Presentation at Lagos Investor Luncheon

1. Presentation at Lagos Investor Luncheon by Senator Udoma Udo Udoma, CON Hon. Minister of Budget & National Planning

2. Table of content • Introduction • Where are we today? • What’s Next?

3. Introduction The Administration inherited a challenged economy. …An economy that is dependent on one commodity – petroleum ...over 70% of government revenues and 90% of foreign exchange earnings come from crude oil.

4. Oil Revenue (N’Billion) Declines The collapse of oil prices from US$111.8 in June 2014 to as low as US$30.7 in January, 2016 and with no fiscal buffers, set the economy on a downward spiral Source: OPEC

5. Foreign Reserves Decline

6. Real GDP Growth Declines

7. Since inception, Government has been taking steps to improve the economic situation Strategic Implementation Plan 2016 The Economic Recovery & Growth Plan 2017 - 2020 • Medium-term Plan for 2017-2020, developed through an extensive consultative process • Builds on previous Plans (e.g. the SIP, NIRP, NIIMP, etc), including sectoral Plans • Designed to get the economy out of recession unto a path of diversified, sustainable and inclusive growth • Places emphasis on implementation, monitoring and evaluation Strategic Implementation Plan 2016 • Short-term Plan for Implementing the 2016 Budget of Change • 34 key actions selected for immediate implementation; e.g. • Introduction of Social Investment Programme with a provision of N500b with effect from 2016 • Establishment of PEBEC • Focused on critical infrastructure • Pursuit of econ. diversification • At least 30% CAPEX commitment , etc

8. . • Introduction • Where we are today? • What’s Next?

9. Real GDP growth rate of Nigeria has turned positive since Q2 of 2017 indicating the economy’s exit from the recession. • Signs of recovery have been observed since Q3 2016 • In Q2, 2017, real GDP grew by 0.72% indicating the economy’s exit from the recession. • Recovery Consolidated in Q4 2017 with GDP doubling to 1.92% • Agric GDP 4.23% • Industry GDP by 3.92% • Services GDP by 0.10% (after 6 consecutive quarters of contraction) • Source : National Bureau of Statistics, Nigeria

10. Capital Importation for 2017 has been on an upward trend • The total value of capital imported into Nigeria has increased from $908.27 million as at Q1 2017 to $1,792.3 million in Q2 2017 • While Q2 2017 recorded an increase of 95.02% more than Q1 2017, Q3 2017 came in stronger with a total capital importation value of $4,145.09 million. • Q4 2017 capital importation value of US$5,382.85 million ~5.9x • Source : National Bureau of Statistics, Nigeria

11. Foreign Reserves has been increasing since December 2016 to a high of 41.82 billion dollars as at February 21, 2018 • Foreign Reserves declined from 28.28 billion dollars in Dec. 2015 to 23.81 billion dollars in September 2016 • However due to government efforts, it has increased substantially to 41.62 billion dollars as at February 21, 2018

12. Inflation has been declining on a month on month rate of 4.51% since January 2017. The Jan 2018 inflation rate is 15.13% CAGR 4.51% Economic Crisis Period • Source : Central Bank of Nigeria, National Bureau of Statistics, Nigeria

13. The exchange rate gap is narrowing Naira/USD • Jan-12 • Jan-18 • Source : National Bureau of Statistics, Nigeria; CBN, MBNP, IMF

14. Nigeria moved up 24 places in World Bank Ease of Doing Business ranking (ranked 145th in 2017 as against 169th as at 2015) 2017 145 2016 169 Nigeria is acknowledged by the World Bank as one of the top 10 improved countries worldwide globally. 2015 170 • Source : World Bank Ease of Doing Business Report 2018

15. However, we still have a lot of work to do to achieve our ERGP targets for 2020. Hence, we must work to increase the level of investment so as to drive accelerated growth in the economy

16. . • Introduction • Where we are? • What’s Next?

17. The Federal Government has chosen to conduct Focus Labs in 3 selected areas within 6 sectors to deliver quick and fast results on investments and job creation Focused Labs Sectors Agriculture and Transportation 1 Manufacturing and Processing 2 Agriculture Manufacturing Power Supply Power and Gas 3 • Labs intend to achieve two main objectives: • New investments for critical projects • Resolution of complex inter-agency problems that inhibit private sector investment Transportation Gas Solid Minerals

18. The Lab will focus on delivering quick and fast result to the citizens by identifying actionable projects, removing roadblocks and developing an enabling framework for the sector Specific outcomes of the Labs: Identification of Projects* which will increase investments and job creation in Nigeria Clear 3-feet implementation plans for each projects with identified Budget & KPIs Alignment of stakeholders to execute the plan The emphasis is to unlock projects with private sector funds • * Projects will be known as Entry Point Projects which are catalytic in nature to spur growth in the sector

19. Lab activities & timeline:The ERGP Labs will take place in three phases for 16 weeks with the main Labs commencing on 12th March 2018 16 weeks Pre-Labs Labs Post Lab Lab Logistical Preparation • Conduct review of all existing relevant reports and develop initial hypothesis • Develop map of key stakeholders to be engaged • Conduct interviews with key stakeholders and decision makers to validate hypothesis and findings • Conduct labs with key stakeholders to address priority areas and potential Entry Point” Projects • Develop 3-feet implementation programmes with identified “Entry Point” Projects with budget and KPIs. • Integrate key recommendations into a consolidated high quality programme for the purpose of implementation • Conduct syndication with all key stakeholders to obtain buy-in on the implementation programme • Develop final report 3 -Weeks (Jan 15- Mar 11) 6-Weeks (March 12- Apr 20) 3-Weeks (Apr 20 – May 11) We are here

20. The Lab target is to mobilize $25 billion in investment commitment ERGP Lab Investment Threshold • Identified: 126 potential Entry Point Projects (EPPs) • Agriculture & Transportation: 74 projects, • Power & Gas: 7 projects, • Manufacturing & Processing: 45 projects, USD 25 billion

21. ERGP Focus Labs Governing structure • Central Steering Committee • HM Budget and National Planning (As Chair) • HM Agriculture • HM Transport • HM Industry, Trade and Investment • HM Mines and Steel Dev. • HM Power, Works and Housing • HM Finance • HM Justice/ Attorney-Gen • HMS Petroleum Resources • Representative of HE , Mr. President • Special Adviser to the President on Economic Matters, Office of the VP • PS, MBNP(as Secretary) • Lab Coordinators: • Director (Macro), MBNP • SSAP (ERGP/Folarin) • The Central Steering Committee to present monthly reports to the EMT and Mr. President The President H.E, Muhammed Buhari President Economic Management Team Yemi Osinbajo Vice President Central Steering Committee Udoma Udo Udoma Minister of Budget & National Planning Core Working Group-Agriculture and Transport Core Working Group-Manufacturing and Processing Core Working Group-Power and Gas Supply The Hon. Ministers chair the respective core working groups Emmanuel IbeKachikwu Minister of State for Petroleum Resources OkechukwuEnelamah Minister of Industry, Trade and Investment RotimiAmaechi Minister of Transportation AuduOgbeh Minister of Agriculture and Rural Development Kayode Fayemi Minister of Mines and Steel Development Babatunde Fashola Minister of Power, Works and Housing

22. Nigeria’s outlook for 2018 is positive and is looking forward to welcoming investors to participate in this nation building exercise • Key takeaways: • Government welcomes, and is ready to provide assistance to investors • There are huge opportunities for investments in agriculture and agro-processing, manufacturing, mining, construction and services. • We are organizing focused lab areas, initially in three areas: • Agriculture and Transportation; • Manufacturing and Processing; • Power and Gas. • Our Staff are available to receive expressions of interest from those interested in participating in the focused Labs.