Nigeria – Your preferred investment destination

1. Nigeria – Your preferred investment destination H.E MR OLUSEGUN AGANGA HonourableMinister of Trade and Investment Federal Republic of Nigeria July 2012

2. Nigeria: Where we are and what’s on offer.... • Located in West Africa • Nigeria is located on 923,768 square kilometers of land • A rich diverse culture with more than 250 ethnic groups • Made up of 36 states with Abuja as the Federal Capital Territory • The third tier of government consists of 774 local government areas Nigeria 2

3. States represented at the Summit 3

4. Large Natural Resource Base Energy • 7th largest producer of crude oil globally with 37 billion bbls of proven reserves, Nigeria has a capacity of 3.0mm bpd and is the largest producer of crude oil in Africa • 10th largest oil reserves in the world and 8th Largest Gas Reserve • Major player in the gas market – reserves of 187 trillion cubic metres • Geological Survey Agency of Nigeria records 34 exploitable minerals in commercial quantities • 84 million hectares of Arable Land with just 40% utilized Mining Agriculture 4

5. Strong Demographics The large market and strong work force • Nigeria has a population of about 167 million people (3x the population of South Africa) – 7th largest country in the world • By 2050 Nigeria will be the 6th largest country in the world. • 2070 Nigeria will have the world’s 3rd largest with a population of 433 million after India and China and above the US. • A growing middle income which currently stands at 23% • The population provides a ready market for telecommunications, IT, consumer goods, agriculture, manufacturing, hospitality & entertainment, construction and housing.

6. Investment Gateway to West Africa • Nigeria is well placed to exploit the potential offered by the ECOWAS market, which has a population of over 300 million of which Nigeria makes up 60%. Nigeria also accounts for 47% of the ECOWAS GDP and over 50% of the ECOWAS manufacturing capacity. • In addition to West Africa Nigeria also acts as a significant access point to other African Markets.

7. Global Real GDP Growth • Global growth expanded by 5.1% last year led by strong domestic demand in developing countries. Q1 2012 Nigeria GDP grew by 6.17% surpassing the forecasted 5.34% BRICs High Income 7 Source: World Bank Databank, World Bank Africa’s Pulse 2012

8. Global Real GDP Growth - 2 • In an era of instability, Nigeria has grown consistently! 6.7% * Source: IMF: The World Bank, * Forecasted 8

9. Sector Contributions to GDP in 2012 The largest contributors to GDP (and employment) are Agriculture, Wholesale & Retail Trade and Oil and Gas Source: National Bureau of Statistics (Q1 GDP Report 2012)

10. Nigeria has a conservative debt position with a lot of fiscal space Average Africa Debt to GDP ratio in 2000s was 59%, Nigeria’s Debt to GDP Ratio is 19.6% (South Africa (35.6%), Egypt (85.7%) Debt Structure –Profile External Debt Domestic Debt US$5.91 billion N5.96 trillion (c. US$38 billion) 83% of External Debt is low-cost, long-tenor concessional debt 10 Source: DMO

11. Low Debt-To-GDP Ratio With a Debt-To-GDP under 20% Nigeria has large fiscal space to operate within 19.6% Source: Public Debt, International Monetary Fund (IMF) 2011, (* 2010 data)

12. Development through reform Judicial Reform Electoral Reform Investment Climate Reform Reform Agenda Fiscal Reform Sovereign Wealth Fund Power Sector Reform Oil and Gas Reform Petroleum Industry Bill Business Environment/Port Reform Nigeria has established key reforms in critical areas 12

13. Growth Through Investments

14. Investment Opportunities – comparative advantage Investment Opportunities Areas of Competitive and Comparative Advantage Agriculture Mining Oil and Gas Agribusiness and Agro-Industries Solid Mineral Processing and Related Industries Downstream Oil, Gas Industries and Oil and Gas Services Other Key Investment Areas Power Infrastructure (Rail, Roads, Ports) Real Estates Development Information and Communication Technology Banking & Finance Healthcare and Pharmaceuticals Maritime and Shipping Free Trade Zones Industrial Parks and Clusters

15. Why Nigeria? Of all the African markets, investors believe Nigeria will offer the best overall prospect for investment returns over the next 3 years Source: Economist Intelligence Unit (EIU) 2012 – Selection from 30 countries [% of respondents]

16. Key sectors of Investment Key sectors investors have identified as providing the best investment returns over the next 5 years Source: Economist Intelligence Unit (EIU) 2012

17. Foreign Direct Investment Overview -Nigeria Nigeria recorded US$ 8.9 billion in 2011 A refocused policy framework to improve Nigeria’s investment climate 21% of Africa’s Inflow Nigeria has become one of the top global destinations for FDI Africa recorded a total of $42.7 billion FDI inflow in 2011 17

18. Strong trends in FDI FDI Net inflows into Nigeria in 2011 was the highest in Africa at $8.9 billion, whilst the growth of FDI flows into Nigeria in 2011 surpassed global and regional averages. FDI Net inflows Growth in Net FDI Back to pre-crisis levels Source: UNCTAD Global Investment Report 2012

19. Government’s drive in attracting Investment • Make FDI work for local economy; i.e. job creation, supply-chain, developing Nigeria as an outsourcing destination etc. • Target and attract FDI and LDI into key priority sectors of Infrastructure, Agriculture, Mining, Oil and Gas Downstream and Tourism • Promote a Private Sector led growth strategy • Investment in renewable energy sources shall be encouraged • Establishmentof the Ministry of Trade and Investment • OSIC strengthened to provide 48 hours service to investors • Industrial Revolution: • Promotion of Value-addition and Import Substitution Industrialization

20. Investment Friendly Incentives - General • No Nationalization or expropriation of businesses by any government of the federation • Foreign investors are free to repatriate their profits and dividends net of taxes through an authorized dealer in freely convertible currency. • Up to 5-7 years tax holiday for activities classified as pioneer • Research and Development – use of local inputs – 120% of expenses are tax deductible • A one-off concession of 20% of the cost of providing basic infrastructure (roads, water, electricity) • A 10% tax concession for 5 years for export oriented industries

21. Examples of International investors INFRASTRUCTURE MANUFACTURING MINING OIL AND GAS Downstream AGRICULTURE 21

22. Investment Highlights for Nigeria “If it [Nigeria] were to show the same increase in its growth-environment score over the next decade, many investors will look back and say why the hell didn’t I invest in Nigeria” Jim O’Neill – Global Head of Economic Research Goldman Sachs “Nigeria was identified as a top pick by some of the most influential investors in emerging markets finance” July 2010 Reuters Emerging Markets Summit – Sao Paulo “Africa’s economic momentum is widely recognised and the continent’s long-term growth prospects are very strong and global executives and investors cannot afford to ignore it” McKinsey & Co 22

23. Investment Highlights for Nigeria Tell me this: which part of the world has seen its number of democracies increase nearly eight-fold in just two decades? Eastern Europe? No, it’s Africa. Which continent has six of the ten fastest growing economies in the world? Asia? No, it’s Africa. Which country is predicted by some to have the highest average GDP growth in the world over the next 40 years?
You might think Brazil, Russia, India or China. No. Think Africa. Think Nigeria. David Cameron Prime Minister, United Kingdom 23

24. Thank You The opportunity is here and we are ready to welcome you.. 24