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The Nigerian Investment Environment – Opportunities
and Challenges.Presentation By Engr. Dideolu Falobi, FNSE, MIoD.
CEO Kresta Laurel Limited, Nigeria.On July 30, 2013 in New York, USA
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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The Vice Minister, Foreign Trade of the Kingdom of the Netherlands, Simon Smits, has said that the country will double its investment in Nigeria from its current €8billion in the coming years - www.nigeriacommercetoday.com
The Question Why and How?
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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•Country Profile
• Investment Opportunities
•Challenges
Outline
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• Attained Nationhood in 1914
• Became independent in 1960
• Location: West Africa
Country Profile
Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria 4
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Population: 170,123,740(July 2012 Estimate)
Area: 923,768sq.m(Land - 98.6%, Water - 1.4%)
Coastline: 853km
Climate: Equitorial in the South, Tropical in the Centre, Arid in the North
Country Profile Contd.
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Natural Resources: Crude Oil, Natural Gas, Gold, Tin, Iron Ore, Coal, Limestone, Bitumen, Bauxite, Talc, Gemstones
Agricultural Products: Cocoa, Rubber, Cattle, Cotton, Fish, Cassava, Palm Trees
Arable Land Usage: 33.02%
Literacy Level: 61.3%
Country Profile Contd.
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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GDP Growth: 2009(7%), 2010(8%), 2011(7.4%)
GDP in 2011: $247billion(65% of the Economy of West Africa)
13th Largest Producer of Crude oil in the World
11th Highest Proven Reserves of Crude oil in the World
10th Highest Proven Reserves of Natural Gas in the World
Other Facts
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Refineries
Petrochemicals
Oil Service & Pipelines
Oil Prospecting & Exploitation
Investment Opportunities - Oil & Gas
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Gas Gathering
Gas Distribution
Manufacturing of Consumables
Training and Consultancy
Investment Opportunities - Oil & Gas Contd.
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Privatization
Power Generation Plants
Manufacturing of Power Equipment and Accessories
Training & Consultancy
Investment Opportunities - Power
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Mergers
Acquisitions
Organic/Greenfield Entry
Training &Consultancy
Investment Opportunities - Banking
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Housing, Hotel & Malls
Roads & Bridges
Dams
Rail Transport Systems
Investment Opportunities - Construction
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Capital Market
Industrialization
Steel and Aluminium industry
Entertainment, arts, culture, music and drama
Others
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IT & Telecoms
Water Transport
Mining
Education & Health
Others contd....
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Integrity of the Judiciary & Security of Agreements
Security
Corruption
419 Syndrome
Challenges
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Power Supply
Infrastructures
Access to, and high cost of Long term Finance
Challenges Contd.
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Improved Macro Economic Environment (Political Stability, Corporate Governance, Economic Reforms, e.t.c)
Abundance of Raw Materials (Minerals & Agriculture)
Land Resources
PROSPECTS FOR THE MANUFACTURING SECTOR AS A CASE STUDY.
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Rich Variety of Energy Sources – Gas, Coal, Hydro, Solar, Wind
Increasing Pool of Talents
Large Population – Availability of Inexpensive Labour and Market
Positive Economic Outlook.
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Increasing Pool of Talents
Large Population – Availability of Inexpensive Labour and Market
Positive Economic Outlook.
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Please read "FDI In Telecommunications, The success of MTN IN Nigeria" by Covadonga Velasco, Samy Belemi and Wouter Belmans
Case Study - MTN
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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(http://www.google.fi/url?sa=t&source=web&cd=4&ved=0CD8QFjAD&url=http%3A%2F%2Ffaculty-course.insead.edu%2Fdutt%2Femdc%2Fprojects%2FFinal%2520Report%2FFDI%2520in%2520Telecommunications-%2520MTN%2520Nigeria.doc&ei=lTbFUKe0OtGN4gSbiIBo&usg=AFQjCNGQL2W6pRS52ejuJsPMaqDqgfMclQ)
Case Study - MTN. Contd
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Wholly indigenous
Started as a trading company importing Commodities mainly Sugar, Salt & Cement
Keyed into the government’s backward integration policy in 2002
Case study manufacturing: DANGOTE GROUP(www.dangote-group.com)
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Engr. Dideolu Falobi, FNSE, MIoD, CEO, Kresta Laurel Limited, Nigeria
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Today, the Group is arguably one of the biggest Conglomerates in Africa
Today, the promoter, Alhaji Aliko Dangote, GCON is, according to Forbes, the richest man in Africa with an asset base of $16.1billion in March 2013 as against $3.3billion in March 2008.
DANGOTE GROUP Contd.
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SUGAR
1.4million P/A 2nd Largest Sugar Refinery in the world
Largest in Sub-Sahara Africa
DANGOTE GROUP Contd.
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SALT Installed Capacity of 600, 000 metric ton P/A
Refines, Fortifies & Packages table, Agric and Industrial Salts.
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Laminated bags 648million bags/Annum
Fertilizer(Urea & Ammonia) 2.8million P/A
Refinery 450,000 barrels/day Refinery capacity
DANGOTE GROUP Contd.
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Petrochemicals 650,000 m+pa
Feedstock of carbon black 300,000m+pa LPFO 100,000 m+pa
DANGOTE GROUP Contd.
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2002 2013 20140
5000000
10000000
15000000
20000000
25000000
30000000
35000000
ImportsLocalTotal
DANGOTE GROUP’S CEMENT PRODUCTION GROWTH(In Metric Tons)
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Contact The Ministry of Trade and Investments on www.fmti.gov.ng
Contact The Nigerian Investment Promotion Commission on www.nipc.gov.ng
Incentives & More Information
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ALWAYS CONSULT ONE OR ANY OF:
CORPORATE COUNCIL FOR AFRICA, NIGERIAN INVESTMENT PROMOTIONS
COUNCIL(NIPC), EMBASSY OF USA IN NIGERIA NIGERIAN EMBASSY IN USA NIGERIAN-AMERICAN CHAMBER OF COMMERCE
FOR ADVICE AND GUIDANCE BEFORE YOU CONSUMATE MAJOR INVESTMENTS, MERGERS OR ACQUISITIONS
CAUTION!
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"Nigeria has the most attractive environment for investment in Nigeria because Nigeria is a large market in the continent; it is the second largest economy in the continent. 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" - Marie Francoise Marie-Nelly, Country Director, World Bank, Nigeria.
Words of Wisdom
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Engr. DIDEOLU FALOBI, FNSE, MIoDManaging Director/CEO,Kresta Laurel Limited,
376, Ikorodu Road,Maryland, Lagos, NIGERIA.
Tel: +2348056121213, +2348035244004 E-Mail: [email protected]
www.krestalaurel.com
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THANK YOU ALL.