BUSINESS AND INVESTMENTENVIRONMENTIN NIGERIAYEWANDE SADIKUEXECUTIVE SECRETARY/CEONIGERIAN INVESTMENT PROMOTION COMMISSION (NIPC)TOKYO, JAPAN | FEBRUARY 2017
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Nigeria is a key strategic market in sub-Saharan Africa
Increasingly friendly
business environment
020Within East Africa:• Kenya is the trade and finance hub for East Africa• Highest “ease-of-doing-business” in the East
African hub

Within Southern Africa:• Ranks high in terms of “ease-to-do-business”, making the country a logicalentry point for investment in Africa• Second largest GDP on African continent, and 5th largest population (55million)• Emerging black middle class with increasing purchasing power• Perceived favorably from a risk-return perspective by international investors insearch for emerging market yield

Natural entry point to establish African presencefrom East Africa

40South Africa

60
Ease of doing business (ranking)South Africa typically offers itself as the “doorstep-to-Africa” to new investors to
the continent

Note: Size of bubblereflects relative
GDP of eachcountry

Botswana
80

Kenya
Zambia100

Within West Africa:• Nigeria’s population is the largest on the African continent and eightlargest in the world• Largest GDP in Africa in 2015
• Huge hydrocarbon resources, the largest producer of crude oil in Africawith the second largest oil resources base in Africa and 9th largest gas
reserve base globally
Nigeria is the emerging economic locomotive of the African continent

Ghana
Uganda120

Tanzania

140
Togo

160

Côte d'Ivoire
SenegalEquatorial Guinea
180

Ethiopia

Cameroon

Nigeria

Angola

200
0

20

40

60

80

100

120

140

160

180

200

Population (millions)
Increasing population
Sources: Economist Intelligence Unit, World Bank Doing Business Report, 20171

Nigeria is the largest economy in Africa
Comparative statistics

Macroeconomic Metric 2015

Nigeria

Ghana

Cote d'Ivoire

SenegalBurkina Faso

Togo

Benin

Liberia

Nominal GDP (US$,bn)
GDP per capita (US$)
Real GDP (% change p.a)
Population (m)Population growth rate (%)
Labour force (m)Headline inflation (%)
Doing business ranking

493.8
2,710.4
2.7
182.2
2.7
57.3
9.0
169

37.4
1,363.8
3.9
27.4
2.3
11.7
17.2
108

31.8
1,398.8
8.4
22.7
2.4
8.3
1.3
142

13.8
910.7
6.5
15.1
3.1
6.5
0.1
147

11.1
613.0
4.0
18.1
2.9
–
1.0
146

4.0
547.9
5.5
7.3
2.7
–
1.8
154

8.5
779.1
5.2
10.9
2.7
–
0.3
155

2.1
455.9
0.3
4.5
2.4
1.6
7.8
174

Macroeconomic Metric 2015

China

India

BrazilRussiaNigeriaSouth Africa

Nominal GDP (US$,bn)
GDP per capita (US$)
Real GDP (% change p.a)
Population (m)Population growth rate (%)
Labour force (m)Headline inflation (%)
Doing business ranking

11,181.0
8,217.5
6.9
1,361.0
0.4
806.3

2,072.0
1,580.4
7.5
1,311.0
1.2
501.8

1,772.3
8,668.4
3.8
204.5
0.8
109.2

1,324.5
9,040.9
3.7
146.5
0.1
76.6

493.8
2,710.4
2.7
182.2
2.7
57.3

314.6
5,773.2
1.3
54.5
1.0
21.1

1.5
78

4.9
130

9.0
123

15.5
40

9.0
169

4.5
74

Sources: Economist Intelligence Unit, World Bank Doing Business Report, 20172

Nigeria is the largest and least indebted economy in Africa
Nigeria’s GDP remains the highest in Sub-Saharan Africa
supported by its population and diverse economy

Despite a currency devaluation, GNI is above many African peers
GNI (US$) per capita (2015)

US$ billions (2015)
600

7,000

500 488.71

6,000

6,080

5,000

400
314.73

4,000

300

2,820

3,000

200

2,000
100

37.69 31.42

13.67 13.11 8.48

7.17

6.85

4.40

4.17

2.03

0.89

1,000

Niger

GuineaSierraLeone

Togo

Liberia Guinea- The
Bissau Gambia

0

1.06

1,490

1,480

1,420

ZambiaGhana

Cote d'Ivoire

0
Nigeria S. Africa Ghana

Côte Senegal
d'Ivoire

Mali

Benin

South Africa

Nigeria

Nigeria’s debt profile is low compared to African and developed market economies
100%

Debt as % of GDP (2015)

91.6%
70.8%

80%
60%
39.3%

Liberia

Benin

43.8%

45.1%

49.8%

Côte
d'Ivoire

S. Africa

52.9%

53.0%

GuineaBissau

Guinea

56.8%

30.9%

40%
20%

39.2%

48.9%

62.3%

13.6%

0%
Nigeria

Mali

Sierra
Leone

Niger

Sources: IMF World Economic Outlook, Oct 2016, National Bureau of Statistics, World Bank Development Indicators
Database, 2015

3

Senegal

Togo

Ghana

The
GambiaStrong growth has been driven by non-oil sectors
GDP at constant 2010 prices by sector
N trillion, 2015

Contribution Growth% of GDP% p.a, 2010-15

Services1

19.7

29%

6.2%

Agriculture

16.0

23%

4.1%

17%

5.4%

12%

6.9%

10%

-4.6%

Trade

11.7

Construction and real estate

7.9

Oil and gas

6.6

Manufacturing

6.6

10%

13.0%

Solid minerals

0.1

0,1%

14.6%

Utilities

0.4

1%

10.6%

Total

69.0

100%

4.8%

1 includes accommodation and food services, transport and storage, post and courier, publishing, motion pictures, broadcasting, arts, entertainment and recreation, administrative and support services,financial institutions and insurance, professional, scientific and technical services, telecom, and public services (e.g., education)
Sources: Central Bank of Nigeria, National Bureau of Statistics

4

Nigeria is strategically located with access to the larger ECOWAS market
Population across Africa, 2015 (mn)

395

217
183

▪ 4 International▪
▪

airports and major
seaports in Lagos,
Calabar and Bonnyisland3,798 km of railway
tracks and 168,000 km
road network
Land borders with
Benin, Cameroon,
Chad & Niger and anatural hub for theregion143

61

East Africa North Africa* Rest of West Africa excluding Nigeria
Source: UN Habitat 2016 Report

166

5

NigeriaWest Africa*

CentralAfricaSouthern
AfricaNigeria has the 2nd biggest cluster of large companies in Africa
Companies with more than $500 million in revenue, by region, 20141
Number of companies% of Africa’s total

North Africa
133

West Africa
40

Central Africa
19

Central
East

3
4

West

6

Southern

7

Nigeria

9

North

22

South
Africa49

Nigeria
56

East Africa
25

Southern Africa
43

South Africa
300

1 Regional definition from the African Development Bank; 2014 or most recent data.
Note. Includes multinational corporations with local branches registered in Africa; does not include those based outside of Africa. Numbers may not sum due to rounding.
Sources: MGI African companies database; McKinsey Global Institute analysis

6Nigeria is expected to drive 15% of Africa’s household consumption growth by2025
Summary▪ Africa’s household

▪
▪

▪

▪

consumption has continued to
grow at a robust pace. 60% ofconsumption growth has comefrom an expanding population,and the rest from risingincomes
Africa’s consumption growthhas been the second fastest of
any region after emerging Asia
Household consumption is
projected to grow by US$645
billion to US$2.1 trillion by2025,
Nigeria, Africa’s largest
economy will remain theregion’s single largest
consumer market, accountingfor 15% of overall growth inconsumer spending to 2025
The biggest spending
categories will be food andbeverages, housing, consumer
goods, education, andtransportation services

Total household consumption (US$,bn), 2015 - 2025
18

15

Share ofconsumption
growth %1,420

Consumption,
2015

7

94

114

48

Nigeria

Egypt

South Africa

18

14

116

91

East Africa

15

13

98

84

Francophone Rest of North
AfricaAfrica2,065

Rest of SSA Consumption,
2025

10%
22%

9%
13%

2015
US$1,420bn

9%Nigeria

13%

26%

11%

Egypt
South Africa

2025
US$2,065bn

East Africa
17%

16%

Francophone Africa
Rest of North Africa
Rest of SSA

14%
15%

13%

Sources: Oxford Economics: IHS; African Development Bank; McKinsey Global Institute analysis

712%

Major sources of foreign capital inflows into Nigeria
Foreign capital inflow by country 2016* (US$,bn)

Foreign capital inflow by type (US$,bn)

17
2
1
8
2
2

6
1
1
4

13

21
1
3

21
2
4

17

10
1
2

15

6

5

2010

5
1
2
2

2011
2012
Portfolio investment

2013
2014
Other instruments

2015
FDI

YTD 2016

Foreign capital inflow by sector 2016* (US$,bn)
6%

3%

UK

1.70

40%

USA

0.74

25%

0.46

12%

0.27

12%

0.18

6%

Banking30%

6%Telecommunication
Marketing

Switzerland

Servicing
Production/
Manufacturing
Electrical

11%

Singapore

Trading

17%%

Netherlands

Shares3% 4%

US$,bn20%

Others* Excludes December 2016 figures
Sources: Central Bank of Nigeria, National Bureau of Statistics

8

Trade flows between Japan and Nigeria
6Japan - Top export products to Nigeria, 2016 (US$,mn)
Fish
Iron & Steel
RubberElectronics
Chemical Products
VehiclesMachinery & Parts
Staple Fibres
Iron & Steel

Trade between Japan and Nigeria 2012-2016 (US$,bn)

5

4

0

20

40

60

80

100

3

Nigeria - Top export products to Japan, 2016 (US$,mn)2

Pearls
CopperOil Seeds

1

Aluminium
Mineral Fuels

0
0

200

400

600

800

In 2016, about 84% of Japanese imports from Nigeria was Mineral Fuels
Source: UN Comtrade

9

2012

2013

Nigeria's export to Japan

2014

2015

2016

Japan's export to Nigeria

Total tradeForeign Direct Investment flows from Japan to Nigeria

Top 5 Investments from Japan by Sector (20122016)

Summary of FDI from Japan (2012-2016)
7

1,600

4

1,400

6
5
3

800
3

Projects

4

Projects

1,000
Jobs

Capex- USD m

1,200

600
2

400

1

200

1

0
2012

Projects

Source: FDI Markets

2013

2014

2015

Capex - USD m

2

2016

Jobs

10

Investment and Trade – Japan and Nigeria
Top Trade Partners – Import (2010 – 2014)

Top FDI Source Markets (2012 – 2016)
50

45
40

40
35

30

Projects

Projects

30
25

20

20
15

10
10
5

0

0
United States

UK

Source: FDI Markets & UN Comtrade

South Africa

India

Japan

11

In the short term Nigeria is experiencing some macroeconomic challenges…
GDP growth has slowed

Inflation is ticking upwards

Annual growth rate, %

%

5.5

6.2

20

4.2

15

2.8

10
5
~-1

2012

13

14

15

0
Jan-12

2016F1

Dec-16Gross international reserves have declined

Exchange rates have diverged

USD Billion

Naira/USD

50
40
30

500
400
300

20
10
0
Jan-12200
100
0Jan-15

1 MBNP estimate
Sources: Central Bank of Nigeria, National Bureau of Statistics

Dec-16
12

Inter-Bank

Parallel Market

Dec-16

…driven by both decline in oil volumes and oil priceNigerian oil production, mbpd
2,5

Ø 2.2
-23%

2,0

FGN’s net oil revenue, NGN Trillion
1.69

1,5

1.9

2.0

1.9
1.5

1,0
Jan12

Oct16

=
0.7
Oil price, $ per barrel
140
Ø 110

120

2012

100
80

13

14

15

-57%

60
40
20
Jan12

48
Jan15

Dec16
1 MBNP Forecast
2 Depends on a variety of factors; Ranges between 12% and 18%

Ratio of oil industry revenue going to FGN²
SOURCE: NNPC ; Ministry of Budget and National Planning

13

2016F1

Nigeria is making progress in its anti-corruption campaign
Anti-corruption campaign news
12,985“Trial to proceed as former National Security
Adviser loses application on contempt of courtover $2.1Bn Arms deal scandal”– The Guardian, March 2016

9,271

7,602

“Keeping his promise, Buhari announces
recovery of N3.4 trillion in one year”– ThisDay, June 2016

“Alleged Corruption: 7 Judges arrested”– Vanguard, October 20162012

Sources: National Bureau of Statistics, press search

2013“Federal Government saves N48 billion from
implementation of Treasury Single Account”– Punch, November 2016

2014

14

Security incidents have started trending downward
Monthly deaths from security incidents

Success stories

4000“Chibok families reunited with 21 girls
kidnapped by Boko Haram”– theguardian, October 2016

3500
3000

“Boko Haram ousted from Sambisa forest”

2500– BBC news, December 2016
2000

“Nigerian police arrest man suspected of Lagos
bridge bomb plot”

1500
1000

– Reuters, December 2016

500

“Navy says crime in maritime sector has
reduced in Niger Delta”– The Guardian, December 20160

“4 oil company kidnap victims rescued by
security operatives”– NTA news, January 2017

Deaths Per Month
12 per. Mov. Avg. (Deaths Per Month)

Above represents incidents motivated by political, economic or social grievances

Sources: Council on Foreign Relations, press search

15

Key structural reform programmes to enhance growth
The current administration has proposed eight key programmes to promote economic and social development
1. War Against Corruption

2. Food Security► Strengthen the powers of the anti-graft
agencies► Re-organization and modernisation of the
agricultural sector► Increase civic education against corruption► Supplying adequate raw materials forindustrial processing and manufacturing

8. Affordable Health Care
► Reduce infant mortality rate to 3% by 2019
► Reduce maternal mortality rate by morethan 70%



3. Accelerated Power Supply► Expansion of electricity generation and distribution► Increase power availability from renewable energy
sources► Reduce HIV / AIDS infection by 50% andother infectious diseases by 75%► Improve life expectancy by an additional 10
years

4. Integrated Transport Network► Survey of Federal highways and State roads

7. Accelerated Economic Growth► Building of up to 200km of modern standard
railway lines annually► Restore and strengthen financial
confidence through more robust monitoring,supervision and regulation of all financial
institutions► Improve and modernize aviation infrastructure

6. Devolution of Power

5. Free Education► Ensure that the Local Government systemof administration is autonomous► Fully implement and enforce the provisions of the Universal
Basic Education Act 2004
► Up to 10 per cent of the annual budget for this critical sector► Substantial investments in training programmes

16Planned capital expenditure on infrastructure will further diversify the economy

Blocked Leakages

Sectoral Focus
Critical Infrastructure
Agriculture andAgro-Allied

Solid Minerals
CapitalExpenditure
Manufacturing

Power
Industrialisation
Diversified &Increased Revenue

17

Huge infrastructure deficit requires attracting more investment
Key metricTransport

EnergyICTSocialInfrastructure
Housing & Regional
Development
Vital Registration &Security
Agriculture, Water& Mining▪ Km road per 100 square km▪ Consumption per capita

Benchmarks

101

21

21

136

498

68

68

(kWh)

2,384

30

4,803

135

140

24

28

▪ Mobile phone penetration(%)▪ Number of hospital beds per5▪ Houses per 100 people

79100,000 people

205▪ Number of policemen per

19

130

100,000 people▪ Access to sanitation (%)

Sources: World Bank World Development Indicators

31

34

Nigeria

India

18

30

17

282

317

79

79

BrazilSouth Africa

Sector opportunities

Agriculture

Power

Solid minerals

Manufacturing

Healthcare

Education

19

Current Power status▪ Generation capacity materiallybelow World Bank emerging
market targets due to:







poor operational efficiency,
infrastructure maintenance& low equipment reliability

Gaps in the Power Value Chain
Estimated max.
transmission capacity

12,522

shortage of capital tofinance the required
expansion of power capacity~7.4%
transmission loss

5,381

~6.9% commercial and
36.5% collection losses▪ Existing transmission network

3,262
287

is weak, unreliable & does notcover all regions of thecountry. High outages on
132KV and 330KV networks
due to vandalism, line
constraints, and moreby sub-standard distributionlines & overloadedtransformers. Lack of cost
recovery/reflective pricing.
Inadequate metering andbilling systems. Power theft.

4,055

1,746
447

3,879

-75%

7,200

~12.5% technicalloss

unreliable gas supply▪ Distribution system burdened

Estimated max.
distribution capacity

1,065

3,592

216

1,864
Installed
Capacity

NonAvailable
Capacity1

Nonoperational
Capacity1

Capacity
operational
for generation

Generation

Transmission
lossesCapacity2transmitted

Transmission

Distribution
lossesCapacity2
distributed

Distribution

Note:
1Refers to average daily capacity of units non-available and non-operational from Jan to Aug 15 2015; assumes peak demand
2Effective capacity for transmission and distribution post losses; assumes peak demand

Source: “Nigeria Energy Power Report ‘2016’ (Data as at 15 August 2015)”

20

Opportunities in the Nigerian Power sector
 Large gap between power demandand supply Ongoing implementation of power
sector reforms and deregulation of
the sector

It is estimated that only 46% of
the population have access to
power

Untappeddemand Nigeria with a population of 183
million will require 170,000 MW
generation capacity; current
power distributed is <2,000 MW,
168,000 MW demand remains
unsatisfied

 One of the largest gas reservesin the world – estimated tosupport in excess of 16,000 GWof power generation per year
for the next 200 years


Investment
Environment &Reforms

Abundant
power
generation
resources

Fiscalincentives

 Successful privatization of PHCN
power assets; about $3 bn inproceeds
 Guarantees from multilateralssuch as Power Africa and USAID
have helped de-risk the market
and set precedence for foreign
investors

 5-year income tax holidays & duty
exemption for equipment for gas
fired Generating Companies Partial Risk Guarantees (“PRGs”)

Massive quantities of untapped
coal reserves, however, nooperational coal-based power
plant as yet World Bank MIGA instrument toinsure against political risk
 MYTO Tariff Model Guaranteed minimum 20% return on
investment for the efficient
operators

21

Nigeria can generate more electricity with its vast natural gas reserves
Overview


Top 10 Gas Reserves in 2014 (tcf)Nigeria is the ninth largest natural gas reserve holder in the world andthe largest in Africa.



Among countries with the highest proven reserves, Nigeria generates
one of the lowest power outputs using gasRussiaNigeria had an estimated 181 trillion cubic feet (tcf) of proven natural
gas reserves as of December 2014, substantially larger than its oil
resources in energy terms.

1688

Iran

1193

Qatar

The USA efficiently utilizes its gas reserves to operate its gas power
plants hence a generation of 2,775bn kWh annually from gas.

885

United States

338

Saudi Arabia

291

Turkmenistan

265

United Arab Emirates

215

Venezuela

196

Nigeria

181

Algeria

159

1688
Proven gas reserves

4,103
1193

Electricity net generation (bn Kwh)
885

338

1,006
258
RussiaIran

Source: US Energy Information Administration

36
Qatar

United States

291

265

215

196

293

19

103

Saudi Arabia

Turkmenistan

United ArabEmirates

22

181
124

29

Venezuela

Nigeria

159
60
Algeria

Nigeria is richly endowed with land and mineral resources▪
▪
▪
▪

84 million hectares of arable land with
60% available for cultivation

Iron ore

Sokoto44 exploitable minerals in provencommercial quantities

Katsina
JigawaLargest producer of crude oil in Africa

Yobe

Zamfara

Kebbi

Borno

Kano

9th largest gas reserves with 181 trillion
cubic feet of proven reserve

BauchiKadunaLimestone
Akwa Ibom
AnambraBayelsa
Borno
Cross-River

Adamawa
Plateau

Delta
RiversBayelsa
Akwa Ibom
Lagos

Source: VARIOUS

FCT

Kwara
Oyo

Taraba
Ekiti
Kogi
Benue

Ondo
Ogun
Enugu
Edo
AnambraImo

Delta
Bayelsa

RiversEbonyi

Cross
River

Abia

Akwa
Ibom

Gold
Kaduna
Kebbi
Kwara

23

Bitumen
Ogun
Ondo
Edo

Nassarawa

Lagos

Crude oil & Natural gas

Gombe

Niger

Osun

Anambra
Benue
Delta
Kogi

Coal
Enugu
Plateau
Benue

The agricultural sector
Overview
 The agricultural sector plays a key role as Nigeria’s key growth driver The sector is the second largest contributor to GDP (21% in 2015) andprovides employment for over 70% of the population
 Nigeria has some of the richest natural resources for agriculture
production in the world Abundant and reliable rainfall in over two thirds of the country
Opportunities
 Nigeria is the most populous country in Africa and a fast-growing
population will increase domestic consumption
 A young and growing population provides a large pool of labour Favourable climate, fertile land and water resources ideal for exportoriented production
 84 million hectares of arable land, of which only 40% has beencultivatedInitiatives
 New US$9 million equity fund from the African Development Bank forsmall and medium sized agribusinesses Machines and equipment enjoy duty waivers
 Capital allowance of up to 50% for plant and equipment

24

The manufacturing sector
Overview
 Productivity in the manufacturing sector has continued to improve due to various intervention
programmes by government
 The sector’s average capacity utilization has grown from 35% in the 1990s to an average of 55%
in the last three years.
 The average contribution to GDP has grown to 10% in 2015
 Lagos and its surroundings are home to about 60% of Nigeria’s industrial base. Other key
industrial centres are Kano, Aba, Port Harcourt, Ibadan and Kaduna
 Nigeria’s most important manufacturing sub-sectors include cement, food processing and fast
moving consumer goods
Opportunities
Agro-allied and Agro Processing Food Processing (Beverages, Packaged Foods, etc.)
 Sugar Production
 Palm Oil Processing Leather and Leather Products
 Rubber Products (Tyre) Cocoa Processing
Metals and solid Minerals Product Cement Production
 Automobile Assembly Basic Metal/Steel Aluminium Chemicals
Source: Federal Ministry of Industry, Trade and Investment

25

Oil & Gas Related Industries
 Petrochemicals
 Fertilizer
 Methanol Refineries
 Plastics
Construction and Light Manufacturing Housing Cotton, Textile and Garment
 Electronics
 ICT Equipment

Nigeria’s health indicators lag behind other markets

Basic health indicators, 2014

Fertility rate (birth per
woman)

6
2

2

2

5%

6%

2
17%

2

Health expenditure (% of
GDP)

4%

Improved water source (% ofpopulation with access)

68%

93%

94%

95%

99%

100%

Life expectancy at birth,male (years)

52

55

67

74

77

79

Life expectancy at birth,
female (years)

53

59

69

77

81

83

34

39
10

6

4

11

7

4

China

USA

UK

9%

Mortality rate, infants (per1,000 live births)
Mortality rate, under-5 (per1,000 live births)

72

113

Nigeria41

50

South Africa

India

Investment Opportunities
 Mobile Clinics
 Pharmaceutical
Manufacturing Smallholder Specialist
Clinics
Source: World Bank, World Development Indicators

9%

 Specialist Hospitals
 Diagnostic and Trauma
Centre26

Reasons to invest in Nigeria
Demographics
1 Young & skilled workforce
2

High urbanization rate &growing middle class

Description▪

Young and skilled workforce with 43% of the population under 15 years, improved labour productivity andover 1.8million new graduates every year▪

High urbanization rate with 48% of the population in urban areas and 168mn people forecasted to live in
big cities by 2030. Rising consumer spend projected to increase by $94bn in 2025▪

Robust financial markets with 7 of the top 25 banks in Africa and the second largest Stock Exchange on thecontinent▪

Implementation of a strategic plan to tackle short term macro-economic challenges. Active anti-corruption
campaign and decline in casualties from security incidents.

▪

84mn hectares of arable land, 9th largest gas reserves and 44 exploitable minerals in proven commercial
quantities▪

Largest market in Africa with proximity to other west African markets. Land borders with Benin,
Cameroon, Chad & Niger & 4 international airports▪

56 companies with revenues over $500mn and 2nd largest cluster of large companies in Africa▪

Investor friendly climate with strong appetite to encourage private sector investments. Generous
statutory incentives with 14 Free Trade Zones

Institutions
3 Vibrant financial systems
4

Improving businessconditions

Opportunities
Abundant land & natural
5
resources
6 Largest market in Africa
7

2nd biggest cluster of large
companies

8 Investor friendly climate27

Success Stories: major international investors in Nigeria

SOURCE: Nigerian Investment Promotion Commission

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NIPC promotes and facilitates business investments to Nigeria
Strategic Roles▪ Established by the Nigerian Investment Promotion Commission Act 16 of 1995 to:▪ Promote, co-ordinate and monitor all investments in Nigeria▪ Initiate measures to enhance investment climate▪ Assist incoming and existing investors by providing support services▪ Collect and share information on investment opportunities and sources of capitalServices▪ Provision of investment information▪ Matchmaking investors with opportunities and partners▪ One-Stop Investment Centre Connected to 27 agencies to facilitate investments and reduce time required tocommence business operations

 Provide assistance with company incorporation processes
 Process regulatory approvals and permits
 Support with issuance of visas on arrival▪ Administration / processing of Pioneer Status Incentive
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National Investment Legislation
To ensure a sustainable and conducive business environment▪ The NIPC Act– Allows foreigners to invest and participate in the operation of any Nigerian
enterprise without restrictions– Allows 100% ownership assured except investments: listed under the ‘negative’lists or covered by the Nigerian Content and Cabotage Acts

– Protects against expropriation of investment: NIPC Act guarantees no enterpriseshall be nationalized expropriated by any government of the Federation▪ The Foreign Exchange (Monitoring & Miscellaneous Provisions) Act 17 of 1995
– Allows repatriation of Profit: investors are free to repatriate their profits anddividends net of taxes through any authorized dealer in freely convertible
currency

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Several statutory incentives and sector specific incentives
Pioneer status: 3 - 5 years’ tax holiday
7 years’ tax holiday for pioneer industry sited in economically disadvantaged area
100% repatriation of profits allowed
Capital allowances: Research & Development - 140% of expenses incurred Investment in infrastructure - 20% of costs incurred Raw materials utilization (60 - 70%) - tax credit of 20% for 5 years
 Low Value Added Tax - 5%
 Duty Waiver: 0% import duty & import value added tax for commercial aircrafts and spareparts imported for local use 0% import duty & import value added tax for machinery imported to develop
solid mineral resources 0% duty for power generation and distribution machinery Tax relief on interest income in the agriculture/agro-allied sector etc.


Source: Nigerian Investment Promotion Commission

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Hayat Kimya Case StudyContext• Hayat is a leading Turkish FMCG company– 5th largest manufacturer of baby diapers in the world– Group turnover of $3bn+– Export to more than 100 countries– Manufacture in 12/14 countries• Facilitated by NIPC to trade in Nigeria in 2014
• Invested $100+ million in a manufacturing plant in Nigeria, in 2016
Current Reality• Now No. 2 in baby diapers in Nigeria• Has created over 600 direct jobs and has over 1,000 distributors• Became the Best Baby Diaper manufacturer of the year 2016
• Decided to make Nigeria the hub of its manufacturing activities for West and East Africa
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THANK YOU
Yewande Sadiku
Executive Secretary/CEONIGERIAN INVESTMENT PROMOTION COMMISSION
Plot 1181 Aguiyi Ironsi Street
Maitama District
Abuja
Mobile : +234 803 402 0099
Email: yewande.sadiku@nipc.gov.ng
Website: www.nipc.gov.ng

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