TOM ISEGHOHI, Exec Vice President, Hudson Consulting Group, USA.

1
TOM ISEGHOHI, Exec Vice President, Hudson
Consulting Group, USA.

• A New World Economic Order Where is Nigeria

2
Global Trends

• The most powerful economy in the world is the US
  economy with 10 Trillion GDP
• The US economy is based on providing self
  actualization services to the world
• The Chinese have seized control of the worlds
  manufacturing by becoming the worlds low cost,
  high quality manufacturer
• The Indians have solidly established themselves
  as the operators of the worlds back office and
  an industry that had no business 12 years ago now
  generates 20 billion dollars annually for India
  and is projected at 40 billion by 2008
• The emerging middle class in China and India, a
  population base of 2.5 billion people is driving
  a huge escalation of global demand for finished
  goods. For example, the volume of new car sales
  is expected to double from 17 million to 34
  million in 5 years
• This demand escalation is creating significant
  pressure on the global supply chain, creating
  demand and supply imbalances and driving up
  prices exponencially

3

Import Substitution VS. Specialization
4
Maslows Model
Economic Sector
Services, Intellectual Property, Personal
Optimization
Heavy Manufacturing, Luxury Goods, Entertainment
Light Manufacturing, Tele-Communications
Discretionary Goods
Food, Shelter, Raw materials Income Producing
Assets
5
Economic Hierarchy
Intellectual Products USA,
Germany India, Japan
Services USA, India, UK,
Philippines, Germany
Heavy Manufacturing USA, Brazil,
Mexico, Germany
Light Manufacturing South Korea, China,
East Block
Light Assembly China, Mexico, Philippines,
East Block
Raw Materials Nigeria, Ivory Coast, Saudi
Arabia
6
Economic Hierarchy
Intellectual Products 500/hour
Services
100/hour
Heavy Manufacturing
20/hour
Light Manufacturing
15/hour
Light Assembly
10/hour
Raw Materials 3-5/hour
7
The World Economic Order

• The USA is clearly on top of the world
• Intellectual services providers
• Canada
• India
• Western Europeans
• Selective Far East Countries
• World Class Manufacturers
• China
• South Africa
• Japanese
• Germans
• Selected Countries Around The World
• Raw Material Suppliers
• Nigeria
• Other African Countries
• Seleted sections of the Far East
• South American Countries

8
The New World Economic Order Risks and
Opportunities

• High demand for crude oil is driving up Nigerias
  GDP
• High energy prices creating pressure for
  international politicians
• The world is working on alternatives
• Outsourcing is still at the beginning stages and
  could present significant opportunities for
  Nigeria
• The alternative fuel sources can present
  significant opportunities for Nigeria if we
  seriously focus on a strategy now

9
What does this mean for the future?
What should we do?
10
What does this mean for the future?
Funding will be needed
11

Investors are interested but for now only
Friendly Investors are going to the continent
12

• Potential is well understood
• There is money focused on the continent
• There are 3 major gaps
• Investment Vehicle
• Deal Flow for PE Firms
• International image and track record

13
What we should try to accomplish

• Create an investment vehicle to Nigeria
• Seed it with 10 million equity from friendly
  investors
• Leverage the 10 million to access 50 million
• Invest in the Following
• Security
• Outsourcing Services
• Alternative Fuels
• Infrastructure Development
• Hardware
• Telecommunications
• IT
• Energy ETC
• Software
• Attitude
• Human Capacity
• Mindset
• Population Management
• Give it US public company credibility
  characteristics
• Aggressively market the performance and
  credibility

14
Company Legal Entity Structure
Emerging Holdings Nigeria
5,000,000
Nigerian Investors
Emerging Holdings LLC
Nigerian Operating Subsidiaries
Emerging Holdings USA
5,000,000
Diaspora Investors
15
Nigeria No Longer A Diverse Economy
100
90
Oil 90 Of Economy
80
70
60

50
40
30
20
10
0
1960
1970
1980
1990
2000 EST
Years
Rubber
Cocoa
Groundnut
Palm Kernel
Cotton
Crude Oil
Other
Source Federal Ministry of Agriculture
16
Nigerian Transition to Raw Materials, Technology
Mfg.
100
90
80
A highly diverse Economy
70
60

50
40
30
20
10
0
2000
2005
2010
2020
Years
Technology
Housing
Raw Mat
Mfg.
Food
Crude Oil
Other
Nigeria will become diversified and robust