Investing in Nigeria
Nigeria is an investor friendly country with rule of law which is anchored on good governance and accountability. It has a robust private sector and is committed to creating enabling business environment via stable democratic system, infrastructure re-engineering and expansion, strong and virile financial and insurance sector. The country has a highly simplified and streamlined procedure for business entry, reformation of its public service and removal of bureaucratic hurdles as well as improved international image.
The government is also promoting non-oil sectors of the economy with aim of targeting and attracting foreign direct investments into key priority sectors such as Power, Infrastructure, Agriculture and Solid Minerals. The government is committed to privatization, commercialization and liberalization of the economy.
The Nigerian Market
Nigeria, officially the Federal Republic of Nigeria, is a middle income country with a free economy and emerging market, and a robust private sector. Currently ranked 26th in the world and the largest in Africa, the Government is working with a vision and transformation agenda to make the country one of the world’s 20 largest economies by the year 2020. Nigeria’s financial, communications, tourism, service, entertainment and technology sectors are further expanding. Her manufacturing sector is the third-largest on the continent, and produces a large proportion of goods and services for the West African region. Nigeria’s rapidly growing contributors to her GDP include the telecommunications, banking, and film industries.
Undoubtedly, Nigeria has an active market with tremendous investment potentials in several sectors of her vibrant economy. With a population of about 170 million people, and projected to grow to 200 million by 2020, Nigeria provides a huge market which also has a penchant for shopping. The Nigerian market is truly an investor’s delight. Her positive macro-economic indicators, political stability and abundant untapped resources make her the best destination for investors.
Furthermore, with her strategic location in the West African sub-region – bordering the Republic of Benin in the west, Chad and Cameroon in the east, Niger in the north, and the Gulf of Guinea on the south, Nigeria serves as a gateway to the West African (Economic Community of West African States -ECOWAS) market and beyond.
Nigeria is blessed with abundant resources. These include human resources, mineral resources and agricultural resources. There is also an abundance of skilled and unskilled labour which could be hired at a very low cost comparative to what is obtainable in other African countries. Nigeria remains an attractive destination for serious minded investors who are looking for ways to grow their businesses. The Government has created a favorable climate for business and industrial ventures. Administrative and bureaucratic procedures have also been greatly streamlined. The Government has put in place policies and programmes that guarantee a free market economy. The Nigerian Investment Promotion Commission (NIPC) in Nigeria was established to encourage, promote, and coordinate investments in Nigeria. The Agency provides services for the grant of business entry permits, licenses, authorizations and incentives in a One-Stop-Shop environment. The services are provided in a co-ordinated, streamlined, efficient and transparent manner to meet the needs of investors.
Nigeria’s exports include crude oil, cocoa, palm oil, groundnuts, cotton, timber and rubber while her imports include machinery, chemicals, transport, equipment, and manufactured goods. In recent times, focus is being directed at non oil exports and agriculture, which accounts for about 30% of the GDP, to diversify the economic base. Opportunities exist for the exploitation and export of natural gas, bitumen, limestone, coal, tin, columbine, gold, silver, lead-zinc, gypsum, glass sands, clays, asbestos, graphite, and iron ore, among others.
FREE TRADE/EXPORT PROCESSING ZONE SCHEME
Nigeria has about 25 Free Trade and Export Processing Zones across the country. Some are fully completed and operational while others are still being worked upon. Some of the free zones cater for specialized businesses while others are for more general-purpose trade. For effective management of these zones, at the federal level, two bodies are in place namely, the Nigerian Export Processing Zone Authority (NEPZA) for the general-purpose zones and the Oil & Gas Free Zone Authority (OGFZA) for oil & gas zone. As in other climes, Export Processing or Free Trade Zones are clearly delineated and fenced industrial estates within Nigeria’s customs and trade regime. They are set up to improve the investment climate by stimulating manufacturing concerns producing mainly for the export market.
Types of industries allowed in Nigeria export processing zones include:
Electrical and electronic products
- Textile products
- Wood products
- Leather products
- Plastics products
- Petroleum products
- Rubber products
- Chemicals products
- Metal products
- Educational materials and equipment
- Communication equipment and materials
- Sports equipment and materials
- Optical instruments and appliances
- Medical kits and instruments
- Biscuits and confectioneries
- Printed materials, office equipment and appliances
- Paper materials
- Food processing
- Pharmaceutical products
- Oil & gas activities
AREAS OF BILATERAL COOPERATION
Areas of bilateral cooperation between Nigeria and Ukraine include but, are not limited to solid minerals development, oil and gas, manufacturing, heavy and light industries, machines building and parts fabrication, metallurgy, ship building, military hardware, aviation, construction, housing, petrochemical, agricultural development, human resource development (education and training, research and development and specialized services).
Nigeria has great investment potentials and business opportunities which many investors from all over the world are already enjoying having recovered much more than what they invested and are very happy to continue to grow their businesses in Nigeria. There is a place for Ukrainian, Georgian, Latvian, Lithuanian, Estonian and Moldovan businessmen in Nigeria and they are encouraged to take advantage of the many opportunities available for investors in the huge Nigerian vibrant market. The Embassy of the Federal Republic of Nigeria stands ready to do its bit in bridging the gap between Nigerian and Ukrainian, Georgian, Latvian, Lithuanian, Estonian and Moldovan businessmen in other to deepen economic cooperation between Nigeria and these countries. For more information please visit http://www.nipc.gov.ng .