A PAPER PRESENTED
AT THE
NIGERIA – THAILAND BUSINESS FORUM,
BANGKOK, THAILAND
BY
ENGR. MUSTAFA BELLO, FNSE
EXECUTIVE SECRETARY/CEO,
NIGERIAN INVESTMENT PROMOTION COMMISSION (NIPC)
20 TH MARCH, 2012
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3.
The Nigerian Investment Climate:
-Efforts of Government
NIPC’s Strategic Role
4.
Investment Opportunities
5.
Incentives
6.
Steps for Doing Business in Nigeria
7.
NIPC At A Glance
8.
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OFFICIAL NAME
LOCATION
GOVERNMENT
LAND AREA
- Federal Republic of Nigeria
- West Africa, Africa
- Democratic since 1999
- 923,768sqkm
POPULATION - 167.0million (2011 Est.)
OFFICIAL LANGUAGE - English
CAPITAL CITY
CURRENCY
- Abuja
– Naira (N)
INTERN. TIME ZONE - GMT+ 1
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




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6 th largest population in the world – over 167 million people
 4 th largest population under the age of 20
10 th world largest reserves of oil and gas
 36.2 billion barrels of oil
 1.84 trillion Cubic Feet of natural gas
4 th largest equity market in the MSCI Frontier Market index
 Largest outside of the Gulf Cooperation Council (GCC)
5 th fastest growing economy in 2010 -2011 after China, Taiwan,
Singapore & Qatar (Citi Investment Research & Analysis Economists)
1 st among the N11 leading ‘global growth generators’ (3G) over the next 40 years
Home to a stable of large, well capitalised banks and emerging world’s largest cement companies
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 The Nigerian economy recorded an overall growth of 7.40 percent in 2011.
 Growth in 2011 mainly driven by the following:
- Increased Crude Oil Output
- Wholesale & Retail Trade
- Crop Production
- Banking sector reforms
- Telecommunications
- Real Estate & Business Services.
 The GDP is expected to improve in 2012 as government invests heavily on infrastructural development.
 In 2010, Citi Investment Research and Analysis (CIRA) rated Nigeria’s economy as one of the world’s topmost ‘global growth generator’ (3G) of the next 40 years.
Sources: National Bureau of Statistics (NBS) & CIRA
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THE NIGERIAN INVESTMENT CLIMATE:
EFFORTS OF GOVERNMENT IN IMPROVING
THE INVESTMENT CLIMATE THROUGH. . .
 Macroeconomic stability: Fiscal responsibility and Independent Central
Bank.
 Oil & Gas Sector Reforms:
-On-going deregulation
(Petroleum Industry Bill)
-Restoration of normalcy to Niger
Delta region
-Passage of the Local Content Act
 Institutional Reforms:
-Public Service Reforms
-Constitutional amendment
-Electoral Reforms
-Rule of Law & Good
Governance
-Freedom of Information Act
 The Anti-Corruption Act:
-Establishment of Independent
Corrupt Practices Commission
(ICPC)
 Power Sector Reforms:
-launching of the Power Sector
Road Map, & on-going privatization.
 Fight against Financial and
Economic Crimes:
-Establishment of Economic and
Financial Crimes Commission
(EFCC) to deal with Advance
Fee Fraud, and related issues.
 Sanctity of contracts:
-Due Process (Bureau of Public
Procurement)
-Nigerian Extractive Industries
Transparency Initiative (NEITI)
-Setting up of Security and
Investment Tribunal, to handle securities and exchange cases.
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 Infrastructure Development:
-Establishment of Infrastructure Concession & Regulatory Commission
(ICRC
-Massive work currently going on new and existing projects in Aviation,
Rail, Road and Waterways
 Revolution in Telecommunication, Education, etc.
 Banking Sector Reforms:
-Recapitalization of Commercial Banks & Insurance Institutions
-Micro-finance policy trust / conversion of Community Banks
 Transformation Agenda (Good governance, Infrastructure, Human Capital):
-Vision 20:2020: Nigeria to be among 20 largest economies by 2020
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GOOD
GOVERNANCE
Security of lives and property, Law and order, Anti-Corruption, Public
Service Reforms, Enabling
Env ironment
INFRASTRUCTURE
Power/Energy; Roads, Rails,
Water for irrigation and for industries and ICT revolution
HUMAN CAPITAL
DEVELOPMENT
Education, Healthcare Delivery,
Skills Acquisition, Capacity building,
Achieving the MDGS
OUTCOMES
• JOBS, JOBS, JOBS
•POVERTY
ALLEVIATION
•BETTER
RESOURCE
MANAGEMENT
•ELIMINATION OF
CORRUPTION
•SUSTAINED
ECONOMIC
DEVELOPMENT
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 Analyze current policies, resources , etc:

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Systematic feedback from investors:
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Close working relationship and regular interaction with the Organized
Private Sector (MAN, NACCIMA, NASME) during Business Forums,
NCI, etc
Interactive sessions with targeted business communities and Foreign
Embassies in Nigeria
 Secretariat for Honourary International Investor Council (HIIC)
External reports: (e.g. UN World Investment Report, FIAS, UNIDO,
UNCTAD)

 Analyze Compiled Reports, to elicit information on the trends of global investment and trade .
Benchmarking with competitors:
 Compile and analyze policies/laws/regulations: Identify policy thrust, clauses/sections, & areas of competencies to be adopted into our national environment.
 Identify countries that are doing better than Nigeria, study their successes and adopt their strategies.
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 Proffer solutions to the concerns of investors:
-The Development of the Sector Specific Incentives Policy :
(Incentives Policies that are sector-specific, aimed at eliminating, as much as possible, the need for special privileges and concessions, unless where it becomes extremely necessary).
-The After-Care Committee, and
Committee on Doing Business & Competitiveness
 Work with decision makers/opinion leaders :
-Interface and collaborate with government agencies at all levels
-National Conference on Investment (NCI)
 Provide effective remedies :
-The One Stop Investment Centre (OSIC)
-Establishment of Zonal Offices to promote Local Investment and provide
Aftercare Services
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 Investment Opportunities exist in all sectors of the economy, especially :

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
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

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

Power/Energy
Oil & Gas (extractive and non-extractive)
Agriculture & Agro Allied
Waste Management
Maritime, Shipping and Ports
Solid Minerals
Banking & Financial services
Tourism / Hospitality Industry
Pharmaceuticals and Health services
Information & Communication Technology (ICT)
Industrial Parks and Clusters as landing platform
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 NATURAL INCENTIVES :
 Virile population of over 167 million people.

Abundant natural resource endowments
 Vast arable land
– over 70% of Nigerian land area is suitable for agriculture and remains under utilized
 Trainable, resourceful and cost effective workforce with 60% as youths

Strategic location
– hub of the West and Central African Markets
 Relative absence of natural disasters / calamities; i.e. no earthquakes, hurricanes or major floods etc.
 Highest Return on Investment (RoI) in Africa:
-35% - 45% generally, & 70
– 100% in some sectors.
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 STATUTORY INCENTIVES :
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Pioneer Status – 3- 5 years Tax Holiday
Capital Allowances:
 Research & Development – use of local inputs – 140%


Investment in infrastructure 20% of costs
Minimum local raw materials utilization
– 20% for 5 years
 Withholding tax on dividends, interest and rent is 10%, Royalties is 15%, while Management & Technical agreement is 10%
Very low Value Added Tax (VAT) regime of 5%
 EXPORT INCENTIVES:
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
Manufacturer Export-in-Bond Scheme
Export Development Fund Scheme
 FREE TRADE ZONES SCHEME
 No personal income tax
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100% repatriation of capital and profit
No foreign exchange regulation
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100% foreign ownership allowed
No pre-shipment inspection of goods
No expatriate quota required
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 For establishing a new business in Nigeria the following processes are required: i. Incorporation with Corporate Affairs Commission
CAC.
ii. Registration with Nigerian Investment Promotion
Commission ( NIPC) .
iii. Acquisition of operating license:
 For Investment in Banking and Finance, a License with the
Central Bank of Nigeria is required.
 For Investment in Power generation and distribution, a License with Nigerian Energy Regulatory Commission (NERC) is required.
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iii. Acquisition of operating license. . . Cont’d
 For investment in the Telecommunication, a License with
Nigerian Communication Commission (NCC) is required.
the
 For investment in Food and Pharmaceuticals, Registration with National
Food and Drug Administration and Control (NAFDAC) is required.
 For investment in Solid Minerals, a mining License with the Ministry of
Mining & Steel Development is required.
iv. Acquisition of Operating Premises:
YOU ARE IN BUSINESS IN NIGERIA !
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 Nigerian Investment Promotion Commission (NIPC) is a Federal
Government Agency, established by Act of Parliament No. 16 of
1995:
 to among others, encourage, promote and coordinate investments in the Nigerian economy, and
 develop investment friendly policies that are globally competitive and ensure the free flow of foreign direct investment (FDI) into all sectors of the economy.
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ONE STOP INVESTMENT CENTRE (OSIC):
 NIPC coordinates the operations of the One Stop Investment Centre
(OSIC) which essentially provides pre-investment services.
 It also helps to reduce the high cost and delays in doing business by eliminating as much as possible the use of discretion and lack of transparency in granting approvals, licenses, permits, etc.
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 Thailand and Nigeria have come a long way in trading and we should work together to strengthen the burgeoning economic relationship between both countries.
 Given the Investment friendly disposition of Nigeria, there is no better time than now for Thai investors to invest in Africa’s most profitable economy.
 The Nigerian private sector is very vibrant and willing to do good business ever before , with Thai investors.
 The time has come for a decision to invest in Nigeria.
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For more information, contact:
The Executive Secretary/CEO,
Nigerian Investment Promotion Commission
Plot 1181 Aguiyi Ironsi Street
Maitama, Abuja.
Email: mustafa_bello@nipc.gov.ng
Telephone Lines:
+234 (0)8097701601
+234 (0)92904722 osicinfodesk@nipc.gov.ng infodesk@nipc.gov.ng
Or Visit NIPC Website: www.nipc.gov.ng
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