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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.

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The Nigerian Investment Environment – Opportunities and Challenges .

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  1. 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

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

  3. Outline • Country Profile • Investment Opportunities • Challenges Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  4. Country Profile • Attained Nationhood in 1914 • Became independent in 1960 • Location: West Africa Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  5. Country Profile Contd. • 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 Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  6. Country Profile Contd. • 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% Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  7. Other Facts • 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 Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  8. Investment Opportunities - Oil & Gas • Refineries • Petrochemicals • Oil Service & Pipelines • Oil Prospecting & Exploitation Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  9. Investment Opportunities - Oil & Gas Contd. • Gas Gathering • Gas Distribution • Manufacturing of Consumables • Training and Consultancy Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  10. Investment Opportunities - Power • Privatization • Power Generation Plants • Manufacturing of Power Equipment and Accessories • Training & Consultancy Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  11. Investment Opportunities - Banking • Mergers • Acquisitions • Organic/Greenfield Entry • Training &Consultancy Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  12. Investment Opportunities - Construction • Housing, Hotel & Malls • Roads & Bridges • Dams • Rail Transport Systems Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  13. Others • Capital Market • Industrialization • Steel and Aluminium industry • Entertainment, arts, culture, music and drama Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  14. Others contd.... • IT & Telecoms • Water Transport • Mining • Education & Health Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  15. Challenges • Integrity of the Judiciary & Security of Agreements • Security • Corruption • 419 Syndrome Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  16. Challenges Contd. • Power Supply • Infrastructures • Access to, and high cost of Long term Finance Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  17. PROSPECTS FOR THE MANUFACTURING SECTOR AS A CASE STUDY. • Improved Macro Economic Environment  (Political Stability, Corporate Governance, Economic Reforms, e.t.c) • Abundance of Raw Materials (Minerals & Agriculture) • Land Resources Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

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

  19. Increasing Pool of Talents • Large Population – Availability of Inexpensive Labour and Market • Positive Economic Outlook. Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  20. Case Study - MTN • Please read "FDI In Telecommunications, The success of MTN IN Nigeria" by Covadonga Velasco, SamyBelemi and WouterBelmans Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  21. Case Study - MTN. Contd • (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) Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  22. Case study manufacturing: DANGOTE GROUP(www.dangote-group.com) • Wholly indigenous • Started as a trading company importing Commodities mainly Sugar, Salt & Cement • Keyed into the government’s backward integration policy in 2002 Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  23. DANGOTE GROUP Contd. • Today, the Group is arguably one of the biggest Conglomerates in Africa • Today, the promoter, AlhajiAlikoDangote, 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. Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  24. DANGOTE GROUP Contd. SUGAR • 1.4million P/A • 2ndLargest Sugar Refinery in the world • Largest in Sub-Sahara Africa Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  25. SALT   • Installed Capacity of 600, 000 metric ton P/A • Refines, Fortifies & Packages table, Agric and Industrial Salts. Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  26. DANGOTE GROUP Contd. Laminated bags • 648million bags/Annum Fertilizer(Urea & Ammonia) • 2.8million P/A Refinery • 450,000 barrels/day Refinery capacity Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  27. DANGOTE GROUP Contd. Petrochemicals • 650,000 m+pa Feedstock of carbon black • 300,000m+pa LPFO • 100,000 m+pa Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  28. DANGOTE GROUP’S CEMENT PRODUCTION GROWTH(In Metric Tons) Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  29. Incentives & More Information • Contact The Ministry of Trade and Investments on www.fmti.gov.ng • Contact The Nigerian Investment Promotion Commission on www.nipc.gov.ng Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

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

  31. Words of Wisdom • "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. Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

  32. Engr. DIDEOLU FALOBI, FNSE, MIoD Managing Director/CEO, Kresta Laurel Limited, 376, Ikorodu Road, Maryland, Lagos, NIGERIA. Tel: +2348056121213, +2348035244004 E-Mail: dideolu.falobi@krestalaurel.com www.krestalaurel.com

  33. THANK YOU ALL. Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria

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