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 1

2

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 3

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 4

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 5

Fact 4: Market Environment VISION 20: 2020 – The New Economic Platform. The Synopsis: - 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 Source: National Planning Commission 6

Fact 5: Market Environment Government Policy Thrusts: These border on 4 Key Areas FISCAL POLICY THRUSTS: PUBLIC DEBT POLICY THRUSTS: Institutionalizing fiscal prudence in line In line with Fiscal Responsibility Act of . with provisions of Fiscal Responsibility 2007, contracting external borrowing will Act of 2007 only be from concessional windows or tied to productive and self-financing projects MONETARY POLICY THRUSTS: EXTERNAL SECTOR POLICY THRUSTS : Monetization of foreign exchange receipts from Value added production to make manufacturing oil exports & sustenance of liberalized foreign sector a major driver of growth and exports exchange market 7

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 8

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 9

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 10

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. 11

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) 12

The Fundamentals : MARKET STUDY -Set Up a proper Business Plan -Carry Out Due Diligence – Financial, Legal, Environmental -Check on Business & Sectoral Needs 13

The Fundamentals: ESTABLISH A PLAN  Put an Action Plan in Place  Work Your Plan – Deviations must be well defined 14

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 15

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 16

The Fundamentals: Purpose, Vision & Mission  Lucid,  Strong &  Compelling 17

The Fundamentals: People  The Board  The Management  The Workers 18

The Fundamentals: Finance  Long Term Or Short Term  Off Shore Or Local  Venture Capital  Equity / Capital 19

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 20

The Conclusion Nigeria is a Gold mine S eize the opportunity to invest in the Country so as to strengthen the Trade Relations between both countries: Switzerland & Nigeria WELCOME TO NIGERIA 21