Remember James Ibori? A former two-term governor of oil-rich Delta State; he was accused of financial fraud and money laundering in Nigeria and the United Kingdom. For four years, several charges awaited him in the UK, where, in 2007, a court froze assets allegedly belonging to him worth $35m (N5.25bn). In May 2010, he escaped from Nigeria to avoid the Economic and Financial Crimes Commission's charge of stealing billions of Naira belonging to the people of the state. He resurfaced in Dubai but he would not be offered sanctuary. He was arrested by the Interpol and extradited to the UK in April 2011. He was subsequently charged with 25 offences relating to money laundering and fraud. He is currently in a London jail.
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Ibori's case offers a good introduction to the swarming of Dubai in recent years by Nigerians, especially politicians and businessmen, notably, government contractors. They may not have been accused of corruption by the EFCC like Ibori but they, too, are making away with a lot of cash, seeking to invest abroad and enjoy the good life on "neutral" grounds. Within the past few years, such Nigerians have been purchasing property in Dubai almost on a daily basis.
During my recent trip to Dubai, I learnt that Nigerians own substantial property there, from regular apartments to vacation ones. For example, over 70 per cent of Emirates Vacation Club membership was sold to Nigerians. And sure enough, I ran into a number of them when I visited the iconic 50-storey Emirates Grand Hotel, where club members have partial ownership. One Nigerian had a towel around his neck in an elevator. He must have been returning to his apartment from the spa or the roof-top swimming pool. The Emirates Club membership begins from about $20,000. Like time share, it allows investors to stay in the hotel or a comparable one anywhere in the world for one or two weeks every year for 99 years. The cost of membership depends on the duration of stay and number of rooms desired.
Similarly, Nigerians own over 50 per cent of the hotel apartments built by The First Group in Dubai's new financial district. Again, I
encountered many of them when I visited one of the properties. Depending on size, each apartment is priced from about $400,000 to over $1 million. So impressed is The First Group with its Nigerian clientele that it has concluded plans to build a luxury apartment complex in Abuja. Although still only on paper, the apartments are being bought already by "wealthy" Nigerians! In addition to property ownership, Nigerians also have substantial investments in many of Dubai's banks and various other businesses.
Nigerians will likely double up on Dubai property investment for three reasons. First, UAE's open door visa policy makes it easy to go in and out of Dubai. Second, Dubai property developers are flexible about payment arrangements once you have the cash for the down payment (from 10 to 40 per cent of the total cost). Third, the UAE government decided on June 28, 2011, to extend the visa duration of property owners from six months to three years. It was a move to ignite the 2011-2013 strategic plan aimed at stimulating economic growth.
But not all Nigerians go to Dubai to invest. Traders, men and women, go there to purchase goods and resell in Nigeria. Like Nigerian investors, the traders have become highly recognised in Dubai, especially in Deira and Bur Dubai sprawling markets, where many merchants have Nigerian customers. Nigerian traders are assisted by Nigerian residents in Dubai, some of whom have no other job than to assist with visa processing, accommodation, shopping, and luggage packaging. Like other foreign migrant workers, the Nigerian Diaspora has been growing steadily in Dubai in the last ten years.
There are also Nigerians who go to Dubai to sell their bodies, as they do in some European countries, notably Spain and Italy. They are attracted to Dubai because of UAE's open door visa policy, which allows them to go in and out as often as they wish, and because there are many potential customers due to a gross shortage of women. "I once encountered a Nigerian lady who works as a banker in Nigeria", said a Nigerian resident in Dubai. "She came to Dubai on vacation but in actual fact, she was engaged in prostitution during her stay here. She then bought lots of goods with the money she made and returned to Nigeria after a few weeks. Many Nigerian ladies, even some married women, come here to do the same thing."
A number of Nigerians also go to Dubai to enjoy the good life in a city where everything is available and where everything works efficiently. Some go there to have wedding ceremonies for their children; others go for birthday parties for themselves, their spouses, or their mistresses. Dubai is the place where luxury awaits you. And those Nigerians who can afford such luxury, largely by drawing upon our patrimony, have been doing so lavishly, not minding that over 70 per cent of their fellow citizens lives below the poverty line.
True, citizens should be free to invest their money and hold parties anywhere they want. The problem with our politicians is that the money they are spending abroad is hardly theirs. In the Dubai case, one would have expected that they would at least have learnt a lesson or two about how to develop a modern city and make citizens comfortable.
In case you are unfamiliar with Dubai's "wonders", let me mention a few. First, on a historical note, here is how Big Bus Tours introduced Dubai to potential customers: "Dubai is a city of fascinating contrasts, offering a distinctive blend of old and new. It's where East meets West. In less than a century ... it has been transformed from a small fishing village into a modern, vibrant city full of surprises."
Most of the surprises came only within the last fifteen years, just three years longer than the Peoples Democratic Party's mismanagement of power in Nigeria. They include Burj Khalifa, the world's tallest building; the Palm estates, notably Palm Jumeira, one of the most ambitious real-estate developments on earth, heralded as the 8th Wonder of the world, with its own man-made lake and a seven-star hotel; Dubai Mall and the Mall of the Emirates, each among the five biggest malls in the world; Dubai Metro, the longest fully automated rail system in the world (when fully completed); and two of the tallest hotels in the world, namely, Rose Rayhaan by Rotana (also known as Rose Tower) and Burj Al Arab. Did I mention 24/7 security; fully staffed and equipped schools and hospitals; uninterrupted power and water supply; door-step to door-step paving of most surfaces throughout the city; and lush greens, including trees and palms, on grounds that were once arid desert?
When the first census was conducted in 1968, Dubai's population was less than 59,000. Today, it is over 2 million, although indigenes account for barely 15 per cent. The others are foreign migrant workers, notably Indians. Dubai owes its growth and outstanding success to visionary leadership, strategic planning, innovative projects, and meticulous execution. Contrary to popular belief, revenues from petroleum and natural gas contribute less than 3 per cent of Dubai's over $50 billion economy. A majority of its revenues derives from the Jebel Ali free trade zone authority, tourism, real estate projects, sports events, private investment, and various service businesses.
Finally, here is a comparison you can easily relate to. Dubai International Airport and Emirates Airline were established in 1971 and 1985 respectively. By contrast, Lagos International Airport (renamed Murtala Muhammed International Airport in 1979) and Nigeria Airways were products of the 1950s. By 1999, Dubai Airport had become the sixth fastest growing airport in the world, whereas ours was attracting negative evaluation and sanctions. And while Nigeria Airways ceased operations in 2003 due to mismanagement, poor safety record, and unpaid debts, Emirates Airline is still garnering awards for efficiency and growth.
When Nigeria Airways closed down, it had only three aircraft, two of which were on lease. Emirates already had over 100 aircraft, and kept ordering more, including a record order of 58 new aircraft in 2001 and the largest-ever order for 42 Boeing 777 family of aircraft in 2005! Again, in 2007, Emirates surpassed its previous records by signing contracts for 131 Airbus aircraft and 11 Boeing 777-300ERs. These feats were possible because Emirates Airline's profits have been growing steadily since its third year of operation.
If you know Nigerian politicians who have been to Dubai, please ask them what they learnt and why they are not putting the knowledge to use in our country.
- Professor Akinnaso teaches Anthropology and Linguistics at Temple University, Philadelphia, United States. He can be reached via niyi@temple.edu
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