Jamie Dimon calls the balance sheet of JP Morgan a “fortress”, and that means it is impregnable with capacity to withstand any shock including black swan-like economic meltdown. Warren Buffett controls BNSF Railway which brings in about $26 billion in revenue yearly. BNSF owns trains and train tracks. Nigeria’s Bayo Ogunlesi founded GIP (recently acquired by Blackrock) which “owns” many airports and seaports like Gatwick Airport in Europe. These entities invested in boring, but critical assets, which power the world of commerce and industry.
As a Nigerian diaspora or Nigerian in homeland, if your state government floats a Naira-based bond (a loan with interest) and asks you to invest, and that bond repayment is guaranteed by say African Development Bank or a top-tier development finance institution, would you be interested? You will pay in Naira, US dollars or any currency, but there would be a conversion to Naira where the bond contracts would be executed.
The money will not go to the state but to an internationally recognized builder to build, say a seaport, airport, hospital system, etc. More so, after construction, that asset will be concessioned, never to be managed by any bureaucrat, and that asset within five years will be taken public to the stock market. You are guaranteed that the assets would be delivered, and consider the leadership of the state to be competent, capable and credible.
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You will get a Naira-based interest on that investment. And when the company goes public, you will also get equity. Together, the interest and the equity will not just bring financial return, but also guarantee that any currency loss will be well managed.
There are other components, but I have explained the grand scheme. Would you drop your $10,000 or so to this project, understanding that the whole framework is to support and develop your state, and not just to add digits to your bank accounts?
Comment below:
Yes – looks exciting
No – not exciting
YN – explain how this could be sweetened to make it exciting for you.
(this is for an academic purpose)
Jamie Dimon calls the balance sheet of JP Morgan a “fortress”, and that means it is impregnable with capacity to withstand any shock including black swan-like economic meltdown. Warren Buffett controls BNSF Railway which brings in about $26 billion in revenue yearly. BNSF owns… pic.twitter.com/plLph5BxOY
— Ndubuisi Ekekwe (@ndekekwe) February 12, 2024
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Who has run the numbers on what it will cost to build Ibom Deep Seaport in Akwa Ibom State? I don’t want any government to fund such project, the state may own maximum of 5% (if it has the capacity), the rest will be funded by a consortium, the management upon completion would follow the same framework. Whatever it will cost, it can be funded. It’s the sort of infrastructure project that those who want to go big should be looking at, and I want the conversation to advance as quickly as possible.
When people know what real and enduring wealth entails, nobody with significant cash will need to be persuaded to put money on things that matter.
So, as to your enquiry, it shouldn’t be complicated for diasporans that understand how these things work.