Investment Opportunities in the
Industrial Sector
H.E MR OLUSEGUN AGANGA
Honorable Minister of Trade and Investment
Federal Republic of Nigeria
July 2012
Where we are
 Africa’s share of Global trade is 3%
 Africa’s share of Global manufacturing value added (MVA) is
0.1%
 Africa is heavily dependent on imports
Source: World Bank (2011)
2
2
Projected African share of Global GDP
 Low level of Manufacturing in the region has led to severe
Industrial Balance of Trade Deficits.
Nigeria
Africa
North Africa
%
West Africa
Central Africa
East Africa
Southern Africa
0
500
1000
1500
Value of Manufactured Imports
2000
2500
3000
3500
Value of Manufactured Exports
Source: World Bank (2011)
3
3
We have embarked upon a
Nigerian Industrial Revolution
Plan (NIRP)…
Over the past decade, Nigeria’s growth has been
fuelled by strong performances of its non-oil sector
1.
2.
Based on expected growth between 2010 and 2020 as predicted by Global Construction Perspectives and Oxford
University 2010 publication
Growth data calculated from Nigerian National Bureau of Statistics data
5
Agriculture / Oil and Gas
Industry and other sectors
x%
CAGR 2000-11
Pillars of the NIRP
Power, Financing, Local patronage, Substandard goods, Special economic zones, etc
6
Areas of focus: Based on competitive advantage
1 Includes processing of food and cash crops such as palm kernels, cocoa, sugar,
tomatoes, rubber etc.
7
2. Excludes oil extraction and refining
Initial NIRP focus
Additional NIRP
sectors
The Automotive Industry
Benefits of Automobile Policy Reform
Large Employment
Generation
Can account for up to
10% of employment
Acquisition of
Technological Know-how
Serves as a pre-cursor to
our industrialization
Effective utilisation of
Raw materials
Wealth Creation
Can account for up to
10% of GDP
8
The Automotive Industry Value Chain (Holistic approach)
Fig. 1. Vehicle Assembly Process and Associated Supply Chain.
Steel Plant:
Iron ore,
Coking Coal,
etc.
Rolling Mill:
Steel Sheets
Press Shop:
Preformed
body parts
Ore Industry:
Iron, Copper,
aluminum, etc.
SMEs
Raw material
Suppliers
Paint Factory:
Metallic Oxides,
polymers, water,
etc
Petrochemi
cal Industry
Ferrous and
non-ferrous
metal ind.
SMEs:
Plastic Parts
SMEs:
Metallic parts
Body
Assembly
(Welding)
Painting
Assembly Trim Line
(assembly of seats and
internal fittings), wiring
harness, bumpers, etc.
Final
Inspection
and Testing
Line Roll-off
Mounting of Engine,
transmission, axles and
other components
(dashboards, light
Petrochemicals example
 The Ministry has a focus on the petrochemical industry to maximize the value chain
and its contribution to not just government revenue but also GDP and
employment.
 Our target is to make Nigeria the petrochemical hub of Africa.
 We are actively targeting investors in petrochemicals
Fertilizers
Oil and Gas Production
Propylene
Petrochemical Industry
Ethylene
Methanol
Plastics
Industry
Textiles
Industry
Chemical
Pharmaceuticals
10
Automobile
Industry
Our overall aspiration is to increase Industry’s
contribution from 4% to 8% of GDP over the next 4 years
11
Source: Global Insights, McKinsey analysis, Nigerian National Bureau of Statistics
Thank You
The opportunity is here and we are ready to welcome you..
12
12