and development throughout Nigeria and West Africa. LAGOS STATE CORE INVESTMENT AREAS Housing (New Towns Development and Mortgage Financing) Site and Services Schemes

Modular Transportation System: Mass Transit-Buses, Light Rail/Metro line, Monorail and Transportation Terminals Refuse collection and waste Recycling Plants (Environment and Waste Management) Power Development (IPP and Gas Plants) Refineries and Petrochemicals Water Supply and Development (Mini/micro waterworks) Technology Incubators/Business Parks Agro-industrial products (coconuts, citrus fruits, rice, oil palm, maize and fishery) Water transportation (ferry services) Ceramics and glass manufacture Information and Communication Technology (ICT) Health facility improvement and development Exploitation of solid minerals clay for tiles, blocks and pottery (Ikeja and Ikorodu) Silica for Ceramics ad Glass products (Badagry)

INFRASTRUCTURE For Lagos, like other global megacities, infrastructural renewal and development is key to present and future plans for galvanizing the growth of her economy towards sustainable development. It is therefore, in the best collective interest of the international community to support Lagos initiatives at making infrastructure work for the economy and human development. On these, Lagos State infrastructure funding needs in excess of $50 billion as categorised below: Water Roads and Drainages Power Information and Communication Technology Transportation (inter-modal) Others (Waste, Sewage, etc) $3 billion $20 billion 10 billion $5 billion $9.3 billion $2.7 billion

In recognition of the place of infrastructure in poverty eradication and sustainable economic growth, a legal/regulatory framework for private sector finance in the construction, development, operations and maintenance of infrastructure is provided by the Lagos State Roads, Bridges and Highways infrastructure Development Board Law, 2004. At the national level, there is the infrastructural Concession Regulatory Commission Law of 2005 which provides the framework for concession and other public-private partnership (PPP) contractual arrangement. It is instructive to note that the relocation of the Nigerian National capital from Lagos to Abuja has not changed the status of Lagos as the largest city, main port and industrial centre. Therefore, appropriate policies must be adopted to accelerate the provision of essential amenities. We must place the development of Lagos as a priority project in the scheme of urgent transformation in Nigeria- National Concord, 8th April, 1997.

TOURISM Policy Thrust Tourism Promotion/Development Harnessing of all water front potentials Protection and Preservation of Beaches Development of Parks and Gardens