The Nigerian Investment Environment – Opportunities and Challenges

The Nigerian Investment Environment – Opportunities

and Challenges.Presentation By Engr. Dideolu Falobi, FNSE, MIoD.

CEO Kresta Laurel Limited, Nigeria.On July 30, 2013 in New York, USA

Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

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The Vice Minister, Foreign Trade of the Kingdom of the Netherlands, Simon Smits, has said that the country will double its investment in Nigeria from its current €8billion in the coming years - www.nigeriacommercetoday.com

The Question Why and How?

http://www.nigeriacommercetoday.com/


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•Country Profile

• Investment Opportunities

•Challenges

Outline

• Attained Nationhood in 1914

• Became independent in 1960

• Location: West Africa

Country Profile

Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria 4


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Population: 170,123,740(July 2012 Estimate)

Area: 923,768sq.m(Land - 98.6%, Water - 1.4%)

Coastline: 853km

Climate: Equitorial in the South, Tropical in the Centre, Arid in the North

Country Profile Contd.


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Natural Resources: Crude Oil, Natural Gas, Gold, Tin, Iron Ore, Coal, Limestone, Bitumen, Bauxite, Talc, Gemstones

Agricultural Products: Cocoa, Rubber, Cattle, Cotton, Fish, Cassava, Palm Trees

Arable Land Usage: 33.02%

Literacy Level: 61.3%

Country Profile Contd.


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GDP Growth: 2009(7%), 2010(8%), 2011(7.4%)

GDP in 2011: $247billion(65% of the Economy of West Africa)

13th Largest Producer of Crude oil in the World

11th Highest Proven Reserves of Crude oil in the World

10th Highest Proven Reserves of Natural Gas in the World

Other Facts


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Refineries

Petrochemicals

Oil Service & Pipelines

Oil Prospecting & Exploitation

Investment Opportunities - Oil & Gas


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Gas Gathering

Gas Distribution

Manufacturing of Consumables

Training and Consultancy

Investment Opportunities - Oil & Gas Contd.


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Privatization

Power Generation Plants

Manufacturing of Power Equipment and Accessories

Training & Consultancy

Investment Opportunities - Power


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Mergers

Acquisitions

Organic/Greenfield Entry

Training &Consultancy

Investment Opportunities - Banking


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Housing, Hotel & Malls

Roads & Bridges

Dams

Rail Transport Systems

Investment Opportunities - Construction


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Capital Market

Industrialization

Steel and Aluminium industry

Entertainment, arts, culture, music and drama

Others


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IT & Telecoms

Water Transport

Mining

Education & Health

Others contd....


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Integrity of the Judiciary & Security of Agreements

Security

Corruption

419 Syndrome

Challenges


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Power Supply

Infrastructures

Access to, and high cost of Long term Finance

Challenges Contd.


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Improved Macro Economic Environment (Political Stability, Corporate Governance, Economic Reforms, e.t.c)

Abundance of Raw Materials (Minerals & Agriculture)

Land Resources

PROSPECTS FOR THE MANUFACTURING SECTOR AS A CASE STUDY.


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Rich Variety of Energy Sources – Gas, Coal, Hydro, Solar, Wind

Increasing Pool of Talents

Large Population – Availability of Inexpensive Labour and Market

Positive Economic Outlook.


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Increasing Pool of Talents

Large Population – Availability of Inexpensive Labour and Market

Positive Economic Outlook.


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Please read "FDI In Telecommunications, The success of MTN IN Nigeria" by Covadonga Velasco, Samy Belemi and Wouter Belmans

Case Study - MTN


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(http://www.google.fi/url?sa=t&source=web&cd=4&ved=0CD8QFjAD&url=http%3A%2F%2Ffaculty-course.insead.edu%2Fdutt%2Femdc%2Fprojects%2FFinal%2520Report%2FFDI%2520in%2520Telecommunications-%2520MTN%2520Nigeria.doc&ei=lTbFUKe0OtGN4gSbiIBo&usg=AFQjCNGQL2W6pRS52ejuJsPMaqDqgfMclQ)

Case Study - MTN. Contd


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Wholly indigenous

Started as a trading company importing Commodities mainly Sugar, Salt & Cement

Keyed into the government’s backward integration policy in 2002

Case study manufacturing: DANGOTE GROUP(www.dangote-group.com)


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Today, the Group is arguably one of the biggest Conglomerates in Africa

Today, the promoter, Alhaji Aliko Dangote, GCON is, according to Forbes, the richest man in Africa with an asset base of $16.1billion in March 2013 as against $3.3billion in March 2008.

DANGOTE GROUP Contd.


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SUGAR

1.4million P/A 2nd Largest Sugar Refinery in the world

Largest in Sub-Sahara Africa



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SALT Installed Capacity of 600, 000 metric ton P/A

Refines, Fortifies & Packages table, Agric and Industrial Salts.


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Laminated bags 648million bags/Annum

Fertilizer(Urea & Ammonia) 2.8million P/A

Refinery 450,000 barrels/day Refinery capacity



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Petrochemicals 650,000 m+pa

Feedstock of carbon black 300,000m+pa LPFO 100,000 m+pa



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2002 2013 20140

5000000

10000000

15000000

20000000

25000000

30000000

35000000

ImportsLocalTotal

DANGOTE GROUP’S CEMENT PRODUCTION GROWTH(In Metric Tons)


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Contact The Ministry of Trade and Investments on www.fmti.gov.ng

Contact The Nigerian Investment Promotion Commission on www.nipc.gov.ng

Incentives & More Information


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ALWAYS CONSULT ONE OR ANY OF:

CORPORATE COUNCIL FOR AFRICA, NIGERIAN INVESTMENT PROMOTIONS

COUNCIL(NIPC), EMBASSY OF USA IN NIGERIA NIGERIAN EMBASSY IN USA NIGERIAN-AMERICAN CHAMBER OF COMMERCE

FOR ADVICE AND GUIDANCE BEFORE YOU CONSUMATE MAJOR INVESTMENTS, MERGERS OR ACQUISITIONS

CAUTION!


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"Nigeria has the most attractive environment for investment in Nigeria because Nigeria is a large market in the continent; it is the second largest economy in the continent. For me, while we say the country's current investment climate could be better in terms of providing electricity, access to finance and other things, you should also look at the huge opportunities for investment in Nigeria" - Marie Francoise Marie-Nelly, Country Director, World Bank, Nigeria.

Words of Wisdom

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Engr. DIDEOLU FALOBI, FNSE, MIoDManaging Director/CEO,Kresta Laurel Limited,

376, Ikorodu Road,Maryland, Lagos, NIGERIA.

Tel: +2348056121213, +2348035244004 E-Mail: [email protected]

www.krestalaurel.com


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THANK YOU ALL.

Documents

The Nigerian Investment Environment – Opportunities and Challenges