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The President, American Nigerian International Chamber of Commerce, Ms. Emelia Orubele,
Congressman, Hon. Randal Mangham,
Board members of the Chamber of Commerce,
Members of the Chamber of Commerce,
Invited guests,
Distinguished Ladies and Gentlemen,
It is indeed an honor and pleasure to be in your midst this afternoon, and to talk about a subject which is at the heart and soul of my country; that is, Investment Potentials in Nigeria. First, let me thank the President and members of the American Nigerian International Chamber of Commerce, for inviting me and I should add, for a sumptuous free lunch. There is no doubt that southern hospitality is in display this afternoon. I also wish to commend your members for exploring business opportunities in Nigeria, and I am confident that working with the Consulate, you will achieve your desired objective.
2. As our take of point, it is important to note that Nigeria is Africa's largest country in terms of population. Nigeria is strategically located at the gateway to the West and Central Africa. Bordering the North Atlantic Ocean; between Benin Republic and Cameroon, Nigeria covers an area of 356,668 sq miles. For clarity purpose, it is about the same size as California, Nevada and Utah combined. Like Brazil, it is located within the equator; so it has tropical climate with virtual sunshine all year round. English is the official language, and it is widely spoken. With a population of 140 million hardworking people, Nigeria is the most populous black nation in the world.
3. Politically, Nigeria for the first time in her history as a nation was on May, 29, 2007, able to transit from a civilian-to-civilian democracy. Under the able leadership of H.E. President Umaru Musa Yar ‘Adua, GCFR, the Government enunciated a 7- point Agenda, as a sub-structure for Vision 2020, to structurally integrate Nigeria to achieve namely;
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Food security through modern technology and research;
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Wealth creation through diversified value addition to her agricultural and solid minerals products, with a view to employment generation;
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Development of the transportation sector and improvement of road network;
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Provision of adequate security;
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Balanced education to enable her meet the challenges of the 21st century;
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Energy and power; and
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Land reforms to optimize growth.
All these are anchored on a solid observance of the rule of law and guarantee of fundamental freedoms.
4. Nigeria's economy is larger than all the 15 economies of the Economic Community of West African States (ECOWAS), that rely on her for manufactured products. Nigeria is Africa's largest market with a robust economy. She is Africa's largest producer of Hydrocarbon resources namely; oil and gas, and remains the 6th largest producer of crude oil in the world. As the US 14th largest trading partner, Nigeria supplies more than 15% of US gas needs.
5. The economic reform policy of Nigeria is aimed to effect a fundamental transformation of the economy, through reduction in government expenditure, re-invigoration of the Private Sector, generation of employment and increase in the growth of domestic products.
6. Even in the face of this global economic crisis, I am confident that the strides taken by the Nigerian government thus far has placed the economy in positive stead for business. With a rating of BB- by Fitch in 2006, 2007 and 2008, respectively, and her rating peers being countries such as Indonesia, Ukraine, Brazil, Venezuela, Turkey and Vietnam, Nigeria's business and investment climate are conducive.
7. Consequently, Goldman Sachs forecast that if current reforms are sustained, Nigeria would emerge the strongest economy in Africa, superseding South Africa and Egypt;
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by 2020 it would become one of the 25 biggest world economies;
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by 2025 one of the world's biggest 20;
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and by the year 2050, Nigeria would be the fastest growing economy in the world; favoured well above China, Brazil, Korea, Turkey, Indonesia and Mexico. Is this not amazing.
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Our vision however as a nation is premised on 2020/20.
8. It is trite to say that the challenge and the onus of transforming Nigeria economically are on the Organized Private Sector (OPS), as the engine of growth. The government can at best perform the role of the enabler and facilitator. It was this objective reality that informed Nigeria's economic reform policy of the last few years. Notwithstanding, we are confident that Nigeria is already on the way to full economic recovery, because of her solid foundation and good global profile as confirmed by these ratings.
9. Nigeria's relationship with the US is strong. I have the duty to inform the Chamber that Nigeria is disposed to working in partnership with the current Administration in Washington DC. Given our political, historical, cultural and economic linkages, it is common knowledge that Nigerians and Americans are connected in so many ways. We value our close cooperation, robust and open dialogue. Not only do the people of both nations respect democracy and want it to flourish, but we are both nations of diversity.
10. Today, Nigeria is America's largest trading partner in sub- Saharan Africa, with total two-way trade value at more than $31 billion which has since increased with the Delta Airlines direct flight to Nigeria. While oil and gas account for about 40% of that sum, non-oil goods imported duty-free from Nigeria, under the African Growth and Opportunity Act (AGOA), equalled about $1.5 billion in 2008.
11. All this is not to say that we do not as a nation have challenges. The paradox however, is that Nigeria is an extremely rich country and at the same time poor. Nigeria cannot be delinked from the present global economic realities as well. Given the dominant place of petroleum on our economy, our revenue base is dwindling with the drastic fall in the price of the crude oil, and the stock market has not escaped the adverse effects of the economic downturn also.
12. Clearly, we do not see the present global crisis as an obstacle but a platform within which, to develop people-oriented and poverty alleviation agenda. That is to say, it offers opportunity for Nigeria to re-examine the structure of our economy to enable us implement strategies that will reposition us for the economic order that will emerge from the current global experience.
13. Make no mistake about it, Nigeria is growing and the Nigerian government is tackling the Niger Delta challenge head-on. Foreign reserves are up, debts have been paid, and GDP is rising. Also, infrastructure is improving, telephone coverage has expanded. Key health and education indicators have fertile grounds for investment.
14. Given this promising outlook namely: the advent of democratic rule; successful bank consolidation; awards for excellence; and internationally recognized sovereign ratings, which have given further credence on Nigeria to world financial and capital markets, it is the determination of the Nigerian government that Nigeria will remain an investor's haven: stable, peaceful and safe.
15. At this point, let me take the liberty to list but not rank some areas of interest for investment in Nigeria namely;
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Health including Pharmaceuticals
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Education
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Agriculture and Agro business
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Solid minerals development
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Crude Oil sector - upstream and downstream
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Natural gas sector
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Tourism sector
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Telecommunications
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Transportation
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Power and energy
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Banking
16. Furthermore, there are a lot of incentives for investors;
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Decreasing tax payments when a company exports up to 50% of its annual turnover.
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Write off of an extra 5% on plant and machinery, if 50% export is achieved and 40% of raw materials are sourced from Nigeria.
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Tax exemption in mining for 3 - 5 years and,
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Companies that do research work in Nigeria can claim up to 120% of their expenses against tax.
17. Of course there are other benefits which the Nigerian Investment Promotion Commission, the Corporate Affairs Commission, Bureau of Public Enterprises, Federal Ministry of Finance, the Central Bank, the Nigerian Stock Exchange and the Securities and Exchange Commission will make available to you on request.
18. On our part, I wish to assure that at the Consulate General of Nigeria, Atlanta, visas and other travel documents to Nigeria would be promptly processed, provided the minimum requirements are met, and trade inquiries would be answered as well. Please visit our website: www.nigeria-consulate-atl.org for more details.
19. In conclusion, with our large market, hardworking and easily trainable population, improving infrastructure and security, existence of a pool of Americans of Nigerian extraction, the sustenance of democratic rule, successful bank consolidation, awards for excellence and internationally recognized sovereign ratings, I am confident you would like to invest in Nigeria.
20. Thank you for listening.
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