ARTICLE: WHY AMERICA NEEDS NIGERIA
By Toyin Dawodu, MBA
(First Published in Sahara Reporters on August 22nd 2010)
America has an abundance of capital; Nigeria has an abundance of human and natural resources. According to a statement by President Felipe of Mexico, “you need labor and capital to generate economic activity” Therefore it makes sense for America to extend its huge capital to the people of Nigeria, because Nigeria’s 1 million barrels of oil sent to the U.S. daily helps create an economic engine that generates American capital. With American capital and knowhow, Nigeria can become a developed country and therefore will be able to afford more American made goods just like the people of South Korea and Western Europe. However, when Obama became the president of the U.S., his first snob was to the people of Nigeria. The Nigerian 2007 election was believed to have been rigged by the Yar'Adua administration, so Obama decided to visit Ghanaas his first outing to Africa. Most Nigerians were conflicted about the snub. On the one hand, Nigerians, especially Nigerian Americans that voted overwhelmingly for Obama felt that it was embarrassing that the president picked Ghana over Nigeria, after all, Nigeria is often referred to as the giant of Africa. So how can you ignore the giant and be paying attention to the midget. The Obama administration finally realized its folly, when they needed Nigeria's help in securing their much sought after U.N. sanctions against Iran's nuclear ambition. So the U.S. moved to take advantage of late President Yar’Adua sickness to invite the acting president Goodluck Jonathan to the White house, and eventually create the so called Bi-national commission between the two countries. The objectives of this commission includes helping Nigeria to conduct credible elections, stamp out corruption in Nigeria, develop adequate energy sources for Nigeria, and provide help with solving the Niger Delta problems. However, despite all these good intentions, it can seem to an outside observer that U.S.'s actions are mainly paying lip service to providing assistance to Nigeria in these areas. For example, the U.S. meetings with Nigeria on energy seems to be placing emphasis on pushing Nigeria towards concentrating on developing only clean energy to power Nigeria's economic activities. Even the U.S. with all its vast resources cannot afford or plan to depend on so called clean energy. More than half of U.S. power plants burn coal to generate power. Nigeria has vast deposits of coal that we can tap cheaply to produce energy. We don’t have the technology or resources to devote to clean energy at the present time. Also, the U.S. seems to have forgotten that our leaders signed away Nigeria's gas fortunes with the Oil majors, (mostly U.S. owned) years ago. Rather than develop Nigeria's gas for domestic consumption, our gas is exported, and what cannot be exported is burned off because there is no incentive for the multinational oil companies to develop them for domestic, use. At the conclusion of the U.S. Bi-national meeting on Energy in May 2010, the U. S. Dept of energy donated around $300,000 to Nigeria's Regulatory commission’s Power Holding Company of Nigeria, to help the commission develop policies that will accelerate Nigeria's effort to generate electricity for its people. “$300,000” for a country of 150 million people who are staunchly pro American in everything they do? In Addition, there are over 1 million Nigerians living in the U.S., paying taxes and contributing immensely to the economy of this great country, yet all the U.S. can do is give Nigeria a paltry $300,000. The last time I visited the congressional gallery to watch the debates, in May 2010 while taking a break from the Bi-national commission meeting, the U.S. Congress was debating whether to approve a grant $200 million to Israel to buy more American made weapons to contain the threat Iran might pose in the future. This does not include the other $4 billion grant we give to Israel and Egypt by law every year. Israel is our number one ally in the Middle East, and I support every effort to make sure that Israel’s security is not threatened. However, should we also continue to treat Nigeria, our 4th largest oil supplier like a step child? Nigeria sends 1 million barrels of its crude oil to the U.S. every day. Even though Nigeria gets paid for the oil, they could sell the crude to the Chinese instead of the U.S. Yet, the U.S.fails to realize that it is crucial for Nigeria as a country to remain vibrant, peaceful and stable. However, you cannot build stability on an economy that has no adequate power, water, good roads, adequate security, and where the average citizen subsists on $2.0 per day. A few years ago, the U.S. Intelligence agency predicted that Nigeria will become a failed state in less than 15 years. So if that were the case, what is our America doing about it? After all, we have over 140,000 Americas citizens, in Iraq, close to 50,000 in Afghanistan, and another 50, 000 protecting the people of South Korea. Yet, Nigeria, the number four supplier of the fuel that keeps the economic engine humming, we don't even have a single FBI agent stationed there to help them with a simple corruption investigation. We know Nigeria needs a minimum of 150,000 megawatts of power, yet we have not provided a single plan to help the people of Nigeria get adequate power. We know all the coasts of Southern Nigeria have been polluted for 50 years by the same oil countries we would put in jail America for pollution, yet we turn a blind eye. America has all the technology to create a financially stable Nigeria, that can demand more American exports, yet America chooses to ignore that. So what is our idea of friendship? Granted, people think about friendship, while nations are mostly concerned about interest. It is in America’s bestinterest to guide Nigeria on the right part so that Nigeria can build an economic engine similar to the U.S. There are 150 million Nigeria consumers out there, almost half of them under 25 years old, a future baby boom generation that can demand American products for the next 25 to 30 years. So does it not make sense for America to create joint ventures with Nigerians to build American cars in Nigeria and create jobs for Nigerians? Does it not make sense to send American home builders (who are suffering in the current recession) to use American technology to help Nigeria create a housing industry that can build the over one million homes that Nigerians need every year for the next 30 years? If Nigerians can build and finance 1 million homes per year with the help of Americans, is it not possible that the U.S. might sell 1 million G.E. Refrigerators made in America and assembled in Nigeria, thereby creating jobs in both countries. Since Nigeria needs 2 million agricultural tractors per year, does it not make sense for John Deer, an American company to create assembly and manufacturing plants in Nigeria to create jobs in Nigeria, increase the people'sstandard of living and have a steady market for their tractors? Based on these few examples, it would seem like a win win solution for both countries. In fact it is more in the interest of the U.S. because if the U.S. Fails to take advantage of these opportunities, the chances are that, countries like China Will and are already filling the void. Therefore, as a friend, and an "ally" it is in the best interest of U.S. to help Nigeria develop as fast as possible instead of producing reports that seem to suggest that "Nigeria might become a failed state" If Nigeria becomes a failed state, it will definitely impact the U.S. and the world in more ways than we can think of now or in the future.
Toyin Dawodu is the Managing partner of Capital Investment Group, a California based Diversified
4TH OF JULY LETTER TO PRESIDENT OBAMA RE INVESTING IN NIGERIA POWER SUPPLY
Capital Investment Group
22365 Barton Rd. Suite 204. Grand Terrace, CA 92313 951-750-8429 Fax 909-498-0352
1600 Pennsylvania Avenue
NW Washington, DC 20500
7/5/10
Dear Mr. President, Happy Fourth of July. In addition to everything else on your plate, I am sure creating jobs for Americans is your number one priority. When you hear the cries of unemployed Americans, I am sure you can’t wait to do something about it. My number one fear is that our unemployment problem may become more chronic unless we take drastic steps. Even though experts like Paul Krugman are calling for more stimulus funding, I am not sure that congress will approve any more stimulus. Your export initiative of doubling U.S. Exports over the next 5 years is very promising. However, we have to look at it from a different angle. We need a new export market, like the giant continent of Africa. Here’s why, the domestic consumption may not solve our unemployment problem this time because the American consumer has now discovered saving. Our traditional export markets like Europe and Asia may not be enough either. That leaves us with creating capacities in African countries where the market exists to absorb American exports for the next 50 years, just like Europe did for the last 50. The United States built Europe, we built Japan and Korea. U.S exports several billion dollars worth of products to these countries, while exports to Africa are very small. If we had not made the effort to build, nurture, and support those three economic powers after the war, it is unlikely we could look up to them to absorb the amount of exports they absorb from our economy. That is exactly why the U.S. needs to help build the African economy. Africa is the new frontier in consumption growth over the next 50 years. The population will exceed 1 billion people, and the economy will be over $1trillion strong. According to the author of Africa Rising, “50-150 million Africans are classified as economic elites with spending power similar to our working class citizens in the west” “There are 350-500 million people in the African aspiration classes from households with stable jobs” These consumers will demand the same products that American consumers demanded over the last 50 years, like housing, appliances, automobiles, and infrastructures. The question is how do we merge our needs with the African consumer for mutual benefits? According to a Washington Post article, “Why U.S. needs Africa, “ the author, Paul Kagame, stated, “The United States has committed less to African markets than the emerging economies of Asia have; China guarantees nearly 30 times more in loans for investment in Africa than the United States does. Africa’s needs are so great that there is ample room for both U.S. and Chinese investment. Increased U.S. investment in Africa would translate into more opportunities for U.S. companies, with high potential for profit flowing back to the U.S. economy.” For example, Nigeria has a population of 150 million, projected to grow to 300 in the next thirty years. Currently, Nigeria generates less than 5,000 megawatts of electricity. Nigeria needs a minimum of 100,000 megawatts. The US has the manpower and equipment to build both the power plants and the grids to power Nigeria. At the rate of $1million per mega watt, the US can line up an export market of $100 billion immediately by helping Nigerians to find a solution to their power problem over the next ten years. This will create thousands of jobs both in the US and Nigeria. With a stable power supply, the Nigerian economy can grow at a minimum rate of 8-12% per year. This will lead to a middle class that will demand more American products. According to the Nigerian minister of Agriculture, Nigeria needs a minimum of 2 million agricultural tractors. Nigeria also needs to build a minimum of 2 million homes per year for the next 30 years to accommodate their citizens. Therefore, if a company like John Deer were to establish an assembly plant in Nigeria, all the engines will come from the U.S. Jobs will be created in both countries. We can extend this process over several industries and create tax incentives for companies that can create a minimum of 10 new jobs that depends on a partnership that creates jobs in both countries where the goods are partly assembled in Nigeria and the raw materials comes from the U.S. If we can sign up 100,000 manufacturers into the program, who each creates 10 jobs, that is 1,000,000 jobs we can create within months. Nigeria recently signed into law, the oil and gas local content law. This is a 20 billion dollar industry that is designed to help Nigerians participate in the oil industry. But for Nigerians to realize these goals, they need experienced oil and gas servicing partners who can provide the initial equipment and training. So we need to encourage American companies to form joint venture partnerships with enterprising Nigerians, provided such partnerships create more jobs on both ends. Every consumer and industrial product is in short supply in Nigeria, and by extension Africa. According to a Wall Street Journal article, David Rubenstein, co-founder and managing director of Carlyle Group, stated that “he expects economic growth in Africa to outpace every other region over the next decade.” So rather than rely on the same old trade partners, congress and the Obama administration needs to work together and create tax incentives that can open new export markets in the fast growing and emerging African market. These are some of my ideas and I would be glad to assist in any way possible to implement them. Thank you for your time.
Regards.
Toyin Dawodu
Managing Partner
Capital Investment Group
22365 Barton Rd. Suite 204 Grand Terrace, CA 92313 Phone: 951-750-8429 Fax: 909-498-0352 Email: toyin@capvestgroup.com
PRESIDENT OBAMA'S RESPONSE TO TOYIN'S 4TH OF JULY LETTER
REQUEST BY TOYIN TO VISIT CONGRESSMAN CALVERT
5/14/2010
Dear Congressman Calvert,
I will be in Washington DC next week, and would like to pay you a visit to share some of my ideas about how to improve our economy here in the Inland Empire. Riverside and San Bernardino Counties have been particularly affected by the current recession. We have high unemployment and more residents face foreclosure. How do we create more jobs? As a business person and resident of Riverside for over 25 years, this is the worst I have seen since I have lived here. Even some of my employees I laid off two years ago are still calling me to know if I have work for them. These are some of the problems I would like discuss with you and give you my suggestions for helping to reduce unemployment in our area. I know your schedule is very tight, so while I am there, if I do not get a chance to see you, I’ll understand. Thank you for your time.
Sincerely,
Toyin Dawodu
Managing Partner
Capital Investment Group.
TOYIN LOBBYING CONGRESS ON BEHALF OF AFRICA AND NIGERIA 2010
LETTER TO CONGRESS WOMAN WALTERS, 2011
Dear Congresswoman Walters,
I want to commend your efforts and that of the CBC in trying to help job seekers in the African American community. I have been an employer in California for the last 25 years. I heard you say on TV that one way for the country to create employment is to give incentives to companies to bring back their manufacturing jobs that were shipped to China. I am currently working on a project that can accomplish the objective of manufacturing here in the U.S., and exporting the end products to Africa. One aspect of our job creation we are not paying attention to is how we can develop a synergistic trade relation with Africa such that we can export more American made products to Africa in such a way that it create jobs on both sides. For example, trade between U.S. and Europe is $600 billion per year, American Trade with all of the 54 countries in Africa amounts to about $70 billion per year, which consist mainly of oil imports from Nigeria, Angola and Gabon, taking up almost 60%. U.S. exports to Africa is only $16 billion, leaving us with a trade deficit of almost $50 billion. Chinese trade with Africa in 2010 was $115 billion and it is growing at a rate of 43%. Total Export to Africa from China was $52 billion in 2010. U.S. can create several thousand jobs by doubling our exports to Africa alone. What if we seek companies that will specifically focus on this problem, locate them in urban areas where African American unemployment is highest and then export their goods to Africa? That is the focus of what my company is trying to do. We are trying to build power plants in Nigeria. Our project is worth about $1 billion in export revenue to the U.S. The equipments will be built in the U.S, and assembled in Nigeria. So it will create jobs on both sides. We can repeat this scenario several times in order to create the jobs we need in the urban areas. One way you can help our company is to help us contact the USTDA to give us an audience in terms of start up funds. We are currently a startup company, and the USTDA has funds to help companies like ours. Thanks for your assistance.
LETTER TO REPRESENTATIVE CALVERT
Capital Investment Group
22365 Barton Road Suite 204, Grand Terrace CA 92313 951-750-8429 Fax 909-498-0352
Dear Representative Calvert,
We want to create 1,000 jobs in California. We need your help. The head line for today’s Wall Street Journal, 9/24/10, under World News section, screamed, “China Extends Africa Push With Loans, Deal in Ghana.” “Ghana and China signed project loans and another deal together totaling $15 billion, the latest in a string of Chinese investments on the continent.”… In my previous letter to your office, I suggested how the U.S. government can help American companies to create more jobs by encouraging specific types of symbiotic export relationships with African companies. For example, Capital Investment Group is planning to build 4,000 megawatts of power plants in Nigeria. This is a $4 billion dollar export potential for a few American companies, and an opportunity to create up to 1,000 jobs in California and thousands more in Nigeria. We have identified some of these companies, one of them is located here in the Inland Empire, and others are in Orange County and San Francisco. To achieve our goal, we will need some form of loan guarantees from the U.S government, through Exim bank. That is why I am writing to find out if your office will be willing to contact the U.S Exim bank on our behalf, and to sponsor legislation that will increase the amount of loan guarantees provided by the U.S. Exim bank. Nigeria is in the top ten of the countries causing trade deficits with the U.S. The U.S trade deficit with Nigeria was over $15 billion in 2009. Our plan is to lower this deficit with our power project. We have had discussions with the Nigerian government, and they have expressed their interest in the form of providing credit support if we can secure U.S loan guarantees. I do not think the U.S. should stand by while China continues to take advantage of the current opportunities available in Africa. Africa is becoming more stable, the governments are practicing what we’ve been preaching to them for the last 20 years, “Democracy and Good Governess”, yet we are not willing to be aggressive enough to support Africa’s efforts in finding the necessary capital for accelerated development. The above headline should be a wakeup call for us and I hope you will use your good offices to support our efforts to secure the U.S government’s loan guarantees for our project so that we can create jobs for Americans. I would like to stop by your office to discuss our project at a convenient time for you. Thank you. I enclose a link to our press release and a story about our project. http://finance.yahoo.com/news/California-Company-to-Create-iw-14726156.html?x=0 http://234next.com/csp/cms/sites/Next/Home/5609384-146/facebook_brings_u.s-based_nigerians_ideas_to.csp
Regards,
Toyin Dawodu
Managing Partner
Capital Investment Group
Email: toyin@capvestgroup.com
LETTER TO PRESIDENT OBAMA
Capital Investment Group
22365 Barton Road Suite 204, Grand Terrace CA 92313 951-750-8429 Fax 909-498-0352
9/24/10
Dear President Obama,
We want to create 1,000 jobs in California. We need your help. The head line for today’s Wall Street Journal, 9/24/10, under World News section, screamed, “China Extends Africa Push With Loans, Deal in Ghana.” “Ghana and China signed project loans and another deal together totaling $15 billion, the latest in a string of Chinese investments on the continent.”… In my previous letter to you, I suggested how the U.S. government can help American companies to create more jobs by encouraging specific types of symbiotic export relationships with African companies. For example, Capital Investment Group is planning to build 4,000 megawatts of power plants in Nigeria. This is a $4 billion dollar export potential for a few American companies, and an opportunity to create up to 1,000 jobs in California and thousands more in Nigeria. We have identified some of these companies, one of them is located here in the Inland Empire, and others are in Orange County and San Francisco. To achieve our goal, we will need some form of loan guarantees from the U.S government, through Exim bank. That is why I am writing to find out if your office will be willing to contact the U.S Exim bank on our behalf, and to sponsor legislation that will increase the amount of loan guarantees provided by the U.S. Exim bank. Nigeria is in the top ten of the countries causing trade deficits with the U.S. The U.S trade deficit with Nigeria was over $15 billion in 2009. Our plan is to lower this deficit with our power project. We have had discussions with the Nigerian government, and they have expressed their interest in the form of providing credit support if we can secure U.S loan guarantees. I do not think the U.S. should stand by while China continues to take advantage of the current opportunities available in Africa. Africa is becoming more stable, the governments are practicing what we’ve been preaching to them for the last 20 years, “Democracy and Good Governess”, yet we are not willing to be aggressive enough to support Africa’s efforts in finding the necessary capital for accelerated development. The above headline should be a wakeup call for us and I hope you will use your good offices to support our efforts to secure the U.S government’s loan guarantees for our project so that we can create jobs for Americans. I would like to stop by your office to discuss our project at a convenient time for you. Thank you. I enclose a link to our press release and a story about our project. http://finance.yahoo.com/news/California-Company-to-Create-iw-14726156.html?x=0 http://234next.com/csp/cms/sites/Next/Home/5609384-146/facebook_brings_u.s-based_nigerians_ideas_to.csp
Regards,
Toyin Dawodu
Managing Partner
Capital Investment Group
Email: toyin@capvestgroup.com
LETTER TO SOME SENATORS
Dear Senator, I am writing to inform you that our company is working on creating over 1,000 jobs in California within the next few years. In this tough economic times and high unemployment, I am sure you would be glad to do everything within your power to make sure California is able to create good paying jobs. Our company, Capital Investment Group is planning to team up with other California companies to build and deliver power plants to Africans. We are currently working with Some African Countries, including Nigeria where we are committed to delivering 4,000 megawatts of power plant within the next two years. This is an export potential of $4 billion to California and the U.S. economy. Therefore, we would be interested in finding out how your office can help us in accomplishing our goal. We plan to begin delivery of our power plants withing the next six months.
LETTER TO SENATOR FEINSTEIN
Capital Investment Group
22365 Barton Road Suite 204, Grand Terrace CA 92313 951-750-8429 Fax 909-498-0352
Dear Senator Feinstein,
We want to create 1,000 jobs in California. We need your help. The head line for today’s Wall Street Journal, 9/24/10, under World News section, screamed, “China Extends Africa Push With Loans, Deal in Ghana.” “Ghana and China signed project loans and another deal together totaling $15 billion, the latest in a string of Chinese investments on the continent.”… In my previous letter to the president, I suggested how the U.S. government can help American companies to create more jobs by encouraging specific types of symbiotic export relationships with African companies. For example, Capital Investment Group is planning to build 4,000 megawatts of power plants in Nigeria. This is a $4 billion dollar export potential for a few American companies, and an opportunity to create up to 1,000 jobs in California and thousands more in Nigeria. We have identified some of these companies, one of them is located here in the Inland Empire, and others are in Orange County and San Francisco. To achieve our goal, we will need some form of loan guarantees from the U.S government, through Exim bank. That is why I am writing to find out if your office will be willing to contact the U.S Exim bank on our behalf, and to sponsor legislation that will increase the amount of loan guarantees provided by the U.S. Exim bank. Nigeria is in the top ten of the countries causing trade deficits with the U.S. The U.S trade deficit with Nigeria was over $15 billion in 2009. Our plan is to lower this deficit with our power project. We have had discussions with the Nigerian government, and they have expressed their interest in the form of providing credit support if we can secure U.S loan guarantees. I do not think the U.S. should stand by while China continues to take advantage of the current opportunities available in Africa. Africa is becoming more stable, the governments are practicing what we’ve been preaching to them for the last 20 years, “Democracy and Good Governess”, yet we are not willing to be aggressive enough to support Africa’s efforts in finding the necessary capital for accelerated development. The above headline should be a wakeup call for us and I hope you will use your good offices to support our efforts to secure the U.S government’s loan guarantees for our project so that we can create jobs for Americans. I would like to stop by your office to discuss our project at a convenient time for you. Thank you. I enclose a link to our press release and a story about our project. http://finance.yahoo.com/news/California-Company-to-Create-iw-14726156.html?x=0 http://234next.com/csp/cms/sites/Next/Home/5609384-146/facebook_brings_u.s-based_nigerians_ideas_to.csp
Regards,
Toyin Dawodu
Managing Partner
Capital Investment Group
Email: toyin@capvestgroup.com
LETTER TO SENATOR BOXER
Capital Investment Group
22365 Barton Road Suite 204, Grand Terrace CA 92313 951-750-8429 Fax 909-498-0352 9/24/109/24/10
Dear Senator Boxer,
We want to create 1,000 jobs in California. We need your help. The head line for today’s Wall Street Journal, 9/24/10, under World News section, screamed, “China Extends Africa Push With Loans, Deal in Ghana.” “LAGOS, Nigeria-Ghana and China signed project loans and another deal together totaling $15 billion, the latest in a string of Chinese investments on the continent.”… In my previous letter to your office, I suggested how the U.S. government can help American companies to create more jobs by encouraging specific types of symbiotic export relationships with African companies. For example, Capital Investment Group is planning to build 4,000 megawatts of power plants in Nigeria. This is a $4 billion dollar export potential for a few American companies, and an opportunity to create up to 1,000 jobs in California, and thousands more in Nigeria. We have identified some of these companies, and one of them is located here in the Inland Empire. To achieve our goal, we will need some form of loan guarantees from the U.S government, through Exim bank. That is why I am writing to find out if your office will be willing to contact the U.S Exim bank on our behalf, and to sponsor legislation that will increase the amount of loan guarantees provided by the U.S. Exim bank. Nigeria is in the top ten of the countries causing trade deficits with the U.S. The U.S trade deficit with Nigeria was over $15 billion in 2009. Our plan is to lower this deficit with our power project. We have had discussions with the Nigerian government, and they have expressed their interest in the form of providing credit support if we can secure U.S loan guarantees. I do not think the U.S. should stand by while China continues to take advantage of the current opportunities available in Africa. Africa is becoming more stable, the governments are practicing what we’ve been preaching to them for the last 20 years, “Democracy and Good Governess”, yet we are not willing to be aggressive enough to support Africa’s efforts in finding the necessary capital for accelerated development. The above headline should be a wakeup call for us and I hope you will use your good offices to support our efforts to secure the U.S government’s loan guarantees for our project so that we can create jobs for Americans. I would like to stop by your office to discuss our project at a convenient time for you. Thank you. I enclose a link to our press release and a story about our project. http://finance.yahoo.com/news/California-Company-to-Create-iw-14726156.html?x=0 http://234next.com/csp/cms/sites/Next/Home/5609384-146/facebook_brings_u.s-based_nigerians_ideas_to.csp Regards, Toyin Dawodu Managing Partner Capital Investment Group Email: toyin@capvestgroup.com
TOYIN'S COURTESY VISIT TO SENATOR BOXER 2010
LETTER TO SOME CONGRESSIONAL REPRESENTATIVES
Capital Investment Group
22365 Barton Rd. Suite 204. Grand Terrace, CA 92313 951-750-8429 Fax 909-498-0352 7/20/10Dear Congressman,
I would like to create 1 million jobs for our people, and I need your support. My idea is very simple, and it may require new tax incentives for businesses that choose to participate in the program. According to Paul Volcker, “Our number one problem is gridlock government, followed by the fact that we do not make things anymore.” In the past, the engines that fueled the American economic growth and prosperity included manufacturing, housing, and the U.S. consumer’s demand for everything, including automobiles and appliances to furnish their homes. According to the treasury department, the U.S. consumer is saving more. Manufacturing is in decline or has been moved offshore and the urban land institute projects that home ownership may fall to 62% over the next 20 years, from a high of 70%. My number one fear is that our unemployment problem may become more chronic unless we take drastic steps. Even though experts like Paul Krugman are calling for more stimulus funding, I am not sure that congress will approve any more stimulus. President Obama’s export initiative of doubling U.S. Exports over the next 5 years is very promising. However, we have to look at it from a different angle. We need a new export market, like the giant continent of Africa. Here’s why, the domestic consumption may not solve our unemployment problem this time because the American consumer has now discovered saving. Our traditional export markets like Europe and Asia may not be enough either. That leaves us with creating capacities in African countries where the market exists to absorb American exports for the next 50 years, just like Europe did for the last 50. The United States built Europe, we built Japan and Korea. The U.S exports several billion dollars worth of products to these countries, while exports to Africa are very small. If we had not made the effort to build, nurture, and support those three economic powers after the war, it is unlikely we could look up to them to absorb the amount of exports they absorb from our economy. Africa is the new frontier in consumption growth over the next 50 years, as the population exceeds 1 billion people, over $1 trillion economy, with 350 million consumers qualifying for middle class According to Zig Zigler, “you can always get what you want by helping enough other people get what they want.” If we help develop Africa, they will demand more of our products and create more jobs for our people. According to the author of Africa Rising, “50-150 million Africans are classified as economic elites with spending power similar to our working class citizens in the west” “There are 350-500 million people in the African aspiration classes from households with stable jobs” These consumers will demand the same products that American consumers demanded over the last 50 years, like housing, appliances, automobiles, and infrastructures. The question is how do we merge our needs with the African consumer for mutual benefits? According to a Washington Post article, “Why U.S. needs Africa, “ the author, Paul Kagame, stated, “The United States has committed less to African markets than the emerging economies of Asia have; China guarantees nearly 30 times more in loans for investment in Africa than the United States does. Africa’s needs are so great that there is ample room for both U.S. and Chinese investment. Increased U.S. investment in Africa would translate into more opportunities for U.S. companies, with high potential for profit flowing back to the U.S. economy.” For example, Nigeria has a population of 150 million, projected to grow to 300 in the next thirty years. Currently, Nigeria generates less than 5,000 megawatts of electricity. Nigeria needs a minimum of 100,000 megawatts. The US has the manpower and equipment to build both the power plants and the grids to power Nigeria. At the rate of $1million per mega watt, the US can line up an export market of $100 billion immediately by helping Nigerians to find a solution to their power problem over the next ten years. This will create thousands of jobs both in the US and Nigeria. With a stable power supply, the Nigerian economy can grow at a minimum rate of 8-12% per year. This will lead to a middle class that will demand more American products. According to the Nigerian minister of Agriculture, Nigeria needs a minimum of 2 million agricultural tractors. Nigeria also needs to build a minimum of 2 million homes per year for the next 30 years to accommodate their citizens. Therefore, if a company like John Deer were to establish an assembly plant in Nigeria, all the engines will come from the U.S. Jobs will be created in both countries. We can extend this process over several thousand industries and create tax incentives for companies that can create a minimum of 10 new jobs that depends on a partnership that creates jobs in both countries where the goods are partly assembled in Nigeria and the raw materials comes from the U.S. If we can sign up 100,000 manufacturers into the program, who each creates 10 jobs, that is 1,000,000 jobs we can create within months. Nigeria recently signed into law, the oil and gas local content law. This is a 20 billion dollar industry that is designed to help Nigerians participate in the oil industry. But for Nigerians to realize these goals, they need experienced oil and gas servicing partners who can provide the initial equipment and training. So we need to encourage American companies to form joint venture partnerships with enterprising Nigerians, provided such partnerships create more jobs on both ends. Every consumer and industrial product is in short supply in Nigeria, and by extension Africa. According to a Wall Street Journal article, David Rubenstein, co-founder and managing director of Carlyle Group, stated that “he expects economic growth in Africa to outpace every other region over the next decade.” So rather than rely on the same old trade partners, congress and the Obama administration need to work together and create tax incentives that can open new export markets in the fast growing and emerging African market. These are some of my ideas and I would be glad to assist in any way possible to implement them. Thank you for your time. Therefore, I am seeking your help in helping to craft a legislation that will create a tax incentive to put this program in motion. We must remember, Japan is already working towards it, and China is bent on dominating African business soon. Where is my country? Where is the U.S? Hope to hear from you soon.
Regards,
Toyin Dawodu
Managing Partner
Capital Investment Group
LETTER TO SECRETARY OF STATE HILLARY RODHAM CLINTON
Capital Investment Group
22365 Barton Rd. Suite 204. Grand Terrace, CA 92313 951-750-8429 Fax 909-498-0352Hillary Rodham Clinton,
Secretary of State
U.S. Department of State
2201 C Street NW Washington, DC 20520
6/8/10
Dear Madam Secretary
Re: Creating More Jobs for Americans.
Thank you for your work on behalf of the administration and our country. Before the recession started, I employed over 100 people in various stages of my Real Estate and my Software development company. I began seeing the signs of the recession in late 2006, when our properties that used to take 30 days to sell were taking 60, 90, and120 days, I started laying people off gradually and continued until October 2009. Despite all our efforts to keep our company together and hold on to our valuable employees, we were unable to. Now multiply my plight as a small business person by several thousand, and you have unemployment in the nation that has stubbornly stayed close to10%. As an entrepreneur, I can start over again, but how long will it take me to get back to 100 employees? Will I even try to get that many? That is why I worry that some jobs may never come back. In the past, the engines that fueled the American economic growth and prosperity included manufacturing, Housing, and the U.S. consumer’s demand for automobiles and appliances to furnish their homes. According to the treasury department, the U.S. consumer is saving more. Manufacturing is in decline or has been moved offshore and the urban land institute projects that home ownership may fall to 62% over the next 20 years, from a high of 70%. Therefore, President Obama’s focus on export may be one of our saviors in terms of reducing the unemployment numbers. Recently, I saw Mr. Paul Volcker on television, where he stated that our number one problem is gridlocked government that we need to create more products that others want and increase our exports. I have an idea about increasing our exports. An influential British think tank has warned the West will lose out to emerging nations unless it replaces its "humanitarian" approach to Africa with a more strategic focus on diplomatic and trade relations. According to the Wall Street Journal, in a major report published recently, “the London-based Chatham House says the emerging economies of Asia, Latin America and Africa are finding commercial and political opportunities in Africa that are being overlooked by the continent's traditional partners.” “Chatham House is the name under which the Royal Institute of International Affairs operates.” It stated that “the West will lose out to emerging nations unless it replaces its “humanitarian” approach to Africa with a more strategic focus on diplomatic and trade relations.” The author Tom Cargill stated that “Africa has been the fastest growing region of the world for some years.” But western countries still see Africa’s growth mainly from commodities point of view, while ignoring the growth from consumption. Africa is the new frontier in consumption growth over the next 50 years, as the population exceeds 1 billion people, over $1 trillion economy, with 350 million consumers qualifying for middle class, and demanding the same products that American consumers demanded over the last 50 years, like housing, appliances, automobiles, infrastructure and so on. According to a Washington Post article, “Why U.S. needs Africa, “ the author, Paul Kagame, stated, “The United States has committed less to African markets than the emerging economies of Asia have; China guarantees nearly 30 times more in loans for investment in Africa than the United States does. Africa’s needs are so great that there is ample room for both U.S. and Chinese investment. Increased U.S. investment in Africa would translate into more opportunities for U.S. companies, with hiring potential for profit flowing back to the U.S. economy.” Take the case of Nigeria; Nigeria has a population of 150 million, projected to grow to 300 in the next thirty years. Currently, Nigeria could use an installed capacity of 100,000 megawatts of power. Nigeria has the raw material to supply the power plants once built, but they lack the ability to build and run the infrastructure necessary. In the last 10 years, the Nigerian government has spent over $20billion on generating power. Under normal circumstances, this amount was enough to give Nigerians close to 20,000 mega watts, but the country can only boast of 3,500 megawatts for a population of 150 million. The US has the manpower and equipment to build both the power plant and the grid. At the rate of $1million per mega watt, the US can line up an export market of $100 billion immediately by helping Nigerians to find a solution to their power problem over the next ten years. This will create thousands of jobs both in the US and Nigeria. With a stable power supply, Nigerian economy will grow at a minimum rate of 8-12%. This will lead to a middle class that will demand more American products. According to the Nigerian minister of Agriculture, Nigeria needs a minimum of 2 million agricultural tractors. Nigeria also needs to build a minimum of 2 million homes per year for the next 30 years to accommodate their citizens. If we can help African countries like Nigeria create systems and institutions that are stable and workable, this will lead to capital creations that can propel each African nation to greater heights. Every consumer and industrial product is in short supply in Nigeria, and by extension Africa. If the U.S. can increase its population by 30% immediately, with the same purchasing power, what will it do for the U.S. economy? That is the kind of growth I am talking about with regards to the African continent. We can kill two birds with one stone by helping the people of Africa, not in terms of foreign aid, but engaging them in creating sustainable institutions and providing guidance in governance, and infrastructural development. Therefore, the current initiative of president Obama’s administration in creating a U.S Nigeria bi-national commission is laudable. I hope this commission will steer away from what Mr. Cargill describes in his report as relying too heavily on "aid policies that rarely deliver influence" I hope we will focus on how American companies can increase their export to Africa by setting up manufacturing joint ventures that can lift millions of Africans into middle class who will in turn demand more American products. For example, If Nigeria needs two million tractors, companies like John Deere can create assembly plants in Nigeria and supply all the parts necessary to build the tractors. This will lead to job creation in both countries. We can do the same for housing, appliances and automobiles. The more jobs we can help create in Africa, the more jobs we will create in the U.S, especially if the manufacturing plants in Nigeria are dependent on U.S. equipment and raw materials for their final assembly and manufacturing. I know that your department has already began discussions on implementing the U.S –Nigeria bi-national agreement, and meetings have already taken place in Abuja with regards to governance and democracy, I would like to find out if I can be put in touch with some of your people that are implementing these programs. As Nigerian Americans, some of us have ideas and perspectives that can help your commission in delivering on your effort to help move Nigeria forward. For example, during Ms. Otero’s visit on governance in Abuja, I am not sure if they had discussions on creating some form of training for new Nigerian legislators. Unlike U.S legislators, Nigerian legislators lack the experience in crafting legislation that can propel their country forward. Recently, it was reported in a Nigerian news paper that the Nigerian senate passed only 13 bills from the 119 presented to it between July 2009 and June 2010 and out of the 13 bills passed into law, only one was signed into law by the president. Out of the 199 bills presented, 113 were read for the first time. We all know that the rule of law is the cardinal principle that has made the U.S. a great country. Therefore we need an institution that can show Nigerians the way by teaching them how to craft good laws. I am also aware of the upcoming meeting scheduled for Thursday and Friday regarding discussions on of the U.S.-Nigerian bi-national commission on energy. My company has been working on energy proposals that can deliver up to 4,000 megawatts of power to the Nigerian market using mostly U.S. made technology and equipments. Therefore, if it is possible, we would like to be invited to participate in such discussion to contribute some of our fresh ideas.
Thank you for your time.
My best regards,
Toyin Dawodu
Managing Partner
Capital Investment Group
22365 Barton Rd. Suite 204 Grand Terrace, CA 92313 Phone: 951-750-8429 Fax: 909-498-0352 Email: toyin@capvestgroup.com
CORRESPONDENCE WITH OPIC (U.S. OVERSEAS PRIVATE INVESTMENT CORPORATION)
Re: Power Project and Job creation through exports X Inbox X
Reply Toyin Dawodu to info show details Aug 16 Dear OPIC,
Our company Capital Investment Group is based in California, We are working on building power plants in Nigeria. Our project is designed to create jobs, provide training to local staff and transfer technology to Nigerians, in addition to generating much needed electricity. This project will also lead to almost $1billion in export and job creation in the U.S. We would like to seek debt/equity funding from your organization, can you please respond to this email so that I'll know where to send a summary of our business plan. Thanks.. -
- Toyin Dawodu
Managing Partner Capital Investment
Group 22365 Barton Rd. Suite 204 Grand Terrace, CA 92313
Phone: 951-750-8429 Fax: 909-498-0352
Email: toyin@capvestgroup.com
www.capvestgroup.com
Reply Forward Reply Gatchev, Alison to me show details Aug 17
Dear Mr. Dawodu,
Thank you for your inquiry to OPIC. I would be the initial point of contact at OPIC regarding funding requests. To clarify,OPIC is a provider of debt, through loans or loan guaranties. OPIC can typically lend from 50-65% of a project cost, depending upon the risk factors associated with the project; the remaining funds should be sourced in equity. The project sponsor should identify the required amount of equity for the project prior to submitting a full application package for OPIC’s consideration. While OPIC does not invest direct equity in companies overseas, a list of OPIC-supported, privately-owned, privately-managed funds that do make equity investments in companies overseas can be found atwww.opic.gov/investment-funds. So that you are aware, OPIC will be organizing a training seminar on its products on September 29th in Orange, California. It is one of two seminars we are holding for 2011, the other being held in Miami in October. If you are interested to learn more about our event in Orange, details and registration instructions can be found at www.rgameetings.com/opic. I will be speaking at our Orange event, so if you are able to attend please let me know so that I may introduce myself to you. With kind regards, Alison Alison Germak Gatchev Director, Corporate Development Small & Medium Enterprise (SME) Finance Overseas Private Investment Corporation (OPIC) Direct: (202) 336-8651 Alison.Gatchev@opic.gov Want to learn more about OPIC? Attend Expanding Horizons 2011: A Seminar for Small Businesses Entering International Markets. Coming to Orange, California on September 29th and to Miami, Florida on October 26th. Visitwww.rgameetings.com/opic for more information and to register! www.opic.gov
From: Toyin Dawodu [mailto:toyin@capvestgroup.com] Sent: Tuesday, August 16, 2011 4:11 PM To: Information Officer Subject: Re: Power Project and Job creation through exports - Show quoted text -
CORRESPONDENCE WITH (USTDA) UNITED STATES TRADE DEVELOPMENT OFFICE
RE: American Job Creation Through Export
X Inbox X Reply Bonnikson, Lisa to me show details Sep 22
Mr. Dawodu, Thank you for your email. I appreciate the information you have provided about your power pursuits in Nigeria. As a bit of a background about the U.S. Trade and Development Agency (USTDA), USTDA grant funds are predominantly used for project planning activities such as feasibility studies or technical assistance projects, focusing on large-scale infrastructure project opportunities in priority sectors including clean energy, transportation, and information and communication technology. USTDA provides these grants directly to overseas sponsors who, in turn, select U.S. companies to perform USTDA-funded project development activities. USTDA has not historically provided start-up capital funding assistance to U.S. companies. However, I would be interested in learning more details about the project, in particular who you are working with in Nigeria and your previous experience in power projects. Thank you and best regards,
Lisa Lisa Bonnikson Project Analyst,
Contractor Sub-Saharan Africa Region
U. S. Trade and Development Agency
1000 Wilson Blvd., Suite 1600; Arlington, VA 22209-3901
Ph: (703) 875-4357 | Fax: (703) 875-4009
-----Original Message----- From: toyin@capvestgroup.com [mailto:toyin@capvestgroup.com] Sent: Wednesday, September 14, 2011 10:24 AM
To: webmaster Subject: American Job Creation Through Export From:
Toyin Dawodu Company: Capital Investment Group
Area of Interest: Sub-Saharan Africa
We are working on developing power projects in Africa, starting with Nigeria. All the power plants will be built by a U.S company located here in Corona California. Our first phase of the project calls for about 540 megawatts of 10-15 megawatts plants in each state for a total of $810 Million USD. These plants will be built through out Nigeria and our goal is to create jobs at both ends. The project will probably create an additional 200-300 jobs for the California company and several thousand jobs in Nigeria, in addition to providing the much needed power for the country. We are trying to raise $2.5 million in start up costs and would like to know if there is any government program in terms of grant, or loan we can tap to seed our company.
Thanks,
Toyin Dawodu
Managing Partner Capital Investment Group
toyin@capvestgroup.com
951-750-8420
Reply Forward Reply
Toyin Dawodu to Lisa show details Sep 22
Dear Ms. Bonnikson,
Thank you for responding to my email inquiry. The word start up may not be appropriate for the funds we need. Essentially the funds we are seeking are for feasibility studies. We have identified a California based company that will supply the equipment we need for the power projects. We are currently working with two state governments in Nigeria who have agreed to provide the land for the projects. The other energy project we are considering involves waste to energy by Lagos state. Capital Investment Group is the lead sponsor, and included in our group are experienced engineers and project developers who have build similar projects in developing countries including Nigeria. Please let me know what should be our next step.
Thanks.
Regards,
Toyin. - Show quoted text - --
Toyin Dawodu
Managing Partner
Capital Investment Group
22365 Barton Rd. Suite 204 Grand Terrace, CA 92313
Phone: 951-750-8429 Fax: 909-498-0352
Email: toyin@capvestgroup.com
www.capvestgroup.com
Reply Forward Reply Bonnikson, Lisa to me show details Sep 27
Toyin,
Thank you for your email. Please note that USTDA provides grants to overseas sponsors. In this case, an overseas sponsor would be a local Nigerian entity, public or private, with the decision-making authority and ability to implement a project. The Nigerian entity would then select a U.S. company to perform an Agency-funded project development activity. In cases where an overseas project sponsor would like to sole source a USTDA-funded activity to a specific U.S. firm, such as Capital Investment Group or your California based partner, USTDA and the U.S. firm would share the cost of the activity. USTDA’s contribution varies according to a number of factors, including the size of the firm, the costs the firm has incurred in developing the project, and the risks associated with the project. USTDA may require the U.S. firm to reimburse part or all of USTDA’s funding if the project is implemented and the firm receives substantial economic benefit. In addition, in order for any project to qualify forUSTDA grant funding, U.S. firms must express interest in exporting goods and/or services during the implementation phase of the project, and international financiers must express interest in supporting the project. More information about our grant application process can be found at: http://www.ustda.gov/program/ModelProposalFormatUSFirms2010.pdf Please let me know if you have any questions.
Regards,
Lisa Lisa Bonnikson Project Analyst,
Contractor Sub-Saharan Africa Region
U. S. Trade and Development Agency 1000 Wilson Blvd., Suite 1600; Arlington, VA 22209-3901
Ph: (703) 875-4357 | Fax: (703) 875-4009
From: Toyin Dawodu [mailto:toyin@capvestgroup.com] Sent: Thursday, September 22, 2011 1:21 PM To: Bonnikson, Lisa Subject: Re: American Job Creation Through Export
CORRESPONDENCE WITH U.S. DEPT. OF COMMERCE
RE:
Your email to Secretary Locke
re the American World Federation Reply Toyin Dawodu to Gary show details May 15
Dear Mr. Bouck,
Thanks for your response. Please extend my congratulations to Secretary Locke. I look forward to working with the department at the appropriate time. Regards, Toyin From: Gary Bouck
[mailto:Gary_Bouck@ita.doc.gov] Sent: Friday, May 13, 2011 1:39 PM To:
Toyin Dawodu Subject:
Your email to Secretary Loce re the American World Federation Dear Mr. Dawodu:
Thank you for making Secretary Locke aware of your proposal to develop business and create jobs in both the United States and Africa through your non-profit organization, the American World Federation. The Office of the Secretary has a complete copy of the information you sent and will review it as time permits. But please understand that Secretary Locke receives numerous suggestions from the business community on a continual basis--especially since President Obama's recent push on the National Export Initiative (NEI)--and his office, regrettably, hasn't the staff or resources to respond in detail to each and every one of those proposals. Added to the above is the fact that Secretary Locke has been nominated to become U.S. Ambassador to China and his office is, understandably, quite involved now with that transition. However, you have our acknowledgement that we have your proposal in hand, and should we have further questions or need more information after reviewin g it in more detail, we will contact you immediately. In the meantime, thank you once again, Mr. Dawodu, for making us aware of the American World Federation and the potential benefits it could provide for both the United States and Africa. Sincerely, Gary D. Bouck International Trade Specialist International Trade Administration U.S. Department of Commerce Washington, D.C.
