# Presentation: 522341

## Opportunities in Sub Saharan Africa

- Nigeria Is Open For Business

**U.S. Commercial Service Nigeria**
**Hannah Kamenetsky**
**Acting SCO**

## Presentation Overview

**Nigeria at a Glance**
**Industry “Best Prospects”**
**April 07 Elections**
**Challenges**
**CS Nigeria Services  **

## Gateway to West Africa

## Africa’s largest population – 140 million
Language of business: English
World’s 10th largest oil reserves 
World’s 8th largest oil exporter
World’s 7th largest natural gas reserves
Ambitious privatization programs 
Vast infrastructure needs
Positive perception of U.S. technology
New government elected April 2007

**Language of business: English**
**World’s 10****th**** largest oil reserves **
**World’s 8****th**** largest oil exporter**
**World’s 7th largest natural gas reserves**
**Ambitious privatization programs **
**Vast infrastructure needs**
**Positive perception of U.S. technology**
**New government elected April 2007**

**Nigeria at a Glance**

## Nigeria’s Economy

**Currency:  Naira 128/$1**
**GDP growth: 5.3% (2006)        8.2% est. (2007)**
**GDP per capita: $769 (2006)    $827 est. (2007)**
**Unemployment Rate: 5.8% (2006)**
**Inflation Rate: 8.3% (2006)      7.9% est. (2007)**
**Paris Club debt forgiveness 2005    ($12.4 bln/$18.6 bln)**
**Most London Club debts cleared 2006/07**
**Banking system consolidation: 89 ******** 25 stronger capitalization**

**Notes:**
100% ownership permitted by foreign firms, except for firearms and natinoal security projects.

## Nigerian “Best Prospects”

**Oil & Gas**
**Telecom**
**Power Generation**
**Waste Management**

## Nigeria’s Oil & Gas Sector:

- Crude oil production: 2 million bpd
- Life expectancy: 35 years
- Natural gas reserves: 187 trillion cubic ft
- Life expectancy: 109+ years
- Gov’t plans to phase out gas flaring (43% - more than any other nation) by 2008
- Provides 20% of GDP, 95% of foreign exchange earnings and about 65% of budgetary revenues.

**Notes:**
Capacity is 2.6 million bpd, but unrest in Niger Delta keeps about 25% of production off line.

## Opportunities: Oil

- Offshore deep-sea region drives demand
- Nigeria plans to offer 30 oil blocks in 2007
**Needs:** Capital equipment & technology for extraction, including drilling equipment ($500 million projected sales)
**Needs:** Support services, marketing, construction, engineering & consulting services, transportation /storage of crude oil

## ...More Opportunities

- Insurance services
- Legal services
- Facilities maintenance
- Environmental management

## Opportunities:Natural Gas

**New gas-gathering and commercialization projects**
**West Africa Gas Pipeline**
**Trans Saharan Gas Pipeline**

## Opportunities: Natural Gas

- Manufacturing and construction services for projects and pipelines
- Equipment for full spectrum of gas development
- Technical partnerships

## Nigeria’s Telecom Sector

- Growth is centered in mobile phone sector
- Vibrant growth in last five years: < 500,000 to 37 million fixed and wireless phone lines
- NCC introduced unified licenses in 2006
- $6 billion annual investment next 3-5 years
- Growth rate: 60%
- Teledensity: 26%
- Challenge: China can offer more favorable financing terms than U.S. companies

**Notes:**
Project finance: 10% down payment and five year payment terms. 

## Telecom: Privatization = Opportunities

- NITEL must rebuild old infrastructure, invest in new networks nationwide – needs equipment
- NCC will auction licenses for networks in 1800 MHz, 3G and 450 MHz ranges – license purchasers need technology, equipment, technical partners
- Expansion projects by “Big Four”: MTN, Celtel, GloMobile and NITEL – equipment, etc
- New entrant MDC of UAE – full spectrum of equipment needs

**Notes:**
MDC: Mubadala Development Company of UAE purchased a unified telecom license from NCC in Jan 2007 for $400 million to provide national and international telecom services using fixed and wireless technologies. Purchase makes MDC third largest national carrier after NITEL and Globacom Ltd.

## Nigeria’s Power Gen Sector

- Privatization plan to redress power needs – 5,900MW installed, but system produces well below capacity  - and need is 10,000MW
- Created Power Holding Company of Nigeria, unbundling former state agency (NEPA) into 11 discos, 6 gencos, 1 transco
- Plan to increase grid access from 40% to 85% by 2010
- Rural electrification: connect 1,500 communities

**Notes:**
Estimate for power production is approx 3,500 MW

## Power Gen: Opportunities

- Gov’t seeks IPPs, foreign participation to produce power & sell to PHCN
- Other needs: equipment, such as turbines, transformers, metering, servicing, technical training

## Nigeria’s Waste Management Industry

- Urbanization, population growth = municipal solid waste, wastewater present growing challenges
- Lagos population est. 14 million
- Nigeria population expected to grow from 140 million to 240 million by 2030
- Oil production in Niger Delta has caused environmental pollution, soil degradation.

## Opportunities: Waste Management Industry

- Government in 2006 launched solid waste management pilot projects in 9 cities
- States have launched waste-to-wealth projects to manage animal waste, landfill sites, wastewater treatment & medical waste
- Needs: recycling technology, machinery/equipment, waste management services, esp education and training

## Nigerian Elections

- Alhaji Umaru Musa Yar’ Adua won presidential election April 21
- PDP continues political domination
- Likelihood of continuing the reforms of Obasanjo
- Official transfer of power: May 29

## Challenges

- Advance-fee fraud, aka “419” scams
- Corruption
- Basic infrastructure lacking
- Power outages

## CS Nigeria Services

- NUSA - ~ 4,000 members
- International Company Profile
- Market Research
- International Partner Search
- Gold Key Service
- Trade Show Delegations - U.S.

## CS Nigeria: Contacts www.buyusa.gov/nigeria

**CS Nigeria: Contacts www.buyusa.gov/nigeria**

**Hannah Kamenetsky, Acting SCO **_[hannah.kamenetsky@mail.doc.](mailto:hannah.kamenetsky@mail.doc.gov)__[gov](mailto:hannah.kamenetsky@mail.doc.gov)_
_**Commercial Specialists**_
**Anayo Agu, **_[anayo](mailto:anayo.agu@mail.doc.gov)__[.agu@mail.doc.gov](mailto:anayo.agu@mail.doc.gov)_
**Joseph Latunji, **_[joseph](mailto:joseph.latunji@mail.doc.gov)__[.latunji@mail.doc.gov](mailto:joseph.latunji@mail.doc.gov)_
**Benedicta “Ngozi” Nkwoh, **_[Benedicta](mailto:Benedicta.nkwoh@mail.doc.gov)__[.nkwoh@mail.doc.gov](mailto:Benedicta.nkwoh@mail.doc.gov)_
**Chamberlain Eke, **_[chamberlain.eke@mail.doc.gov](mailto:chamberlain.eke@mail.doc.gov)_
**Joseph Umoetteh, **_[joseph.umoetteh@mail.doc.gov](mailto:joseph.umoetteh@mail.doc.gov)_
**Ibrahim Ibrahim, **_[ibrahim.ibrahim@mail.doc.gov](mailto:ibrahim.ibrahim@mail.doc.gov)_
**Sade Egbaiyelo, **_[folasade.egbaiyelo@mail.doc.gov](mailto:folasade.egbaiyelo@mail.doc.gov)_