Investing in Nigeria

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<ul><li> 1. Investing in Nigeria A Strategy Guide</li></ul> <p> 2. Country Snapshot Official Name: Federal Republic of NigeriaCapital and Seat of Government: Abuja (approx. 2.2m residents)Form of Government: Federal Republic. Presidential DemocracyArea: Approx. 923.800 sq kmPopulation: 2012, approx. 166.2 million (annual growth rate of 7.46%)Religious Groups: Muslims (50%). Christians (40%), indigenous religions (10%)Languages: English (official), Hausa. Yoruba, Igbo, FulaniCurrency Naira: NGN = 100 Kobo: 159.4 NGN = 1USD: 217.87 NGN = 1 EUR (Jan 2014)Ranked 30th in terms of GDP in the world ($522.18 bn as 2014 estimate)Major CitiesLagosKanoAbujaPort Harcourt 3. Nigeria: Industry Overview Energy9 bn tons oil reserves 5.2 tn cubic meters of Natural Gas Accounts for 72% of revenue 95% of Foreign Exchange 10% of worlds LNG production NNPC, Total, Elf, ExxonMobil are the major playersBanking &amp; FinanceMajor Industries TelecomsTransporta tionRegulated by CBN Operates under Banking Ordinance Act, Nigeria 1952 However, effectively controlled after 2009 Afribank, Intercontinental Bank, Union Bank, Oceanic Bank and Finbank are some major playersManufactur ingSolid MineralsMajor Industries8th fastest growing market in world Attracted $26 bn since 2001 Teledensity reached to 67.2 % in 2012 Regulated by Nigerian Communications CommissionControlled by Infrastructure Concession and Regulatory Commission (ICRC) Air traffic increased by 21% in 2012 Cargo movement grew by 62.3% Air France, BA, Emirates are the major playersContributes to 6.3% of GDP Most suffering industry due to lack of power supply Govt. investing heavily now, in 2012 invested US$ 4.2 bn 53% of demand is met by imports from China, France, US, UKConstructionAgricultureLess than 2% of GDP Major Solid minerals inlude coal, lead, zinc Heavily ignored sector due to Oil mining 100 % FDI Now reforms are made under Nigerias Minerals and Mining Act, 2007Fastest growing market in the world, around 6.2% Accounts for 4.3% of GDP Heavy Govt expenditure on Infrastructure is boosting its growth Much more investment is expected in the futureContribute 36% of GDP Employs 60% of the workforce Major goods are yams, cassava, peanuts, millets and rice Major importers are UK, US, Canada, Germany, France 4. A sea of Solid MineralsSolid MineralsLarge Amount of Minerals are yet to be fully explored.Pro-mining reforms100% FDIThe new national solid mineral policy.Year 2007 - Mining Year(Enacted Minerals &amp; mines act)Reforms in Power SectorA large community of skilled geoscientists and engineersThe World Bank is supporting the government by providing finance for the Sustainable Management of Mineral Resources (SMMR) project.IRON ORE Over 3 billion tones of iron ore found in Kogi, Enugu, Niger, Zamfara &amp; Kaduna States are yet to be fully explored.The exchange control regulations have been liberalised to ensure a free flow of international finance. GYPSUM About one billion tones of gypsum deposits are spread over many states in Nigeria.TALC Estimated reserve of over 100 mn tones of talc obtained in Osun, Kogi, Kwara, Ogun, Taraba and Kaduna States.KAOLIN An estimated reserve of 3 billion tonnes of good kaolinitic clays has been identified.BITUMEN About 42 billion tones almost twice the amount of existing reserves of crude petroleum. LEAD/ZINC Estimated 10 mn tons of lead/zinc veins spread over eight States in Nigeria ROCK SALT Salt springs at Awe (Plateau State), Abakaliki (Enugu State) and Uburu (Imo State), while rock salt is available in Benue State. Total reserve of 1.5 bn tones has been indicated COAL There are nearly 4.00 billion tonnes of indicated reserves in 17 identified coalfields. 5. Characteristic Measures Taken By Nigerian Government NIPCPrivatizationEFCCTCP Formulated in 1995 Instrumental in setting Nigerias investment policy Main aim is to encourage ,promote investment in Nigeria Policy adopted by Nigerian government in 1998 40% will be retained by government,40% for strategic investors and 20% will be sold to the Nigerian public Deals with enforcement of laws to combat economical and financial crimes Pivotal for attaining corporate governance in Nigeria Platform for investors to verify contract Can be accessed through www.efccnigeria.orgOSIC Single Window Clearance mechanism Any business can be started in maximum 28 daysNCCN Formed by president Mr. Jonathan Aim is to safe-guard investments in Nigeria Improve Nigerias global competitiveness ranking 6. Major Challenges Project Funding However, the progress made in the regulatory reform, so far, is expected to stimulate activitiesAdministrative Delays Though under the mining Act. Of the country 28 days one-stop concept is introduced.Infrastructure The ongoing privatization of the national utility &amp; reform of the power sector are stimuli for privateSecurityPolitical InterferenceIllegal Mining The Niger Delta area of the country is now a peaceful region following the success of the ongoing amnesty programme. However, the political situation in the country is stabilizing &amp; good fiscal and tax incentives are being put in place to promote mining However, with the enactment of the Mining Act, foreign investors are guaranteed unfettered operation of their legitimate business in the country. 7. Thank You!! </p>