Transcript STATING THE CASE FOR INVESTING IN NIGERIA SESSION ONE

STATING THE CASE FOR INVESTING IN
NIGERIA
SESSION ONE: INVESTING IN NIGERIA
BY
ENGR. MUSTAFA BELLO, FNSE
EXECUTIVE SECRETARY/CEO
NIGERIAN INVESTMENT PROMOTION COMMISSION
OUTLINE
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THE CURRENT ECONOMIC EFFORT OF GOVERNMENT
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Policy Thrust of Government
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Investment Opportunities in Nigeria
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Investment Incentives
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Investment Promotion and Facilitation
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What we do for Investors
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Why Nigeria
THE CURRENT ECONOMIC EFFORT OF GOVERNMENT
Objectives:
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Diversify the economy away from oil to non-oil sectors, and drive
investments into the critical infrastructure sectors - power, transportation
etc
Enhance agriculture sector productivity, including agro-processing and
manufacturing to ensure food security – promotion of large scale
commercial agriculture (N200 billion provided in 2009 budget) etc
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Identify and address obstacles to Doing Business in Nigeria
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Create an enabling environment in which the private and public sectors
can work in partnership for poverty eradication and wealth creation
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Improve operations at the sea, air ports and customs operations
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Improve social service delivery and promote human capital development.
POLICY THRUST OF GOVERNMENT
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Deepen democracy and the rule of law, build an economy
driven by the private sector
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Transparency and Accountability; Zero-Tolerance for
Corruption; Fiscal Responsibility etc
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Commitment to promoting priority Sectors under the
auspices of the Seven Point Agenda
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Commitment to long term strategic planning for rapid and
sustainable economic growth; under Vision 20-2020
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Corporate Governance with renewed interest in the use of
regulation in economic management instead of discretion
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Making Nigeria a haven for Foreign Direct Investments
INVESTMENT OPPORTUNITIES IN NIGERIA
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Investment Opportunities exist in all sectors of
the economy, especially:
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Power/Energy
Oil & Gas (extractive and non-extractive)
Agriculture & Agro Allied
Maritime, Shipping and Ports
Solid Minerals
Banking & Financial services
Tourism / Hospitality
Manufacturing
Pharmaceuticals and Health services
Information & Communication Technology (ICT)
Industrial Parks and Clusters
INVESTMENT INCENTIVES IN NIGERIA
Natural Incentives
 Large country – 923,768 square kilometres and population of
about 140m – 20% of Africa
 Vast arable land – over 60% of Nigerian land area is suitable
for agriculture and remains under utilized, land tenure changes
underway
 Trainable, resourceful and cost effective workforce with 60%
youth
 Strategic location – hub of the West and Central Africa and
access to large markets
 Relative absence of natural disasters/calamities; i.e. no
earthquakes, hurricanes or major floods etc.
INVESTMENT INCENTIVES IN NIGERIA
Statutory Incentives
 Up to 5 years tax holiday
* Capital Allowances:
 Research & Development – use of local inputs – 140%
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Investment in infrastructure 20% of costs
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Minimum local raw materials utilization – 20% for 5 years
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Very low VAT regime of 5%
Free Zones:
 No personal income tax
 100% repatriation of capital and profit
 No foreign exchange regulation
 100% foreign ownership allowed
 No pre-shipment inspection of goods
 No expatriate quota required
INVESTMENT PROMOTION AND FACILITATION
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NIPC is the Government agency charged with responsibility
for promoting and co-ordinating both foreign and domestic
investments into Nigeria
Enabling Act No. 16 1995
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Major Features
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Liberalization of the economy
100% ownership of investment in any sector (except ones listed
in the ‘negative list’) irrespective of nationality
Guarantee against nationalization or expropriation by any
government of the Federation
Guarantee of unconditional transferability/repatriation of funds
through an authorized dealer, in freely convertible currency
Supporting Act
 Foreign Exchange (Monitoring and Miscellaneous Provision, Act
No. 17, 1995) which liberalizes funds transfer
WHAT WE DO FOR INVESTORS
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Arrange and facilitate meetings with relevant
Government Agencies/State Governments in
Nigeria
Arrange and coordinate site visits as part of preinvestment activities and post investment
services
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Provide prompt assistance to investors and
dedicate an account team to projects
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Advise/advocate for policy changes that
favorably affects and support investments
…WHAT WE DO FOR INVESTORS
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Provide entry licenses and permits through the
OSS window
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The One Stop Shop named One Stop Investment
Centre (OSIC) established in the NIPC on the 20th of
March, 2006 is reducing the bureaucratic bottlenecks
faced by investors in terms of Business Entry and
running business in Nigeria
24 hour business entry time line in place in the OSS
13 Government Agencies at the Centre to help
investors to navigate through legal and regulatory
framework of doing business. (Additional 22 agencies
will join the centre this year)
…WHAT WE DO FOR INVESTORS
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Shortens and simplifies administrative procedures for the
issuance of business approvals, permits/licenses, tax
registration/enquiries and company incorporation
Provides statistical data and information on the Nigerian
economy, investment climate and sector specific legal and
regulatory framework
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Process and facilitate requests for expatriate quota and
intervene on immigration matters (STR, TWP, CERPAC) etc
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Removes bottlenecks faced by investors in establishing and
running business
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Reduces the cost of doing business in Nigeria
WHY NIGERIA
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One of the key goals of the Government is to improve growth and the
competitiveness of the country as a preferred investment location
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Nigeria has been portrayed by reputable organizations as the place to invest
in the wake of the Global meltdown – strong fiscal and external positions
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Real GDP growth averaging 7% with Agriculture, Manufacturing, Services
stimulating economic growth
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Government has taken bold steps to do the right thing ;fix power, develop
infrastructure, tackle security, fight financial and economic crimes, improve
justice system and reform electoral process to be electorate-friendly
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Annual Return On Investment of 35% - 45% (70 – 100% in some sectors)
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Nigeria’s economic outlook is positive and the Government is committed to
move Nigeria forward
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Given the investment friendly disposition of Nigeria, there is no better time
than now to invest in Africa’s most profitable economy
THANK YOU FOR LISTENING
For more information, visit:
www.nipc.gov.ng
For Enquiries:
[email protected]