The Facts. The Fundamentals Prince Emma. AJAYI Managing Director - - PowerPoint PPT Presentation

Doing Business In Nigeria: The Facts. The Fundamentals

Prince Emma. AJAYI Managing Director & Chief Executive Officer Swiss-Nigerian Business Forum; Berne 2009

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Fact 1: Market Environment

• Population: 140 mio
• Population Growth rate: 3%
• GDP: 6 – 9%
• External reserve: Enough to cover 2 years imports at current levels
• Domestic Economy: Strong & Virile; Private-Sector led
• Human Capital: Dynamic, Available, Employable & Qualified Professionals
• Geographic Positioning: Serves as gateway to West Africa market
• Inherent Ability to resolve internal problems
• Resilient Economy

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Fact 2: Market Environment

• Positive Government Attitude to Private Sector Businesses
• One Stop Investment Centre created at NIPC
• Beneficial Tax Incentives:
• Zero Tax on Profits accruing from Export of Goods
• 10% Investment Allowance on CAPEX
• R & D Tax Relief
• Pioneer Status Tax exemption
• No restriction of Ownership Or Shares Transfer (Free Entry & Free Exit)
• Ease of Capital repatriation
• Abundant Investments Opportunities

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Fact 3: Market Environment

SEQUENTIAL 5 – YEAR GDP GROWTH RATE Year Growth Rate 2008 7.9 2009 10 2010 15 2011 18 2012 16 Source: National Planning Commission

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Fact 4: Market Environment

VISION 20: 2020 – The New Economic Platform. The Synopsis:

. Source: National Planning Commission

• Adoption of Appropriate Macro-Economic Policies
• Stimulating the Manufacturing Sector & Strengthening its linkage to

Agricultural sector

• Massive Investments in Infrastructure & Human Capital & Creating an Enabling

Environment for domestic and private investment

• Raising the relative competitiveness of the real sectors
• Achieving double digit growth rates and economic diversification

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Fact 5: Market Environment

Government Policy Thrusts: These border on 4 Key Areas . FISCAL POLICY THRUSTS: Institutionalizing fiscal prudence in line with provisions of Fiscal Responsibility Act of 2007 PUBLIC DEBT POLICY THRUSTS: In line with Fiscal Responsibility Act of 2007, contracting external borrowing will

• nly be from concessional windows or tied

to productive and self-financing projects MONETARY POLICY THRUSTS: Monetization of foreign exchange receipts from

• il exports & sustenance of liberalized foreign

exchange market EXTERNAL SECTOR POLICY THRUSTS: Value added production to make manufacturing sector a major driver of growth and exports

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Fact 6: Investment Opportunities - General

• Oil & Gas (Crude Oil Refining, Transportation & Storage)
• Production of Liquefied Natural Gas
• Manufacture of Gas Cylinders, Valves & Burners
• Processing Plant for Refined Mineral Oils, Jelly and Grease
• Chemical Industries
• Fertilizer Plants
• Petrochemical Plants
• Rubber & Plastics Industries
• Food Processing & Preservation
• Trawling Fish & Shrimps
• Large Scale Integrated Farming
• Fruits Processing
• Manufacture of Agricultural Inputs – Chemicals etc

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Fact 7: Investment Opportunities – Solid Minerals

Nigeria has numerous minerals, including

• Limestone , Coal, Tantalite, Gypsum,
• Gold, Barite, Marble, Manganese
• Lead/Zinc, Bitumen, Tin/Columbite
• Iron Ore, Kaolin etc

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Fact 8: Investment Opportunities – Energy & Telecommunications

• Generation, Transmission & Distribution of Electricity
• Local manufacturing of Electric Cables, Transformers , Porcelain &

Other Electrical appliances, equipment & Component parts

• Telecommunication – Provision of private Network links, Sales &

Installation of terminals, manufacture of telecom equipment and accessories, development of internet capacities etc

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Fact 9: Opportunities through NEPAD

NEPAD – New Partnership for Africa Development Comprehensive Program for Africa Development capturing Social, Political & Economic Elements that promotes investment into Africa Countries in the following major areas.

• Infrastructures, especially communication & Energy
• Agriculture
• Mining
• Manufacturing
• Tourism
• Fortunately, all are great business potential areas in Nigeria.

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Fact 10: Strong & Buoyant Economy

Strong & Dynamic Economy (+ policy)  Resilient Economy (as the Old German Train)  Growing Economy (double digit as from 2012)  Second Biggest economy in Africa (after RSA)

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The Fundamentals : MARKET STUDY

• Set Up a proper Business Plan
• Carry Out Due Diligence – Financial, Legal, Environmental
• Check on Business & Sectoral Needs

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The Fundamentals: ESTABLISH A PLAN

• Put an Action Plan in Place
• Work Your Plan – Deviations must be well defined

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The Fundamentals: PARTNERSHIP

The terrain requires people with deep knowledge of the local business environment . It brings about Quick Wins and build buffers around the young Investment while guaranteeing its future prosperity Note: Persons must be well investigated Like-Minded and Real Partners

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The Fundamentals: Investment Scale

• Investors Must be Willing and Ready to invest on the long haul
• Scale of investment depends on several factors
• Short Term Contracts should never be the Guideposts
• Invest well, Invest Rightly, Invest for the future

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The Fundamentals: Purpose, Vision & Mission

• Lucid,
• Strong &
• Compelling

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The Fundamentals: People

• The Board
• The Management
• The Workers

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The Fundamentals: Finance

 Long Term Or Short Term

 Off Shore Or Local  Venture Capital  Equity / Capital

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The Importance of Doing Business in Nigeria

• 1. It contributes to its economy and thus able to play more roles in

the sub-region and the African Continent as a whole

• 2. It will promote Regional and Global Health
• 3. Nigeria is a trigger for entry into other West African Markets
• 4. Nigeria needs Trade; Not Aids

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The Conclusion

Nigeria is a Gold mine

Seize the opportunity to invest in the Country so as to

strengthen the Trade Relations between both countries: Switzerland & Nigeria

WELCOME TO NIGERIA

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