...Showcasing Africa’s Fastest Growing Economy
Vol. 1 No. 2 October/November 2012
Gallery of Nigeria’s Endowment: AGRO-RESOURCES Inside
World Bank says Nigeria has the Most Attractive Investment Environment... Niger State seeks Investors in: Agriculture; Health; Mining & Solid Minerals; Come explore NIGERIA! Small & Medium Enterprise Development; Tourism; and, Transportation Infrastructure. 1 012079 930408
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35 Gallery of Nigeria’s Endowment: AGRO-RESOURCES Priority Areas to Industrially Commit Your Money in Nigeria
An Eye On Nigeria’s Free Zones
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Ayobami Titilayomi OYELEYE
Publisher/Editor-in-Chief
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18 32 Call for Investors Events 34 Investment Promotion Institutions: 41
Bank of Industries Limited
Invest Nigeria 3
Dimeji ADEGBOLA Editor Wakilu FOLARIN Oluwaseyi Oladipo DAWOTOLA
Contributors
News
Investors in the Lead: Dangote Industries Limited
Hands On-board
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Folayinka OJO Sponsorships and Partnership Desk
Leye34
Graphic Designs Akanke OGUNKOYA (Barrister) Chiwen ECHENDU Abimbola BABALOLA Advisors
‘INVEST NIGERIA!’ is a Free Digital - Nigeria Investment/Business Promotion - Magazine Published by AXXXIV (A34) BUSINESS GLOBAL RESOURCES. It is aimed at showcasing nigeria’s investment potentials to investors all over the world All Enquiries, Editorials/Contributions, Investment Notices/Invitation and News Correspondence should be addressed to the publisher via principal@investnigeriamagazine.com.ng www.investnigeriamagazine.com.ng
PUBLISHER’S INVITE
Our OBJECTIVE with this Magazine is to provide a platform that will constantly provide reliable investment information and resource about opportunities that exist in Nigeria to investors all over the world in order to promote the in-flow of sustainable investments into the country. Our MISSION is to fuel the realization of Nigeria’s drive for quality and sustainable investment through the dissemination of reliable investment information/resource to investors all over the world. Our VISION is to be defined in principle and practice as a ‘second-to-non’ reliable information and resource media for the promotion of local and foreign investments in Nigeria.
HAPPY 52nd INDEPENDENCE ANNIVERSARY Invest Nigeria 4
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PRIORITY AREAS
TO INDUSTRIALLY
COMMIT YOUR MONEY
IN NIGERIA
T
here are over 2000 industrial establishments in the country. Among these are a giant oil industry, Iron complexes, steel rolling mills, pharmaceutical industries, food processing, car assembling and the up-coming Export Processing Zones (EPZs) - some operational already. Nigeria’s economic policy favours and places priority on greater investment in agricultural production, manufacturing and exports of production, boasting an abundantly skilled and versatile human resources and access to a vast local market of over 160 million people and beyond in the sub-region. PRIORITY AREAS OF INVESTMENT There are four Industrial Sectors Invest Nigeria 6
which are considered priority areas of development because of their linkage effects on the other sectors and potential catalytic role in the overall growth of the industrial sectors. These priority areas which are most favoured in the administration of government industrial incentives are: 1. Metallurgical/Engineering Industries; 2. Agriculture (Forest-based and agro-allied activities); 3. Chemical/Petrochemical Sector; and, 4. Construction Sector. Specifically, industrial projects desired from these sectors are:
1. Foundries and Forges; 2. Metal Fabrication/Machine Tools; 3. Pharmaceuticals; 4. Rubber and Plastic; 5. Leather and Leather products; 6. Textiles and Weaving apparels; 7. Cement; 8. Other non-metallic material building materials; bricks, ceramic glass; 9. Agro-Cultivation and Food Processing; 10. Sugar, Confectioneries and Beverages 11. Cereal and Grain Milling; and, 12. Fruits, Vegetables, Vegetable Oils, Oil Seeds, Roots and Tubers. In addition to the twelve identified priority areas mentioned above, Nigeria also welcomes investors to wholly or jointly with Nigerians, participate in the following industrial projects: Invest Nigeria 7
1. Gemstones cutting and polishing; 2. Gold processing; 3. Mini-sugar production plants; 4. Multi-mineral plant for gypsum, talc, kaolin, marble/dolornite, baryte etc; 5. Cement production (7001000 metric tonne per day) 6. Lead and zinc projects; 7. Processing of salt from sea water; 8. Sodium trisphosphate production; 9. Small medium scale plant for sheet metal production; 10. Mining of industrial minerals; bitumen etc; 11. Stone cutting/polishing; 12. Fabrication of mechanical spare parts; 13. Exploitation of coal; and, 14. Timber/wood processing
AERIAL-VIEW OF ONNE FREE ZONE AREA
F
ree Zones around the world form part of a recognized Trade Facilitating Mechanism, as is in their design to attract Direct Foreign Investment (DFI), and to stimulate trade and export activities. There are about
850 Free Zones all over the world, though World Bank statistics say over 50% of them, most Invest Nigeria 8
especially in the developing world are failures. The World Bank report attribute these failures to any or all of these factors: Inept application of the project; Inadequate assessment; and Political and economical instability. Free Zones are usually set-up to
AN EYE ON
NIGERIA’S FREE ZONES pursue these and more objectives: 1. F o r e i g n I n v e s t m e n t Generation; 2. Capital Growth; 3. Transfer of Technology; 4. The Generation Employment Opportunities; 5. Skills Acquisition; 6. Revenue Generation; and, 7. Development of Local Raw Materials. In Nigeria, the ‘Nigeria Export Processing Zones Authority – NEPZA’ is the Investment Promotion Agency responsible for investment into the Free Zone areas in Nigeria. The agency is saddled with the responsibility of licensing, monitoring and Invest Nigeria 9
regulating activities in the Free Zones as enabled and empowered by the Nigeria Export Processing Zones' Act 63, of 1992. Factors responsible for the adoption of Free Zones Scheme in Nigeria, includes the need to diversify the revenue base of the economy, generation of employment opportunities, export promotion through local production, and commercial development of local raw material endowments. The enabling Act also confers on the agency the power to approve and grant all licenses and permits to the exclusion of other Agencies, enforce obedience and compliance to rules and regulations. In effect, the Act is an
omnibus law, which gives the Authority and its Board the power to define policy directions and provide a One-Stop-Shop business transaction without bureaucracy. Although, the enabling Act came into effect in 1992, Nigeria’s pioneer Free Zone, the Calabar Free Trade Zone was not fully completed until 1999. The Zone commenced operation after it was officially commissioned in November 2001. Since then, Free Zone Scheme in Nigeria have continued to grow in leaps and bounds as a veritable machineryin-progress for the country’s industrial and commercial development. In time too, the addition of Private Sector Participation, and Partnership with the Federal Government and other tiers of government to the propagation of the Scheme has culminated in the establishment of specialized Free Zones and other types of Zones. The following are some of the investment interests permitted for set-up in Nigeria’s Free Zones while proposals for the Invest Nigeria 10
e s t a b l i s h m e n t o f industries/interests outside of industries under-listed are subject to considerations based on their individual merits and investment worthiness: 1. Electrical and Electronic Products Industries; 2. Textile Products Industries; 3. Garments Industries; 4. Wood Products and Handicraft Industries; 5. Leather Products Industries; 6. P e t r o l e u m P r o d u c t s Industries; 7. Rubber and Plastic Products Industries; 8. Cosmetics and other Chemical Products Industries; 9. Metal Products and Machinery Industries; 10. Educational materials and Sports Equipment Industries; 11. P r i n t i n g M a t e r i a l s , Communication and Office Equipment Industries; 12. M e d i c a l K i t s , O p t i c a l Instruments and Appliances Industries; 13. Biscuits, Confectioneries and
other Food Processing Industries; 14. Pharmaceutical Products Industries; 15. Ship building and Repairs Industries; and,
facilities as includes: 1. Large expanse of industrial land with good access to international air and sea ports; 2.
Perimeter fencing of wall around the zones with good security network; 3. Trained Free Zone Customs/Immigrat ion roles as is obtainable in Free Zones Worldwide;
AERIAL-VIEW OF SNAKE ISLAND 16. O i l a n d g a s L o g i s t i c s Industries. To enable investors achieve their best potentials in the Free Zones, Nigeria’s Free Zones parades Invest Nigeria 11
4.
Police post to provide security for the zone;
5.
Pre-built zone warehouses for ware-housing and storage of raw material and products;
6.
E f f i c i e n t Telecommunication facilities;
7. Uninterrupted Electricity and water supply; 8. Good internal/external road network; and, 9. Central Transit warehousing
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facilities at major ports for efficient handling of Free Zone goods.
Federal, State and Local Government taxes, rates, customs duties and levies; 2. One-stop approvals for all permits, operating licenses and incorporation papers;
Also, in addition to - Nigeria being the largest consumer market in Africa with a population of over 160 million. Thus giving Investors the advantage of a vibrant domestic market while also pursuing their primary overseas export markets development; the benefit of proximity to abundant Natural Agro and Mineral - Resources; Nigeria being an excellent location from which to export to the rest of Africa, the Middle East, Europe and the Americas, and Nigeria’s benefits from The African Growth and Opportunity Act (AGOA) with benefits on more than 6,500 products; preferential quotas and tariffs on the export of some goods to the European Union; and, abundant supply of skilled labour at some of the most competitive labour rates worldwide. Investors desiring to enjoy the potentials of Nigeria’s Free Zone are assured of these benefits and incentives administration:
8. 100% repatriation of capital, profits and dividends;
1. Complete tax holiday for all
9. Waiver of all import and
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3. Duty-free, tax-free import of raw materials and components for goods destined for re-export; 4. Duty-free introduction of capital goods, consumer g o o d s , m a c h i n e r y, equipment, and furniture; 5. Permission to sell 100% of manufactured, assembled or imported goods into the domestic Nigerian market; 6. When selling into the domestic market, the amount of import duty on goods manufactured in the Free Zone is calculated only on the basis of the value of the raw materials or components used in assembly not on the finished products; 7. 100% foreign ownership of investments;
export licenses; 10. Waiver on all expatriate quotas for companies operating in the zones; 11. Prohibition of strikes and lockouts; and, 12. Rentfree land during t h e first 6 month s of constr uction . Investors interested in setting-up shop in any one of Nigeria's Free Trade Zones are only required to follow a few steps which Government has designed to be as streamlined and investor-friendly as possible: STEP 1: Obtaining an application form either online or from the administration of the Free Zone where they wish to set-up shop, or from the office of the Nigeria Export Processing Zones Invest Nigeria 15
Authority (NEPZA) in Abuja. This application form costs N50,000 (non-refundable) or its US Dollars equivalent. STEP 2: Fill-out applicatio n a n d submit to the choice zone’s administr ation or NEPZA office in A b u j a along with the required business feasibility study. Submitted applications will be reviewed and either approved or returned with observations as to why they are returned within five working days. STEP 3: Where an application is approved, investors are expected to obtain an Operation License which usually can be obtained from the choice Free Zone administration. As soon as an investor obtains an Operating License, it is officially incorporated in Nigeria and does not require any additional
paperwork. It is at this point that the Free Zone administrators will discuss Investor’s set-up location on site, assign and reserve a space for Investor. STEP 4: Remission of investment capital through banks located in the Free Zone which will in turn issue a Certificate of Capital Importation. STEP 5: The preparation of Business Building or Warehouse Space as needed by investor. Investors who are constructing their own buildings are obligated to submit four (4) copies of the full architectural drawings of their building for approval by the Free Zone Administration according to established building codes. Built-up area usually are monitored not exceed 70% of the leased land, and construction of new buildings are expected to start within 3 months after execution of set-up agreement; and, STEP 6: Settle-in and Commence Business. Invest Nigeria 16
NIGERIA’S FREE ZONES - (Location & Status)
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NEWS WORLD BANK SAYS NIGERIA HAS MOST ATTRACTIVE INVESTMENT ENVIRONMENT DESPITE ITS OTHER CHALLENGES
W
orld Bank N i g e r i a Country D i r e c t o r, M a r i e Francoise Marie-Nelly, has said Nigeria has the most attractive i n v e s t m e n t environment despite t h e c u r r e n t infrastructure challenge f a c i n g i t . Ms. Marie-Nelly said this on the sidelines of the launch of the World Bank's Investment Climate Assessment (ICA) report recently in Abuja, Nigeria's capital.
market that any investor cannot ignore with over 160 million people and a gateway to ECOWAS. 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. She, however, said there was need for the country to improve i t s b u s i n e s s environment in order to maximize the hugely untapped investment opportunities that exist across the country.
S h e s a i d , “Nigeria has the most attractive environment for investment because Nigeria is a large market in the continent; it is the “The basic lesson second largest economy from the World Bank in the continent. It is a A s s e s s m e n t Re p o r t
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titled, 'Nigeria, an Assessment of the Investment Climate in 26 States', is that there are critical constraints in Nigeria that impede the development of the non-oil sector. Some of the critical issues i n c l u d e e l e c t r i c i t y, which affects the productivity and c o m p e t i t ive n e s s o f enterprises. However, the labour cost in Nigeria is actually lower than most of Nigeria's competitors such as Brazil and South Africa. So, there is need for Nigeria to address some of the constraints in order to take advantage of the huge investment opportunities that exist in the country.” Governor of
Anambra State and Vice Chairman, Nigeria's G o v e r n o r s ' Fo r u m , Peter Obi, while speaking at the launch noted that foreigners' perception of Nigeria was at variance with the true situation in the country. In his keynote address 'Reforming Nigeria's Investment Climate', the Minister of Trade and Investment, Olusegun Aganga, said Nigeria's domestic investment in 2011 grew by 46 percent. He said that the investment dividends based on the ICA assessment of investment climate in 26 states of the federation was through the Federal Government e f f o r t . Aganga said Nigeria remained the preferred investment destination in Africa.
across the world indicated that investment flow globally has increased by 16 percent. 'It said that the flow to Africa has come down by one or two percent because of the war in Egypt, Libya and the others. 'But what is important to us is that the investment flow to Nigeria has gone up by 46 percent to N8.9 billion,” the minister said.
H e s a i d , “ We have recorded about $1 billion worth of private business investments in the non-oil sector that have come through our chamber in the last two years and that is just a scratch of the surface because there is more to come as more
NIGERIA TO GET $2BN SME INVESTMENTS ANNUALLY FROM US, AS US EXPORT-IMPORT (EX-IM) BANK PROVIDES $1.5BN FOR NIGERIA-BOUND AMERICAN INVESTORS.
T
he NigeriaUnited States of A m e r i c a Chamber of Commerce ( N U S A C C ) r e c e n t ly disclosed plans to attract about $2 billion worth of small and “The performance of medium scale private Nigeria on the recent business investments report issued by United into Nigeria yearly. Nations Conference on Chairman of the Trade and Development chamber, Mr. Chuck (UNCTAD) about the global investment flow Nnabuife, made this
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known during the chamber's third International Trade and Investment summit held recently in Lagos, Nigeria.
Americans get comfortable with the Nigerian culture and situation. Our target is to attract about $2 billion worth of private business investment f ro m A m e r i c a i n t o Nigeria every year”. He mentioned a survey carried out by the US government which revealed that Nigerians are the most educated immigrants in
America; having produced a lot of doctors and engineers, with some of them working in NASA and other specialized sectors in America, while observing that when it comes to investments, Nigeria is s t i l l l a r g e l y undeveloped. This he said, prompted the chamber's decision to team up with Nigerian professionals resident in the United States, as well as American companies, to bring them over to invest in Nigeria. The NUSACC Chairman said the chamber is trying to bridge the cultural divide and promote mutual trust between Nigerians and Americans so as to p ro m o te t ra d e a n d investment between both countries. He said, “Our mission therefore is to develop business opportunities, trade and investments whereby we train people, empower them, give them skills to start their
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own businesses and then provide goods and services as a tool for development. Speaking at the summit, the US Ambassador to Nigeria, Terrence McCulley, who was represented by the American Embassy Economic Officer, Rob Foley, said given the number of enquiries that frequently flood the economic office, American small and medium scale businesses are becoming more aware of the Nigerian market's huge potential especially in the non-oil sector and are showing interests to benefit from it. The American Embassy Economic Officer, Rob Foley also revealed that the US has established some business support initiatives to foster bilateral relationship between Nigeria and America, such as the signing of a $1.5 billion MoU by America's Export-Import Bank (Ex-Im) to support the
Nigerian power sector with equipment. Other i n i t i a t ive s , h e s a i d includes the Nigerian Cashew Cluster Finance scheme; and, the Nigerian Expanded Export Programme (NEEP) which has signed MoUs with 40 Nigerian exporters including 12 women owned businesses. Mr. Foley assured the American Business Community in Nigeria that the consular was doing all they could to decrease the time for issuing non-immigrant visas to Nigerians who w i sh to v i si t t h e i r American offices for business. NIGERIA TO PARTNER IRAN IN POWER SUPPLY, AGRICULTURE, OTHERS.
N
igeri a a n d I s l a m i c Republic of Iran have agreed to partner in the areas of electricity supply, agriculture, science and education. This position was reached at a bilateral meeting between Vice
President Namadi Sambo and President Mhamoud Ahmadinejad of Iran at the venue of the 16th Summit of the Non-Aligned Movement in Tehran. Vice President Sambo stated further that to realize the decisions taken at the Summit, the level of development in the country calls for partnership so that both countries can realize their developmental objectives. He said though there are Iranian companies in the country, Nigeria needs more cooperation with Iran to enable her attain h e r d e ve l o p m e n t a l goals especially in the power sector. Vice President Sambo expressed the concern of the Federal Government over the eviction notice given to the Nigerian Embassy in Tehran, noting that despite the fact that Nigeria has acquired the property since 1994, three people have come forward in 2006 to lay
Invest Nigeria 21
claim to the property. He used the occasion to highlight what the country has done so far in building both thermal and hydro power projects as well as other projects in agriculture. In his remark, while accepting the fraternal greetings of President Goodluck Jonathan, the Iranian President, Mhamoud Ahmadinejad thanked Nigeria for honouring the invitation to attend the Summit. He expressed his appreciation for what Nigeria is doing in the sub-region and promised to look into the issue of the Embassy building, saying he looks forward to having stronger relationship between the two countries.
T
he Federal Government of Nigeria has distributed over 1.3 million oil palm seedlings to 18 oil palm plantations drawn from 11 states across the country. Minister of Agriculture and Rural D e v e l o p m e n t , D r. Akinwumi Adesina, who flagged-off the seedling distribution exercise during the signing of agreement with the representatives of the 18 oil Palm Plantations in Abuja, said the country will soon become one of the leading producers of oil palm in the world. A d e s i n a lamented that Nigeria spends over $500 million in the importation of over 350,000 metric tonnes of vegetable oil annually, a situation he described s NIGERIA EYES PRODUCTION OF a OVER 350,000 METRIC TONNES “unaccep OF VEGETABLE OIL ANNUALLY; table� to DISTRIBUTES 1.3M OIL t h e PA L M S E E D L I N G S T O 1 8 Nigerian PLANTATIONS economy.
The minister explained further that under the A g r i c u l t u r a l Transformation Agenda of the present a d m i n i s t ra t i o n , h i s ministry would support the production of a total of 240,000 hectares of oil palm in the next three years as well as i m p r o v e t h e productivity of farmers through fertility management practices. The minister assured that his ministry will enhance the semi wild grove yield through gradual replacement of old and unproductive wild palms with improved planting materials. Under the arrangement which is a public-private partnership, the Federal Government would provide free improved nuts or seedlings to the participating estates which will be required to nurse the seedlings for the next 10-12 months and thereafter transplant them to their
Invest Nigeria 22
own plantations. The minister added that the i m p rove d o i l p a l m seedlings have highyielding capacity estimated at over 21 metric tonnes per hectare and high resistance against many tropical diseases. He disclosed that the Federal Government has concluded plans to introduce motorized harvesters that can harvest 500-900 fresh fruit bunches per day, as well as support the primary processors to own Small Scale Processing Equipment (SSPE).
Director of the Nigerian Airspace Management Agency (NAMA), Engineer Mazi Nnamdi U d o h , s a i d arrangements were in top gear to absorb newer airlines into the country. Speaking at the Special General Meeting of National Association of Aeronautical Engineers (NAAE) held at the Nigerian Civil Aviation Authority’s (NCAA) Annex, Murtala M u h a m m e d International Airport, Lagos, he said the interest being indicated by the investors was a fallout of the road show embarked upon by the
NIGERIA’S AVIATION SECTOR WELCOMES NEW AIRLINES
T
he Ministry of Aviation is currently in talks with potential investors that have indicated interest in investing in the country’s aviation sector. M a n a g i n g
Ministry of Aviation and top officials of the agencies in the sector to some countries abroad. “The issue is all about the management of those airlines, that is why in the spirit of transformation, we are
now helping those airlines and new ones to come back to business and also provide them with an enabling environment so that those airlines will not go underground again. And that is why we also embarked on a road show to various counties and the response has been enormous. We hope in the next one year, the issue of how many airlines we have in Nigeria will be a thing of the past. There are a lot of airlines that are coming, they are a l re a dy a s k i n g fo r registration,” he said.
An LED lamp or LED light bulb is a solidstate lamp that uses light-emitting diodes (LEDs) as the source of light. Such lamps also offer long service life and high energy e f f i c i e n c y, b u t a re usually more expensive than the fluorescent and incandescent lamps in use in Nigeria. Chairman of the company, Mazi Sam Ohuabunwa, at an interactive session with journalists in Lagos, said the factory which is expected to be completed within two years, between 2013 and 2015 will also
NIGERIAN FIRM TO SET UP N500M LED LAMP FACTORY
G
loryland IM Limited, the sole representatives of Dyode Limited, said it plans to set up a N500million factory that will pioneer the p ro d u c t i o n o f L E D lamps in Nigeria.
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create about 450 new jobs. “ T h e N500million is only for the first phase of the factory, and it will employ about 450 technical staff, which will be increased to
1,000 within one year of becoming operational. When it resumes manufacturing fully, we will need about 5,000 direct workers and this will lead to a multiplier effect in terms of suppliers and other services required.” He added that some of the components for the lamps can be sourced locally, even as he said the factory will be located between Lagos and Ogun states, adding that the management was currently in the process of delineating the market before the factory takes off.
IFAD SUPPORTS NIGERIA’S AGRIC-SECTOR WITH N16.2BN
T
he International F u n d f o r Agricultural Development (IFAD) has offered a fresh boost of $105.2 million, -
about N16.2 billion to the agricultural sector in Nigeria. The fresh support comprises a loan of $74 million and $0.5 million grant. The loan secured under IFAD-Nigeria Va l u e C h a i n Development Program (VCCP) would be executed as a joint project, with Federal, States and Local Governments providing counterpart fund contribution to the tune of $31.2 million. The funds are to be channelled into the increase of cassava and rice production value chain. Coordinating Minister of the Economy, Dr. Ngozi O kon j o I wea la a n d Minister of Agriculture, Akin Adesina signed the Memorandum of Understanding (MoU) on behalf of the federal government while IFAD President, Mr. Kanayo Nwanze signed for IFAD in Abuja on Thursday. Under the IFADNigeria Value Chain
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Development Program project , six states: Benue, Adamawa, Ebonyi, Taraba, Niger, and Anambra have been listed for enhanced production of cassava and rice. The project has a six year implantation period with a 0.7 percent interest rate. The Minister of Finance harped on the need to strengthen IFAD and government re l a t i o n s h i p w h i c h dated back to 1985 when Nigeria became a B list member of the global body. She said the IFAD package will “no doubt take our agric plans many notches higher and create jobs, s u s t a i n fa m i ly a n d improve the economy.” The Minister of agriculture said the new efforts would assist Nigeria in her quest to attain sufficient cassava production and rice cultivation.
A
s Federal and S t a t e governments’ combined efforts to reposition the economy continue to yield r e s u l t s , t h e Commissioner for Commerce and Industry in Ogun State, Chief Bimbo Ashiru has said about 54 foreign firms have indicated interest in investing in the state. The commissioner said this during a meeting with members of the Ogun Chamber of Commerce, Industry, Mines and Agriculture. While urging the investors and c o m p a n i e s a l r e a dy operating in the state to pay their taxes and levies regularly to the coffers of the state government, Ashiru said the ministry had received over 54 letters of intent from foreign investors aiming to set
54 FIRMS TO INVEST IN OGUN STATE
up business ventures in the state. “Our industries, our investors should be responsible enough to pay their taxes and levies as at when due so that we continue to provide the necessary amenities and infrastructure for them. We are creating what is called the Ogun Standard by ensuring that we create an enabling environment and the necessary infrastructure for investors,” he said. T h e Commissioner also informed that the State had embarked on the rehabilitation of state and federal roads as part of its efforts to attract more investors. He said, “On the Agbara area, we are aware that the road that leads to the Agbara Industrial Estate is bad but that road belongs to the Federal Government, it’s not Ogun State Government road, but we’ve taken it upon ourselves do it. ‘There
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are so many Federal Government roads we have started fixing in Ogun State. We are not waiting for the Federal G ove r n m e n t . We believe that they will eventually compensate us. But we are not waiting for that because we want to create the n e c e s s a r y infrastructure and create an enabling environment for our investors and we know that one of the primary objectives of any investor is to look at the security of his property and investment and security of his workers.” “So, we are looking into that and hopefully we are going to sort those things out. Even the Ogijo-Ijoko road we are talking about, we have already awarded the contracts and we are putting the final touches on that.” He said the tight security around the industrial areas had reduced the rate of armed robbery. Ashiru added,
“ M a n y o f t h e industrialists in the state have attested to the fact that we have been able to provide the necessary security. We have stationed one Amoured Personnel Carriers around there and they even thanked us that so far so good, the rate of robbery has reduced
NIGERIA’S AGRIC-SECTOR ATTRACTS MULTI- MILLION DOLLAR FOREIGN INVESTMENTS
M
easures taken by the Federal Government to reposition the agricultural sector in line with the Transformation Agenda are beginning to yield desired results with numerous individuals and global bodies committing to invest in the sector. Shortly after presenting the 2012
budget implementation report of his ministry to President Goodluck Jonathan on Tuesday, Minister of Agriculture, Dr Akinwunmi Adesina told State House correspondents that foreign investors have been attracted to the sector with a $1.6billion ethanol plant to be built in the country. In addition, he said the country would also be the beneficiary of a $40million rice mill to produce 300, 000 metric tonnes of rice. He disclosed that the total investment from cassava and rice has hit $1.5billion mainly from the effort of the private sector, adding that it was a demonstration of the confidence investors have in the agriculture sector. The Minister revealed that the progress in the agriculture sector has attracted the attention of the international community with founder of Microsoft, Bill Gates agreeing to
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serve in the Eminent Person Group to advise Nigeria on the sector. He added that the Bill and Melinda Gates Foundation has also indicated its interest to set up an office in the country because of the growing stature of Nigerian agriculture. O t h e r international agencies he mentioned that have interest in the nation’s agriculture sector are the World Bank which he said would invest $ 9 0 0 m i l l i o n , International Fund for Agriculture (IFAD), $80million and African D e ve l o p m e n t B a n k (ADB), $250million. Giving the achievements of his ministry, the Minister who was the third minster to present such report to the President after his Interior and Police Affairs counterparts, said the President insisted on the presentation because he wanted to know the progress, challenges and how to
support the ministries to end such challenges towards proper implementation of their budgets. Noting that about 20 million metric tonnes were expected to be added to available food in the country by 2015 through the efforts of government working with the p r i v a t e s e c t o r, h e pointed out that the electronic wallet created by the ministry has succeeded in eliminating fraud in the distribution of fertilizer in the country. “It has taken away a situation where farmers need to know people in high places before they can get fertilizer,� he said. On the successes so far recorded in the area of cassava commercialization, Dr. Adesina remarked that market has been created outside Nigeria for the commodity yielding for the country about $1.6million from China and the United
States of America this year. On the rate of budget implementation so far, he said the ministry had only received N13.8 billion or 29 percent of its N48.1 billion capital allocation in this year’s budget. Out of this figure, the sum of N9.4billion or 68 percent has so far been utilized. He added that the amount utilized was m a i n l y f o r commitments in the procurement of fertilizer and seedlings.
level of agricultural growth in Nigeria is worth $99 billion. Adesina, while speaking during the 1st Nigeria International Microfinance Investors’ conference of the Rural Finance Institution Building Programme (RUFIN) in Abuja, Nigeria said to achieve this, his ministry has developed a bold A g r i c u l t u r a l Transformation Agenda (ATA). He noted that the agenda is based on targeting an additional 20 million Metric Tonne
NIGERIA TO ATTAIN $300BN AGRICULTURAL GROWTH BY 2030
I
n another forum, the Minister of A g r i c u l t u re a n d Rural Development, Dr. Akinwumi Adesina has said that by 2030, the agricultural sector in the country would have attained $300 billion growth, as the current
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of domestic food production in four years, making Nigeria self-sufficient in rice production by 2015 as well as reducing the level of importation of wheat by 40 percent. He also noted that government is
committed to cutting the N635 billion spent on wheat importation per year by substituting 40 percent of wheat flour used in bread and other confectioneries with high quality cassava flour, and create 3.5 million jobs by 2015. “To do this, we have r e p o s i t i o n e d agriculture away from farming to agriculture as a business. We are a g g r e s s i v e l y implementing our A g r i c u l t u r a l Transformation Action P l a n ( ATA P ) , w i t h specific focus on agricultural value chains for rice, cassava, sorghum, maize and s o ya b e a n s , c o t t o n , cocoa and oil-palm, as well as fisheries, aquaculture and livestock production”, the minister said. He said in order to raise agricultural p r o d u c t i v i t y, t h e ministry had placed priority on improving the access and affordability of improved seeds and
fertilizers to farmers to allow them raise their p r o d u c t i v i t y. “ T h e A g r i c u l t u r a l Transformational Agenda in Nigeria is a journey. While a lot of progress has been made in the past nine months since we started, with some bumps along the way, there is still much ahead to do to get to our desired destination. “As one nation, indivisible, we must continue to pursue rapid agricultural productivity growth, policy and institutional reforms that will make agriculture a viable business, one that is more productive, efficient a nd competitive. For only through this can the power of agriculture be unlocked, to secure Nigeria’s food supply, today, and well into the future”, he said. While noting that about 60 percent of working population in Nigeria is in agriculture, International Food and A g r i c u l t u r a l
Invest Nigeria 28
Development (IFAD)’s Country Programme Manager, Ms. Atsuko Toda, advocated for more steps to be taken to ensure that outreach is made by financial institutions to rural dwellers, who she said continue to be underserved.
The minister lamented that the rice mill, before the intervention, had only worked for 10 hours in 10 years due to poor infrastructure, adding that the project which was abandoned for over 18 years under the Lower Anambra
FEDERAL GOVERNMENT OF NIGERIA
REVIVES ANAMBRA RICE MILL WITH N3.2BN
T
he Federal Government has s p e n t N3.2billion to revive the Omo rice mill in Anambra State. Minister of Agriculture, Dr Ad e w u n m i Ad e s i n a disclosed this while declaring open a stakeholders’ forum on the implementation of National Rice Development Strategy (NRDS) organized by his ministry and the Japan International Cooperation Agency (JICA) in Abuja.
Irrigation Project (LAI), had the capacity of milling 3.3 tons of rice per hour. Adesina said: “Omo mill in Anambra state has worked 10 h o u r s i n 1 0 ye a r s meaning it worked one hour per year because of unsteady power and poor infrastructure. But now N3.2 billion has been made available to solve the problem.” According to him, it was the first time in the history of the country that four ministries are
partnering to address a major problem. He said “the Ministry of Power will provide 33 Kilovolts Ampere (KVA) power to the mill, Ministry of Water Resources is to channel 3800 of irrigated water while the Works Ministry will construct four kilometers of road to the facility.” As part of efforts to also improve rice production, Adesina noted that about 334 improved rice varieties are being disbursed to some rice producing states which include: Taraba, Benue, Jigawa, Bauchi, Zamfara and Ebonyi States. The Ambassador of Japan to Nigeria, Mr. Ryuichi Shoji said that more than two million metric tons of rice is currently imported into the country despite her rich agricultural potentials. He lamented that Nigeria is among the largest producer of rice in Africa yet remains one of the
Invest Nigeria 29
largest importers of rice in the world. He added that through JICA, the government of Japan had been working towa rd s i m p rov i n g post-harvest processing in the country especially in Nasarawa and Niger States. “The CARD initiative was aimed at doubling rice production within 10 years from 14 to 28 million tons in SubSaharan African countries. This is more important because of t h e g r o w i n g p o p u l a t i o n ,” S h o j i added
farmers in Lagos State. Again, Minister of Agriculture and Rural D e v e l o p m e n t , D r. Adewunmi Adeshina who disclosed this at the flag-off of the Growth Enhancement Support Scheme (GESS), said the fund would be devoted to acquire fertilizers for the farmers. Adeshina added that the fund would cover 50 per cent of the cost that would be spent by farmers on fertilizer in the state. He explained that the cost of fertilizer and seed va l u e d a t N 3 6 , 0 0 0
FARMERS IN LAGOS STATE GET N330M GRANT
A
s p a r t o f m e a s u r e s t o w a r d s increasing food production in the country, the Federal Government has approved N330 million grants to assist 20,000
wo u ld b e g ive n to farmers with the farmer paying N18,000. He said: “This year also, in effort to encourage farmers to use improved seeds, all seeds will be supported by the Federal
Government by 100 per cent.” 128,000 bundles of improved cassava planting materials will also be supplied this year under the scheme. The Minister said that this is geared towards increasing the cassava production in the country, as the country aims to reduce importation of wheat.
they have a joint capacity of between 30,000 and 60,000 barrels per day. Minister of Trade and Investment, Olusegun Aganga who signed the MoU on behalf of the Federal Government, said it was part of National Industrial Revolution Plan which aimed to stall the exportation of
FIRM TO CONSTRUCT SIX REFINERIES IN NIGERDELTA WORTH $4.5BN
T
he Federal Government has s e a l e d a Memorandum of Understanding (MoU) with a firm - Petroleum Refineries and Strategic Research Ltd - on the construction of two modular refineries in the coastal areas of Nigeria at the cost of $4.5 billion dollars. The refineries are expected to be commissioned in 12 months time and
Invest Nigeria 30
raw materials and jobs from Nigeria while encouraging the transformation of the raw m a t e r i a l s a n d exportation of finished goods which add value to the economy. Aganga added that the firm had a history of performance and a trusted track records having delivered on bigger projects in Russia and other countries. He also
promised that government will give the firm all the technical support it needs to accomplish the task, saying that the Nigerian National Petroleum Corporation (NNPC) is actively involved in the deal. “This is part of the paradigm shift we talk about. We have to stop exporting crude oil and therefore we need more refineries. With the signing of this deal, I am sure the two refineries which will cost about $4.5 billion dollars will be commissioned in a year’s time,” he said. Aganga justified the involvement of the private sector in government’s transformation agenda, adding that the Eleme Petrochemicals is now 30 times more productive than when it was in the hands of government. Chairman of the company, Chief Edozie Njoku said the two refineries were part of a
Notice
30-month plan to construct 6 modular refineries in strategic places in Nigeria. He added that the construction of the other four refineries will commence after the first two are completed in 12 months time. He added that his firm will build simple refineries, “that will help tackle the problems of Nigeria as against the existing complex refineries.” effort to facilitate its quick passage in to law,” she added. For more NEWS, visit www.nigeriarising.com.ng
ABOUT ‘NIGERIA RISING’
N
igeria Rising is an Internet platform founded to promote and project progress in Nigeria. The idea for Nigeria Rising was born out of the desire to revive a sense of nationalism and pride in Nigerians again. The platform’s focus is to
Invest Nigeria 31
showcase development in the private sector and in government as well as the activities of civil society groups, showing to the world how much we can accomplish when we find the perfect synergy. The platform is also of the position that the days of merely responding through press rebuttals to incidents have come to an end. It believes Nigerians need to seize the gauntlet. Thus the platform’s desire to seize the momentum, pick up the initiative, direct the conversation, write our own history, counter-balance the negative information being peddled on the Internet, with the authentic information about our land and people as readily available, on the platform’s w e b s i t e www.nigeriarising.com.ng. “Our message is simple – Nigeria is not static or regressing. We are moving forward. Let us give our country a chance and celebrate our progress. We believe that Nigeria is indeed rising and you can be the change!”
call for investors NIGER STATE SEEKS INVESTORS IN: Agriculture; Health; Mining & Solid Minerals; Small & Medium Enterprise Development; Tourism; and, Transportation Infrastructure. TARABA STATE SEEKS INVESTORS FOR: Light Rail Industry; and, Mining OGUN STATE SEEKS INVESTORS FOR: Light Rail Industry; and, Agriculture Machinery
1. 2. 3. 4. 5. 6.
NIGERIA RAILWAY SEEKS PARTNERS AND MANUFACTURERS: for coaches; spare parts, and: Conversion of wagon bearings to roller bearings; Conversion of train braking system from vacuum to air; Conversion of AB coupler to more effective system; Modernization of track maintenance; Improvement of ticketing system; and, Manpower development and training. GLORY AIRLINE A company based in Lagos State, Nigeria, seeks Partners Investors in Helicopter industry - Shuttle services; and Spare parts
1. 2. 3.
HONORABLE MINISTER OF AVIATION, PRINCESS STELLA ADAEZE ODUAH, OON), SEEKS INVESTORS IN THE AVIATION SUB-SECTOR TO: Maintain a Hangar - needs refurbishment and modern equipment; Set-up Aircraft Engine Workshop - A workshop that can effect A, B, C, & D checks on various grades of aircrafts used in the Country and in the West African sub-region; Develop and manage a five-star hotel in Lagos.
Invest Nigeria 32
4. 5. 6.
1. 2. 3. 4. 5. 6. 7. 8.
1. 2. 3. 4. 5. 6. 7. 8.
Provide Catering Equipments and Infrastructure to meet the needs of the Airline Industry; Establish Modern Aircraft Training Facility; and, Develop/construct Airport Terminals. NIGERIA’S MARITIME SUB-SECTOR SEEKS INVESTORS TOWARDS: Providing Liner Services - Foreign Shipping Companies can engage in the provision of Liner Services through joint sailing agreement with Nigerian shipping companies; Cabotage - Government encourages joint ventures in the ownership and operation of light vessels between ports, which must be fully registered in Nigeria; Ship Acquisition and Ship Building/Lifting of Crude Oil and Gas; Pollution Control in the Oil Producing Coastal Regions Search and Rescue - provision of equipment to meet various requirements; Training /Technical Assistance in the industry; Tanker Trade - joint venture with Nigerians in the exportation of Nigerian crude oil; and, Proposed Nigerian Maritime Consultancy Centre expected to cover: a. Marine engineering spare parts supplies; b Ships and Port management; c. Ships, Ports and Boat supplies; and, d. Seaports, Oil Terminals and Ship Communication Equipment. FEDERAL GOVERNMENT SEEK INVESTORS IN ROAD TRANSPORTATION SUB-SECTOR TOWARDS: Provision of Modern Buses equipped with communication system; Provision of Trams to facilitate passenger movement in both rural and urban areas; Haulage trucks for goods and services; Provision of Service facilities at the terminals on both the highways and destinations; Collection of tolls for the use of the service facilities provided to help sustain the system; Computerization of services to enhance efficiency and control of operations; Commercialization of terminal facilities; Central terminals in various urban and rural locations in the country with service facilities. Invest Nigeria 33
events LOGISTICS WEST AFRICA STRATEGIC CONFERENCE & EXHIBITION Date: 05-NOV-12 to 07-NOV-12 Venue: Eko Exhibition Centre, Lagos, Nigeria Brief: Logistics West Africa Strategic Conference & Exhibition is a conference organized to discuss and debate issues of supply chain in industries along with finding newer methods that develop the existing supply chain efficiency. It is a platform for learning how to better the supply chain process, and business networking.
PUBLIC AND PRIVATE PARTNERSHIP AFRICA Date: 14-NOV-12 to 16-NOV-12 Venue: Sheraton Abuja Hotel Abuja, Nigeria. Brief: APPP 2012 is the only event in Africa where senior professional, VP to CEO level delegate from small engineering firms to top 10 global infrastructure developments firms, financiers and legal advisers behind innovation gather to discuss high level strategy and build quality relationships.
NIGERIA ENERGY AND POWER INVESTMENT SUMMIT Date: 29-NOV-12 to 30-NOV-12 Venue: Transcorp Hilton Abuja Hotel, Abuja, Nigeria. Brief: Solutions to contemporary issues impacting the sustainable energy supply to Nigerians and West Africa. With emphasis on power generation, transmission and distribution, renewable energy solution, gas power supply issues, and enabling regulatory environment for investment opportunities.
THE NIGERIA SUMMIT Date: 19-MAR-13 to 20-MAR-13 Venue: Eko Hotel, Lagos, Nigeria. Brief: World class exposure for Nigeria. Focusing on Africa as a land enriched with natural resources. The development of the African masses both economically and socially is one of the primary focuses of this summit.
LAGOS POWER CONFERENCE Date: 16-OCT-12 to 17-OCT-12 Venue: TBA, Lagos, Nigeria Brief: Lagos Power Conference a strategic B2B forum which mainly concentrates on effective dialogue between stakeholders to lay special emphasis on sustainable investment and at the same time explore dynamic strategies and policies in power sector. This will be the perfect meeting place for Government Representatives, CEOs, Presidents and VPs, Governors and High Commissioners, State Commissioners, Chief Investment Officers mainly from domains like Power Generation, Distribution Services, End user Supply Management, Power Engineering, Construction Services, Project Management, Project Financing, Power Trading etc. Topics like - Processes to Increase Investment, Generating Power For Industrialization and Economic Diversification etc.
Invest Nigeria 34
GALLERY OF NIGERIA’S ENDOWMENTS
Invest Nigeria 35
ACACIA NILOTICA
AMARANTHUS
CYPERUS SCULENTUS LATIVUM
BAMBARA NUTS
BAMBOO
BANANA
BOABAB
BEANS
BENISEED
BITTER KOLA
BORASSUS PALM
CABBAGE
CANE ROPE
CANE SUGAR
CANE WOOD
CARROT
CASHEW
CASSAVA
Invest Nigeria 36
BLACK BEANS BLACK CARWAY
CASTER OIL PLANT
CHEESE
CHILLIES
CITRUS
COCOA
COCONUT
COCOYAM
COFFEE
COTTON
COWPEA
CRAYFISH
CUCUMBER
DIARY
DATE PALM
FISH
FORESTRY
GARDEN EGG
GARLIC
GINGER
GMELINA ABORA
Invest Nigeria 37
GROUNDNUT
GUAVA
GUINEACORN
GUM ARABIC
HIDE NULL
HONEY
IRISH POTATO
IROKO
IRVINGIA
JUTE
KENAF
KOLANUT
LIVESTOCK
LOCAL PEAR
LOCUST BEANS
MAHOGANY
MAIZE
MANGO
MELON
MILLET
Invest Nigeria 38
NEEM TREE
OBECHE
OKRO
ONIONS
PAWPAW
OYSTER
PALM KERNEL
PEPPER
PIGEON PEA
PIGGERY
PINAPPLE
PLANTAIN
PLYWOOD
POULTRY
PUMPKIN
RABBITERY
RAFFIA PALM
RICE
RUBBER
Invest Nigeria 39
PALM PRODUCE
SEA FOODS
SHEABUTTER
SHEANUT
SHRIMPS
SNAIL
SORGHUM
SORREL
SOYABEANS
SPICES
SUNFLOWER
SWEET POTATO
TAMARIND
TAUMATOCOCCUS DANIELLI
TEA
TEAK
TIMBER
TOBACCO
TOMATOES
VEGETABLES
WATER MELON
WHEAT
YAM
Invest Nigeria 40
INVESTMENT PROMOTION INSTITUTIONS
T
he Bank of Industry Limited (BOI) is Nigeria's oldest, largest and most successful development financing institution. It was reconstructed in 2001 out of the Nigerian Industrial Development Bank (NIDB) Limited, which was incorporated in 1964. The bank to o k o f f i n 1 9 6 4 w i t h a n authorized share capital of 2 million (GBP). The International Finance Corporation which produced its pioneer Chief Executive held 75% of its equity along with a number of domestic and foreign private investors. Although the bank's authorized share capital was initially set at N50 billion in the wake of NIDB's reconstruction into BOI in 2001, it has been increased to 250 billion in order to
put the bank in a better position to address the nation's rising economic profile in line with its mandate. Following a successful institutional, operational and financial restructuring programme embarked upon in 2002, the bank has transformed into an efficient, focused and profitable institution that is well placed to effectively carry out its primary mandate of providing long term financing to the industrial sector of the Nigerian economy. The bank primarily assists local and foreign entrepreneurs to establish new industries as well as expand and modernize existing ones. Bank of Industry is the foremost long-term industrial financing institution in Nigeria. The bank brings to bear its more than 40 years in depth knowledge of the Nigerian market, and the expertise of its specialized team of professionals in diverse disciplines to offer customized project and industrial financing as well as advisory services to its customers.
BANK OF INDUSTRY LIMITED Invest Nigeria 41
INVESTMENT PROMOTION INSTITUTIONS BOI which has developed high competence in project selection, appraisal and management over the years, enjoys decades of successful working relationships with multilateral, regional as well as foreign development agencies and development finance institutions all over the world. The bank’s operation is supervised by the Central Bank of Nigeria, and the Federal Ministry of Trade and Industry. The bank operates with a Vision – “to be a leading self sustaining development finance institution, operating under Ms. Evelyn s o u n d management a n d banking principles that would
promote the emergence and development of a virile competitive industrial sector in Nigeria”; While its pursues its Mission –“to transform Nigeria's industrial sector and integrate it into the global economy by p rov i d i n g financial and business s u p p o r t services to attain modern capabilities for the production of goods that a r e competiti v e i n both the Oputu, MD, BOI. domest ic and external markets”. The bank’s Mandate is simply to – provide financial assistance for the establishment of large, medium and small projects as well as expansion, diversification and modernization of existing enterprises; and rehabilitation of ailing ones.
BANK OF INDUSTRY LIMITED Invest Nigeria 42
INVESTMENT PROMOTION INSTITUTIONS WHO CAN BOI ASSIST? 1.
2.
3.
4.
5.
6.
Small, medium and large enterprises, excluding cottage industries; New or existing companies, seeking expansion, modernization or diversification; Credit worthy promoters who will be required to prove their commitment to the project by contributing at least 25% of the project cost excluding land; Borrowers whose management capability, financial situation (including availability of collateral and guarantee), character and reputation are incontrovertible; Clients with demonstrable ability to meet loan repayments; and Borrowers with no record
of unpaid loans to erstwhile development finance institutions and other banks.
BOI’S PROJECT SELECTION CRITERIA The bank's emphasis is on prudent project selection and management. Accordingly, it supports quality projects with potential developmental impact. BOI therefore, considers industries that meet the following criteria: 1. Capacity to substantially add to industrial output; 2. Projects that use largely domestic raw materials; 3. Industry in which Nigeria’s comparative advantages could be converted to competitive ones; 4. Ability to promote the expansion of exports through the production of high quality products that are attractive to domestic and export markets; 5. Niche projects that produce for worldwide consumption; 6. Projects that create both
BANK OF INDUSTRY LIMITED Invest Nigeria 43
INVESTMENT PROMOTION INSTITUTIONS
7.
8.
9.
10.
11. 12.
forward and backwards linkages, with the rest of the domestic or regional economy; Ventures that promote inter-state or regional integration; Small and medium enterprises (SMEs) that have linkage with large firms, belong to clusters and operate under franchise; Enterprises with high employment generation capacity; The project must be technically feasible, commercially viable and economically desirable; Projects that are environmentally friendly; Enterprises that have good management set-up and proper accounting
13.
procedures; and, Enterprises promoted by women entrepreneurs.
The Bank also accords the following industrial sub-sectors priority in the project selection: 1. Agro-industries, textile and leather; 2. Polymer –based industries; 3. Solid minerals; 4. Foundries; and, 5. I n f o r m a t i o n communication technology (ICT) services.
BOI OPERATES ON THE PRINCIPLES OF: 1.
2.
3.
4. 5.
Professionalism, excellence and integrity in the conduct of its business; Long term partnership (Relationship) with clients, based on shared responsibilities for the success of enterprises; Equitable commitment to t h e p ro s p e r i t y o f a l l stakeholders; Assurance of BOI's viability, survival and capabilities; Lending decisions based
BANK OF INDUSTRY LIMITED Invest Nigeria 44
INVESTMENT PROMOTION INSTITUTIONS 6.
7.
both on project's expected viability and probability of loan repayment; Interest charges to cover cost of borrowing, risk and operating expenses; and, Support of enterprises with potential t o b e profitabl e , competit ive a n d sustaina ble and h a v e substanti a l d e ve l o p mental impact.
COMMERCIAL BANKS The bank is primarily a long-term lender. However, owing to the difficulties being experienced by BOI's customers in accessing working capital facilities from commercial banks, the Bank of Industry has entered into
BOI’S PARTNERSHIP WITH partnership with some commercial banks. Under the arrangement, BOI grants term loans while the commercial banks provide the working capital. To help reduce the cost of doing business in Nigeria, BOI and its partner-commercial banks plan to
BANK OF INDUSTRY LIMITED Invest Nigeria 45
INVESTMENT PROMOTION INSTITUTIONS construct industrial parks in states of the federation that are prepared to give incentives to SMEs.
BOI’S DEVELOPMENT ORIENTATION BOI's emphasis is on prudent project selection and management. The bank, accordingly, supports quality projects with potential development impact. It operates an office in each of Nigeria’s geopolitical zones and FCT Abuja to ensure it is accessible to all, and that its impact is felt in all parts of the country. The Bank of Industry assists projects to generate considerable multiplier effects such as job creation and poverty a l l ev i a t i o n , b o t h o f wh i c h invariably enhance the social and economic condition of Nigerians.
BOI is also eminently positioned to manage foreign grants and aids that are given to facilitate attainment of the nation's developmental aspirations; the implementation of the National Economic Empowerment and Development Strategy (NEEDS); the realization of the Federal Government is sustainable pro-employment of 10% economic growth rate per annum; and, the Millennium Development Goals. SUBSIDIARIES OF BOI ARE: 1. Leasing Company of Nigeria Limited; 2. Bank of Industry Investment and Trust Company; 3. Industrial Development Insurance Brokers Limited; and, 4. BOI Micro Finance. BOI’S OFFICES ACROSS NIGERIA HEAD OFFICE Bank of Industry Limited 23, Marina, P.O.BOX 2357, Lagos.
BANK OF INDUSTRY LIMITED Invest Nigeria 46
INVESTMENT PROMOTION INSTITUTIONS Tel: 01 2715070-99 E-mail: info@boinigeria.com Website: www.boinigeria.com ZONAL OFFICES CORPORATE OFFICE: BOI HOUSE Plot 256, Zone A O, Off Herbert Macaulay Way, Behind Unity Bank, Central Business District, P.M.B. 205 Abuja, FCT - Abuja. Tel: Zonal Manager Abuja 08039113911 ZONAL OFFICE (ENUGU) BOI House 47 Coal City Estate Behind Central Bank Of Nigeria Building, Enugu. Tel: Zonal Manager Enugu 08058614878, 08065245540 ZONAL OFFICE (AKURE) BOI house
Owo Road, P.M.B 804, Akure, Ondo State, Tel: Zonal Manager Akure 08023124508,08055179643 ZONAL OFFICE (ASABA) Bank of Industry Limited Plot 25,block 111, Phase IV Okpanam Road, P.M.B 5099, Asaba, Delta State. Tel: Zonal Manager Asaba 08023363109, 07063672506 ZONAL OFFICE( BAUCHI) BOI house Maiduguri road, P.M.B.245 Bauchi, Tel: Zonal Manager Bauchi 08030613555 ZONAL OFFICE (KADUNA) BOI House 18, Warf Road, P.M.B 2141, Kaduna, Tel: Zonal Manager Kaduna 08035076346 ZONAL OFFICE (LAGOS) Bank of Industry limited 23, Marina, Lagos, P.O. Box 2357, Lagos, Tel: Zonal Manager Lagos 08033140233
BANK OF INDUSTRY LIMITED Invest Nigeria 47
Investors In The Lead
DANGOTE INDUSTRIES LIMITED T
he Dangote Group Dangote Indutries Limited with its corporate head office in Lagos, Nigeria, is one of the most diversified business conglomerates in Africa, Nigeria’s pride of industrialization, with a hardInvest Nigeria 48
earned reputation for excellent business practices and products' quality. The Group's activities encompass: Cement Manufacturing / Importing; Sugar - Manufacturing & Refining; Salt – Refining; Flour & Semolina – Milling;
Pasta - Manufacturing ; Noodles – Manufacturing; Po l y P r o d u c t s – Manufacturing; Logistics Po r t M a n a g e m e n t a n d
GROUP’S
Haulage; Real Estate; Oil and Gas; Dangote Foundation.
Dangote Group’s subsidiaries includes the following, among others: ? A L C O MILESTONES: Internationa l Limited; ? Dangote N i g e r i a Limited; ? Dangote Tr a n s p o r t Limited; ? Dangote Cement Plc. – (Listed on N i g e r i a S t o c k Exchange); ? National Salt Company of Nigeria Plc. – (Listed on N i g e r i a S t o c k Exchange); ? Dangote Flour Mills Plc. – (Listed on Nigeria S t o c k
Invest Nigeria 49
Exchange); ? Dangote Sugar Refinery Plc. – (Listed on Nigeria Stock Exchange); ? Dangote Oil & Gas Industri e s Internati onal; ? Dangote Te x t i l e s Limited; ? Dangote Holdings Limited; ? Blue Star Limited; ? Dansa Foods Limited; ? Dansa Food Processing Limited; ? Dancom Technologies; ? GreenView International Company Limited - Has invested US$28+ million in cement factory in Ghana; ? Sephaku Cement Limited Dangote Group has 64% shareholding in this South African cement company; ? Alheri Engineering Invest Nigeria 50
Limited; ? Kura Holdings Limited; Dangote Group is a multibillion dollars company poised to reach new heights, in e v e r y endeavour competing with itself to better it past. Since inception, the Group has experienced phenomenal growth on account of the quality of its goods and services, capitalizing on cost effective leadership and the efficiency of its human c a p i t a l . The Group's core business focus is the provision of local, value added products and services that meet the 'basic needs' of her market through the construction and operation of
large scale manufacturing facilities in Nigeria and across Africa. The Group focuses on building local manufacturing capacity to generate employment and provide goods and services for the good of people all over the world. What later formed into a group took-off in May 1981 as a trading business with an initial focus on cement, diversifying over time into a conglomerate trading in cement, sugar, flour, salt and fish. By the early 1990s the humble beginning had grown into one of the largest trading conglomer a t e s operating i n t h e country. In 1999, following Nigeria’s transition to civilian rule, and resulting from an inspirational visit to Brazil to Invest Nigeria 51
study the emerging manufacturing sector, the Group made a strategic commitment to transit from a trading based business into a full-fledged manufacturing business, especially in a country where imports constitute the bulk of consumer goods. The Leadership saw an investment opportunity; a clear gap existed for a manufacturing operation that could meet the 'basic needs' of a vast and fast growing
population and subsequently took-up the challenge to provide. The Group embarked on an ambitious construction
programme, initially focused on the construction of flour mills, a sugar refinery and a pasta factory. In 2000 the Group acquired the Benue Cement Company Plc from the Nigerian government and in 2003 commissioned the Obajana Cement Plant; the largest cement plant in subSaharan Africa. Today, the Group is one of the largest manufacturing conglomerates in subS a h a r a n Af r i c a a n d i s pursuing further integration alongside an expansion programme in existing and new investment sectors. The Group is currently the largest employer of Labour besides the Nation’s civil service in Nigeria. THE GROUP’S CONCERNS ARE: 1
. Invest Nigeria 52
DANGOTE CEMENT: M A N U FA C T U R I N G / I M P O R T A T I O N , PACKAGING AND DISTRIBUTION Dangote Cement is a fully integrated cement company and has projects and operations in Nigeria, Benin and Ghana; with total existing production and import capacity of 14 million tonnes per annum and new production projects in development with 11.1 million tonnes per annum additional capacity. The Company operates Obajana Cement Plant (OCP), the largest cement plant in subS a h a r a n Africa. The company’s aggressive growth plans target a strong panA f r i c a n presence as Dangote THE GROUP’S HEAD-OFFICE IN LAGOS, NIGERIA C e m e n t
evolves to become a truly multi-national corporation. As part of this drive, Dangote Cement commits to making Nigeria a net exporter of cement. The company owns four terminals, two in Lagos and two in Port Harcourt through which it currently imports cement. These terminal operations the company’s leadership says will progressively be replaced and converted into export terminals as new production
as outlined: CEMENT - NIGERIA PLANTS: -. Obajana Cement Plc, Kogi; -. Benue Cement Company, Benue; and, -. Dangote Cement Works Ltd, Ibese. Combined Capacity : 20 million Metric Tonnes Per Annum. CEMENT - NIGERIA TERMINALS:
S U B S I D I A RY H I G H - M A R K S : OBAJANA CEMENT PLANT (OCP). Obajana Cement Plant is the single largest cement plant in Africa with a capacity of 5.2 million MTpa (and a plus capacity of over 5 million MTpa). The plant uses Vertical Roller Mills for energy, efficient grinding of raw materials and clinker. It also has an approximate gas pipeline length of 90km for the supply of natural gas to cement plant, and independent power plant (135 mw capacity - gas/diesel based) from Ajaokuta to Obajana (capacity -96,000 cu.m/hr.)
capacity comes online in Nigeria.
-. -.
The company’s operations are
-.
Invest Nigeria 53
Lagos Cement Terminal; Port Harcourt Cement Terminal; Onne cement terminal;
-.
Aliko Inland cement terminal; and, -. Continental Cement terminal. Combined Capacity: 9 million Metric Tonnes Per Annum. CEMENT - AFRICA – PLANTS: -. Senegal -1.5 million M e t r i c To n n e s Pe r Annum; -. Zambia - 1.5 million M e t r i c To n n e s Pe r Annum (Green-field projects); -. Tanzania - 1.5 million M e t r i c To n n e s Pe r Annum; -. South Africa - 2.2 million Metric Tonnes Per Annum; -. Congo (Brazzaville) - 1.5 million Metric Tonnes Per Annum; -. Ethiopia - 1.5 million M e t r i c To n n e s Pe r Annum; and, -. Cameroun (Grinding) 1.5 million Metric Tonnes Per Annum. Invest Nigeria 54
Combined Capacity: 11.2 million Metric Tonnes Per Annum. CEMENT - AFRICA – TERMINALS: -. Ghana - 3.0 million M e t r i c To n n e s Pe r Annum; -. Sierra Leone - 0.5 million Metric Tonnes Per Annum; -. Ivory Coast - 1.0 million M e t r i c To n n e s Pe r Annum; and, -. Liberia - 0.5 million M e t r i c To n n e s Pe r Annum. Combined Capacity: 5 million Metric Tonnes Per Annum. 2. DANGOTE SUGAR: MANUFACTURING AND REFINING Dangote Sugar Refinery PLC commenced business in March 2000 as the sugar division of Dangote Industries Limited. The group’s sugarrefining factory at Apapa port was commissioned in 2001
with an initial installed capacity to process 600,000 Metric Tonnes of raw sugar per annum. The refinery has since then undergone two expansions increasing its production capacity to about 1.44 million Metric Tonnes per annum, making it the largest sugar refinery in sub Saharan Africa and second largest in the world. The company’s operations are as outlined: i. DANGOTE S U G A R REFINERY PLC, LAGOS -. Largest sugar refinery in s u b Saharan Africa -. Currently has over 70% of domestic market share Current capacity of 1.44M Metric Tonnes Per Annum. Invest Nigeria 55
ii. SAVANNAH SUGAR COMPANY LTD, ADAMAWA -. Integrated sugar cane farming & Sugar milling -. Capacity of 50,000 Mtpa (sugar mill) -. Plans to Increase capacity to 1 million tonnes per annum i i i . DANGOTE S U GA R – ALGERIA -. Green Field Refinery Project Capacity 1.25M Mtpa The company ’s sugar presents as either: 1. VITAMIN A FORTIFIED SUGAR Dangote Vitamin A fortified sugar is a fine white granulated sugar, refined to the highest quality and dissolves easily. It is ideal for
table use, baking, sweetening of beverages etc.
AWARDS AND ACCOLADES: DANGOTE SUGAR REFINERY (DSR).
2 . UNFORTIFIED INDUSTRIAL SUGAR D a n g o t e unfortified sugar is a specially processed sugar grade used by pharmaceuticals, food and beverage manufacturing companies etc. 3. DANGOTE SALT: R E F I N I N G (INDUSTRIAL & DOMESTIC) NASCON PLC (National Salt Company of Nigeria PLC) was incorporated in Nigeria as a limited liability company on 30th April 1973.It was fully privatized in April, 1982 and became listed on the Nigerian Stock Exchange on October, Invest Nigeria 56
1992. The company is engaged in the refining and marketing of salt of different grades; Kitchen, table and industrial as well as the importation and sale of ‘Petti
Tomato Paste’. The company is the leading salt manufacturer in Nigeria considering that the company controls more than 60% of the market with production capacity around 600,000 metric tons/annum Dangote Industries Limited is the major shareholder of the company, owning about 62% of the company’s issued shared capital. NAS CON PLC provides employment for over 600 employees. The company’s products include: I. SALT 1. Dangote Edible Salt; 2. Dangote Butter Salt; 3. Dangote Refined Salt (sachet) 250g, 500g, 1kg; 4. Dangote Industrial Salt; 5. Dangote Kitchen Salt; and, 6. Dangote Pure Dried Vaccum (P.D.V) Salt. II. 1.
TOMATO PASTE 70g X 50 Petti tomato Invest Nigeria 57
2. 3. 4.
brand; 400g X 24 Petti tomato brand; 70g X 50 Dangote brand; and, 400g X 24 Dangote brand.
4. DANGOTE FLOUR MILL (DFM): MILLING, PACKAGING Dangote Flour Mills Plc commenced operations in 1999, as a division of Dangote Industries Limited (DIL). Fol l o w i n g t h e s t r a t e g i c decision of the Group’s leadership to unbundle its various operations, Dangote Flour Mills was incorporated in 2006. The restructuring was completed in January, 2006 when the Federal High Court sanctioned a scheme of Arrangement wherein all the assets, liabilities and undertakings of the erstwhile flour division of DIL was transferred to Dangote Flour Mills. Since becoming a business entity, Dangote Flour has expanded rapidly
by opening in flour based q u i c k SUBSIDIARY HIGH-MARKS: products in successions addition to SAVANNAH SUGAR three flour mills t h e COMPANY (SSC). in Kano (2000), company's Savannah Sugar Company Calabar (2001) drive for was originally a government and Ilorin (2005) increased establishment set-up by the from a humble m a r k e t Federal Government in 1971. beginning of an share. Thus Dangote Industries took-over initial installed f r o m a ownersh ip in 2003. The capacity of 500 m o d e s t company cultivates a total of 18,000 hectares, employing MT per day at its beginning approximately 20,000 made Apapa mill. Each the company up of direct employees and of the mills has grown to farmer out growers. The started with an become one company in conjunction with i n s t a l l e d o f t h e national sugar development capacity of 500 industry council designed a FOS; MT per day but l e a d e r s pr oj ec ting to pr odu ce 1 all of them have within a sixmillion tonnes of white sugar subsequently year period. by 2015 cultivating 100,000 h e c t a r e s i n 4 s t a t e s , e x p a n d e d T h e employing over 50,000. resulting in a company has total installed 3 wholly capacity of 5,000 o w n e d MT per day, distributed as subsidiaries, namely: Dangote follows: Apapa - 1,000 MT per Agro sacks Limited, Dangote day, Kano - 500 MT per day, Pasta Limited, and, Dangote Calabar -1,500 MT per day Noodles Limited. and Ilorin -1,000 MT per day. In line with DIL's These expansions were business philosophy of in response to a growing establishing a dominant national demand for flour and presence in any sector it Invest Nigeria 58
operates in, these subsidiaries occupy leadership positions iii. RAW MATERIAL The company imports its in their respective industries. principal raw material, wheat I. BUSINESS The company is in the (the Hard Red winter Wheat business of flour milling, No.2 variety) from United States of processing America and marketing SUBSIDIARY HIGH-MARKS: i n of branded DANGOTE PASTA shiploads flour. Its The award of ‘Nigerian Industrial . Wheat p r o d u c t Standards Award’ for quality by the S i l o portfolio Standards Organization of Nigeria; Tr u c k s comprises the and, the I.S.O. (International (also DIL following: Standards Organization award) 9000 - 2001 for systems quality. owned) Bread Flour, thereafter Confectionery convey F l o u r , Semolina, and, Wheat Offal the wheat to the inland mills in Kano and Ilorin. (Bran). ii. FLOUR MILLING TECHNOLOGY AND PROCESS TECHNOLOGY Dangote Flour transforms wheat into high-quality flour, by using state-of-the art plant and equipment backed by renowned technical expertise. DFM's mills across the country are equipped with the latest flour milling technology available in the world. Invest Nigeria 59
5. DANGOTE PASTA: PASTA (SPAGHETTI AND M A C A R O N I ) MANUFACTURING The Group's pasta production business commenced in June 2000 at Nigerian Ports Authority Ikorodu Terminal, Lagos, Nigeria. The Dangote Pasta Plant, started business with a single production line, churning out two million
cases of spaghetti of 10kg per case. The factory currently has five lines with an installed capacity of 30,000MT per annum producing several variants of macaroni and spaghetti. The pasta production business was operated as a division of DIL until January 2006 when it was spun-off as Dangote Pasta Ltd and is now a subsidiary of Dangote Flour Mills Plc. Dangote Pasta (Spaghetti and Macaroni) widely distributed across Nigeria and parts of West Africa presents as - Spaghetti Standard and Slim; Gancillini; and Macaroni Elbow, Spiral, Twist, Shell and Cut. D a n g o t e Pa s t a i s fortified with Actilease for easy absorption and 10 vitamins. It is the only pasta in Nigeria that is so fortified. 6. DANGOTE AGRO SACKS: POLYPROPYLENE SACKS MANUFACTURING Invest Nigeria 60
Dangote Group produces environmentallyfriendly polypropylene bags majorly for its internal consumption i.e. for the packaging of its products cement, flour, sugar and salt. Bag production is the sole business of the company, producing about 500 million 50Kg-bags per annum. Dangote Agro Sacks Limited, which operates as a subsidiary of Dangote Flour Mills Plc, is the largest producer of sacks in the world. AS REGARDS THE GROUP’S OTHER INTERESTS Dangote Group commits strongly to its vision – “to be a world class enterprise that is passionate about the quality of life of the general populace and high returns to stakeholders” as it goes about achieving it mission – “to touch the lives of people by providing their basic needs” You may have heard or read of the Group’s cement
plants construction at Ibese and Sagamu in Ogun State. They would be 100 percent dedicated the Group's export programme and would have a combined production capacity of 8 million metric tonnes per annum. Concerning Dangote Group's interest on clothing, it has a ginning and spinning mill in Kankara, Katsina State, while Dangote Textile Mill in Kano is producing 600,000 meters and 150MT of yarn per month, even as the Nigeria Textile Mills Plc at Ikeja, Lagos on full rehabilitation will make wax prints with a production capacity of 1.3 million meters and 100 metric tonnes of yarn per month. The Group's Haulage Business unit currently has over 1,500 trucks to support the Group’s extensive products distribution network across the country. Under the auspices of Dangote Equity Energy Resources (DEER), the Group has a 9 percent share of Block Invest Nigeria 61
1 in the Joint Development Zone (JDZ) of Nigeria SaoTome, alongside Chevron Texaco as the operator with 51 percent and Exxon Mobil with 40 percent. Dangote also have 10 percent share of Block III in the JDZ, as well as 6 percent share of Block 315 in Nigeria, along Statoil and Petrobras. The Group, through one of its subsidiaries, Kura Holdings, has acquired the O s h o g b o S t e e l Ro l l i n g Company (OSRC) for the production of flat sheets. While Dansa Foods Limited, a n a s s o c i a t e c o m p a n y, produces Dansa juice, Mowo Table Water and Zizi Yoghurt, all rated as a world-class products. PUBLISHER’S ENDNOTE: Nigeria is daily ripening as an investor’s delicacy – sweetened with abundant Natural Resources, Skilled Human Population and Investor Friendly Environment. The future is now; belonging to those desiring the lead. COME ENJOY THE NIGERIAN ADVANTAGE - INVEST NIGERIA!
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