Nigerian Investment Promotion Commission Plot 1181, Aguiyi Ironsi Street, Maitama District, Abuja. 09-4134317 www.nipc-

1. PRESENTATION BYEngr. Mustafa Bello, FNSE Executive Secretary NIGERIAN INVESTMENT PROMOTION COMMISSIONAT THE MEETING/DINNER HOUSE of the LORDS & THE BRITAIN-NIGERIA ASSOCIATION 20th JULY 2004 Nigerian Investment Promotion Commission Plot 1181, Aguiyi Ironsi Street, Maitama District, Abuja. 09-4134317 www.nipc-nigeria.org .

2. DOING BUSINESS IN NIGERIA

3. Nigeria – A preferred Destination • Prime investment location in Africa with an internal market of over 120 million people • Highly competitive factor cost – labour, land, accommodation, utilities and natural resources • A relatively well-educated and easily trainable labour pool • Strategic location along the West Africa sea routes with well-developed harbours and airports • A broad sector base economy with an extremely wide range of sector-investment opportunities for domestic as well as foreign investors • A good tourism destination – with a multi-cultural life style • A sub-regional and regional integration, providing a common market of over 200 million people

4. Reforms in Progress • Privatization, deregulation & decentralization • Improved transport & communications • Efficient banking system • Highly motivated and trainable labour force • Vibrant civil service • Good governance initiatives • Adoption of multi-party system & institutionalization of democracy

5. Investment Climate – The Big Difference! • Conviction and leadership necessary to deliver institutional change • Deregulated & liberal FDI regime – (Market competition & policy coherence) • Concerted fight against corruption and Economic crimes • Virile Private Sector • Transparent, simple & stable application of tax laws and administration

6. Investment ClimateThe Big Difference! (Cont’d) • Strong & independent legal institutions • Strong & autonomous financial institutions • Strict adherence to accounting standard • An effective and well maintained institution for FDI - NIPC • Sound macroeconomic fundamentals

7. Foreign Investment Regulations & Laws There are two principal laws guiding investment • Nigerian Investment Promotion Commission Act 16 of 1995 • Major Features • Liberalization of the economy - 100% ownership of investment in any sector (except ones listed in the ‘negative’ list) irrespective of nationality • Guarantee against nationalization or expropriation by government of the federation • Guarantee unconditional transferability/repatriation of funds through an authorized dealer, in freely convertible currency • Provision • An enterprise, in which foreign participation is permitted, shall after its incorporation with CAC, be registered with the NIPC

8. Foreign Investment Regulations & Laws (Cont’d) • Foreign Exchange (Monitoring & Miscellaneous Provisions) Act 17 of 1995 • Major Features • Foreign currency may be repatriated from Nigeria and shall not be subject to any further approval provided it is done through an authorized dealer • Any person may invest in any enterprise or security with foreign currency or capital imported into Nigeria through an authorized dealer • Any person may open, maintain and operate a domiciliary account designated in foreign currency with an authorized dealer • A person whether • Resident in or outside Nigeria • A citizen of Nigeria or not may deal in, invest in, acquire or dispose of, create or transfer any interest in securities and other money market instruments whether denominated in foreign currency in Nigeria or not.

9. Other Major Legislations Guiding Investment • Immigration Act of 1963 • The Companies and Allied Matters Act of 1990 (as amended) • The National Office of Technology Acquisition and Promotion Act of 1979 • The Investment and Security Act of 1999

10. Procedure for Starting Business • Incorporate with CAC • Register with Tax Authority • Obtain operating license (where applicable) • DPR – Oil & Gas Sector • NCC – Telecommunications Sector • CBN – Financial Sector • FMSMD – Solid minerals Sector, etc • Acquire operating Premises • Register with NIPC • You are in Business in Nigeria

11. Land – (N7,000 - N15,000)/sqm Labour – N90,000 per annum (minimum basic wage) Power Residential – N4 per unit Commercial – N6 per unit Water - Transport Air (Local) – N9,000 Road Intercity – N300 per 60km Intracity - N400 per hr Telecommunications Fixed – N4 per min Mobile (GSM) 70k per sec N21 per min Internet Connectivity Accommodation Residential Rent - (N10,000 – N15,000)/sqm/yr Office Rent – (N10,000 – N15,000)/sqm/yr Hotel N15,000 – N25,000 per night Basic Factor Cost

12. Investment Opportunities Nigeria is rich in natural resources (e.g. agric, fishing, forest & mineral resources, oil & natural gas, etc) • Services industry/Construction • Waste Management (collection of refuse, estab. of dumping sites & incinerators, conversion of waste to gasohol etc.) • Health Care Facilities & Equipment (manufacture of syringes and basic medical equipment) • Real Estate Development

13. Investment Opportunities (Cont’d) Manufacturing / Agro processing • Palm Oil Processing • Wood Products –furniture • Rubber Products – tyres, condoms • Fruit Juice – current ban on importation of juice • Paints & Pharmaceuticals – Kaolin • Fishing – deep sea/aqua culture • Cassava Processing – industrial starch, chips & Flour • Poultry Feeds Production • Fruit & Vegetable Processing – canning & bottling

14. Transport (Maritime) • Liner Services • Ship building • Inland Container Depot • Inland water transportation

15. Solid Minerals • Endowed with a range of economically viable minerals – kaolin, limestone, gypsum, silicon, etc • Second world largest deposit of bitumen range

16. Upstream Surveying Civil works (slabbing/concreting jobs at rig sites, preparation of drilling locations) Seismic data acquisition & interpretation Geological activities Drilling operations Exploration & production Oil & Gas • Downstream - Refining • Petrochemical industries (industrial & food grade solvents, insecticides, cosmetics, mineral oils, petroleum jelly) • Bituminous-based water/damp proof building materials (tarpaulin,tiles etc) • Export of refined products surplus

17. Oil & Gas (cont’d) • Gas Development and Conversion - Natural Gas Pipeline Network - Butanization Project (filling facilities, manufacturing of cylinders, installation of filling plants & retail distribution) - Vehicular Fuel (compressed Natural gas) • Support Services & Pollution control

18. Privatization and Commercialization • The program is now in its third phase involving enterprises in the monopoly sectors such as: Refineries, National Electric Power Authority, Nigerian Telecommunications (NITEL), Sea ports, Vehicle assembly plants etc.

19. Generous Package of investment Incentives • Tax Holiday - Pioneer Status – 5 years to qualified activities • Enriched Capital Allowances - ranges from 50 – 90% • Corporate Tax – 30% • Withholding Tax on dividends, interest, and rent is 10%: for Royalties 15% and on management and technical agreement 10% • Export Incentives • Export Expansion Grant Fund • Duty Drawback Scheme • Export Processing Zone (EPZ)

20. NIPC & Investors • Services • Facilitate the procurement of all business approvals • Business Registration • Expatriate Quota • Facilitate the administration and approval of investment incentives • Pioneer Status • Negotiates specific incentives for the investor, in consultation with appropriate government agencies such as FMF, FMI • Provides up-to-date information on investment opportunities available in the country • Brochures • Investors’ Guide

21. NIPC & Investors • Services (Cont’d) • Advocate for better business environment in the economy • Identifies difficulties and problems encountered by investors, proffers solutions and renders assistance • Initiates, organises and facilitates ‘match-making’ meetings between investors • Facilitate/organise outbound and inbound investment missions

22. Conclusion With the bias for private sector development, the Commission is more than ever equipped to ‘facilitate’ rapid growth of investment in the country by both foreign and local investors. Nigeria offers one of the most rewarding investment destination, not just in Africa but, in the World. Thank you for your attention!