Transcript www.nipc.gov.ng

PRESENTATION
BY
ENGR. MUSTAFA BELLO, FNSE
EXECUTIVE SECRETARY/CEO
NIGERIAN INVESTMENT PROMOTION COMMISSION
AT THE
NIGERIAN INSTITUTE OF INDUSTRIAL MANAGEMENT
AT THE LAGOS SHERATON HOTEL
APRIL 6th 7th , 2005
Nigerian Investment Promotion Commission Plot 1181, Aguiyi
Ironsi Street, Maitama District, Abuja. 09-4134317
www.nipc-nigeria.org .
‘The Role and Achievements
of Nigerian Investment
Promotion Commission’
TABLE OF CONTENTS
1.
2.
3.
4.
5.
History of NIPC
The Role of NIPC
The New NIPC and the New Strategy
Achievements
Conclusion
HISTORY of NIPC
The Industrial Development Coordination
Committee (IDCC) was established as part
of institutional reforms necessary for the
implementation of Structural Adjustment
Programme (SAP).
Daunting problems which militated against
its optimal performance resulted in the
establishment of NIPC by Act 16 of 1995.
The Role of NIPC
• Improving Nigerian’s image within the investment
community as a favorable location for investment;
• Providing services to prospective and current
investors;
• Identifying and establishing direct contact with
potential investors and persuading them to invest;
• Evaluating the business environment with the
objective of advocating for improvements
Benefits of FDI
Source of Capital inflow
Employments Creation
 Technology Transfer
Increase in Exports
The New Strategy: Targeted
Promotion
Why Target?
The Commission has focused its’ promotional resources on
attracting a defined sub set of FDI flows; rather than general.
The targeted approach has the commission achieve strategic
objectives as it relates to employment, technology transfer,
exports and cluster developments.
Another reason for engaging in investor targeting is to attract
export-oriented FDI. A focused approach to export-oriented
investment is likely to be less costly, vis-à-vis the result
achieved, than one in which the commission attempts to attract
new investments in more ad hoc fashion.
The New Strategy: Targeted
Promotion Cont’
 What we target?




A country or part of it
Industries
Companies
Ultimately individual Managers
NIPC’s Core Function
Investment Promotion
Investors Relations
Policy Advocacy and External Relations
Investors Servicing
Pre-investment Phase
• Information
• Door-Opener function facilitation of site visits
Actual Investment Phase
• Assistance Licenses, start up activities
• Incentives
Post-investment Phase (Aftercare)
• On-going trouble shooting
• Make them feel at home
• Support for expansion
Investment Climate
Analyze Current Situation
• Systematic Feedback from Investors
• External Reports(e.g. FIAS, WEF, IMD)
• Benchmarking with Compotators
 Identify Critical Shortcomings
• As an economy in general
• With regards to key indicators
Investment Climate
Work with EMT
• Alert them to the problems
• Suggest effective remedies
• Continue policy advocacy work until
Tracking of FDI in Nigeria
YEARS
NO OF
COMPANIES
RECORDED
FDI INFLOW
(Million $)
LOCAL
INVESTMENT
(Million N)
EMPLOYMENT
GENERATION
38
32.10
4,253.91
3,964
2000
58
47.19
21,166.70
3,683
2001
50
287.29
11,209.75
5,233
2002
117
389.71
25,941.46
19,349
2003
90
240.03
30,277.12
8,240
2004
109
97.65
26,430.32
7,814
TOTAL
462
1,093.97
119279.26
48,283
1999
ACHIEVEMENTS
 Reinvestment by major multinationals e.g. Nigerian
Breweries Limited, Guinness Nigeria Plc, Unilever
Nigeria Plc., West African Cement Company, Nestle
Foods Plc. British America Tobacco company, MTN,
V-Mobile, Globacom , etc. amount to over US$4billion
ACHIEVEMENTS
• Wealthy Nigerians Initiative
Aimed at encouraging wealthy Nigerians at home and in the Diaspora to
invest in the country.
• National Council on Investment
To fashion out a national investment policy for the country and also
facilitate streamlining of investment promotion activities nation-wide.
• Inter-agency Collaboration/Embassies
Networked with government Agencies and Embassies to establish
working relationships with them
• Workshops on Market Fires
Organized two workshops in Abuja and Lagos to sensitize the traders of
the negative impact of fire disaster on investment and what could be
done to reduce or minimize the menace.
ACHIEVEMENTS CONT’
•
Presidential Advisory Council on Investment
Set up by Mr. President to advise on investment and members are people in positions that
can influence the investment decisions of their companies as well as their
government to invest in Nigeria.. NIPC serves as the Secretariat.
•
Policy Advocacy
Effective Policy Advocacy mechanism designed to serve as an interventionist system of
addressing problems encountered by investors.
•
Business and Investment Forums
Forums packaged to target identified potential investors and multinational companies.
Countries visited include: Canada, Malaysia, China, London etc
•
Matchmaking Investment Meetings
Organized matchmaking meetings between Potential investors and government agencies,
private sector associations, consultants and private companies.
ACHIEVEMENTS CONT
• Image-building
Embarks on image building activities to project Nigeria as the most
profitable investment destination in Africa through adverts in the local
and international media, meetings and courtesy call on foreign Embassies
etc.
•
Collaborations with other International Agencies
UNIDO- in which 75 projects were packaged and promoted abroad; WAIPA
and Association of the West African Investment promotion Agencies
AIPAWAS) and NIPC is Vice -Chairman of the Association.
•
Incentive Package under presidential Cassava Initiative
Prepared appropriate incentive package designed to stimulate investment in
the sector.
• Role of NIPC in Micro, Small and Medium Enterprise (MSME)
project/World Bank
Challenges
•
Problems hindering investment into the country
•
Inconsistent government policies
•
Unfriendly Business laws
•
Social vices such as corruption, drug trafficking, insecurity,
Financial and economic crimes
•
Uncompetitive incentives
•
Frequent Labour crises
•
Poor state of infrastructure
•
High cost of doing business
Conclusion
With the bias for private sector development, the
NIPC is positioned to ‘facilitate’ rapid growth
of investments in Nigeria by both foreign and
local investors.
Nigeria offers one of the most rewarding investment
destination, not just in Africa but, in the World.
Thank you for your attention!