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ONLY IN NIGERIA IS OUR STORY even POSSIBLE

ONLY IN NIGERIA IS OUR STORY even POSSIBLE. THE 17 th NIGERIAN ECONOMIC SUMMIT NOVEMBER 10, 2011. OPPORTUNITIES & CHALLENGES. Weak institutions and high level of bureaucracy Pervasive corruption Weak investor confidence Insecurity Large infrastructural gaps and challenges.

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ONLY IN NIGERIA IS OUR STORY even POSSIBLE

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  1. ONLY IN NIGERIA ISOUR STORY even POSSIBLE THE 17th NIGERIAN ECONOMIC SUMMIT NOVEMBER 10, 2011

  2. OPPORTUNITIES & CHALLENGES • Weak institutions and high level of bureaucracy • Pervasive corruption • Weak investor confidence • Insecurity • Large infrastructural gaps and challenges THE BAD - HISTORY !

  3. Once upon a time….

  4. In January 2001, a telecommunications company wins bid for mobile license in Nigeria at a cost of $285 million • Nigeria deemed a risky bet • Institutional investors sceptical Telecommunications Sector

  5. Back in 2001 • Fewer than four land lines per every 1,000 people in Nigeria • Extremely limited wireless capacity and unproven market • Shareholdersextremely wary • Company gains300,000 subscribers first year

  6. In 2011 • Today, the company has 40 million subscribers and growing • In 2010, the company reported US$17 billion in revenue out of which US$5 billion came from Nigeria alone • *Source: BusinessDay, March 10, 2011

  7. In 2011 • Nigeria operations has27% of company’s global subscriber base • Nigeria is the most profitable subsidiary, contributing about 30% of the Group’s revenue • * Source: BusinessDay, March 10, 2011

  8. Only in Nigeria is this story even possible

  9. In 1962, first brewery outside of Ireland and Great Britain built at Ikeja, Lagos • Steady growth prompts building of three more breweries

  10. The Challenges • Distribution and logistics challenges • Poor infrastructure – roads, power

  11. 2011 • Turnover grew by 48.6% from N62.2 billion (US$410 million) in June 2007 to N123.6 billion (US$820 million) in June 2011 • Operating profit increased by 85.7% from N14.2 billion (US$94 million) recorded in June 2007 to N26.5 billion (US$176 million) in June 2011 • Emerging markets expected to contribute 50% of company’s globalnet sales by 2015, up from 34% in 2011 • Africa is the largest contributor to the growth in emerging markets

  12. 2011 • From July 1, 2011 Africa started operating as an autonomous region • Most of the above has been largely driven with Nigeria as the largest single contributor in Africa • Nigeria is currently the world’s second-biggest market for the beer outside Britain, accounting for 41% of global volume sales of stout

  13. Only in Nigeria is this story even possible

  14. Two major banks merge in 2005 • Consolidated entity becomes a Pan-African organisation with operations in 19 African countries and three continents in 5 years.

  15. 2005 • Was a one-country financial institution • Had less than 3 million retail customers • 300-branch network and less than 40 ATMs • Employed about 7,000 Nigerians • Total balance sheet size of about US$ 2.5 billion

  16. 2011 • Bank has presence in 19 African countries • Present in 3 major international financial centres(New York, London and Paris) • Bank has a balance sheet size of US$19.5 billion • Bank has more than 700 branches nationwide with almost 3,000 ATMs • Employs almost 20,000 employees from across the continent

  17. USA UK Abu Dhabi Cayman Island Paris Guangzhou Benin Mali Nigeria Chad Burkina Faso Cameroon Senegal Guinea Uganda S. Leone Ghana Liberia Kenya Cote d’lvoire Tanzania Gabon Zambia Congo Brazzaville D.R Congo Regulatory Approval in Progress Operational Mozambique Zimbabwe Angola

  18. Only in Nigeria is this story even possible

  19. The first major Nigerian-produced and directed movies were made in the 1960s by Ola Balogunand Hubert Ogunde • In 1992, the hugely successful “Living in Bondage” is produced by Kenneth Nnebueand launches new era in filmmaking

  20. The Challenges • High cost of production • Absence of formal regulated structure • Piracy • Lack of distribution network • Funding problems • Lack of training facilities

  21. Today • Despite virtually unhindered piracy, industry remains firm growth sectorwith a 70% yearly average surge in the number of movies registered between 2000 and 2006* • A $250million industry second only to India’s • Thousands of jobs – industryis 2nd largest employer after agriculture* *Source: World Bank study, Ismail Radwan & Pierre Straus

  22. Today • A positive image for Nigeria internationally • An avenue to promote Nigeria’s rich culture and talents

  23. Only in Nigeria is this story even possible

  24. What Do We Learn Nigeria offers: • An extraordinary demographic profile – 7th largest population in the world • Abundant workforce • One of the fastest growing economies in the world • Untapped abundant natural resources • Market-oriented reforms shaping economic policy • Entrepreneurial spirit

  25. What Do We Learn Nigeria is: • A destination where multinationals can and do succeed • Where domestic champions are rising and adopting increasingly regional and global strategies • Full of people who are entrepreneurial, innovative, and ready to leverage opportunities and adopt technology

  26. Only • In Nigeria • Are these stories • Even possible

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