What is the Niger Delta?
According to the Niger Delta Master Plan, the Niger Delta extends over an area of about 70,000 square kilometers, accounting for 7.5 per cent of Nigeria’s landmass. It covers a coastline of 560 km, which is about two-thirds of the entire coastline of Nigeria. The Niger Delta is the world’s third-largest wetland, after Holland and Mississippi. Because of the region’s low relief and poor ground drainage, there is a limit to the development of large human settlements. In addition, a substantial portion of the region falls under what is often described as the “world’s fragile ecosystem.”

The Niger Delta comprises nine of Nigeria’s 36 states, with approximately 30 million inhabitants. The predominant occupations of the inhabitants of the Niger Delta are farming, fishing and small-scale processes that support fishing and farming. An industrial base is largely non-existent at this point.
Most of the issues that swept the Niger Delta to the forefront of political and economic discourse are largely constitutional, except for the issue of poverty, which is both social and economic. With the provision of infrastructure in Nigeria being a public service provided by government, the decay in the Niger Delta has often been described as the failure of effective governance. If governance has failed therefore, the onus rests with other pillars of society, that is, the private sector, to rise to the occasion.
As we shall examine presently, the hope for a transformed Niger Delta depends to a large extent on the success of private sector initiatives such as Transnational Corporation of Nigeria Plc. While the role of the private sector differs from that of government, it has become clear that only a collaborative and complementary effort will alter the status quo.

Why TransCorp? Origins and focus
Transnational Corporation of Nigeria Plc was incorporated on 17th November 2004 with the goal of ensuring that Nigeria has a company that can compete with global multinationals, minimizing capital flight and expanding opportunities for Nigerians. The goal of the founders was to set up a company capable of mobilizing local and international capital in the development of world-class enterprises. The vision of TransCorp is to become the largest and most successful Africa based conglomerate.

To fulfill this vision, the company has adopted an equally challenging focus, which is to drive Africa’s integration into the global economy by becoming an Africa-based multinational conglomerate with US$ 5-10 billion of annual revenue and US$ 30-60 billion market capitalization in five to seven years. In effect, TransCorp is a bold attempt at nation-building from the private sector perspective.

TransCorp has successfully evolved from being a concept to becoming a fully operational business entity in the period since its formal inauguration in July 2005. It is currently the core investor in the Hilton Hotel, Abuja, which has been rebranded “TransCorp Hilton”. In addition, TransCorp is the core investor in Nigerian Telecommunications Limited (NITEL) and Mobile Telecommunications Limited (M-TEL). The acquisition of the Hilton, NITEL and M-TEL illustrates the company’s capabilities and its strategy of rapid growth and expansion through the transformation of acquired non-performing assets.

The new TransCorp – driving private sector growth
TransCorp’s objective is to grow industry and create value, whether by embarking on entirely new business ventures, or by injecting fresh capital and management expertise into large acquisition targets. The strategy adopted by TransCorp includes the following:

Transformation of non-performing assets or concepts
In the case of the Niger Delta (as shown by Notore Nigeria Plc, the group that recently took over the former NAFCON), there is now a large base of moribund assets that, if transformed, can create a significant number of high quality jobs. The scale of investment required is such that only highly capitalized players can contribute in this fashion. As regards concepts, the drive for increased Nigerian Content in the oil industry is yet to fully take root because of the absence of large-scale indigenous vehicles. This has exacerbated the age-old dichotomy between the oil & gas industry and the Nigerian economy as a whole. TransCorp’s success at the May 2006 Oil Bid Round (in which it secured two blocks) gives an indication of the company’s potential to become a major player in the energy sector. By 2010, Nigerian Content expenditures are projected to reach US$ 8 billion annually. If this is achieved, significant resources will be available to local companies to plow back into the local economy, creating positive spill-over effects well beyond the energy sector itself and contributing to a stronger social fabric in the Niger Delta.

Integration with the global economy
From an economic standpoint, a stable market contributes toward a stable society and therefore growth and improved quality of life. Vehicles with the global reach of TransCorp can link producers in areas like the Niger Delta to consumers in distant (and perhaps more stable) markets; the steady income streams that can be generated contribute toward social stability.

Foreign Direct Investment (FDI)
Foreign investors, who are generally more risk-averse, require large credible vehicles into which their funds can be directed. Companies such as TransCorp will function as valuable bridges, understanding both the realities of the local marketplace and the requirements of foreign investors. FDI has both quantity and “quality” elements. “High quality” FDI can be considered to be that which leads to more sustainable results: for example, the training of local personnel. By the very structure of the company, FDI channeled into companies like TransCorp is bound to be higher quality than most.

Public-Private Partnerships (PPPs)
Meeting very large developmental objectives (for example, the Niger Delta Master Plan) requires strong co-operation between the public and private sectors. Too often in the past, the private sector part has been foreign in nature, lacking the required understanding of local realities. Home-grown mega-firms such as TransCorp, employing world-class personnel, are much better positioned to effectively partner with government. The strategic advantages that come with the positioning of a company like TransCorp and a review of the types of assets in which the company has invested illustrate that TransCorp is deliberately investing in building Nigeria’s key developmental infrastructure – from telecoms to real estate and energy. It is anticipated that the success of TransCorp will encourage the success of home-grown multinational conglomerates, which are inarguably better positioned to alter the existing trend of decadence in the Niger Delta.

In summary, companies such as TransCorp will contribute to national development in several ways, including generating employment, promoting training and human capital development, providing communication through a rural telephony program in NITEL, and addressing critical housing shortages through partnerships in real estate development.

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