Nigeria Ranked Number One Investment Destination by UNCTAD
Nigeria has been ranked Africa’s number one destination for Foreign Direct Investment by UNCTAD for the second year in a row.
In their latest report entitled “Global Value Chains: Investment and Trade for Development”, UNCTAD’s estimates of FDI inflows in 2012 for the leading countries are:
1. Nigeria $7.03billion
2. Angola $6.898billion
3. South Africa $4.572billion
4. Ghana $3.295billion
5. Egypt $2.798biilion,
FDI continues flow into Nigeria, the latest major inflow being General Electric’s $1 billion service and manufacturing facility.
Also according to Nigeria’s Minister of Trade and Investment, Mr Olusegun Aganga has said that Nigeria received US$8.9 billion of foreign direct investment money in 2011 – 16% of Africa’s total and the highest in Africa.
WHY INVEST IN NIGERIA
Abundant Human & Material Resources: Nigeria has enormous resources, most of which are yet to be fully exploited. They include mineral, agricultural and human resources.
Large Market: Nigeria offers the market in subSaharan Africa, with a population of about 120 million people. The Nigerian market potential also stretches into the growing West African subregion.
Political Stability: Nigeria offers stable political environment. Free Market Economy: The Government has created a favorable climate for business and industrial ventures. Administrative and bureaucratic
procedures have been greatly streamlined. The Government has put in place policies and programmes that guarantee a free market economy.
Robust Private Sector: The country has a dynamic private sector, which has assured greater responsibilities under the new economic environment.
Free Flow of Investment: Exchange control regulations have been liberalized to ensure free flow of international finance. There is now unrestricted movement of investment capital.
Attractive Investment Incentives: A comprehensive package of incentives has been put in place to attract investment.
Fast Growing Financial Sector: There is welldeveloped banking and financial sector. The investor has easy access to working capital and other credit facilities.
Skilled and Low Cost Labor: There is an abundance of skilled labor at an economic cost, resulting in production costs, which are among the lowest in Africa.
Infrastructure: Rapid development of physical and industrial infrastructure, in terms of transportation, communications, electricity and water supply.
Nigeria is Africa’s foremost business destination. Africa’s largest market.. It’s the Africa most attractive investment haven. The country operates a market economy dominated by crude oil exports with the revenue earnings from the sector accounting for 90% of forex earnings and 65% of budgetary revenues. Other exports are cocoa, palm oil, groundnuts, cotton, timber and rubber.
Nigeria’s imports are in the region of $14.54billion USD. Import commodities include machinery, chemicals, transport, equipment, manufactured goods and live animals.
In recent times, focus is being directed at non oil exports and agriculture, which presently accounts for 30% of the GDP, to diversify the economic base.
Opportunities exist for the exploitation and export of natural gas, bitumen, limestone, coal, tin, columbite, gold, silver, leadzinc, gypsum, glass sands, clays, asbestos, graphite, and iron ore, among others.
The Government has been pursuing economic reforms marked by the privatization and deregulation which seek to transfer state ownership of institutions to the private sector and so engender efficiency In the productive sectors of the economy .These are well articulated in The NEEDS program. The reforms have led to an explosive growth in the telecoms sector after years of stagnation. The GSM has transformed the economic terrain creating employment and oiling the operations of businesses in Nigeria. The country is traversed by a network of primary and secondary roads, and has 4 international airports, and 6 seaports. It also boasts 12 Television stations and 25 National newspapers. Its internet country code is .ng
Nigeria is a leading petroleum producer and exporter. It is the 12th largest producer of petroleum in the world and the 8th largest exporter. Nigeria also has one of the world’s largest proven natural gas and petroleum reserves and is a founding member of OPEC.
Tremendous investment opportunity exists in the solid minerals sector. Mineral resources that are present in Nigeria but not yet fully exploited are coal and tin.
Other natural resources in the country include iron ore, limestone, niobium, lead, zinc, and arable land. Agricultural products include groundnuts, palm oil, cocoa, coconut, citrus fruits, maize, millet, cassava, yams and sugar cane. Nigeria also has a booming leather and textile industry, with industries located in Kano, Abeokuta, Kaduna, Onitsha, and Lagos.
Like many Third World nations, Nigeria has accumulated a significant foreign debt. Nigeria defaulted on its debt as arrears and penalty interest accumulated and increased the size of the debt. However, after a long campaign by the Nigeria authorities, in October 2005 Nigeria and its Paris Club creditors reached
an agreement that helped saw Nigeria’s debt reduced by approximately 60%.
Nigeria will use part of its oil windfall to pay the residual 40%. This deal will free up at least $1.15 billion annually for poverty reduction programmes. As of April 2006, Nigeria became the first African Country to fully pay off her debt (estimated $30billion) owed to the Paris Club.
Nigeria also has significant production and manufacturing facilities such as factories for Peugeot the French car marker, Bedford the English truck manufacturer, now a subsidiary of General Motors, and also manufactures t-shirts and processed food.
With a population estimated at 137,253,133 million peoples, Nigeria is Africa’s most populous country and the tenth largest by population, in the world. It is composed of more than 250 ethnic groups, the major groups being Hausa Fulani. Yoruba, Igbo, Ijaw, Kanuri, Ibibio and Tiv. The north of Nigeria is predominantly Muslim while Christians form the majority in the South East. There are also a number of traditional African Religions.
Nigeria, officially the Federal Republic of Nigeria, is a country in West Africa and the most populous country on the African continent. Nigeria shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, Niger in the north, and borders the Gulf of Guinea in the south. Since 1991, its capital has been the centrally located city of Abuja; previously, the Nigerian government was
headquartered in Lagos.
The people of Nigeria have an extensive history, and based on archaeological evidence, human habitation of the area dates back to at least 9000 BC. The Benue Cross River area is thought to be the original homeland of the Bantu migrants who spread across most of central and southern Africa in waves
between the 1st millennium BC and the 2nd millennium AD. However, the Nigerian state came into being on October 1, 1960 when Nigeria declared its independence from the British and at present consists of 36 states and the federal capital territory. Nigeria reachieved democracy in 1999 after a sixteen year interruption by a series of military rulers. From 1966 until 1999, Nigeria had been ruled (except the short lived second republic, 1979 1983) by military rulers who seized power in coup d’états and counter coups. Today Nigeria is a democratic country with tremendous market and investment opportunities.
Geography: Nigeria Lies within three climatic and geographic types equatorial in the southern reaches, tropical in the central area and arid in the north fringe giving rise to rainforest, savannah and desert vegetations respectively. Nigeria is bisected by rivers Niger and Benue which merge at Lokoja, then cascade southwards to form the tributaries and creeks of the Niger Delta.
The Nigeria Federal Government in its efforts to promote Foreign Direct Investments in Nigeria, created The Nigerian Investment Promotion Commission, NIPC with headquarters in Abuja, Nigeria.
The Nigerian Investment Promotion Commission (NIPC) is Federal Government Agency in Nigeria established by the NIPC Act N0. 16 of 1995 to promote, coordinate and monitor all investments in Nigeria. The basic functions and powers of the NIPC are as prescribed by Act 16 of 1995. The Commission has perpetual succession and a common seal, which is specially established, among other things, to:
(a) Coordinate, monitor, encourage and provide necessary assistance and guidance for the establishment and operation of enterprises in Nigeria;
(b) Initiate and support measures which shall enhance the investment climate in Nigeria for both Nigerian and nonNigerian investors;
(c) Promote investments in and outside Nigeria through effective promotional means;
(d) Collect, collate, analyse and disseminate information about investment opportunities and sources of investment capital and advise on request, the availability, chance or suitability of partners in jointventure projects;
(e) Register and keep records of all enterprises to which the NIPC Act legislation applies;
(f) Identify specific projects and invite interested investors for participation in those projects;
(g) Initiate, organise and participate in promotional activities such as exhibitions, conferences and seminars for the stimulation of investments;
(h) Maintain liaison between investors and Ministries, government departments and agencies, institutional lenders and other authorities concerned with investments;
(i) Provide and disseminate uptodate information on incentives available to investors;
(j) Assist incoming and existing investors by providing support services;
(k) Evaluate the impact of the Commission on investment in Nigeria and recommend appropriate remedies and additional incentives;
(l) Advise the Federal Government on policy matters, including fiscal measures designed to promote the industrialisation of Nigeria or the general development of the economy; and
(m) Perform such other functions as are supplementary or incidental to the attainment of the objectives of NIPC Act.
FUNCTIONS OF DEPARTMENTS/UNITS
One Stop Investment Centre (OSIC)
The operations of the One Stop Investment Centre (OSIC) formally commenced with the official commissioning of the Centre by His Excellency, the President of the Federal Republic of Nigeria on Monday 20th March, 2006. The Centre is established by the Federal Government to march the growing interest of
Investors in our economy.
The establishment of the Centre is a major public sector reform initiative based on investment facilitation mechanism, where relevant government Agencies and Ministries are brought to one location, coordinated and streamlined to provide efficient and transparent services to Investors. This is achieved by re-engineering Agencies’ processes, procedures and requirements for granting business entry permits, licenses and authorizations, making them simpler, shorter, transparent and responsive to the needs of the Investors.
Objectives of the Centre:
The objectives of the Centre (OSIC) include the following:
a. To substantially reduce the cost of entry into Business in Nigeria.
b. To simplify procedural steps for obtaining business approvals.
c. To shorten service delivery time without undermining the policy objectives of the participating Agencies/Ministries.
d. To ensure transparency.
e. To provide Investment Information and Advice to Investors promptly
f. To fast track public sector reform that will result in more attractive business environment.
g. To maintain close and professional working relationship among government Agencies/Ministries in support of investors.
Participating Government Agencies:
Thirteen Agencies/Ministries pioneered the first phase of the Centre namely:
- Corporate Affairs Commission (CAC).
- Nigerian Immigration services (NIS).
- Nigerian Customs service (NCS)
- Federal Inland Revenue Service (FIRS).
- National Office for Technology Acquisition and Promotion (NOTAP).
- National Agency for Food and Drug Administration and Control (NAFDAC).
- Central Bank of Nigeria (CBN).
- National Bureau of Statistics (NBS).
- Federal Ministry of Solid Minerals. (FMSM).
- Federal Ministry of Finance (FMF).
- Standards Organizations of Nigeria (SON).
- Federal Capital Territory Abuja (FCTA)