FIVE (5) KEY INVESTMENT

OPPORTUNITIES IN ENUGU

1 05/26/24
 1. INFORMATION AND
COMMUNICATION TECHNOLOGY

ICT has been identified as key to Enugu State’s transformation

into a knowledge-driven economy. There are a wide range of
opportunities for investment and growth in this sector,
especially in software and applications development, e-
commerce, mobile technologies and automation. Investors are
therefore invited to key into these opportunities by training of
ICT professionals who will drive the industry.

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 Prior to 1999, development of ICT sector in Enugu state was far
below expectation for a state of its size and resources. At that
time for instance, total fixed telephone lines were less than
10,000 where internet users were less than 5,000. Since then,
policy and regulatory development along with other
government and private sector initiatives at the federal and
state levels have resulted in significant improvements in the ICT
sector. For instance, Enugu state has moved from
approximately 10,000 fixed telephone lines pre-1999 to over 1
million lines by 2011. Internet access has also gone up by about
1,500% above pre-1999 levels. There is now modest ICT
deployment in the functioning of government organisations as
well as in the private sector. 3 05/26/24
 Opportunities:
ICT sector in Nigeria ranks second to the oil industry
Enugu state has a large number of mobile telecom
subscribers
High internet usage by the residents and even businesses
Opportunities are abundant in ICT infrastructures such as
personal computers, smartphones, tablets, accessories,
hardware and software and a wide range of mobile
applications.
Opportunities also abound for software companies
particularly in e-services like e-government, e-Health, e-
Commerce, e-Education, etc and cloud computing. This is
made possible by recent government4 policies. 05/26/24
 ANALYSIS OF ICT SECTOR IN ENUGU
STATE
Strengths:
Cheap but qualified labour
Young and dynamic workforce
World class ICT infrastructure
Investment-friendly Government
Ease of access to mobile Broadband offered by the key service providers
like MTN, GLO, Etisalat and Airtel.
Stable economic development in the last decade
Consistent ICT-related legislation and strategic framework in place
Mostly vendor-based training and certification capacity
Growing ICT market
Availability of basic hardwares and softwares
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Weaknesses:
Policy, legal and regulatory framework;
There is presently, no official policy guiding the ICT sector – hence the
urgent need for this policy.

ICT Infrastructure;
Paucity of ICT infrastructure (including internet and broadband
infrastructure, ICT tools like Personal computers, tablets, etc) and physical
infrastructure (including power) in Enugu State has hindered the provision
of efficient and affordable ICT services to the residents of the state.

Capacity;
Despite the proliferation of ICT training institutions in the state, proficiency
in ICT is still low among the populace. 6 05/26/24
Lack of Universal Access:
Over 60% of the state’s population reside in the rural areas and most do not
have access to advanced ICT services. Some who live in the rural areas are
unserved and underserved. Effort therefore needs to be made to deploy a
state wide ICT infrastructure, fund universal access programs and use existing
government structures ( schools, post offices, e-libraries, hospitals, etc.) to
extend ICT services to the rural areas.
Multiple Regulations
This refers to a situation whereby players in the ICT industry are subjected to
various rules and regulations from different agencies of government. This
tends to discourage investment and deprive the sector much needed funding
for improvement and expansion.
Security:
Security is a major challenge in the ICT sector. Cyber criminals have perfected
and continue to perfect strategies for snooping data from various ICT
platforms. Lack of appropriate legislation and coordination of activities of
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various security agencies is an area that requires urgent attention.
 Current Participants:
 AfriHUB –offers services like ICT park deployment, ICT Training,
ISP services, Networking, Web Development, Digital library,
Online Exam center, ICT consultancy, etc. They also award
National Diploma, International Diploma and Professional
certification.
 ROCANA Institute–Offers training in every aspect of ICT ,
printing technology and software engineering. Also awards
national Diploma.
 Henrich Global Concepts Limited–Sale of lall brands of laptops,
Computer hardware, computer software, computer repairs and
services.
 Slot–Mobile phone and PC selling company that sells of brands
of PC, phones and tablets and also
8 offers services on installation
05/26/24

of all manner of mobile apps.

 2. RENEWABLE ENERGY
In line with current global trend, in addition to the envisaged environmental and economic
benefits, the state Government is committed to the development and deployment of
renewable energy technologies. Investors are therefore welcome to come and provide
solutions to the energy need for homes and businesses. Moreover, in this era of constant
power failure, people are ready to patronize any investor that can provide alternative
solution to it especially in the area of renewable energy like cost-effective and efficient
solar energy devices for lighting homes, offices, street lights and powering other facilities
used for day-to-day running of businesses.

The state is therefore willing to partner with investors on a Public Private Partnership
arrangement, with the state providing land, and other incentives that include tax cut,
import waiver, etc., to facilitate the development of renewable energy projects in the state.

Enugu State government is also committed to wooing willing investors to come and set up
facilities for the manufacture of renewable energy components such as solar panels, other
photovoltaic components.

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Solar Power Systems Components And Solar Panels Prices

Solar power is power derived from energy from the sun. Energy can be derived
from the sun in a number of ways, but we will focus on energy derived from the
sun using photovoltaic PV devices or solar panels. Here we will name and explain
the functions of components used for converting energy from the sun to electrical
energy that we can use at home or in businesses.

Components of a Solar Power System

Here are the components of a solar power system:
Solar Panels
Solar Inverter (or Normal Inverter)
Inverter Battery
Solar Charge Controller (not required with Solar Inverter)
Here are a bit more details about the components:
Solar panels
Solar panels are the major component of a solar power system. It converts light
energy from the sun to direct current DC electric voltage.
Solar panels are made up of arrays of photovoltaic cells (also called solar cells),
connected in series and parallel to deliver rated voltage and power.
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The photovoltaic cell is the basic component of a solar panel. PV cells are
made from semiconductor materials, like silicon and doped with other elements,
like Boron and phosphorus.
These elements create an N-type layer and a P-type layer on the cell. The
junctions between the N-type layer and P-type layer contains an electric field,
which stops electrons from moving across the junction, effectively creating an
open circuit.
When a photovoltaic cell is exposed to sunlight, energy-carrying particles in light
called photons continuously strike the p-n junction area of the cell and are
absorbed.
Energy derived from these absorbed photons provides electrons on the cell with
enough energy to overcome the potential barrier of the electric field in the p-n
junction. This causes electrons to flow across the junction to power electrical
appliances.
A solar panel consists of an array of solar cells, usually covered in glass. Solar
panels provide power for charging your batteries and for powering your
appliances.
Solar panels are expensive per watt (though they are getting cheaper) when
compared to a petrol generator, but uses free energy from the sun.
For example, an 100 watt solar panel can cost between about 25,000 and 50,000
Naira in Nigeria. Solar panels may also come
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in different power capacities. 05/26/24
Solar panels can last for up to 30 years.
One or more solar panels will be required in a solar power system. A two bedroom
flat, for example could require three to 10 solar panels.
Prices of some solar products in Nigeria:
50W Solar Panels – 17,000 to 50,000 Naira
80W Solar Panels – 30,000 to 45,000 NGN
100W Solar Panels – 25,000 to 60,000 Naira
150W Solar Panels – 39,000 to 80,000 NGN
200W Solar Panels – N47,000 to N85,000
Power Inverter
For most practical applications for homes and offices, a power inverter will be
required in a solar power system. Since the solar panel and batteries delivers DC
voltage, it becomes necessary for a device to convert the DC output of the solar
panels and batteries to AC voltage required by most home appliances.
An power inverter converts DC voltage to AC voltage. Inverters sold in Nigeria will
convert DC voltage from your battery to 220 volt 50 Hz AC voltage.
In some applications where DC voltage is required, an inverter will not be
necessary.
A professionally designed 1200 watts true sine wave inverter, for a solar
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power system with one-year warranty costs about N75,000. It is a good idea
to buy a solar inverter outright if you want to build a solar energy system from
the start.
Deep Cycle Batteries

Solar power comes from the sun; hence, at night or cloudy weather little or
no energy can be derived from solar panels.
This creates the need for a solar power system to store energy from the sun
during the day so that at night/poor weather conditions it can be used to
generate electricity. A battery stores energy in chemical form.
One or more batteries are connected in a bank to deliver required energy.
One to 10 batteries or even more may be required for the solar power system
depending on requirement.
More batteries may be required if the solar power system will be installed in a
location without grid connection (no NEPA/PHCN). A good sealed
maintenance free Inverter battery (SMF batteries) for a solar power system
can cost between 40,000 and 80,000 Naira.

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 ANALYSIS OF RENEWABLE (SOLAR
ENERGY) BUSINESS IN ENUGU STATE
Opportunities
Power is a critical issue in Enugu State and the Country at large and it is
key to industrialization. Generating enough power still poses serious
challenge to the Nigerian government.
EEDC (a power distribution company in charge of the South East Zone)
short-changes their customers by giving them outrageous bills based on
mere estimation and not commensurate with actual power consumption.
Solar energy is a viable economic alternative to traditional electricity
from the National grid.
The cost of solar power is well below the cost of electricity generation
and distribution from the national grid and much more cheaper than the
cost of running generators in the case of frequent power failure.

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Strength:
Pros of investing in solar power systems include:
Energy from sun is free
Zero emissions
Solar Power Systems offer silent operations
Zero/reduced electricity bills
The cost of running solar power systems is low
Solar panels lasts for up to 30 years with minimal maintenance cost.
Weaknesses
The Cons of investing in solar power system include:
Not yet profitable
Limitations of weather—Solar panels will not work efficiently during rainy seasons.
Solar system may not be durable and may not last long.

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 The company will have to sell the solar panels at subsidized rate to make it
attractive and affordable to the populace and it will cost the government money
to do that.
 Expensive: components cost a lot to acquire
 Require more space for battery bank & solar panels.

The figures below show : 1. A solar panel 2. A solar inverter 3. Solar handset
charger chargers 4 . An inverter battery

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Current Participants In the Business
A US-based renewable energy power firm, Motir DuSable Power Investment
Limited, has sited its 200m dollar solar project in Enugu State to generate 300
mega watts of solar power into the national grid. In the first phase of the project,
the firm is to generate 100 megawatts of solar energy which will subsequently be
increased to 200 megawatts in the second phase. The drivers of the project which
is a joint venture between two US-based power firms have already signed an
MOU with the Federal Government of Nigeria to site the project in Enugu State
with the goal of making the state the hub for renewable energy generation in Sub-
Sahara Africa. The two companies have a joint venture that would enable them to
bring this project to Nigeria and they are licensed and have gone through all the
processes and procedure in terms of the power purchasing. Their intention is to
be able to bring more jobs, more opportunities, more innovations to Enugu State
and to Nigeria. They believe that this will be a fantastic project for job creation and
a mission critical for the Federal Government of Nigeria and Enugu State. This is
because they can empower Enugu State people to have access to power. The
state will be a collaborating partner in terms of making sure that their investment
is safe and that the money they are bringing
17 in is safe. 05/26/24
 3. EDUCATION
Education is another key sector that holds a lot of prospects to
investors. There is no community in Enugu State without a
primary and secondary school. This shows the high level of
importance the people and government of Enugu State attach
to education. Nevertheless, owing to the present economic
down turn, as well as inadequate capacity of teaching staff,
and the decay in infrastructural facilities, the quality of
education at this level is yet to meet global standard. There are
therefore huge investment opportunities for partnership
arrangements with the state government for the provision of
learning/infrastructural facilities as well as the management of
the schools.

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 Opportunities:
 Establishment of technical/vocational colleges with state-of-the art equipment
and well trained personnel abreast latest development in the field.
 Management of state-owned schools
 Management of state-owned technical and vocational specialized training facilities
 Establishment and management of model schools Development of
Science/ICT/Technical Institutions
 Refurbishing of existing education facilities
 Investment in ICT infrastructure that will support e-learning in schools.
 Provision of modern school equipment
 Training of academic and non-academic staff

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 Strengths:
Education has become the biggest industry in the State because Schools
which are managed by the government can no longer accommodate all
who desire to acquire education. Hence, the proliferation of schools of all
levels in the State. However, only very few of these schools offers
conducive learning environments with the requisite facilities and
infrastructures.
With a good learning environment and world class infrastructural
development, especially in the towns and cities in Enugu State, potential
investors in the education sector would definitely have a rewarding
experience once they decide to take up the task.

In addition , the National Policy on Education encourages private

participation in the provision of education in Nigeria, and this allows for
private investors who wish to invest in the sector.

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Weaknesses:
1 Infrastructure Provision and Rehabilitation of Existing Buildings
A shortage of space currently exists in all the sub-sectors of the educational system.
The expansion of the education system, mainly through the introduction of universal
primary education, has put pressure on education facilities that did not expand at
the same rate as the school population. The existing buildings are in a state of
decay due to lack of maintenance and repair. The present conditions of buildings
impact negatively on the quality of education offered. Such conditions have
encouraged a brain drain of teaching and administrative personnel out of education
to other sectors of the economy or out of the country. The amount of funding
needed for new buildings is high and the estimated cost of the rehabilitation of the
existing infrastructure is even higher. The need for provision of adequate education
facilities at all levels of education is urgent.

2 Human Resource Capacity Development

There are human resource needs for administration,
management, research and teaching as well as for support and technical staff. Lack
of well- trained human resources is a problem in almost every area of education.
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3. Quality
The decline in quality of education in Enugu State has been a major concern due to
the rapid expansion in student numbers without comparable expansion in resources,
staff and facilities. Poor quality at all levels of education is compounded by a lack of
instructional materials for effective teaching and learning.
4. Funding Mechanisms
Government funding of education in the state has been inadequate. The funding of
education is shared among different levels of government and supplemented by
funds from other sources such as business, community organizations, and levies
charged to parents. The revenue collected through fees constitutes an insignificant
proportion of the revenue of the institutions. Inadequate funding of education has
been one of the most significant causes of the low quality of much of the education
offered at all levels.
5. Cultism in Higher Education
The practice of cult activities is a problem that has its root in the society and has
infiltrated the entire higher education system. The conditions in higher education
institutions, such as overcrowding, deteriorated facilities, admissions malpractice
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And inadequately challenging academic programs have been blamed for
encouraging the emergence of secret cults in the system. Cult activities have
had an extremely negative impact on learning and discipline in the institutions.

6. Examination Malpractice
Intense competition for access to the system has led to widespread cheating in
examinations for the purpose of obtaining higher scores to improve the
chances of gaining admission to the next level of education. Cheating takes
place in all areas for which examinations are required. Legislation has been
passed to discourage this behavior, but enforcement has not been effective in
addressing this problem.

7. Unhealthy competition among the private institutions in the State.

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 4. AGRICULTURE
It is notable that Enugu State is predominantly a rural and
agrarian society. The state has so much unexploited and latent
potential in Agriculture and agri-business. Due to its location
within the tropical rainforest and savannah belt, the state has
rich agricultural lands good for most tropical based cash and
food crops. Some of the crops that thrive in the state include
rice, cassava, maize, yam, cocoyam and a local variety of
beans-the black beans. Opportunities also abound for oil palm,
cashew, rice and pineapple production and processing on a
commercial scale. Good business opportunities also exist for
poultry, piggery, fish farming and other livestock rearing and
production.
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The Enugu State Government is no doubt committed to
developing its agricultural potentials with a view to
transforming the agricultural sector into an industrialized
sector that drives income growth, accelerates food security,
generates employment and transforms the state into a key
player in the global food market.

Agric sector has a lot of prospects for potential investors

because of the large market for food and agro-based
products within and outside the State especially now that
the Federal Government is bent on developing the non-oil
sector of the economy which will be mainly agriculturally-
driven.

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 ANALYSIS OF ENUGU STATE
AGRICULTURAL SECTOR
Strenghts
The strengths of Enugu State agricultural systems lies in her
good agro climatic condition. The wet season in Enugu spans for
over 6 months in most areas allows for the cultivation of variety
of cash crops such as cashew, palm fruits in exportable
quantities; while the cultivation of staple crops such as maize,
cassava, rice, yam, fruit crops thrives well in most areas. The
indigenous farming system which is simple and not capital
intensive is supported by a large pool of the populace whose
major pre-occupation is farming.

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The cost of farm labor in Enugu is quite low since a day’s wage for a farm labor/ hand is
about N 3000. Over the years, Enugu State institutions of higher learning with
Faculties/Departments of Agriculture have increased with increase also in the number of
graduates trained in agriculture and related disciplines thus creating a pool of manpower
for the agriculture industry. Nigeria as a nation has been fortunate in that it enjoys free
trade relations with most countries of the world with high demand for her agricultural
produce. The foregoing amongst others might be a reason for the interest shown over the
years by a number of international development agencies organizations e.g. CIDA, FAO,
World Bank, and ADB to help the sector.

Weaknesses

Despite the enormous strengths inherent in the Enugu State agricultural systems, its
efficacy in contributing to the development of the state is fraught with a number of
factors. The discovery of crude oil in Nigeria has been cited by various people as being
the major contributor to the laggardness of the Nation agricultural sector. Oil diverted
the attention of the government and unfortunately the populace also from agriculture,
because of the increased and quick returns with ―surplus funds from oil trade; there was
high rural-urban migration, neglect of farmers.
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The average farmer in Enugu State has had to depend on machete and hoe as his major
tools on his small holding farm. This is a major drawback in today’s world which is
technology driven, we now talk of precision farming. The unstable nature of most
government policies as it regards socio-economic and industrial development, are other
major hindrance the agricultural sector have had to contend with. An example is the policy
on cassava and rice production, which were abandoned mid-stream thus leaving many
farmers with losses from unsold products. Not to be left out are the effects of poor
infrastructural facilities e.g. bad road network, lack of transport, storage facilities; have all
combined to worsen the agricultural landscape. Farmers have also not being encouraged on
adding value to their farm produce by way of quality, processing, packaging and
marketing; this has made their product not to be able to compete in the international
market.

Opportunities
Opportunities abound for Enugu State to bounce back to a place of reckoning in the
agricultural sector. These opportunities include but not limited to: ample allocation from
the federal government donations from international donor agencies, which can easily be
plowed back into rejuvenating the agricultural sector; availability of large domestic and
international market for most produce and their by- products like pineapple, palm oil,
cashew, rice, cassava, plantain/ banana. The provision of farm inputs like fertilizer can be
enhanced with 28 05/26/24
Government subsidy, thus bringing down the cost of fertilizers and at such the overheads
on farmers. Unlike what is obtained some three decades ago, there has been great
improvement in the telecommunication facilities in Nigeria e.g. telephony, internet, TV
and print media; such that an average farmer can easily get information about his farm
enterprise. All these can be harnessed to make a positive difference in the agricultural
sector.

Threats

The push towards revitalizing the agricultural sector in Nigeria might likely be threatened
by the climate change being experienced globally. This is likely to be enhanced by the
high incidence of pests and diseases and the lack of proper management techniques. The
effects of the aforementioned might likely be made more pronounced as a result of land
degradation activities. The effects of the factors above are likely to be insignificant when
placed side by side with the frequent change in government, administrators and policies,
all which erodes confidence of potential investors in agri-business. The recurring conflicts
between Fulani herdsmen and farmers such as has been witnessed in the state in the
recent past that is yet to be fully curtailed poses a threat to the development of agriculture
in Enugu State as well.
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 5. TOURISM & HOSPITALITY
Tourism is another sector in Enugu State that is holds a lot of
good prospect to investors. This is because Enugu State is
richly endowed with a good number of very attractive
ecotourism sites such as beautiful highlands, forests, springs,
water falls, streams, rivers, lakes, caves, undulating hills and
aesthetic landscapes. Unfortunately, this tourism potential is
yet to be fully tapped.
Moreover, owing to the rapid transformation that has taken
place in the State by the successive governments, the
hospitality industry now thrives well in the State because
tourists and visitors who come to the State need to find top
class hotels and other relaxation spots to stay.
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 ANALYSIS OF ENUGU STATE
TOURISM INDUSTRY
Strength
There is presence of top class hotels for accommodation like
Nike Lake Resort, Golden Royale, Toscana, Blue Island, etc with
proximity of Akanu Ibiam International Airport which makes
airlines accessible for conveying passengers across the country
with attractions which will amuse the tourists or visitors,
cultural festivals, financial Institutions that offer products and
services that would delight tourists like ATM, Western Union,
mobile fund transfer apps, etc. Moreover, the people of Enugu
State are friendly and welcoming.

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Opportunies
The size of the market for tourism I Enugu State will be
enormous if it can be properly developed. This is due to the
fact that Enugu people are lovers of fun and recreation as
could be recalled with nostalgia of the defunct Zoo. The
people will be ready to patronize these places especially
during festive seasons. Moreover, investors who are
interested in managing any tourist site in Enugu only needs to
obtain a permit at the State Tourism Board with a token fee of
a hundred thousand naira (N 100,000).

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 Weaknesses
The tourism sites in Enugu State are still underdeveloped
Lack of good restaurants and resorts close to these sites
where tourists and visitors can relax or lodge.
Most of the tourist sites are in the hinterlands and there are
no good access roads to those places.
The business is highly seasonal in that there will be high
patronage during festive seasons and a drastic drop in
patronage in ordinary time.
People may compare visiting nearby states with better
developed tourist sites at even higher rate and have a
rewarding travel experience than visiting the local
undeveloped sites within the33state. 05/26/24
Entry Strategy
There should be a discounted weekend packages to the
destination being promoted to entice visitors.
Employment of technology to create web-platforms to
market the destinations.
Training of local community members as artists and
craftsmen to increase souvenir production of agricultural
products.
The destinations should be linked with hotels, restaurants
and amusement parks.
Employing of local women for traditional culinary which will
also provide self-employment opportunities.
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