SIMON NJOKU, with additional materials from the Embassy of Nigeria, Lebanon.
When he came to Nigeria in 1885 as an emigrant Lebanese Elias Khoury Younes could not have imagined the long term impact of his mission. He paved way for other Lebanese to move to Nigeria from the mountainous village of Miziara in northern Lebanon.
Soon after, others from the South, East and West of that country found their way to Nigeria. They sowed the seed that geminated and grew to an estimated 30,000 Lebanese immigrants living in Nigeria today.
Returnee immigrants
Just recently, the descendants of the first generation of the emigrants hosted Nigerian business leaders in Lebanon as a first step in cementing the age-old relations between the two countries. Some of them were born and bred in Nigeria even as some have lived in Nigeria for over 50 years.
These include the Chagouris from the North (owners of Lagoon Restaurant in Victoria Island, Lagos as well as Chagouri & Chagouri Construction), the Anwar Khalils from Hasbaiya in the South (owners of 7Up), the Hani Safieddines from Sour in the East, the Mohammed Zards in the West. Currently, this generation of Lebanese emigrants to Nigeria is returning to Lebanon where they have set up thriving businesses.
LENIFRA
With the Nigerian Ambassador to Lebanon Hameed Opeloyeru as the arrow head, the returnee emigrants, led by the above personalities, have come together to form the Lebanese Nigerian Friendship Association (LENIFRA) to promote cultural, social and business relations between Nigeria and Lebanon. LENIFRA it was that funded the visits of the Nigerian delegation to the various chambers of commerce in the country and some historical sites as well as the Nigerian Week. At their various residences, the Chagouris, the Khalils, the Safieddines and the Zards organized elaborate receptions for the Nigerian business delegation.
Issues
As the third generation of Lebanese emigrants begins to return home, the question as to how to handle formal bilateral and non-bilateral issues with Lebanon should now be of urgent concern. This has become inevitable in view of their enormous investments n Nigeria.
The need for Nigerians to also explore business opportunities in Lebanon should now be stressed in order o achieve a two-way invest flows.
The fact should however be acknowledged that most Nigerians including the business community do not know much about Lebanon. The much the average Nigerian knows about them has to do with war with Israel in addition to their business activities in Nigeria.
Strategic Location
Lebanon is famous as the Middle East hub for business, banking services, entrepreneurship and tourism. It played an important role as a transit point for Euro-African business, with its citizens occupying a prominent place on the business plane all over the world.
In spite of the long affinities between the Lebanese and Nigerian peoples, there are no valid bilateral instruments for active economic exchanges between the two countries, neither are there any socio-cultural frameworks for interaction between peoples of both countries.
The visit of the Nigerian business delegation exposed the Nigerian entrepreneurs to the best business practices and the developed service sectors at Lebanon.
Indicators
With a Gross Domestic Product averaging $22.3 billion annually, Lebanon’s economy is import-dependent, modestly sized but highly dynamic. Its balance of trade deficit amounted to $7.153 billionin 2006 and its total debt stock rose to $41 million in the wake of recent massive reconstruction efforts.
Lebanon imports petroleum products to the tune of $2.2 billion, about 25.7 per cent of its imports bill, while such other items as heavy machines, electrical instruments, cars, and tractors are imported fro Europe, especially Italy, France and China. Its exports bill averages $2.294 billion, made up of fruits and vegetables, manufactured food products, bottled water, products of chemical industries, electrical instruments and articles of base metals and machinery.
Tourism
But the country compensates for its huge trade deficit through its developed tourism and service sectors as well as diaspora remittances. The more than 14 million Lebanese immigrants overseas, about 400 per cent the size of national population, contribute about 25 per cent of Lebanon’s GDP of $18.83 billion per annum. Furthermore, an annual average of four million travelers is recorded, comprising about 50 per cent tourists. The hotels sub-sector can boast of 300 hotels, 21 of them in the five-star category, 53 four-star, 75 three-star etc.
Finance
The 54 commercial and 10 merchant banks include 29 Lebanese-owned, 10 with Arab ownership, two foreign, while 10 others are subsidiaries of foreign and Arab banks respectively.
The Beirut Stock Exchange handles an average of 134 billion activities annually. Besides, Lebanon has impressive social indicators with 94 per cent literacy rate, a 35 per cent of GDP spending on health and social security coverage for more than 35 per cent of the population.
Investment Culture
The Lebanese vast knowledge of global trade trends could assist Nigeria’s drive for foreign direct investment especially from the oil-rich Arab countries, where Lebanese investments are considerable. The recent policy of the Nigerian government on concessionairing the development of social and economic infrastructure will have a ready support from the Lebanese entrepreneurs and financial institutions.
Critical Areas of Strength
• Financial and business consultancy
Lebanon has always been the financial hub of the Middle East, a situation that earned it the reputation of being the Switzerland of the Orient because of its adherence to Swiss banking practices. There are 64 banks in the country as at 2005, 54 0f which are commercial banks while 10 are merchant banks. Most Lebanese immigrants in Nigeria finance their transactions from the numerous banks in Lebanon.
• Health
Lebanon is also noted as a destination for health tourism as most patients from the Arab world and Lebanese Diaspora do travel home for health services. The social welfare scheme for Lebanese is very effective as citizens enjoy subsidized and quality medical treatments in reputable hospitals. Official statistics indicates that there are 138 hospitals with 9,786 beds in Lebanon, with a registered number of 1, 849 pharmacies and 4,448 pharmacists and 4,956 doctors. Nurses number 6,231 but a recent shortfall of nurses is being experienced in the country. Nigeria may therefore consider the possibility of introducing our Technical Aid Corps services to Lebanon in this area or facilitate the movement of well qualified Nigerian nurses to this area of activity in Lebanon.
• Education
There are 38 institutions of higher learning with a student population of 146,961 and 13,770 instructors in 2006. the literacy rate is above 90 per cent, making Lebanon the most literate country in the Middle East
Exchange programmes between the Lebanese and Nigerian universities should be encouraged.
“My brief research experience in Lebanon shows that there is the need for Nigeria and Lebanon to establish academic exchange programmes at the post doctoral level especially on immigration studies which is not only being viewed within the concept of globalization but has become of dominant interest to international organizations such as the United Nations, International Organisation for Migration, the EU, AU and the US,†noted Peter Adebayo, lecturer University of Ilorin and post doctoral researcher on return migration and transnational migration and transnational networking.
According to Adebayo, “it was this exchange programme that fascinated the director of Florence School on Euro-Mediterranean Migration that offered me admission on the basis of South-South Cooperation between Lebanon and Nigeria.â€
• Entertainment and Leisure
Lebanon’s position as the primary tourist centre in the Middle East is not even rivaled by Dubai, in view of its numerous historical and tourist attractions other than shopping. In Nigeria, the Lebanese investors abound in the hotel and restaurant sub-sector, including gaming machines, cinemas and casinos etc.
• Construction
Due to the rigorous building regulations and the effective involvement of the Guild of Engineers in the supervision of building works, the sector has witnessed considerable growth and international reputation. The contribution of Lebanese companies to the construction sector of the Nigerian economy is mammoth as most Lebanese-owned commercial ventures have since diverted their investment into the building sector. The Eko Atlantic project being handled by the Chagoury construction outfit is a huge engineering behemoth that will provide housing projects on commissionairing BOT basis.
• Energy Sector
Lebanon imports its crude petroleum but has two refineries in Tripoli and Zahrani. It also has off-shore oil deposits. Considering the need to explore these oil resources owing to a good rise in the price of crude, the Government of Lebanon has mooted the desire to seek cooperation with Nigeria in the area of upstream petroleum activities.
In the domain of electricity, Lebanon’s Electricity Corporation generates about 0.869 MHz of electricity and makes up for the shortfall of 0.210 MHz by importation from neighbouring Syria.
Bilateral Economic Instruments
To ensure active economic interchange, Nigeria and Lebanon are currently negotiating an Agreement on Promotion and Protection of Investment; and Avoidance of Double Taxation. Senior officials from the Ministry of Foreign Affairs were on the business delegation to discuss with relevant arm of the Lebanese Ministry of Finance the agreed provisions of the agreements with a view to their eventual execution in due course.
• Investment
The estimated 30,000 Lebanese immigrants in Nigeria contribute immensely to Nigeria’s GDP and capital flow of Diaspora remittances to Lebanon. It is estimated that about 500 corporate organizations are run exclusively by Lebanese immigrants, while the technical management and part ownership of several joint venture companies are undertaken by Lebanese immigrants. Known corporate organizations with controlling Lebanese participation include Eko Hotels, Dumex, Energy Foods, Ideal Flour Mills, Jaggal, Mouka Foam, Seven-Up Bottling, Siemens, Setraco, Chagouri & Chagouri, SCOA etc.
There are no ready statistics on the quantum of Lebanese investments in Nigeria as most of them are registered as Nigerian corporate establishments. However, Lebanese government figures indicate that Lebanese exports to Nigeria in 2006 amounted to US$34.012 million with the black African exports to Lebanon averaging a negligible amount of US$2.78 million for the same year.
Importable Lebanese items to Nigeria are chemical products, textiles, metal works, and manufactured items, while exportable items to Lebanon from Nigeria are timber, solid minerals, petroleum products, hides and skins, and agricultural products.
The service sector in Lebanon such as tourism and banking provides a considerable avenue for bilateral exchange. The immediate objective of any joint economic action with Lebanon would, therefore, be to increase trade in goods and services between the two countries and reduce the huge balance of trade deficits in favour of Lebanon.
Lebanese Chambers of Commerce
The four regional chambers of commerce in Lebanon, each representing Beirut and Mount Lebanon, Saida (Sidon) and South Lebanon, Tripoli and North Lebanon, and Beka’a, are vibrant and undertake numerous business support activities, including new techniques in quality control and business consultancy.
This area of capacity building and extension services can provide an appropriate forum for technical exchanges, in addition to promoting active commercial relations. It is on record that indigenous firms owned by Lebanese immigrants do take advantage of the facilities provided by these chambers in the area of best business practices and modern methods. For example, the Chamber of Commerce, Industry and Agriculture, has an elaborate IT incubator which provides facilities and consultancy to universities for software development and innovative ideas.
Manpower Development/Technological Exchange
The total number of 38 universities and institutions of higher learning in Beirut with rich international links do offer a good opportunity for educational exchanges with Nigerian universities and research institutions. Such institutions as the American University in Beirut and Saint Joseph University, Beirut, where established in the 19th Century, as well as many other universities with affiliation to institutions in the West and USA, have reputation for high caliber research, higher education and manpower technical training. Nigeria would need to take advantage of this expertise in the area of education in order to improve capacity utilization in our localindustries.
Our current regional efforts at improving French language learning for our sub-regional outreach will also receive a good boost within the Lebanese educational establishments, most of which use French language as medium of instruction.
The visit of the leaders/members of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Manufacturers Association of Nigeria (MAN) to Lebanon at the time when socio-economic life is fast returning to the long-embattled country can be of immense value for the consolidation of active bilateral relations between the two countries.
It is expected that the many interactions and business discussions held with the various stakeholders in Lebanon will be rewarding to Nigerian industrialists, who would complement their knowledge of the Lebanese entrepreneurship by witnessing the various best practices and investment opportunities in Lebanon.
On the Nigerian delegation to Lebanon were the National President of the Nigerian Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA), Ignatius Adaji, the president, Manufacturers Association of Nigeria (MAN), Bashir Borodo, Simon Okolo, Deputy National President, NACCIMA, Jide Mike, Director General, MAN, Garba A. Mohammed (Brig-Gen, Rtd), National Vice President, NACCIMA.
Also, on the delegation was the Nigerian Ambassador to Lebanon, H. A. Opeloyeru, the High Commissioner, A. A. Bosah, the Minister of Trade, Embassy of Nigeria, Lebanon, H.W. Abdullahi; H. Labiran, Director, Ministry of Foreign Affairs, Abuja and others.