I love this piece. Please read and enjoy the irony of the story.
Nigeria’s super rich are no strangers to
conspicuous consumption, and there’s no better way to flaunt your wealth than
by buying a brand new European sports car.
German carmaker Porsche officially opened
a new car dealership on Friday in the heart of Lagos’ wealthiest district,
Victoria Island, a place with one of the world’s highest concentrations of
millionaires.
There are already dealerships specialising
in Aston Martin and Lamborghini, but Porsche hopes to capitalise on a promise
of providing sturdier vehicles that can cope with Nigeria’s rough roads. Its
presence is being seen as a vote of confidence in the West African nation’s
fast-growing economy.
Porsche also plans to set up an operation
in the capital Abuja, where roads are newly built – a better market for the 911
sports model – and where politicians are amongst the world’s most highly paid.
“The African continent, and in particular
Nigeria, is of growing importance to us at Porsche,” the company’s Middle East
and Africa head George Wills said, unveiling the new 911 model.
High-end goods producers are increasingly
targeting sub-Saharan Africa, as its economic growth starts to dwarf other
continents and rich Western countries face a slowdown.
Nigeria, Africa’s second biggest economy,
grew 7.68 percent in the last quarter of 2011, one of the fastest in the world.
Two of Africa’s top five richest men are
Nigerian.
“We’re quite confident the numbers will be
strong,” Wills told Reuters in front of the new 911 sports car, after a Porsche
official revved its engine for flashing cameras.
“It’s difficult to put a finite number on
it, but certainly enough to give a return on this investment,” he added.
Porsche Nigeria general manager Julian
Hardy estimates 200 Nigerians own Porsches – the dealership had been running
prior to the official launch since July and sold an undisclosed number, and
rich Nigerians have been importing them for decades.
At a party to celebrate Porsche’s launch,
Nigerians in sharp suits and cocktail dresses drank martinis and danced around
the 911 display model to live music.
“You can drive around Lagos … then take
your car to the race track and become a beast and go wild,” said Emmanuel
Ngala, an IT consultant who owns a Cayenne 4×4 and is buying a 911.
The firm’s sales target for 2012 is 100
cars, and it hopes to hit a stable sales rate of around 300 a year, compared
with 800 in South Africa. Average prices currently range between 21 million naira
($133,000) to 30 million naira ($190,000).
The oil wealth of Africa’s biggest
producer has made multi-millionaires of its elite in the past few decades, even
while absolute poverty has increased to 60 percent of the population.
Lagos embraces some of Africa’s most
expensive real estate alongside some of its most crowded slums. On one street,
a Hummer drives past a tramp sifting through a dustbin.
The car park at the Porsche show rooms has
several models.
“It’s a nice car,” said employee Mohammed
Ibrahim, as he hosed down a chrome coloured Cayenne and shined it to a sparkle
with a cloth. On his 20,000 naira a month salary it would take him 125 years to
afford one if he didn’t buy anything else.
“God might give me a car like this one
day. He can do that, if he wants to. He can do anything,” he said, grinning.
Sandwiched between the lagoon that led
Portuguese sailors to name this city ‘Lagos’ and the Atlantic, Victoria Island
is a place of fund managers in fine woollen suits and oil oligarchs.
The faces of glamorous women smile from
billboards advertising mobile phones. Luxury 4x4s are everywhere.
But it has scant electricity, most roads
are sandy, potholed and patrolled by beggars in rags. Poor drainage means they
flood – in the rainy season, fishermen sometimes traverse them by canoe,
raising doubts about the practicality of sports cars like a 911.
Other luxury brands have however made it
big in Nigeria. It is a significant African market for LVMH. Most bars can get
you Moet & Chandon champagne or Hennessy brandy, which women sip next to
their Louis Vuitton handbags.
The “Auto Lounge” in Victoria Island lets
you enjoy an expensive drink overlooking a garage of Aston Martins.
Paris-based magazine Jeune Afrique last
year placed Nigeria at the top of Africa’s champagne consumers, guzzling
593,000 bottles in 2010, 50 percent more than richer rival South Africa.