2. Country Snapshot
•
Official Name:
Federal Republic of Nigeria
•
Capital and Seat of Government:
Abuja (approx. 2.2m residents)
•
Form of Government:
Federal Republic. Presidential Democracy
•
Area:
Approx. 923.800 sq km
•
Population:
2012, approx. 166.2 million (annual growth
rate of 7.46%)
•
Religious Groups:
Muslims (50%). Christians (40%),
indigenous religions (10%)
•
Languages:
English (official), Hausa. Yoruba, Igbo, Fulani
•
Currency Naira:
NGN = 100 Kobo: 159.4 NGN = 1USD:
217.87 NGN = 1 EUR (Jan 2014)
•
Ranked 30th in terms of GDP in the world
($522.18 bn as 2014 estimate)
Major Cities
Lagos
Kano
Abuja
Port Harcourt
3. Nigeria: Industry Overview
Energy
•9 bn tons oil reserves
•5.2 tn cubic meters of Natural
Gas
•Accounts for 72% of revenue
•95% of Foreign Exchange
•10% of world’s LNG production
•NNPC, Total, Elf, ExxonMobil
are the major players
Banking &
Finance
Major
Industries
Telecoms
Transporta
tion
•Regulated by CBN
•Operates under Banking
Ordinance Act, Nigeria 1952
•However, effectively controlled
after 2009
•Afribank, Intercontinental Bank,
Union Bank, Oceanic Bank and
Finbank are some major players
Manufactur
ing
Solid
Minerals
Major
Industries
•8th fastest growing market in
world
•Attracted $26 bn since 2001
•Teledensity reached to 67.2 % in
2012
•Regulated by Nigerian
Communications Commission
•Controlled by Infrastructure
Concession and Regulatory
Commission (ICRC)
•Air traffic increased by 21% in
2012
•Cargo movement grew by 62.3%
•Air France, BA, Emirates are the
major players
•Contributes to 6.3% of GDP
•Most suffering industry due to
lack of power supply
•Govt. investing heavily now, in
2012 invested US$ 4.2 bn
•53% of demand is met by
imports from China, France, US,
UK
Construction
Agriculture
•Less than 2% of GDP
•Major Solid minerals inlude coal,
lead, zinc
•Heavily ignored sector due to Oil
mining
•100 % FDI
•Now reforms are made under
Nigeria’s Minerals and Mining
Act, 2007
•Fastest growing market in the
world, around 6.2%
•Accounts for 4.3% of GDP
•Heavy Govt expenditure on
Infrastructure is boosting its
growth
•Much more investment is
expected in the future
•Contribute 36% of GDP
•Employs 60% of the workforce
•Major goods are yams, cassava,
peanuts, millets and rice
•Major importers are UK, US,
Canada, Germany, France
4. A sea of Solid Minerals
Solid Minerals
•
Large Amount of Minerals are yet to be fully explored.
•
Pro-mining reforms
•
100% FDI
•
The new national solid mineral policy.
•
Year 2007 - “Mining Year”(Enacted Minerals & mines act)
•
Reforms in Power Sector
•
A large community of skilled geoscientists and engineers
•
The World Bank is supporting the government by providing finance for
the Sustainable Management of Mineral Resources (SMMR) project.
•
IRON ORE
Over 3 billion tones of iron ore found in
Kogi, Enugu, Niger, Zamfara & Kaduna
States are yet to be fully explored.
The exchange control regulations have been liberalised to ensure a
free flow of international finance.
GYPSUM
About one billion tones of gypsum
deposits are spread over many states
in Nigeria.
TALC
Estimated reserve of over 100 mn tones
of talc obtained in Osun, Kogi, Kwara,
Ogun, Taraba and Kaduna States.
KAOLIN
An estimated reserve of 3 billion
tonnes of good kaolinitic clays has
been identified.
BITUMEN
About 42 billion tones – almost twice the
amount of existing reserves of crude
petroleum.
LEAD/ZINC
Estimated 10 mn tons of lead/zinc veins
spread over eight States in Nigeria
ROCK SALT
Salt springs at Awe (Plateau State),
Abakaliki (Enugu State) and Uburu (Imo
State), while rock salt is available in
Benue State. Total reserve of 1.5 bn tones
has been indicated
COAL
There are nearly 4.00 billion tonnes of
indicated reserves in 17 identified
coalfields.
5. Characteristic Measures Taken By Nigerian Government
NIPC
Privatization
EFCC
TCP
• Formulated in 1995
• Instrumental in setting Nigeria’s investment policy
• Main aim is to encourage ,promote investment in Nigeria
• Policy adopted by Nigerian government in 1998
• 40% will be retained by government,40% for strategic investors and 20% will be sold to the
Nigerian public
• Deals with enforcement of laws to combat economical and financial crimes
• Pivotal for attaining corporate governance in Nigeria
• Platform for investors to verify contract
• Can be accessed through www.efccnigeria.org
OSIC
• Single Window Clearance mechanism
• Any business can be started in maximum 28 days
NCCN
• Formed by president Mr. Jonathan
• Aim is to safe-guard investments in Nigeria
• Improve Nigeria’s global competitiveness ranking
6. Major Challenges
Project Funding
• However, the progress
made in the regulatory
reform, so far, is
expected to stimulate
activities
Administrative Delays
• Though under the mining
Act. Of the country 28
days one-stop concept is
introduced.
Infrastructure
• The ongoing
privatization of the
national utility & reform
of the power sector are
stimuli for private
Security
Political Interference
Illegal Mining
• The Niger Delta area of
the country is now a
peaceful region following
the success of the ongoing amnesty
programme.
• However, the political
situation in the country is
stabilizing & good fiscal
and tax incentives are
being put in place to
promote mining
• However, with the
enactment of the
Mining Act, foreign
investors are guaranteed
unfettered operation of
their legitimate business
in the country.