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Nigeria-3

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Nigeria-3

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  1. NIGERIA: INVESTMENT OPPORTUNITIES AND BUSINESS CLIMATE NIGERIAN INVESTMENT PROMOTION COMMISSION Private and Confidential

  2. Nigeria in context Spain 46.6m Italy 294,140 km2 Population (m) Land size (km2) Panama 74, 340 Kano 13.0 Borno 72,609 Most populated region North-West 48.7m Largest region North-East: 280,419 km2 Rwanda 12 .2 Ireland 68,890 Lagos 12.4 Niger 68,925 Israel 8.7 Croatia 55,960 Top 5 Taraba 56,282 Kaduna 8.2 Top 5 Dominican Republic 48,310 Bauchi 49,119 Katsina 7.7 Sierra Leone 7.5 Denmark 42, 262 Yobe 46,609 Oyo 7.7 Botswana 2.3 Least populated region South-East: 20.6m Luxembourg 2,590 Smallest region South-East: 28,987 km2 Smallest Smallest Lagos 3,671 Bayelsa 2.3 Sri Lanka 21.4m Rwanda 26,338 km2 Total: 192.4m Total: 910,710 km2 Sources: National Bureau of Statistics (2018 estimates), http://www.data.worldbank.org 2

  3. Nigeria’s business environment improvement efforts 3

  4. Business case for improving business operating conditions Strong correlation between economic prosperity and ease of doing business Income Per Capita (log scale) USD per person per year Norway 100,000 USA R² = 0.4918 # of Objs = 185 Brazil Nigeria 10,000 Singapore 1,000 South Africa 100 200 180 160 140 120 100 80 60 40 20 0 Doing Business Rank (2018) Source: World Bank Doing Business Report 2018 4

  5. Many governments committed to business environment improvements 115 economies implemented 294 regulatory reforms across 10 areas measured by WB DB Europe & Central Asia 56 reforms Middle East & North Africa 57 reforms East Asia & the Pacific 33 reforms Latin America & the Caribbean 40 reforms South Asia 17 reforms Sub-Saharan Africa 73 reforms Most improved economies 2018/19 Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India, Nigeria Source: World Bank Doing Business Report 2019 5

  6. In Nigeria, highest level commitment to ease of doing business reforms Presidential Enabling Business Environment Council (PEBEC) inaugurated in July 2016 <100 Remove critical bottlenecks and bureaucratic constraints to doing business in Nigeria Sub-100 position in World Bank’s 2020 Ease of Doing Business ranking President Muhammadu Buhari, GCFR Vice President Yemi Osinbajo SAN, GCON Participating agencies No of announced reforms Success rate No of initiatives Latest initiative Launch NAP 1.0 February 2017 8 22 12 72% May 2017 transparency and improving the business environment EO 1 October 2017 11 22 29 52% NAP 2.0 NAP 3.0 February 2018 9 28 26 68% NAP 4.0 March 2019 deepen reforms and drive sustainability and institutionalization NAP: National Action Plan, EO: Executive Order Source: Enabling Business Environment Secretariat Reports 6

  7. 2020 Ease of Doing Business ranking: Nigeria (131/190) Nigeria’s ease of doing business ranking improved by 15 steps and 4.01 points … positive national doing business score … 2020 DB Ranking Rank Difference Starting a business 105/ 190 +5 Dealing with construction permits 55/ 190 +94 DB Year *DTF Difference Rank Difference Getting electricity 169/ 190 +2 +4.01 +15 56.9 131/ 190 2020 Registering property +1 183/ 190 +1.37 -1 52.89 Getting credit 146/ 190 15/ 190 -3 2019 Protecting minority investors 28/ 190 +10 2018 +6.89 145/ 190 51.52 +24 Paying taxes 159/ 190 -2 2017 -0.06 169/ 190 +1 44.63 Trading across borders +3 179/ 190 2016 0 +1.14 44.69 170/ 189 +20 Enforcing contracts 73/ 190 2015 43.56 -3.06 -23 170/ 189 +1 Resolving insolvency 148/ 190 Source: World Bank, Doing Business 2020 7 * The distance to frontier (DTF) score measures the distanceof each economy to the “frontier”, which represents the best performance observed on each of the indicators across all economies

  8. Global competitiveness index: Nigeria (115/140) Positive national competitiveness ranking… Performance overview 2018 115/ 140 2018 125/ 137 2017 Previous edition Lower income group average Sub-Saharan Africa average Source: World Economic Forum: The Global Competitiveness Report 2018 8

  9. Subnational: Doing Business in Nigeria 2018 Sokoto Katsina Jigawa Yobe Zamfara Kebbi Borno Kano … positive subnational doing business scores Bauchi Kaduna Gombe Niger Adamawa Plateau FCT Kwara Nassarawa Oyo Taraba Osun Ekiti Kogi Benue Ondo Ogun Enugu Anambra Edo Ebonyi Lagos Cross River Imo Abia Delta Akwa Ibom Bayelsa Rivers In the past 4 years, 29 Nigerian states implemented 43 reforms across the four areas benchmarked. Kaduna, Enugu, Abia, Lagos and Anambra showed the largest advance toward the global good practice frontier Source: World Bank, Doing Business in Nigeria 2018 9

  10. Nigeria’s investment promotion efforts 10

  11. NIPC: moving from reactive to proactive mandate delivery Functions Reactive Proactive 1 Co-ordinate and monitor all investment promotion activities 2 Initiate and support measures to enhance the investment climate in Nigeria 3 Promote investments in and outside Nigeria through effective promotional means Analyse and disseminate information about investment opportunities and sources of investment capital 4 5 Register and keep records of all enterprises to which this Act applies 6 Identify specific projects and invite interested investors for participation in those projects 7 Participate in promotional activities for the stimulation of investments 8 Maintain liaison between investors and government agencies 9 Provide and disseminate up-to-date information on incentives available to investors 10 Assist incoming and existing investors by providing support services 11 Evaluate the impact of investments in Nigeria and make appropriate recommendations 12 Advise the Federal Government on policy matters designed to promote economic development 11

  12. Proactive IP strategies Investment Profiling Book of States Country-Focus Sector-Focus BIT Review •Better understand competitive advantage of each State and the best State and regional investment prospects •Give better visibility to prospects for investor consideration •Determine strategic countries and key strategic partners in each country •Identify high- impact sectors, deepen sector knowledge and articulate prospects •Understand quality of BITs •Better balance investors’ rights with obligations •Better protect Nigeria’s interest More Proactive Facilitation Support Existing Investors Investment Promotion Club Company-Focus DDI •Improve all-of- government delivery of investor support •Improve investor experience and use feedback to develop business environment •Crowd-in private sector and leverage better access to research, analysis •Improve quality of investor engagement •Proactively invite target companies to Nigeria and hand- hold them through the decision making and implementation process •Encourage more Nigerians to invest in their own country! 12

  13. Done: Compendium of Investment Incentives in Nigeria Compilation of fiscal incentives in Nigerian tax laws and duly approved sector-specific incentives 6 principal sections – Investment policies and protections – General tax-based incentives – Sector-specific incentives – Tariff-based incentives – Export incentives – Special Economic Zones First step in understanding impact of incentives in achieving Government’s economic objectives and considering incentive reforms Available at www.nipc.gov.ng 13

  14. Selection of investment incentives in Nigeria Pioneer status incentive Deduction for research and development Rural investment allowance •For companies in industries recognised as “pioneer” •Allows a company income tax holiday for 3-5 years •Dividends also exempt from tax •For companies >20km from government facilities who incur capex for providing electricity, water, tarred roads, etc for the purpose of a trade or business •Allowance rates: •100%: no facilities, 50%: no electricity, 30%: no water, 15%: no tarred road •For companies undertaking R&D activities for commercialization •Allows 20% investment tax credit on qualifying expenditures Investment tax relief Export expansion grant Export processing zones incentives •Similar to rural investment allowance, but only available for 3 years max for companies who have not enjoyed pioneer status •Post-shipment incentive for non-oil exports •Qualifying exports must fully repatriate proceeds within 300 days •100% capital allowance •Rent-free land during construction •Full holiday from federal, state and local government taxes Source: Compendium of Investment Incentives in Nigeria 14

  15. Done: First phase of Pioneer Status Incentive reforms New Guidelines issued, August 2017 Ministerial Delegation of Duties documented Pioneer List modernised, arranged in ISIC* format Next revision due in 2019. All inputs welcome New sectors added *ISIC = International Standard Industrial Classification of All Economic Activities, Revision 4 15

  16. Done: iGuide Nigeria An easy-to-use online investment guide that provides investors with up-to-date and pertinent information on the processes, procedures and basic costs of doing business in Nigeria It provides information on starting business, labour, production factors, land, taxes, investor rights, growth sectors and opportunities The information will enable investors to make better informed decisions on Nigeria as a preferred investment destination Available at: – www.theiguides.org/nigeria – www.nipc.gov.ng UNECA – United Nations Economic Commission for Africa UNCTAD – United Nations Conference on Trade and Development 16

  17. Done: Initial Assessment of Nigeria’s Bilateral Investment Treaties SignedDate in force 1990 1990 1992 1998 2000 1998 2000 2000 2002 2005 2000 2001 2000 2002 2009 2011 2013 2014 2016 2016 2016 SN 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1 A 2 B 3 C 4 D 5 E 6 F 7 G 8 H 9 I 10 J 11 K 12 L 13 M 14 N 15 O 16 P 17 Q 18 R 19 S 20 T 21 U 1990 1991 1994 1999 2003 2005 2005 2005 2006 2007 2007 2010 Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y 6 8 5 7 5 7 6 7 8 6 7 5 5 6 5 9 Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y 10 14 6 15 20 Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y 3 1 14% 5% 81% Validation complete! 17 21 Source: NIPC Analysis 17

  18. WIP: Country-focused investment promotion strategy Objective Approach Investment sources (Global, Africa & Nigeria) Countries that have trade relations (import and export) with Nigeria Countries with capacity to support Nigeria with world class investments in the priority sectors Countries that have strategically decided to make outward investments Countries with which Nigeria has a strategic relationship, such as having signed a Bilateral Investment Agreement Result: Tier 1 strategic investment promotion countries United States China Netherlands Germany France United Kingdom Japan South Africa India Italy Russia United Arab Emirates Malaysia Spain South Korea Switzerland Singapore Canada Belgium Saudi Arabia 18

  19. WIP: OSIC Lab Transparent platform for speedy resolution of investment related issues Investor advised of resolution 3 weeks Investor raises issue MDAs hear investor’s issues together Comprehensive all-of-government solution agreed OSIC Lab meeting called Increase confidence in business environment Drive practical policy reforms Members include… Encourage new and existing investors Encourage continued investment/protect existing jobs Protect existing investments/jobs and encourage new investments/jobs 19

  20. WIP: Nigerian Investment Certification Programme for States State Certification following training and assessment on 3 standards Information Standard The State’s ability to provide complete, accurate and relevant information to investors in a timely manner. Highly qualified to help investors Property Standard Well qualified to help foreign and domestic investors The State’s ability to offer sites and buildings that meet targeted investors needs in a transparent and efficient manner. Qualified to help foreign and domestic investors Marketing Standard Not yet ready to help investors The State’s ability to promote and sell the region in a focused manner and to offer professional levels of service to potential and existing investors. Serious weaknesses that need to be addressed 20

  21. WIP: Book of States 21

  22. WIP: Investment opportunity profiling Profile investment opportunities across Nigeria – Existing opportunities – New projects (brownfield or greenfield) – Public Private Partnership projects – Prospective investors seeking opportunities Standardised template – To be used by all IPAs in Nigeria – Supported by a Toolkit for Investment Profiling Database of investment opportunities – Maintained by NIPC – Analysed, by economic impact, sector, region, state – Summarised, for presentations and matchmaking – Abridged, in deal books – In full, for serious investors Coming soon! 22

  23. Why invest in Nigeria 23

  24. Strategic market: essential part of every Africa portfolio Southern Africa West Africa East Africa Central Africa 0 Note: Size of bubble reflects relative GDP of each country Increasingly friendly business environment 20 40 Target 60 Kenya South Africa Ease of doing business (ranking) 80 Botswana Zambia 100 Nigeria is the emerging economic locomotive of the African continent  Largest population on the continent and 7th in the world  Largest GDP in Africa  Largest gas reserves and second largest oil reserves in Africa Ghana 120 Cote d’Ivoire Uganda 140 Senegal Tanzania Nigeria Ethiopia Cameroon 160 Togo Angola Equatorial Guinea 180 200 0 20 40 60 80 100 120 140 160 180 200 Population (millions) Increasing population Source: World Bank Doing Business Report 2019 24

  25. Large and growing population Most populous countries India China China India India China 3 USA Nigeria USA 410.6m Russia Indonesia USA Japan Brazil Indonesia Pakistan Germany Pakistan 7 Indonesia Nigeria Brazil 190.9m Brazil Bangladesh Bangladesh Britain Russia Congo DR Ethiopia Mexico Italy Japan Mexico France Bangladesh Egypt Ethiopia 2050 Forecast 2017 1950 Source: United Nations World Population Prospects: the 2017 Revision, medium variants 25

  26. Nigeria’s favourable demography By age By size, millions 47% - labour force (92m) 3rd globally 411 91% under 50 (178m) 333 7th globally 65+ 3% (6m) 297 264 Female 49% 234 186 206 196 181 191 Male 51% Female 49% 0-14 42% (82m) Male 51% 196 million 2015 2016 2017 2018 2020 2025 2030 2035 2040 2050 Median age 15-64 55% (108m) 42.0 38.3 36.1 30.9 24.8 19.8 Youth (15-35) 36% (73 m) 22.4 18.1 Median age - 18.4 years 2015 2020 2025 2030 2035 2040 2045 2050 Source: UN Population Division, 2017 26

  27. Biggest economy in Africa Projected average real GDP growth p.a., 2016-2050 5% 4.2% Nigeria could be the fastest growing African economy to 2050, and could move up the GDP rankings, to 14th by 2050, if it can diversify its economy away from oil and strengthen its institutions and infrastructure. 4% 1.9% 3% 2% 2.3% 1% 0% 14 -1% Iran Russia Japan Vietnam Indonesia Turkey France Mexico Saudi Arabia Brazil Poland India Nigeria Canada United States Italy Pakistan Egypt South Africa China Thailand Colombia Spain Germany Netherlands Malaysia Australia Argentina South Korea United Kingdom Philippines Bangladesh Average pop growth p.a % Average real growth per capita p.a % Average GDP prowth p.a. (in domestic currency) Source: PWC Analysis, from “The long view: how will the global economic order change by 2050?” 27

  28. Two decades of political stability Presidents Muhammadu Buhari Olusegun Obasanjo Umaru Musa Yar’Adua Goodluck Jonathan Ruling Party Peaceful handover to opposition after 16 years Death of the President 2010 Elections held: 1999 2003 2007 2011 2015 2019 2023 Reaction of first runner-up Disputed Disputed Disputed Disputed Accepted Disputed Runners-up turned to Courts for relief, not violence Resolution sought Court Court Court Court Conceded Court 28

  29. Nigeria is strategically located with access to ECOWAS and the rest of Africa 3’05’ Tunis 421 Population across Africa, 2017 (millions) 5’45” Cairo 233 191 181 5’ Dakar 163 5’20” Addis Abba 65 ▪ 4 international airports and major seaports in Lagos, Calabar and Bonny Island ▪ 3,798 km of railway tracks and 168,000 km road network ▪ Land borders with Benin, Cameroon, Chad & Niger and a natural hub for the region East Africa North Africa Nigeria Rest of West Africa Central Africa Southern Africa African Growth & Opportunity Act (AGOA) offers duty-free access to 6,500 products from AGOA- eligible Sub-Saharan African (SSA) countries, including Nigeria into the USA market 5’40” Johannesburg * Rest of West Africa (ROWA) excluding Nigeria Source: United Nations World Population Prospects: the 2017 Revision, medium variants 29

  30. Strong medium to long term fundamentals ₦ Sophisticated financial markets Large growing population Improving business climate Strategic location Generous investors protections Abundant natural resources Large tech-savvy population Young, energetic, entrepreneurial population Generous investments incentives Growing middle class Resilient, hard-working “can-do” spirit An essential component of every Africa strategy Optimistic mobile population Large population of consumers Strategic time zone GMT+1 14th 3rd most populous country by 2050 Fast growth projections Abundant economic opportunities Largest economy by 2050 Language: English Private sector-led economy Two decades of political stability Huge unfilled demand Home to many large local and international brands Favourable weather 30

  31. ERGP: Priority sector objectives and private sector investment requirements Services Manufacturing Agriculture Real Estate Oil and Gas Solid Minerals • Increase internet penetration from 47.4% to 75% • Encourage local production of ICT hardware and software • Channel funding to entrepreneurs though accelerators and incubators • Strengthen enforcement of IP rights • Increase tourism by 10% a year from 2017 • Focus on agro- processing and industrial hubs • Create forward and backward linkages among industrial sub-sectors • Increase local content in raw materials and machinery • Increase export potential of manufactured goods • Increase R&D, technology and innovation • Ensure self- sufficiency in tomato paste, rice, and wheat • Become net exporter of key agricultural products • Fast-track the development and execution of irrigation projects • Extend the Anchor Borrowers Programme to all States and major crops • Recapitalize Federal Mortgage Bank from N2.5b to N500b • Mobilize private capital through Government seed- funding in roads, housing, and agriculture • Deliver 2m housing units via Family Homes Fund • Invest in technical & vocational training needed by the industry • Increase oil production to 2.5 mbpd • Accelerate building of critical pipeline infrastructure • Promote domestic use of LPG and CNG • Increase local refining capacity • Develop domestic gas infrastructure for power and domestic consumption • Facilitate development of coal to fire power plants • Integrate artisanal miners into formal sector • Integrate mining transport and power needs in national implementation plans • Produce geological maps of the entire country $67.5b $35.7b $25.5b $21.8b $15b $3.9b 31

  32. Report of Investment Announcements in Nigeria H1 2019 32

  33. Investment announcements, H1 2019 by Sector by Source by Destination Total = US$15.15bn in 43 Projects across 12 States + FCT Total Total Total US$15.15bn US$15.15bn US$15.15bn US$12.3bn 81% Offshore US$11.6bn 77% Netherlands US$10.0bn 66% Mining & Quarrying Ondo US$1.1bn 7% Morocco US$2.1bn 14% Manufacturing US$2.2bn 14% Lagos US$0.6bn 4% Nigeria US$1.3bn 9% Finance & Insurance US$0.2bn 2% Ogun US$0.2bn 1% Malaysia US$0.9bn 6% Information & Communication US$0.2bn 2% Others US$1.6bn 11% Others US$3.5bn 5% Others US$0.2bn 2% 33

  34. Investment announcements, H1 2019 US$’bn Reported Investor Sector Source Destination Royal Dutch Shell Plc Mining & Quarrying Netherlands Offshore 10.0 February OCP Group Manufacturing Morocco Ogun, Kaduna and Enugu 1.5 March Yinson Holdings Bhd Mining & Quarrying Malaysia Offshore 0.9 March Seplat/NNPC Mining & Quarrying Nigeria Offshore 0.7 April Neo Themis/Kingline Mining & Quarrying Morocco Ondo 0.6 April Crown Refinery & Petrochemical Limited Manufacturing Nigeria Ondo 0.5 April Finance & Insurance Branch International USA Lagos 0.2 April Anheuser-Busch InBev (AB InBev) Generation Investment Management Manufacturing Belgium Ogun 0.2 May Information & Communication Information & Communication UK Lagos 0.1 January Microsoft USA Lagos 0.1 May 14.7 Top 10 announcements 15.1 Total 34

  35. Some investment opportunities 35

  36. Overview of the Nigerian Agricultural Industry 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) and provides 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 territory 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 export- oriented production  84 million hectares of arable land, of which only 40% has been cultivated Initiatives  New US$9 million equity fund from the African Development Bank for small and medium sizes agribusinesses  Machines and equipment enjoy a 0% duty  Capital allowance of up to 50% for plants and equipment 36

  37. Investment opportunities in Power Large Hydro Power  Potential of over 11,500MW  3,050MW Mambilla Hydro Power Plant Project  360MW Gurara II Hydro Power Plant Project Medium Hydro Power  38MW Dadinkowa Hydro Power Plant Project  40MW Itisi Hydro power Plant Project Small Hydro Power  Potential of over 734MW  Over 83MW small hydro power projects across the country Renewable Energy  It is estimated that 20% of electricity generated will come from renewables by 2030  Investment is required in the following areas:  Manufacture of solar panels  Capacity building in the field of renewable energy technologies  Supply of renewable energy equipment and accessories  EPC contracting in renewable energy projects Wind Average wind speed of Nigeria is 2 - 6.5 m/sec measured at 10m It is estimated that Nigeria will have 20MW of wind power by 2020 Solar Power  In most regions of the country there are approximately 4 – 8 hours of sunshine daily  Estimated that 4000MW of electricity will come from Solar power by 2025 Biomass – animal waste  Nigeria produces over 61 tons of animal waste yearly  It is estimated that Nigeria will have 30MW of biomass – fired capacity by 2020 Source: “Investment Opportunities in the Nigerian Power Sector 37

  38. Nigeria is richly endowed with variety of solid mineral deposits and multiple coloured gemstones Overview Sokoto ▪ Nigeria’s mining sector is diverse in mineral resources including high value commodities Katsina Iron Ore Jigawa Zamfara Gold Yobe Diamond Kebbi Borno ▪ Kano Chromite/Nickel 44 Exploitable minerals in proven commercial quantities in more than 500 locations Uranium Copper Bauchi Gemstone ▪ Kaduna Despite the abundant resources, However, the mining sector only accounts for 0.3% of national employment, 0.02% of exports and about US$1.4 billion to the Nigerian GDP Talc/Asbestos Manganese Gombe Niger Silver Bismuth Adamawa Sapphire Plateau FCT Tin Ore Ruby Columbite Kwara Nassarawa Fluorite Tantalite Wolframite ▪ Zircon Oyo The government has designated a number of strategic minerals that it believed had the potential to make a significant contribution to Nigeria’s economic development. These include: Barite, Gold, Bitumen, Iron ore, Lead/Zinc, Coal and Limestone Taraba Cordierite Magnesite Ekiti Osun Molybdenite Kogi Amethyst Benue Rutile Beryl Ogun Ondo Lead/Zinc Enugu Emerald Edo Cross River Ilmenite Lagos Anambra Tourmaline Ebonyi Gypsum Aquamarine Coal Abia Topaz Imo Delta Limestone Akwa Ibom Spessartine Clay/Kaolin Rivers Bayelsa Bentonite Barite Morganite Kunzite Phosphate Quartz Salt Source: Nigeria Ministry of Solid Minerals Development, Investment Brochure 38

  39. The Nigerian Manufacturing Industry offers several attractive investment 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  Aluminum  Chemicals Oil & Gas Related Industries  Petrochemical  Fertilizer  Methanol  Refineries  Plastics Construction and Light Manufacturing  Housing  Cotton, Textile and Garment  Electronics  ICT Equipment Source: Nigeria Ministry of Solid Minerals, Investment Brochure 39

  40. About NIPC 40

  41. NIPC’s principal functions Nigerian Investment Promotion Commission (NIPC) was established by the NIPC Act 16 of 1995 to encourage, promote and co-ordinate investments in Nigeria • Promote Nigeria as an attractive investment destination • Provide information on investment opportunities and capital sources Project Attractive Investment Image Investment Promotion • Promote investments in Nigeria, by Nigerians and non-Nigerians • Co-ordinate all investment promotion activities in Nigeria • Provide support services to investors and register enterprises in Nigeria • Match-make investors with specific projects and advise on partners for JVs • Provide information on investment incentives and approve Pioneer Status Incentive applications Investment Facilitation • Initiate and support measures that enhance the investment climate • Evaluate the impact of investments and incentives in Nigeria and make appropriate recommendations • Advise Government on policy matters to promote Nigeria’s economic development Policy Advocacy 41

  42. Investor Obligation and Protections in the NIPC Act Registration Obligation Ownership Guarantees Dispute Resolution •Enterprises in which foreigners can participate are required to register with NIPC before commencing business •Nigerians and foreigners can invest in any sector, except for those on the negative list •No restriction on foreign percentage ownership •Government will not nationalize or expropriate any enterprise •Right of access to courts and fair and adequate compensation if acquisition is in national interest/for public purpose •No restriction on repatriation by foreigners of investment returns or sale proceeds through an authorized dealer •Amicable resolution by mutual discussion or arbitration of investor/government disputes •Provisions of any Bilateral Treaty with the investor’s country will apply •Right of recourse to international arbitration under ICSID Rules ICSID = International Centre for Settlement of Investment Disputes 42

  43. One-Stop Investment Centre (OSIC) at NIPC  Houses 27 agencies to facilitate investments and reduce time required to process regulatory approvals and permits  Provides assistance with information and requirements from incorporation to expansion  Also supports with business visa facilitation Type of Business Generic Agencies Specific/Sector Agencies Software development and creative industry Sample business entry scenarios Power Generation Drug Manufacturing for export 43

  44. For further details, please contact us infodesk@nipc.gov.ng osicinfodesk@nipc.gov.ng NIGERIAN INVESTMENT PROMOTION COMMISSION Plot 1181 Aguiyi Ironsi Street Maitama District Abuja www.nipc.gov.ng www.theiguides.org/nigeria Subscribe to the NIPC Newsletter http://eepurl.com/dkvoU1 Investment information 44

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