#1Nigerian Investment Promotion Commission Consolidated 2006-2008 Report. FOREWORD Modern business is hinged on infrastructural facilities like electric power, Transportation and modern Telecommunications. After a rather long but careful period of planning, the Nigerian government has started a process, which is akin to a revolution in these and other priority vital sectors that are widely known to be pivotal to growing the nation's economic base. Undoubtedly, Nigeria has experienced tremendous progress since the return of the country to democratic governance in 1999. This was made possible by government's resolve for progress, sound macroeconomic policies, a plethora of reforms within the context of the National Economic Empowerment and Development Strategy (NEEDS) initiative, the Millennium Development Goals (MDGs), and the implementation of the Policy Support Instrument (PSI) framework. Also, the Financial System Strategy (FSS) 2020 blueprint will be used in achieving these goals: developing and transforming Nigeria's financial sector into a growth catalyst and engineering Nigeria's evolution into an international financial centre The Administration of President Umaru Musa Yar'Adua was inaugurated in May 2007 and provided a strategic framework for the economic transformation of Nigeria within the framework of the 7-Point Agenda which focuses on the sectors that are critical to the sustainable development of the economy. The sectors include: Power and Energy, Food Security, Wealth Creation, Transport, Land Reforms, Human capital development and the Niger Delta and a strong passion to fight corruption in all its ramifications through upholding the sacredness of constitutional processes, democratic principles, rule of law, and respect for human rights, transparency, and accountability. Based on Government's desire to attain double digit growth rate in GDP as a prerequisite for achieving its long term development objective, Nigeria's FDI profile must be urgently raised. This became even more compelling when viewed against the option of external borrowing experimented and jettisoned with Nigeria's external debt exit. This leaves us with either stimulating domestic savings or pay greater attention on attracting FDI. It is against this background 1#2that Investment Promotion should take centre-stage in current efforts to transform the economy and place her on the path of rapid and sustainable growth and development if the objective of the 7-Point agenda and the Vision 20-2020 are to be realized. Investors now have renewed confidence in our country as a safe and profitable investment destination. Nigeria is relatively a challenging business environment but the potential rewards are high and obviously the highest in Africa. The Nigerian Investment Promotion Commission had, in recent times positioned Nigeria as a preferred FDI location. The NIPC has remained in the vanguard for enhancing Nigeria's business climate having reestablished its role as the pivot and flagship of investment promotion and facilitation in Nigeria, the Commission now enjoys tremendous goodwill, recognition and respect from various stakeholders in acknowledgement of the giant strides it recorded in recent times. Giving the initial misconception, misinterpretation and resistance to past efforts to establish a One-Stop-Shop in NIPC, it is easy now to appreciate the level of courage, tact, decorum, team work and cooperation that was employed to ensure its successful take-off and effective running of the Centre in its third year of operation. The year 2007 being the second year of the establishment of One Stop Investment Center (OSIC) witnessed an upsurge in the activities of the Centre both in volume and quality of services rendered. It rendered services to a total of one thousand and six (1006) Companies compared to seven hundred and seventy (770) Companies serviced 2006. In 2008 the Centre operated with sixteen (16) Agencies with an increase of 51% over the previous year in the services rendered Services rendered were Technical Information/Advice, Incorporation of Companies, Granting of Permits and Licenses as well as facilitations on behalf of investors. A study by Afrinvest West Africa Ltd. and Standard and Poors shows that as at November, 2007 returns from the Nigeria Market was the highest among African and Middle East emerging market with the exception of Zimbabwe. The report indicated that investors made 63.3 percent from the Nigerian market behind Zimbabwe that is driven by hyperinflation with 93.4 percent During the presentation of the 2008 budget, President Umaru Musa Ya'Adua was delighted to report that our economy has been one of the fastest growing, not only in Africa but also in the world. Based on current trends, real GDP 2#3growth for 2007 and 2008 is set to average 7.0% per annum, much better than the performance of the previous two decades when GDP growth averaged 3.0% per annum. Significantly, this rate of growth has been much higher than our population growth rate. This has resulted in a sharp increase in GDP per capita after a prolonged period of stagnation, from about US$400 at the turn of the century to well over US$1000 by the end of 2007. The innovation of Business Breakfast sessions of Mr. President with investors introduced by NIPC and also being a key member and secretariat of the Honorary International Investors Council (HIIC) in Nigeria, the Commission has taken advantage of the opportunity it offers to push through reforms, advocate investment friendly policies and more importantly, ensure hitch-free clarity on the various incentive packages available for investors. The achievements recorded in 2006-2008 could be assessed highly satisfactory given the paucity of funds for program implementation in the Commission. The outlook for 2010 looks brighter, more so that the economic programmes of the present Administration and the implementation of the Seven Point Agenda of President Umaru Musa Yar, Adua have begun to manifest positive dividends in the critical areas of the investment climate and substantial reduction in the cost of doing business. Also critical to the anticipated improvement in the quantum of FDI, Nigeria expects to rake in, has to do with current efforts to set up Investment Promotion Agencies and One-Stop Shops by various States as well as the restoration of Investment Promotion at the centre-stage of National development Plans. We wish to place on record the support from the Federal Government and also thank all agencies in the public and private sectors that partnered with the Commission or with whom we have interacted during the period under review. While acknowledging the efforts of the Management of the Commission for the successes and and the excellent work, I recommend this report with confidence to readers. Chairman Governing Council, NIPC 3#4STATEMENT OF THE EXECUTIVE SECRETARY/CEO Nigeria has a bright future on the world stage, the notable macro-economic stability achieved over the past few years is being translated into improvement in the quantum and quality of FDI attracted. Reforms of investment related laws have aimed at liberalizing investors' entry and at strengthening protections for foreign investment, promote openness and generally made investment environments more favourable for inward FDI. Nigeria is establishing itself as a fully democratic and free-market reformer. a In Nigeria well-run businesses generate returns that far exceed returns on equivalent investments in other markets with similar risk profiles demonstration that while the risk levels may be considered high, the superior return levels are even higher. In the context of the global financial crises, Africa is rated the most favourable investment destination. Nigeria is ranked first followed by Ethiopia; South Africa etc (Africa Rainbow Consulting) Nigeria has the highest Return on Investment (ROI) in Africa (35% - 45%) generally (70 - 100% in some sectors) UNCTAD reported that for the third consecutive year, global FDI inflows rose in 2006 - by 38% - to reach $1,306 billion. The growth of FDI in 2006 occurred in all three groups of economies: developed countries, developing countries and the transition economies of South-East Europe and the Commonwealth of Independent States (CIS). Global FDI inflows also rose in 2007 reached $1,979 billion, well above the previous all-time high set in 2000. The increase in FDI largely reflected relatively high economic growth and strong corporate performance in many parts of the world. Reinvested earnings accounted for about 30% of total FDI inflows as a result of increased profits of foreign affiliates, notably in developing countries. However, due to the financial and economic crisis, UNNTAD's report indicated that global FDI inflows fell from a historic high of $1,979 billion in 2007 to $1,697 billion in 2008, a decline of 14%. In developed countries, where the financial crisis originated, FDI inflows fell in 2008 by 29% mostly due to cross-border M&A sales that fell by 39% in value after a five-year boom ended in 2007. Whereas in developing countries and the transition economies FDI continued to#5increase, posting a 17% to $621 billion. By region, FDI inflows increased considerably in Africa (27%) and in Latin America and the Caribbean (13%) in 2008, continuing the upward trend of the preceding years for both regions. In the first half of 2008 developing countries weathered the global financial crisis better than developed countries, as their financial systems were less closely interlinked with the hard-hit banking systems of the United States and Europe. In 2006 Nigeria attracted US$14 billion, while in 2007; the country attracted US$12 billion. The decline of 2% was as a result of investors attitude of 'wait and see' in view of the general election for civilian to civilian political transition. In 2008 Nigeria was at the top of the ten Africa FDI recipient nations with over US$20billion followed by Angola and Egypt. The 2008 performance has launched Nigeria as the 19th highest recipient of FDI in the world. The ethnic conflicts and youth restiveness in the Niger delta affected the level of the crude Oil production. These socio-political conflicts coupled with the election tension aggravated the problems of insecurity and hence the uncertainty in the domestic business environment which in turn impacted negatively on the inflow of FDI. Towards this the Federal Government has stepped up security in the region and the youths in that region are being empowered to engage in productive ventures. Consequently the year 2007 was a challenging one for the Commission, in view of the keen competition for FDI globally and the "wait and see" attitude of potential Investors that due to the transition election. Consequently the Commission had to seek a new direction and evolve new strategies to fulfill its mandate to offer effective and efficient service delivery to meet the need of investors. Key reform measures were undertaken to position it for the attainment of its mandate: ◉ ◉ Process re-engineering to ensure, simpler, clearer and investor friendly procedures and requirements were undertaken. Reduction of fees chargeable for registering new businesses to bring down the cost of entry Undertaking registration of new businesses within 24 hours ◉ Improved after care services ☐ Targeted investment promotion activities to countries that demonstrated confidence in Nigeria's economic reform agenda etc. 5#6As result of these efforts, the Commission registered a total of 332 new investments in 2007 as against 202 investments in 2006 representing an increase of 64%. In 2008 108 new investments were registered. This is attributable to the global economic meltdown. In the same year, 23 companies were granted Pioneer Status incentive. A total of $146.62 million FDI was recorded with a total equity of 1.74 billion and employment level of 3,817. I wish to acknowledge the efforts and personal interest of President Umaru Musa Yar'Adua to improve the investment climate in support of the Seven Point agenda and being pursued passionately by his government. It will facilitate the attainment of Nigeria's fair share of international trade and investment in a globalize economy and portray Nigeria as a preferred and profitable investment destination. It is pertinent to also mention the unquantifiable support of NIPC Governing Council that consists of very successful industrialists, captains of industry and technocrats. As a council of highly accomplished Nigerians, it has provided the much needed strategic direction which was blended with the support of Management and staff of the Commission to record the achievements enumerated. A few years ago, a report such as this would have been dominated by investors' complaints on macro economic policies and insinuation of lack of commitment of our leaders. With the giant strides already made by Federal Government, the private sectors are now taking the lead. I therefore invite you to explore, through this report. Some of our modest contribution to national development in the competitive business of investment promotion, and to also get a clear picture of the positive impact of the government reform programmes, particularly the Yar'adua Administration's commitment to the rule of law, political reforms and anti-corruption stance which has significantly earned Nigeria the confidence of Investors. The result; Nigeria made it to the league of 20 most recipients of FDI in the world. Engr. Mustafa Bello, FNSE Executive Secretary/CEO 6#71.0 EXECUTIVE SUMMARY The Consolidated 2006-2008 Report of the Commission is put together to highlight NIPC's commitment to facilitating inflow of FDI into Nigeria and stimulating the growth of industrial concerns in the country. It also serves as a parameter for future improvements in service delivery in the Commission and a catalyst to guide government policy on investments. Giving the initial misconception, misinterpretation and resistance to the past efforts to establish a One Stop Shop in NIPC, it is easy now to appreciate the level of courage, tact, decorum, team work and cooperation that was employed to ensure successful take-off and effective running of the Centre in its second year of operation. The year 2007 being the second year of the establishment of One Stop Investment Center (OSIC) witnessed an upsurge in the activities of the Centre both in volume and quality of services rendered. It rendered services to a total of one thousand and six (1006) Companies compared to seven hundred and seventy (770) Companies serviced 2006. In 2008 a total of 768 services were rendered with information dominating the services rendered in the centre and it accounts for 74.9% of the whole services rendered, the issuance of Business permit followed at a distance of 14.1%, incorporations recorded 8.7% with immigration services at 2.3%. The report identified the efforts of Government in creating enabling environment for the growth of private enterprise in the country. And the commitment of the NIPC Management in developing a strong, “private sector styled" system of business-like operation to improve the quality of its services and also enhances its capacity for service delivery that would be a match for any Investment Promotion Agency (IPA) in the world. It also aptly covers the activities of the Commission bringing to the fore its achievements and challenges during the reporting period. 7#8The role of the One-Stop Investment Center (OSIC) in fast tracking the actualization of investments in Nigeria especially in the area of entry permits/approvals and sectoral information and guidance on investment opportunities are highlighted. Also enumerated are the global FDI flows and the inflow of FDI into African and indeed Nigeria, establishing the link between Nigeria's progress towards sustainable economic growth and increase in FDI inflows. Government reform agenda and the deregulation of the economy, the development of the non-oil sectors and the ongoing privatization of state-owned enterprises have equally been discussed The outlook for 2009 and beyond is promising considering the achievements of the previous years and the ongoing review/development of Vision 20:2020, the tenacity with which government is implementing the 7-Point Agenda especially on power, corruption and corrupt practices, rule of law, wealth creation, electoral reform and Niger delta. Also contained in the report is the presentation of the various activities of the Commission during the reporting period, clearly highlighting achievements and new initiatives by the various departments/Units in the realization of the Commission's corporate mandate and objectives. 8#92.0 INTRODUCTION Corporate Annual Reports are expressions designed as part of accountability and transparency in the conduct of the corporate activities of organizations. This is even more compelling when it involves a public sector agency. With fierce competition for FDI, increasingly countries worldwide are becoming more proactive and creative in their investment promotion strategies. The NIPC has positioned itself as an effective and successful Investment Promotion Agency (IPA). Benchmarking itself among the best in Africa and beyond The Commission has been innovative in rendering superior investment facilitation and aftercare services so as to maintain a competitive edge and acquire a larger share of the global flow of FDI to Nigeria. The strategy employed by the Commission which found expression in the 3-year strategic plan and capacity building programmes brought about positive attitudinal changes on the part of management and the staff of the Commission. Investment promotion and facilitation are critical to economic growth of any nation because of their contributions in the creation of an enabling environment for FDI. It has been established that FDI contributes to GDP and GNP, helps in employment generation and human capital development, promotes economic stability, import substitution industrialization, acquisition of modern technology, sustainable growth and development, and improves the credit worthiness of countries with friendly investment climates. These conform to the goals and objectives of the Seven point Agenda and the vision 20-2020. The current global economic meltdown/crisis provides Nigeria with an opportunity to offer itself as good alternative destination for FDI given her profile as the most profitable, liberalized and safest economy in Africa, as recently confirmed by Merrill Lynch, one of the world's leading financial and advisory company, to the effect that Nigeria is the least risky economy in the World. 9#10The compilation of this reports by the Commission provided the opportunity for a self evaluation to ascertain the attainment of set targets, corporate performance and articulate further areas of improvements in service delivery including internal process re-engineering, alignment and realignment of policies and strategies. The report, which is the result of collective efforts of the Governing Council, the ES/CEO, Management and the staff of the Commission, highlights the achievement and institutional challenges during the reporting period. The report also sets the agenda for Investment promotion and facilitation in 2009 and beyond. The objectives of the report among others include: i. To articulate the key activities of the Commission in 2006-2008. ii. iii. iv. V. vi. To highlight landmark achievements and matching the challenges with achievements. To track and evaluate compliance and due diligence in the implementation of policies and programmes as defined by the three year strategic plan. To evaluate the performance of NIPC during the period under review against its mandate and core objectives. To present a report that would offer management and Council the opportunity to review, appraise priorities and strategies adopted between 2006-2008 against actual performance with a view to improving during the years ahead. To publish a report for interested stakeholders to appreciate our modest contribution to National economic growth. In the last four years, NIPC witnessed real transformation that was characterized by process re-engineering, alignment and realignment of programs and systems as well as the streamlining and mainstreaming of investment Promotion and Facilitation policies and programmes. It was also a period of proactive repositioning of NIPC to play its role as the pivot and flagship of investment promotion and facilitation in Nigeria, and effectively deliver on its mandate. Finally, this report should be regarded as an exercise in accountability and report of stewardship by the Commission to its stakeholders; as collated, analyzed and presented by Corporate Development Unit. While accepting responsibilities for errors in this report, we welcome comments and observations that will enhance the quality and content of future reports. 10 10#11Amos Y. Sakaba Director & Chief Operating Officer, OSIC 3.0 CORPORATE PROFILE 3.1 OUR VISION: To be the Pre-eminent Investment Promotion Agency in the Emerging Markets. 3.2 OUR MISSION: To proactively Position and Promote Nigeria as the Preferred Investment Haven. 3.3 OUR MANDATE: The Nigerian Investment Promotion Commission (NIPC) is the agency of the Federal Government established under the NIPC Act 1995. The Commission is mandated to encourage, promote and co-ordinate investment in the Nigeria Economy. The enabling law empowers the Commission to grant approvals on fiscal concessions on industry related incentives such as: (i) Pioneer industries; 11#12(ii) Local raw material utilization; (iii) Export oriented industry; (a) (b) (c) (d) (e) (f) (g) (h) (iv) Implant training; (v) (vi) (vii) Investment on infrastructural facilities; Research and development; Investment in economically disadvantaged areas; provided that the fiscal incentives for which approvals are given shall be for tax concessions. Attract investments in and outside Nigeria through promotional means; Register and keep records of all enterprises as applicable; Advice the Federal Government on policy matters including fiscal measures designed to promote the industrialization of Nigeria. It is the duty of the Commission to serve as a coordinating and approval center at the Federal level, for all governmental approvals with respect to the establishment and operation of industries or business undertakings, and with respect to the operation of governmental measures and schemes aimed at promoting investments in the country. Collect, collate, analyse and disseminate information about investment opportunities and sources of investment capital and advise on request, the availability, chance or suitability of partners in joint-venture projects; Identify specific projects and invite interested investors for participation in those projects; Initiate, organise and participate in promotional activities such as exhibitions, conferences and seminars for the stimulation of investments; Maintain liaison between investors and Ministries, government departments and agencies, institutional lenders and other authorities concerned with investments; 3.4 OBJECTIVES OF THE COMMISSION In line with best practice and to ensure a sustainable, dynamic and effective investment promotion, the following are the main objectives of the NIPC: 12#13• • • . . • To project Nigeria as a safe country to invest in and prosper To highlight investment opportunities in Nigeria by sector. To identify Nigerians who will invest in these opportunities. To empower Nigerians to invest. To identify and encourage targeted countries and groups outside Nigeria to invest in the economy. To portray Nigeria as objectively combating corruption advanced fee fraud, and improving infrastructure. To position NIPC to effectively facilitate investment promotion in Nigeria. 3.4 (B) THE INVESTMENT POLICY THRUST OF NIPC ARE AS FOLLOWS: 3.5 (i) (ii) (iii) (iv) (v) To position Nigeria as an attractive and profitable investment location for both domestic and foreign investors by taking advantage of the recent Investment policy review of Nigeria by UNCTAD. To target, promote and attract value-added investment projects into priority sectors of the economy in line with the 7-Ponit Agenda. To positively harness the role of FDI in the rapid transformation of Nigeria's economy and make FDI a viable source of funding the implementation of Nigeria's Development Plans. To contribute to efforts aimed at promoting non-oil sectors for sustainable economic growth and development. To champion reforms and policies aimed at substantially improving Nigeria's investment climate for enhanced regional and global competitiveness. ORGANIZATIONAL STRUCTURE OF THE COMMISSION The Commission is structured to operate with three core operational departments, three support departments, One Stop investment Center and ten service Units in the office of the Executive Secretary/Chief Executive Officer. 3.5.1 NIPC GOVERNING COUNCIL 2004 - 2008 • Mr. F.O.A Ohiwerei, (OFR) 13#14• • Alhaji Aliko Dangote (CON) Chief (Mrs.) Salome Jankada • Mr. Jim Ovia Mr. FBO Odimegwu (CON) • Mr. Kalus P. Wachsmuth • Mr. Femi Otedola • • • • Executive Secretary, National Planning Commission The Governor, Central Bank of Nigeria Permanent Secretary, Federal Ministry of Commerce and Industry Permanent Secretary, Federal Ministry of Finance • Permanent Secretary, Ministry of Foreign Affairs • . Permanent Secretary, Interior Ministry Engr. Mustafa Bello, Executive Secretary, NIPC 3.5.2 NIPC GOVERNING COUNCIL (2009 TO DATE) • • Chief (Dr.) Emmanuel Chukwuemeka Iwuanyanwu Alhaji Umaru Dangaladima Chairman Member • Chief S.D. Lot "1 • • • • . • • • • • Mr. Peter Onwusanya "/ Mrs. Maimuna Sanda Aliyu "/ Chief Barrister Ugochukwu Okeugo "/ Mr. Agboola Alausa Executive Secretary,National Planning Commission The Governor, Central Bank of Nigeria Permanent Secretary, Federal Ministry of Commerce and Industry "/ Permanent Secretary, Federal Ministry of Finance Permanent Secretary, Ministry of Foreign Affairs " Permanent Secretary, Interior Ministry "1 14#15• Permanent Secretary, Federal Ministry of Tourism, Culture and National Orientation "/ • Executive Secretary, NIPC 3.5.3 NIPC MEMBERS OF MANAGEMENT UP TO 2008 • Engr. Mustafa Bello Executive Secretary/CEO • Dr. Ghaji Bello • Mr. Stephen Amase • Mr. James Ebueste Director, investor Relations Director, Finance & administration Director, Policy Advocacy and External Relation • Mr. Adesoji Adesugba Director, Investment Promotion • Mr. A.S Hassan Director, Human Resources Development • Mr. Amos Y. Sakaba Director, Office of the Executive Secretary/CEO 3.5.4 CURRENT NIPC MEMBERS OF MANAGEMENT Executive Secretary/CEO • Engr. Mustafa Bello • Mr. Stephen Amase • Mr. James Ebueste Relation . Mr. A.S Hassan Development • Mr. Amos Y. Sakaba COO (OSIC) • Hajiya Ladi Katagum • Nr. Reuben Kifasi Director, Finance & administration Director, Policy Advocacy and External Director, Human Resources Director, Office of the ES/CEO & Ag. Director, Investor Relations Ag. Director. Investment Promotion 3.5.4 DEPARTMENTS IN THE COMMISSION 3.5.4.1 Operational Departments/Organ · Investment Promotion • Investor Relations • Policy Advocacy and External Relations 15#16One Stop Investment Center (OSIC) 3.5.4.2 Support Departments • Finance and Administration • Human Resources Development • Directorate of the Office of the Executive Secretary 3.5.4.3 Service Units in the Office of the Executive Secretary/CEO ⚫ Corporate Development Legal Unit and Council Secretariat • Secret Registry Honorary International Investor Council Secretariat (HIICS) Research and Intelligence Information Technology . • Press and Protocol • • Internal Audit Multilateral and plurilateral matters Work Plan Implementation and Zonal Coordination 16#1717#18NIPC ORGANISATIONAL STRUCTURE Governing Council Executive Secretary Legal/Council Secretariat HIIC Secretariat Internal Audit PS/ES Director (HRD) Deputy Director Director (IR) Director (PA&ER) Director (IP) Director (F&A) Director (ES Office) Director (OSIC)/ COO Deputy Deputy Director Director Deputy Director Deputy OSIC Director UNITS NIPC CD FINANCE ADMIN STAFF WELFARE ESTABLI- SHMENT FIRS PERFORMANC E RECRUITMEN T WELFARE AGRICULTURE MANUFACTURE SERVICES SOLID MINERAL OIL & GAS HUMAN CAPITAL TRANSPORT TELECOMS PHARMACEUTICAL TOURISM POWER SME AGRICULTURE MANUFACTURE SERVICES SOLID MINERAL OIL & GAS HUMAN CAPITAL TRANSPORT TELECOMS PHARMACEUTICAL TOURISM POWER SME AGRICULTURE MANUFACTURE SERVICES SOLID MINERAL OIL & GAS HUMAN CAPITAL TRANSPORT TELECOMS PHARMACEUTICAL TOURISM POWER R&I PAYROLL STORE KEEPING NIS IT NAFDAC P& TREASURY PROCUR E-MENT MFCT P ZC/ SME LOGISTICS TRAINING MGT ACCT W MSMD NOTAP IB SECTORAL DESK KN CBN FACILITY JS FINANCIAL FMF MGMT EN CUSTOMS KEY: coo- Chief Operating Officer OSIC- One Stop Investment Centre HRD-Human Resources Development IR-Investor's Relation IP- Investment Promotion PA&ER- Policy Advocacy & External Relations F&A- Finance & Administration CD- Corporate Development M&P- Multilateral & Plurilateral R&I- Research & Intelligence IT- Information Technology P&P- Press & Protocol ZC/W- Zonal Coordination/Work plan Implementation IB- Ibadan KN- Kano JS-Jos EN- Enugu MAID- Maiduguri SME- Small Medium Enterprises CAC- Corporate Affairs Commission FIRS Federal Inland Revenue Services NIS- Nigerian Immigration Services NAFDAC- National Agency on Food Drugs Administration & Control MFCT- Ministry of Federal Capital Territory MSMD- Ministry of Solid Mineral Development NOTAP- National Office of Technology Acquisition And Promotion CBN- Central Bank of Nigeria FMF- Federal Ministry of Finance CUSTOMS- Nigeria Customs Service SON- Standard Organization of Nigeria NBS- National Bureau of Statistics HIIC- Honorary International Investment Council MAID SON NBS CAC 18#19Strategy Table: 3.1 Summary of work plan for the NIPC (January 2005 – December 2008) Activity Policy Advocacy & External Relations - 2005 2006 2007 2008 1 2 3 4 123412 341234 Collect, aggregate existing policies Preparation of National Investment Policy establishment of relationship with Sectoral National Councils Bi-annual Survey of Existing Investors Consultative meetings/discussions Comparative studies against global best practices National Conference on investment Initiate approval process/documentation Monitoring of Implementation of Changes/Amendments Present memorandum at various sectoral National Council meetings Liaise with relevant NIPC Departments Design Questionnaire Administer Questionnaire Compile/Appraise submissions 19#20External Relations Investors Relations Submission of Report Identify relevant foreign agencies/embassies Meet periodically with identified Foreign Embassies/Agencies Media Interactions Appraise reports by International Agencies Identify issues relating to country's competitiveness Forward recommendations on competitiveness Formulate and negotiate memoranda of understanding with relevant international agencies Participate in meetings on IPPAS Implement relevant sections of the signed IPPAS Participate in relevant National Economic Summits e.g. NESG 20 20#21Provision of wide Production of brochures, range of information services to investors Fliers, CD-ROMs, Specter cards National Stakeholders Forum Seminars and Workshops on Pioneer status Administration and other incentives Organization of In-bound Missions Co-ordination of registration process for foreign companies Printing of Business Permit Certificate and Forms Grant of Expatriate Quota Positions: Verification of utilized quota with NIPC and Immigration Investment Promotion Investment generation Hosting of BIFS Study tours to select 1st Generation IPAS and WAIPA activities Organize Nigerians in Diaspora Conference Organise Conference of IPAS in ECOWAS sub-region 21 221#22Image Building Communication Outbound missions supported by Proinvest funding UNIDO/NIPC Delegate Programme Host Nigerian Investment Summit Fact sheets, documentaries brochures, and films. Testimonials from existing investors and country presentations. Media campaigns, Talk Shows etc Finance and Administration Printing of Accounting Documents Computerization of Payroll and Accounting Systems Sinking of Borehole and Underground Water Tank Construction of 33,000 Litres Surface Fuel Tank Maintenance of the Head Office Complex Purchase of Consumables Vehicle loan for staff Purchase Vehicles 22 22#23Purchase Air Conditioners: Photocopiers Alternate Energy Source (Solar) Development Insurance of Capital Assets Rent of ES Official Residence Rent of Zonal Office Accommodations Human Resources Staff Training Provision of Training Needs assessment of the Commission. Comparative Assessment of existing policies based on the Training Needs Assessment of staff. Local Training Foreign Training Staff Welfare End of Year Merit Award Staff Scheme Staff Sports Development Membership of Clubs Pension To have a Scheduled Service Status Human Manager To Computerize Human 23#24Software Consultancy Services Resource Operations Human Resources Manual (Handbook), Performance Management System, Housing Policy, Training Policy Operational Manual, Accounting Manual, Corporate Governance Manual. File Management Tracking Solutions and Access Control Applications Conduct of promotion interviews by appropriate committees for promotion and discipline. Directorate of the Office of the Executive Secretary: Research And Intelligence Unit Web Content Development Policy Analysis by sectors Preparation of Sector Profiles. Agric, ICT,Solid Minerals, Tourism Oil and Gas, Power, Financial Services, Construction, Transport 224#25General Information Gathering Provision of Project Profiles Provision of comprehensive FDI Statistics Country Competitiveness Studies Provision of information for Promotional Materials Stocking and cataloguing of Books for the Library Information Technology Unit Maintenance and provision of LAN (local area network) and WAN (wide area network) Development and maintenance of a robust and interactive web portal or website Acquisition and maintenance of computer hardware and peripherals Acquisition and maintenance of efficient and reliable internet connectivity Software support PABX, improvement & maintenance Staff training Legal Unit Stocking of the Law library Subscription to affiliate/Professional Bodies Honorary International Investor Council (HIIC) Co-ordinate the preliminary/inaugural meeting of 25#26the Council. The Second Meeting of the Council Preparation of reports and follow up of action points Multilateral And Plurilataral Unit Identify and establish beneficial relationships with relevant agencies of the Federal Government, Multilateral Institutions, IPAs and others. Build and maintain relationships with relevant government agencies and other organizations involved in Multilateral events and trade matters. Develop and articulate proactive bi-national relationship between Nigeria and other countries on trade matters. Ensure that the Commission has a common position with other relevant government agencies on Bi-national issues Corporate Development Unit In-house training for staff of Corporate Development Unit Development of draft Strategic Plan/review exercise Project Account Monitoring Coordination of the evolvement of a Service Charter for NIPC 26 46#27Coordination of the activities of Interdepartmental Strategic Planning and Implementation Think Tank (SPITT) Shared Vision and Values Retreat for Mgt/Staff of NIPC Preparation of Annual Reports. Audit Unit Conduct of pre audit and value for money audit Verification of assets Ensuring adequacy of internal control Stock taking Quarterly audit Zonal office inspection Market survey Press and Protocol Unit Publicity of NIPC activities Press briefing, Press invitation (special report) Newsletter Publication Advertisement, Event management Corporate gifts, Protocol and Passages National flags, Purchase of digital video and digital still cameras Purchase of films, tapes and Albums Zonal Office Coordination Unit Conduct Research on Investment opportunities in 27#28the Zones Participate at International Trade Fairs (Kaduna, Lagos & Enugu) Zonal Investment Forums Preparation of reports on activities of the Zonal Offices. Prepare End of year reports on the operations of all the Zonal Offices. 28#293.6 HISTORICAL BACKGROUND OF NIPC For decades, the Government of Nigeria had vigorously pursued economic policies aimed at liberalizing and promoting competition and investments in the Nigerian economy. To reaffirm its commitment to market-led economy, the government has enacted and continued to update relevant legal instruments that hitherto contained provisions inhibiting competition and investment in Nigeria. Furthermore appropriate incentives are continuously being put in place to encourage and promote private investments. The Nigerian Investment Promotion Commission (NIPC) was established under the NIPC Act NO. 16 of 1995, as a successor to the Industrial Development Coordination Committee (IDCC). The NIPC law repealed the IDDC Decree NO 36 of 1989 as well as the Nigerian Enterprise Promotion Decree of 1989. The IDDC was to serve as a coordinating center that would consider and grant all industry related approvals under one roof thus saving unwary prospective investors the frustrating merry-go-rounds associated with obtaining investment approvals from different approving centres. However, the IDCC was bedeviled by daunting problems, which militated against its optimal performance. They included lack of quorum at meetings, inadequate funding and alleged intrusion into its statutory functions by other ministries. It was as a result of these problems that NIPC was established to take-over the responsibilities of approvals among other investment promotion functions handled by the erstwhile IDCC. The major objective of government for establishing NIPC is to adequately address those problems that foreign investors associate with the Nigerian Indigenization Decree of 1977. The decree restricted or even denied foreign equity participation in some category of business activities in the country. The NIPC removed these barriers thereby opening the economy to full foreign participation except in those enterprises concerned with the production of arms and other prohibitive items. Act Furthermore, foreign investors can own 100% of the equity of any enterprise in the country. Also, foreign firms or individuals are now permitted by law to purchase the shares of domestic firms, provided such purchase is effected#30through the Nigerian Stock Exchange. It also provided the guarantees against nationalization or expropriation. Investors are guaranteed unhindered transferability of capital, profits and dividends. Under the law, NIPC is given full powers to encourage, promote and co- ordinate all investments in the Nigerian economy. The role of NIPC as a one-stop agency implies that it should serve as the only co- coordinating and approving center for the establishment of businesses with foreign involvement in the country. Some administrative agencies, ministries and departments of Government are however, also performing this function. This provided the basis for the One Stop Investment Center (OSIC) at NIPC. Its current organizational form is focused on becoming an effective investor- service organization and championing improvements in the investment climate in Nigeria as well as building an effective system of zonal offices in the six geo- political zones of the country. This focus will lay the foundation for future efforts to bring new investors to Nigeria. The complete overhaul and re-orientation of the Commission to adopt investor friendly work ethics, style and essence of the private sector approach to management was effected. The mode of operation of the new NIPC is to identify constraints confronting old and new investors, bearing in mind the fact that existing investors are the greatest ambassadors of the economy, and satisfying them normally gives the right signal to new investors 30 30#314.0 OPERATING ENVIRONMENT 4.1 Nigeria in Perspective As an emerging market of 140 million people, Nigeria prosperous nation remains vitally important to Africa's security, democracy, trade, and energy needs and objectives. Nigeria is one of the most dependable African allies on a wide array of diplomatic initiatives including Darfur, peacekeeping, counter- terrorism, to HIV/AIDS--where recent data indicates that prevalence rates for AIDS in Nigeria is actually declining. Nigeria offers investors a low-cost labor pool, abundant natural resources, and potentially the largest domestic market in sub-Saharan Africa. Returns on investments in Nigeria are among the highest in the world. Well-run businesses generate returns that far exceed returns on equivalent investments in other markets with similar risk profiles - a demonstration that while the risk levels may be considered high, the superior return levels are even higher. On February 13, 2008, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Nigeria.¹ The 2007 report of IMF Consulting with Nigeria indicated that Nigeria's economic performance has been strong since the last Article IV consultation. Output has grown strongly, inflation reduced to single digits, and the external and fiscal positions strengthened significantly. A burgeoning financial sector is supporting private activity. In the context of the global financial crises, Africa is rated the most favourable investment destination. Nigeria is ranked first followed by Ethiopia; South Africa etc (Africa Rainbow Consulting) Nigeria has the highest Return on Investment (ROI) in Africa -35% - 45% generally (70 - 100% in some sectors) 31#32IMF reported in 2008 that Nigeria is increasingly integrating into global financial markets. Interest in Naira assets has been spurred by improved macroeconomic conditions, reduced external vulnerabilities, and global liquidity developments. Hence, since 2005 bank capital has increased two fold, government securities trading five fold, and stock market capitalization four fold. Nigeria has risen very fast and steadily to host the world's 10th largest oil reserves at about 25 billion barrels. Nigeria's associated and non-associated gas reserves are estimated to be well over 166 trillion. The country's natural gas reserves is put at more than 166 TSCF (trillion standard cubic feet), with her current gas production put at 12 billion scf. In the effort to realize its FDI potential, Nigeria have adopted new FDI policy measures and modified existing ones at the national level, and have entered into bilateral and other international investment arrangements. Reforms of investment laws have mainly aimed at liberalizing business entry and operations and at strengthening protections for foreign investment, promote openness and generally made investment environments more favourable for inward FDI. Nigeria is also participants in key market-access initiatives offered by developed countries - especially the European Union and the United States - to developing countries in general or to African nations in particular. Nigeria alone accounts for an estimated 50% of the output of all Economic Community of West Africa Countries (ECOWAS) put together. The long-term outlook is promising for investment in raw-material value-chain activities. Particularly important for the country is the recent changes in the United States' African Growth and Opportunity Act (AGOA), which are expected to increase further the country's diversification into textile processing. FDI in oil and gas and other minerals is likely to remain robust in the medium term. Nigeria is establishing itself as a fully democratic and free-market reformer. Fig 4.1: Nigeria's Output Growth versus Peer Countries Average 2000 – 2008 (%) 32#3310.00 9.00 8.00 7.00 6.00 5.00 8.8% 4.2% 5.2% loood 4.00 3.00 2.00 1.00 4.0% 3.6% 0 Nigeria South Africa Saudi Arabia Brazil Indonesia Source: IMF Country Report, Jully 2008 4.2 Economic Strategy Undoubtedly, Nigeria has experienced tremendous progress since the return of the country to democratic governance in 1999. Economic strategies include the National Economic Empowerment and Development Strategy (NEEDS) initiative, the Millennium Development Goals (MDGs), the current Federal Government Administration's Seven Point Agenda and the implementation of the Policy Support Instrument (PSI) framework, the Financial System Strategy (FSS) 2020 blueprint will be used in achieving these goals: developing and transforming Nigeria's financial sector into a growth catalyst and engineering Nigeria's evolution into international financial centre. Fig. 4.2.1: Financial System strategy 2020 33 33#34To Be among the top 20 economies by 2020 Aspiration Strategy To Be The Safest & Fastest Growing Financial System amongst Emerging Economies Strengthen Domestic Financial Markets Enhance Integration with External Financial Markets Build International Credit Human Capital Legal Reforms SME Finance Financial Sector as Catalyst & IFC Evolution Provide Enabling Environment & Infrastructure Financial Center Develop Financial Sector & Engineer Int'l Financial Center ESS2020 Strategy: Develop Financial Sector & Engineer Nigeria's Evolution into IFC Mortgage Capital Markets ICT Infrastructure Insurance Money & ForEx Payment Systems Establish Financial System as Growth Catalyst Drivers Enablers Central Banking Regulatory Reforms Fig.4.2.2: The Largest Economies in 2025 (Goldman Sachs Economic Research) 34#354.3 20000 15000 10000 5000 0 ՏՈ China Japan Germany India UK VISION 20-2020 Korea Italy ДД Mexico France Russia Brazil Indonesia Canada Nigeria 2025 Turkey Iran Vietnam Pakistan Phillipines Nigeria Egypt Bangladesh The key goal for Vision 2020 is captured in the vision Statement as follows: 'By 2020 Nigeria will be one of the 20 largest economies in the world able to consolidate its leadership role in Africa and establish itself as a significant player in the global economic and political arena." 4.4 . ECONOMIC TARGET The 7-Point Agenda targets the following Proactively maintain competitive macro economic indices • Single digit inflation rate • Average GDP growth rate of 7% • Ensure stable exchange rate against major currencies Building and expanding economic infrastructure Generate 6,000MW of electricity by Dec 2009 4.5 - • • • Transmission and utilisation of 1.2bn std. cubic feet of gas in the domestic market (committed stop gas flaring) Maintenance of 30,000kms of roads, construction and rehabilitation of 3,293kms Increase rural infrastructure by 40% Increase the GDP of agriculture sector by 5% MACROECONOMIC ENVIRONMENT Central bank of Nigeria CBN reported the real Gross Domestic Product (GDP) grew. The major drivers of growth were agriculture, wholesale, retail trade and services, and an annual average of 6.6% over the period 2002-2006. The major factors that sustained the satisfactory level of GDP growth in 2006 included the conducive macroeconomic environment, 35#36which favored enhanced financing of the private sector, coupled with the relative stability in the goods and foreign exchange market, as well as moderation of uncertainty in the economy and the effectiveness of NIPC which enhanced investors' confidence. Table 4.5.1: Nigeria Key Economic and Financial Indicators 2000 2004 2006 2007 2008 Estimate 2009 Nominal Gross Domestic Product (GDP) at market prices (billions of naira) 4,981 11,674 18,710 20,845 24,989 Nominal GDP (US$ bn) 48.98 87.85 145.43 165.70 209.50 29,398 202.16 Real GDP Growth" 5.30 10.60 6.00 6.20 6.80 4.00-5.80 Real Per Capita GDP Growth 3.90 7.60 3.40 3.10 3.40 3.00 Hydrocarbons GDP 3.30 -4.50 -5.60 -4.50 1.00 Crude Oil production (mn bpd) 2.04 2.34 2.22 2.16 1.95 Non-Oil GDP Growth' 13.30 9.60 9.60 9.50 7.60 Non-Oil Sectors (%) of Total GDP 61.30 62.00 64.40 63.00 66.55 Industrial Production" 7.50 3.70 2.10 3.40 5.30 2.00 Consumer Price Index (CPI)" 6.90 15.00 8.30 5.50 11.00 11.10 Total Investment (%) of GDP 22.70 23.50 23.80 24.00 24.30 25.80 Domestic Savings (%) of GDP 27.80 36.50 38.70 34.50 35.50 31.50 Monitoring Policy Rate (%) 2 14.00 15.00 10.00 9.50 9.75 <1 Broad Money Growth (%)* 28.00 14.00 39.90 30.90 53.70 30.60 Naira: US$I (period average) 101.69 132.88 128.65 125.81 119.28 145.42 Consolidated Government Operations³ Government Expenditure" 23.20 15.60 14.10 15.80 13.00 18.00 Government Revenue** 20.90 21.90 21.70 17.20 12.10 10.30 Overall Fiscal Balance" -2.10 6.30 7.60 1.40 -2.50 -4.50 Net Public Debt" Excess Crude Account (US$bn) 59.40 5.10 13.80 14.50 14.70 23.90 13.30 17.30 20.00 Key: Sub-Saharan Africa's second-largest economy, after South Africa and equivalent to one-half of West Africa's combined GDP. 2 The Central Bank of Nigeria's benchmark rate. 3 Representing federal, state and local governments. "The central bank could relax monetary policy in coming months. 'Annual percent change. "As percent of GDP Sources: Nigerian authorities; IMF African Department database; International Financial Statistics, Economist Intelligence Unit, Renaissance Capital and International Energy Agency. Fact File: Area: 923,773 sq Km (356,669 sq miles). Population: 148. Imn (mid-2007). Form of State: Federal Republic, comprising 36 states and the Federal Capital Territory (Abuja). Commercial capital: Lagos. GDP per capita: US$1,557(2009). Languages: English (official), Ibo, Hausa, Yoruba. Legal system: Based on English common law. Sovereign credit rating: BB-. Solid mineral deposits: Columbite, gemstones, tantalite, talc, rock salt, gypsum, tin, iron ore, uranium, limestone, lead/zinc, gold and coal. The Nigerian economy is fundamentally strong as depicted by the macro- economic indicators. GDP is growing at over 6%, while the world GDP is growing at barely 3%., the political terrain is stable and Fitch rated the Nigeria economy at BB- . The Regional competitiveness of Nigeria with selected countries using the real GDP growth rate, Consumer Prises and Current Account Balances are indicated in Fig 4.5.1 and Fig. 4.5.2. 36 36#3714 12 10 8 6 4 2 Fig.:4.5.1: Regional competitiveness of Nigeria with selected countries using the real GDP growth rate 0 Nigeria South Africa Ghana Cote dIvoire Tunisia Ethiopia Cameroon Sources: CBN, SA Reserve Bank, World Economic Report (2008) N.B: Figures for 2009 are projections ■2006 2007 IEI ■2008 ■-2009' 37#38Table 4.5.2: Balance of Payments and External Debt (in US$, unless otherwise indicated) 2000 2004 2005 2006 Exports (FOB) 19,132 34,766 55,144 59,144 2007 65,133 (%) chg 2004-07 2008 87.30 76,277 Price of Nigerian oil (US$/barrel) 28.42 38.30 55.30 65.30 73.00 90.60 97.70 Imports (FOB) 8,717 15,009 17,288 31,113 31,948 112.80 44,880 Trade Balance 10,415 19,757 37,856 28,031 33,185 68.00 31,397 Terms-of-Trade (%)' 20.40 38.00 18.00 13.60 42.20 Current Account Balance 7,429 16,840 24,202 13,796 21,972 30.50 Current Account (%) of GDP 15.10 19.10 21.50 9.50 13.20 Gross International Reserves 9,911 16,956 28,280 42,229 51,334 202.70 52,900 Import-coverage2 13.50 7.50 9.80 12.50 12.50 Central Bank's Foreign Assets 10,730 18,653 27,713 43,663 53,053 184.40 65,413" Deposits in OECD-based Bank 6,616 12,479 18,327 34,773 36,849 195.30 37,665** FDI inflows3 1,140 2,127 4,978 13,956 12,454 485.50 8,500*** Total External Debt 34,134 35,900 20,500 3,500 3,300 -91.00 3,700 Debt Stock (%) of GDP 69.70 40.80 18.20 2.40 2.00 1.70 Debt (%) of merchandise exports 178.40 103.20 37.10 6.00 5.00 4.80 Key: 'Annual percent change in 'Terms-of-Trade' (the ratio of export to import prices). Gross forex reserves in months of imports of goods and services. ³Net flows of foreign direct investment, after repatriation of interest and profits. FDI 2007 inward stock: US$62,791 mn, up from US$23,786mn in 2000. *End-Sep; "End-June; ***As of August 2008; Figures for 08 exports/imports are estimates. Sources: The International Financial Statistics, Bank for International Settlements, UNCTAD World Investment Report and Economist Intelligence Unit. 4.6 PORTFOLIO INVESTMENT BusinessDay reported that Nigeria leads major global equity market in returns on investment. Opportunities abound for international portfolio investors to reap huge returns from Nigeria as the local equity market paid the highest returns on investment among major global Stock market including the US, UK and Russia. A study by Afrinvest West Africa Ltd. and Standard and Poors shows that as at November, 2007 returns from the Nigeria Market was the highest among African and Middle East emerging market with the exception of Zimbabwe. The report indicated that investors made 63.3 percent from the Nigerian market behind Zimbabwe that is driven by hyperinflation with 93.4 percent and China 82.1 percent although the Nigerian notched up to 74.7 percent by year end of 2007. other countries rating are Brazil 41 percent, Russia 6.5 percent, India 47.8 percent Egypt 39.7 percent South Africa 21.6 percent. 38#39Current Account Balance (US Dollars) for Nigeria in the year under review was 13.685 Billion, making the country No.24 in world rankings according to Current Account Balance (US Dollars) in 2008. In the previous year, 2007, Current Account Balance for Nigeria was 3.47 billion, the economy witnessed an increment of 10.638billion within the year under review. 4.7 TELECOMMUNICATIONS Telecommunications is an economic success story in the country. Since deregulation, it has been Nigeria's fastest growing sector and indeed one of the fastest growing in the telecommunication industry in the world. Millions of Nigerians previously lacking communication services are now connected by cell phones. The communications sector further improved in 2007, driven mainly by the Global System of Mobile Communication (GSM), from and estimated N6 billion ($50 million) in 2003, investments in the nation's telecommunications industry (mobile telephony) have risen to N180 billion ($9billion) four years after. Also, the Federal Government has made over N242 billion ($2.2 billion) from spectrum licensing fees in the past five years. Teledencity has increased from 0.73% in December 2001 to 26.47% in August 2007 (in subscriber terms) the increase has been from approximately 400,000 lines to over 38 million subscribers in 2007. The mobile market surpassed South Africa to become Africa's largest mobile market by subscriber numbers. Table 4.8.1: The Nigerian Telecommunication Market 1999 2002 2003 2004 2005 2006* No. of Connected Fixed Lines (000) 450 702 850 1,120 1,223 1,538 No. of Connected Digital Mobile Lines (million) None 1.59 3.10 9.20 18.59 25.14 No. of National Carriers 1 2 2 2 2 2 No. of Operating ISPS 18 30 35 40 60 90 No. of Active Licensed Fixed Line Operators 9 16 30 17 20 27 Number of Licensed Mobile Operators 1 4 4 4 4 10** Investment (US$ million) 50 2,100 4,000 6,000 7,500 8,150 Source: Nigerian Communication Commission (NCC) Fig 4.8.2: Trends of Total Connected Lines and Teledencity 39#4025,000 20,000 15,000- 10,000 Number of connected lines 5,000 25 55 20 20 +15 Teledensity (%) 10 5 0 0 2002 2003 2004 2005 Aug. 2006 Beam Fixed Mobile Teledensity Source: Nigerian Communication Commission (NCC) 4.8. CHALLENGES OF THE OPERATRING ENVIRONMENT Some of the major constraints to attracting investment in Nigeria include inconsistency in government policies, and unfriendly investment environment. Others are social vices such as corruption, insecurity, financial and economic crimes as well as conflicting policies. Oil still accounts for about 40% of GDP, 90% of exports and 80% of government revenue. The challenge therefore is to reverse these ratios. (i) The Capital market The Nigerian capital market was also not spared in the turbulences of the global economic crisis, in April 2008; the market began a free-fall never witnessed in the history of capital market operations in the country. This unprecedented downward slide of the stocks forced both local and foreign investors who had taken advantage of the optimal return on investments on the stock exchange to begin to scamper elsewhere in desperation. (ii) Energy Demand for oil dropped drastically due to the global economic crisis, oil prices dipped from a high of more than $140 per barrel in the third quarter of the year to $44, and being the dominant source of the country's revenue earner, our foreign reserves of $65billion was most hit by the global cash crunch when it dwindled to $45billion within six months from the third to last the quarter of the year. Aside the low oil prices that resulted to serious shortfall in revenue generation vis-à-vis the foreign reserves, Nigeria's high propensity for imports were also part of the reasons for the fast diminished foreign reserves 40 40#41At the beginning of 2006, production capacity was about 2.5 million barrels per day (bpd). Since that time, it has grown to about 3 million bpd and is set to grow further. Unfortunately, violence in the Niger River Delta has cut off about 600,000 bpd. Also, the lack of qualified technical staff is a constraint. kidnapping in the Delta has made recruiting expatriate staff increasingly difficult, especially for the oil services companies. We understand that the oil majors estimate that over a thousand positions are unfilled, slowing progress on new projects. There is however hope as the new administration is bringing a new focus and attention to the problems afflicting the Niger-Delta. (iii) Power Despite the numerous improvements in infrastructural development, embarked upon by government, high demand for the development of infrastructure particularly electric energy remains a major concern of investors. Inadequate infrastructure continues to militate against the growth of the private sector and imposes high transaction costs. Generation and distribution of electricity had continued to decline since 2004. Nigeria's power infrastructure is in dire straights. Fig: 4.13.1: Power supply 41#424.9 Per cent 40 30 15 0 -15 2003 2004 2005 2006 Production Prices Source: CBN Annual report and Statistics 2006 Fig. 4.13.2: Electric Power Generation 2003 – 2006 (MW/H) 3000 2750 2500 2250 2000 2002 2004 2006 • EFFORTS OF GOVERNMENT Quotes from the December 2005 IMF Country Report on Nigeria - Two Year Policy Support Instrument given below attest to government's efforts at Strengthening the investment climate: "Over the past 18 months Nigeria has made commendable progress in implementing its homegrown economic reform program, aimed at 42#43accelerating economic growth, reducing poverty, and meeting the Millennium Development Goals" "the medium-term outlook is broadly positive and the authorities' aim to tighten macroeconomic policy and improve the mix of fiscal and monetary policies to meet their macroeconomic objectives" "Given Nigeria's demonstrated policy commitment and ambitious structural reform agenda, the staff considers that the Nigerian program meets the standards for upper credit tranche conditionality" Governments through the Peer Review mechanism are paying a lot of attention to issues of Corporate Governance 3. Strong economic teams put in place by government. (b) Privatization momentum is increasing through the following: • • • Build-own-operate (BOO): The private agent retains the ownership of the facility and the right to operate it for an indefinite period of time. A similar arrangement is the Independent Power Producer (IPP), under which the private sector sells power to the government grid, without formal previous obligation to limit its profit or eventually surrender ownership of the facility. Build-operate-transfer (BOT): The private agent builds the facility and retains ownership and the right to exploit for a specified period of time, thus recovering construction, operating, and financial expenditure. At the end of the period, ownership reverts to the state at a symbolic cost. Build-transfer-operate (BTO): The private agent transfers ownership of the facility to the State after completing the construction stage, and operates it thereafter. • Rehabilitate-operate transfer (ROT): Under this arrangement, government has also gone into negotiation with a number of private companies for the repairs and expansion of dilapidated power infrastructure • The Federal Government also intends to concession four other road projects, namely, Abuja-Kaduna road, Kaduna-Kano, Benin-Asaba and Benin-Ore-Shagamu Expressway, under its Public-Private-Partnership (PPP) programme. 43#44(ii) Also, the Federal Government of Nigeria and BI-Courtney Consortium formally sealed a concessioning agreement on construction and management of the N90 billion Lagos-Ibadan Expressway. The signing of the road concession agreement brings to two, the number of such roads whose contract had been ratified by government, the first being the Bagana bridge project awarded early in the year. Under the concession arrangement which is to run for over 25 year, the company is to build the road as well other accompanying facilities, such as trailer park, shopping malls, eatery, ambulance points, filling stations and communication systems. War Against Corruption Significant strides has been made at tackling corruption by the Economic and Financial crime Commission (EFCC) The world is appreciating the concerted efforts of Nigerian government in its bid to combat corruption in the country. The commitment the government had given to the fight against corruption are very commendable, for example, the bill to make EFCC fully autonomous is before the National Assembly. (iii) Energy In order to facilitate smooth operation and provide a more profit oriented competitive environment in the oil and gas sector, NNPC was unbundled on the 29th of August 2007 with five companies taking over its functions and those of its parent Ministry as part of the reform in the Oil and gas sector. These decisions were part of the new Oil and gas policy which will be implemented by the National Council on Energy headed by the President Musa Yar'Adua with the Vice-President as Deputy Chairman. A lot of investment opportunities abound in the natural gas sector of the Nigerian petroleum industry. Increasing attention is now being given to this vital sector. Government's aspirations for the gas sector include creating new industries out of the old oil industry; capturing economic value and generating as much revenue from gas as from oil by 2010. Others are developing the domestic gas market and, ending gas flaring Remarkable progress has been recorded towards the realization of these objectives. Of the current annual gas production of about 2,000 Bscf, about 40% is flared. This is a drastic drop from the 70% proportion flared before the advent of 44#45this administration. The hitherto flared gas is being channeled into gas powered projects for rapid utilization and monetization with a view to maximizing value addition to the nation's natural gas resource by 2010. (iv) Transport Nigeria has a road network of about 193,000 km with a carriage of over90% of domestic passengers and freight. The country's roads have fallen into despair through years of poor maintenance and lack of new construction; rural areas remain underserved and just 31% of the network is paved. The decline of the road infrastructure is partly due to the institutional and financial weakness of the state and local governments who are responsible for the majority of the roads which put together constitute 83% of the network The Federal Government of Nigeria (FGN) budgeted US$788.7 million in 2008 for improvements and maintenance in the transport sector, up, from US$108.8 million in 2007. The FGN has taken steps to remove the transport sector from the governance of public bodies that had presided over the disintegration of the existing transport network. Consequently a new transport policy was produced for the country. Several bills awaiting passage were sent to parliament. These bills include The National Transport Commission Bill, which provides for the establishment of the National Transport Commission (NTC) as a multi-sector regulator. The NTC will implement the government's strategy of aggressively seeking private sector participation in the redevelopment of the transport sector.. Other bills include: the Roads Bill, The Nigerian Railway Bill, the Ports and Harbour Authorities Bill and Nigerian Inland Waterways Bill. Also, to show the level of its commitment especially in its bid to improve the infrastructural facilities in the country and create a solid economy for sustainable development and inflow of FDI, the federal government recently undertook the following: • The establishment of Infrastructure Concession Regulatory Commission (ICRC) is a systemic approach adopted by the government to introduced private sector funds into building, maitenace and repair of all infrastructural facilities in the country, the recent concession of the Lagos- Ibadan highway to a foreign construction firm at the tune of N90billion is one of these commendable efforts of the present government. 45#46(v) • The publication of funds allocated to other tiers of government i.e. State and Local government inform of monthly subvention that comes from the federation account had really helped to promote transparency in governance. In the last few years, the Federal government had also taken tangible steeps to decongest the ports and remove barriers that impede speedy operations of ports activities, in what could be term as the most ambitious concessioning program in Africa, the federal government had so far awarded 22 long-term port concessions from 2006 to date. It has also set up a committee on "port reform" with the mandate to look at the possibility of conceding the management of the ports to private sectors- this was an attempt to set in motion a total privatization of the port. Security The FG is enhancing the operational capacity, preparedness and efficiency of the security services. Requisite force enablers and multipliers, including arms and ammunition, improved information and telecommunications equipment and facilities, riot control equipment, training and retraining, and sundry logistic support. Joint military Task Force in the Niger Delta (JTF) has also been introduced to curb unrest in the Niger Delta region. (vi) Electoral reforms On electoral reforms, Mr President on 22 August, 2007 announced a 22-member electoral Reform Panel with a former Chief Justice of Nigeria, Justice Mohammed Lawal Uwais as the Chairman to review the electoral system in order to ensure future elections are credible and meet international standards. The report of the committee is being implemented and discussion is also ongoing on electoral reforms 4.10 CHALLENGES/CONSTRAINTS FACED BY NIPC DURING THE REPORTING PERIOD of Administrative bottlenecks Administrative bottlenecks have undermined the administration incentives for investments. Approval/licensing requirements and processes are external to the operations of NIPC and the mandates / policy objectives of some agencies are sometimes at variance with the core mission of NIPC. Nigeria's tax 46#47laws do not impede investment, but the imposition and administration of taxes is highly controversially uneven and lacks transparency. This to a large extent informed the rationale and need for a shift in investor service administration in the country to a more streamlined and coordinated approach which is the 'One Stop Shop' (OSS) concept of investor facilitation/servicing. The implementation in 2006, of the One Stop Investment Center (OSIC) for facilitating investment in Nigeria as coordinated by the Commission has gone a long way in eliminating the bottlenecks associated with business entry. Inter-Agency Rivalry Presently, there is the problem of multiplicity of agencies involved in various aspects of investment facilitation processes in Nigeria and the resultant inter- agency rivalry, which is complicated by conflicting statutory laws/legal frameworks. These require to be streamlined, simplified and clarified to support investment facilitation. The OSS has considerably reduced this tendency because of the "team Nigeria” approach adopted at the center in dealing with investors. Investment Incentives Investment incentives are generally designed to provide tariff, fiscal and other concessions to enterprises that meet certain criteria such as size, choice of sector, employment creation, location, and local content etc. This applies both to foreign and domestic investors. Thus, for the purpose of attracting identified strategic investments, The NIPC by its mandate is expected to execute full authority in the administration of the numerous incentives to encourage investment activities. This is however, not the case as some Federal Ministries and agencies are equally performing this function. This requires coordination and streamlining for effectiveness. The recent Presidential Committee on Problems of Investors is doing its best in overcoming most of the constraints while attempt are being made to review the incentive regime and make them responsive to the yearnings of investors.. Funding Funding has been a major constraint to the implementation of the activities of the Commission. Foreign investment is an important instrument within national economic and industrial development policies. NIPC, as the key institution for the attraction of this investment, need to be properly funded by government as is the practice all over the world. The present administration appreciation of the strategic importance of investment Promotion is expected to attract funding support for the Commission. 47#48As is in practice, the Commission does not charge fees for most of its activities. International best practice is that IPAs are public good agencies that are to be funded through the public treasury to avoid sending wrong signals to investors. Yet, funding for NIPC had remained inadequate and incapable of supporting the high requirements and expectations for investment promotion and facilitation. The net effect is that the very elaborate Strategic Plan and Annual Work Plans of the Commission are not implemented effectively. In the year under review, the actual receipts were quite below the expected expenditure. This necessitated the realignment of goals from time to time and in the long run, the Commission could not meet all the corporate goals set out for the period. It was an impediment in actualizing the work plan set by departments, which translated into not meeting the set targets. The funding mentioned in the NEEDS document was not made available inspite of the political clout being enjoyed by the Commission. The Commission is forced by poor funding to approach the private sector for sponsorship of Business and investment Forums against international best practice. Worst still, sponsorship for business/investment forums has continue to decline due to the problem of donor fatigue as the same institutions are approached each time to sponsor these events.. More funding is required to facilitate the actualization of the following: (i) Target Investment Promotion (ii) Capacity building (staff training and development) (iii) Development of data bank (iv) Facilitating field visits; (v) Organizing regional and sectoral seminars to sensitize the local entrepreneurs; (vi) Production of investment promotion materials; (vii) Computerization; (viii) Maintenance and establishment of more zonal offices etc. 48 48#495.0 CORPORATE ACTIVITIES OF THE COMMISSION 5.1 TRACKING OF FDI IN THE COMMISSION Logistics problems which is characterized by different agencies operating independently makes the compilation of accurate FDI data difficult. The Commission had realized this and has commenced work aimed at streamlining the tracking of FDI. The convening of Inter-ministerial Committee on FDI is one of such measures adopted by the Commission for the tracking of FDI. Also, the One Stop Investment Center (OSIC) in the Commission is facilitating the tracking of FDI inflow to the country. Meanwhile the Commission relies on the FDI figures it captured internally through the permits and other approvals facilitated for foreign companies doing business in Nigeria. Also, the FDI figures released by international agencies like UNCTAD, World Economic Outlook (WEO) and fDI magazines, the Central Bank of Nigeria (CBN) remains the major source of FDI statistics. 5.2 GLOBAL FDI FLOWS 44 49#50UNCTAD reported that for the third consecutive year, global FDI inflows rose in 2006 - by 38% - to reach $1,306 billion. The growth of FDI in 2006 occurred in all three groups of economies: developed countries, developing countries and the transition economies of South-East Europe and the Commonwealth of Independent States (CIS). Global FDI inflows also rose in 2007 by 30% to reach $1,833 billion, well above the previous all-time high set in 2000. The increase in FDI largely reflected relatively high economic growth and strong corporate performance in many parts of the world. Reinvested earnings accounted for about 30% of total FDI inflows as a result of increased profits of foreign affiliates, notably in developing countries. In 2006 FDI inflows in developed countries rose by 45% well over the rate of the previous two years to reach $857 billion, flows to developing countries and the transition economies attained their highest levels ever: $379 billion (a 21% increase over those in 2005) and $69 billion (a 68% increase) respectively - - Table 5.2.1: Global FDI flows, top 20 economies, 2006,2007a 50 50#51(a) FDI inflows United States United Kingdom France Canada Netherlands China Hong Kong, China Spain Russian Federation Germany Belgium Switzerland Italy (b) FDI outflows United States 233 237 224 United Kingdom France Germany Spain. Italy Japan Canada. Hong Kong, China Luxembourg Switzerland Belgium Russian Federation! Sweden Austria 314 222 266 225 Brazil Austria Irelan Mexico Netherlands Australia Saudi Arabia 2007 2006 British Virgin Islands 2007 2006 Singapore China India Ireland -10 10 30 50 70 90 110 130 150 170 -10 10 30 50 70 90 110 130 150 170 a Source: UNCTAD, World Investment Report 2008: Transnational Corporations and the Infrastructure Challenge, annex table B.1 and based on FDI/TNC database (www.unctad.org/fdistatistics). Ranked by the magnitude of 2007 FDI flows. However, due to the financial and economic crisis, UNNTAD's report indicated that global FDI inflows fell from a historic high of $1,979 billion in 2007 to $1,697 billion in 2008, a decline of 14%. In developed countries, where the financial crisis originated, FDI inflows fell in 2008 by 29% mostly due to cross-border M&A sales that fell by 39% in value after a five-year boom ended in 2007. Whereas in developing countries and the transition economies FDI continued to increase, posting a 17% to $621 billion. By region, FDI inflows increased considerably in Africa (27%) and in Latin America and the Caribbean (13%) in 2008, continuing the upward trend of the preceding years for both regions. In the first half of 2008 developing countries weathered the global financial crisis better than developed countries, as their financial systems were less closely interlinked with the hard-hit banking systems of the United States and Europe. In the face of a global economic recession, tighter credit conditions, falling corporate profits, and gloomy prospects and uncertainties for global economic growth, many companies have announced plans to curtail production, lay off workers, and cut capital expenditures, all of which will tend to reduce FDI in 2008. In developing and transition economies, preliminary estimates suggest that FDI inflows have been more resilient, though the worst impacts of the global 51#52economic crisis had still, at year's end, to be fully transmitted to these countries. The growth rate of FDI inflows to developing countries, while lower than in 2007 estimated 4%. Flows to Africa were expected to have grown further, to more than (when it exceeded 20%), should still have remained positive for 2008 at an US$60 billion, despite the slow down in global economic growth and its negative consequences for the region. Table 5.2.1: FDI Flows, by Region and selected countries, 1995-2007 Region/economy FDI inflows 1995-2000 2002 2003 2004 (Annual average) FDI outflows 2005 2006 2007 1995-2000 2002 2003 (Annual average) 2004 2005 2006 2007 Developed economies 539.3 442.9 361.1 403.7 327.9 316.6 279.8 218.7 279.8 European Union Japan 314.6 309 4 2594 2143 108 4 562.4 611.3 940.9 1247.6 505.5 848.5 804.3 631.0 483.2 507.0 599.3 4.6 9.2 6.3 7.8 2.8 -6.5 22.5 748.9 1087.2 1692.1 450.9 279.9 307.1 402.2 689.8 736.9 1216.5 265.6 421.6 285.2 640.5 1 142.2 368.0 609.3 25.1 32.3 28.8 786.0 303.0 31.0 45.8 50.3 73.5 United States 169.7 74.5 53.1 135.8 104 8 236.7 232.8 125.9 134.9 129.4 294.9 154 313.8 221.7 Other developed countries 37.11 42.6 21.8 41.3 -17 111 3 143.7 29.2 36.0 418 58.0 -2.1 78.4 88 3 Developing economies 188 3 171.0 180.1 283.6 316.4 413.01 499.7 74.4 49.6 45.0 120.0 120.0 117.6 212.3 253 1 Africa 9.0 14.6 18.7 18.0 29 5 45 8 53.0 24 0.3 2.0 2.3 6.1 Latin America and the Caribbean 72.9 57.8 45.9 94.4 76 4 92 9 126.3 21.1 12.1 21.3 28.0 35.8 63.3 52.3 Asia and 106.4 98.6 115.5 171.2 210.6 274.3 320 5 51.0 37.3 22.5 89.9 79.5 141.1 194 8 Asia 105 98.5 115 1 170.3 210 0 272.9 319.3 51.0 37.2 22.5 794 89.9 141.1 194.7 West Asia 33 55 12.0 20.6 42.6 64 0 71.5 09 -1.9 3.2 7.7 12.3 23.2 44.2 East Asia 70.7 67.7 72.7 106.3 116.2 1319 156 7 39.6 27.6 17.4 62.9 49.8 82.3. 1029 China 41.8 52.7 53.5 60.6 72.4 72.7 83.5 2.0 2.5 2.9 5.5 12.3 21.21 22.5 South Asia 3.9 7.1 5.9 81 12.1 25.8 306 0.3 1.8 1.6 2.3 3.5 134 142 South-East Asia 28.0 18.1 24.6 35.2 39.1 51.2 60.5 10.2 5.3 17.0 13.8 22.2 33.5 Oceania 05 0.1 0.4 0.9 0.5 1.4 1.2 -0.0 0.0 0.0 0.1 0.1 0.0 0.1 South-East Europe and CIS transition economies) 19.9 30.4 31.0 57.2 85.0 20 4.6 107 141 14.3 23.7 51.2 South-East Europe 41 3.5 4.8 10.0 119 0.1 0.5 0.1 0.4 0.3 0.4 1.4 CIS 15.8 26.9 472 26.1 74 0 1.9 4.1 106 13.8 140 23.3 49.9 World 734.9 625.2 561.1 7177 958.7 1411.0 1833.3 707.4 537.4 562.8 920.2 880.8 1 323.2 1996.5 Memorandum: percentage share in world FDI flows Developed economies Developing economies South-East Europe and CIS (transition economies) 73.4 70.8 64.4 56.2 66 7 63.8 68.1 89.2 89.9 90.1 85 4 85.0 82.2 84.8 25.6 27.4 32.1 39.5 33.0 29.3 27.3 10.5 9.2 13.0 8.0 13.3 16.0 12.7 1.0 1.8 35 4.2 3.2 4.1 4.7 0.3 0.9 1.9 1.5 16 18 2.6 Source: UNCTAD, World Investment Report 2008: Transnational Corporations and the Infrastructure Challenge, annex table B.1 and .FDI database (www.unctad. org/fdistatistics). Source: UNCTAD, World Investment Report 2008 52#535.3 INFLOW OF FDI TO AFRICA Africa received foreign direct investment (FDI) inflows of US$ 53 billion in 2007. World Investment Report reveals. The region also trumped the world's other developing regions by providing the highest rate of returns on FDI for the past two years. The surge in FDI to the region, and its profitability, were driven by the boom in global commodity prices and by Africa's changing policy environment. North Africa attracted 42% and sub-Saharan Africa 58% of FDI to the region. Africa's FDI inflows in 2007 continued to be geographically concentrated: the top 10 host countries Nigeria inclusive accounted for over 82% of total inflows (figure 5.3.2), and nine countries received inflows of US$ 1 billion or more. The surge in FDI to the region, and its profitability, were driven by the boom in global commodity prices and by Africa's changing policy environment. North Africa attracted 42% and sub-Saharan Africa 58% of FDI to the region. Investment in African least developed countries (LDCs) also grew for the second consecutive year. As a result of the commodity price boom, income on inward FDI grew by 31% in 2007, and the rate of return on investment in Africa was the highest among developing regions in 2006 and 2007. A large proportion of FDI in 2007 concentrated on expanding projects related to natural-resource exploitation, partly through reinvested earnings. Consequently, the share of reinvested earnings in total FDI inflows increased to 28%. Among the major natural- resource producers, FDI in natural-resource exploitation contributed to accelerated export growth. Foreign-exchange reserves in the region grew by some 36% in 2007, and by even more in some major oil-exporting countries such as Nigeria and the Libyan Arab Jamahiriya. Despite higher inflows, Africa's share of global FDI remained at about 3%. Transnational corporations (TNCs) from the United States and Europe were the main investors in the continent, followed by African investors, particularly from South Africa. TNCs from Asia concentrated mainly on oil and gas extraction and on infrastructure. FDI inflows into Africa rose to $88 billion in 2008 - another record level, despite the 53#54global financial and economic crisis. The main FDI recipients included many natural-resource producers that have been attracting large shares of the region's inflows in the past few years, but also some additional commodity-rich countries. Developed countries were the leading sources of FDI in Africa, although their share in the region's FDI stock has fallen over time. A number of African countries adopted policy measures to make the business environment in the region more conducive to FDI. However the region's overall investment climate still presents a mixed picture. In 2009, there is likely to be a decline in FDI inflows into Africa following five years of uninterrupted growth. Fig. 5.3.1: Figure II.3. Africa: Top 10 recipients of FDI inflows, 2007-2008 (Billions of dollars) Nigeria Angola Egypt South Africa Libyan Arab Jamahiriya Tunisia Algeria Congo Sudan Morocco 2008 2007 12 16 20 Source: UNCTAD, World Investment Report 2009: Transnational Corporations, Agricultural Production and Development. Fig. 5.3.2. Africa top 10 recipients of FDI inflows, a 2006-2007 (Billions of US dollars) 54 20#55Nigeria Egypt South Africa Morocco Libyan Arab Jamahiriya 14 Sudan Equatorial Guinea Algeria 2007 2006 Tunis ia Madagascar -1 -0.5 0 0.5 1 1.5 2 2.5 3 3.5 4 Source: UNCTAD, World Investment Report 2008: Transnational Corporations and the Infrastructure Challenge. Fig. 5.3.3: Rates of return on inward FDI, by developing regions, 1995-2007 (per cent) 18 16 14 12 10 00 8 6 4 2 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 -Developing economies Latin America and the Caribbean Africa *West Asia *South, East and South-East Asia Source: UNCTAD, World Investment Report 2008: Transnational Corporations 55 55#56and the Infrastructure Challenge. Note: Rate of return is calculated as income for the current year, as measured by balance-of-payments data on outflows of direct-investment income divided by the average of FDI stock of the previous year and the current year. 5.4 FDI INFLOWS TO NIGERIA UNTAD reported that in 2006 Nigeria attracted US$14 billion, while in 2007; the country attracted US$12 billion. The decline was as a result of investors attitude of 'wait and see' in view of the general election for civilian to civilian political transition. FDI in oil and gas and other minerals is likely to remain robust in the medium term. The NIPC has realized that Nigeria could increase its share in global FDI through promoting investment in the manufacturing of basic and intermediate goods and industrial inputs for regional markets. The strategy developed for this will guide targeted investment promotion in 2009. Fig 5.4.1: Selected African Countries FDI inflow in Comparison with Nigeria (2005-2007) US$billion 56 56#5716000 14000 12000 10000 8000 6000 4000 2000 0 Nigeria South Africa Ghana Cote dIvoire Tunisia Ethiopia Cameroon -2000 2005 ■2006 2007 Source: UNCTAD In 2008 Nigeria was at the top of the ten Africa FDI recipient nations with over US$20billion followed by Angola and Egypt. The ethnic conflicts and youth restiveness in the Niger delta affected the level of the crude Oil production. These socio-political conflicts coupled with the election tension aggravated the problems of insecurity and hence the uncertainty in the domestic business environment which in turn impacted negatively on the inflow of FDI. Towards this the Federal Government has stepped up security in the region and the youths in that region are being empowered to engage in productive ventures. 5.5 FOREIGN DIRECT INVESTMENT (FDI) TRACKING IN NIPC The FDI inflow to Nigeria, collated in the Commission, through Certificated of Capital importation of CBN and the Joint Venture Data of NNPC is summarized in Table 5.5.1. The total volume of Foreign Direct Investment (FDI) captured through the Central Bank of Nigeria is US$7,750billion (seven billion seven hundred and fifty million United States Dollars). This represents about 11% increase over 2007 figure of US$6,935billion (six billion nine hundred and thirty five million United States Dollars). As at the time of compiling this report, an input from the 57 52#58Nigerian National Petroleum Corporation (NNPC) as regards the nation's joint venture accounts in 2008 has not been received. The Non-oil sector attracted US$7,109 billion which represents about 91% of the inflow with the Services sector being the major beneficiary with about 82% of the total inflow into the economy. The banking and finance sub-sector accounted for about 69% while the telecommunications sub-sector attracted about 9%. The country remains the highest destination of investment within the Economic Community of West African States (ECOWAS) region by attracting about 50% of the total volume into the region. It is worth to note that when compared to other countries in Africa in terms of total stock of FDI attracted over the last 10 years, Nigeria is ranked second to South Africa. Table 5.5.1: FDI Inflow (2005 - 2008) US$ Sector Agriculture Services 2005 6,979,868.60 783,113,950.00 2006 2007 2008¹ 370,001.38 32,268,765.32 1,724,970.00 16,870,049.54 5,757,087,637.03 6,362,441,823.87 Engineering Manufacturing 125,652,195.20 954,116,449.71 335,159,753.20 13,217,889.76 92,873,274.97 146,192,940.29 713,810,147.52 504,075,577.06 Commerce 67,864,610.40 21,462,809.25 124,751,374.66 94,686,156.58 Tourism/Hospitality 70,000.00 45,129,640.77 Oil & Gas 49,357,879.20 9,142,975.51 152,015,273.30 641,265,589.01 Total 1,368,198,256.60 1,015,180,206.84 6,935,413,278.57 7,750,387,056.81 Sources: CBN and NNPC 2008¹: Provisional Data Fig. 5.5.1: FDI Inflows (2005 - 2008) US$ 58#599,000 7,750 8,000 6,935 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2008 2007 2006 2005 1,368 1,015 5.6 OUTLOOK FOR 2009 AND BEYOUND The long-term outlook is promising for investment in raw-material value-chain activities. The impressive performance of the non-oil sector is expected to continue based on the determination of government to implement its various economic policies aimed at encouraging investment in the non-oil sectors of the economy. Telecommunications, engineering and commerce are expected to improve. The licensing of more service providers by the National Communications Commissions (NCC) and the attention the infrastructural development is receiving are pointers to this envisaged performance. FDI in oil and gas and other minerals is likely to remain robust in the medium term. 59#605.7 INVESTMENT FACILITATION ACTIVITIES 5.7.1 NIPC Business Registration/Permit Fig.5.7.1 shows NIPC Business Registration/Permit by Sector & Employment Generation 2006-2008. In 2006 71 BP were issued, while 211 BP were issued in 2007 representing over 185% increment. In 2008 the Commission issued 125 Business Permits representing 68.8% decline. This is attributable to the ripple effect of the 'wait and see attitude' of investors, due to the general election that took place in the country in 2007. Table 5.7.1.1: Regional and Sectoral Business Permit Registration 2008 Sector Region Asia Europe Africa North South Far Total Total Number of Projected America America East Companies employme Agriculture 1 1 Services 8 16 4 3 3 34 22,704 Engineering 6 8 2 1 5 22 3,264 Manufacturing 5 12 4 1 24 9,385 Commerce 13 3 1 21 1,461 Tourism/Hospitality 1 1 2 230 Solid Minerals 5 1 2 1 9 345 Oil & Gas 1 5 - 6 12 636 Total 40 45 12 19 125 38,025 Europe remains the most active source of fresh capitals for Greenfield investments in the economy. In 2008 36% of the total registered companies by NIPC were affiliated to Europe. Asia also sustained their interest in the economy by investing in over 40 Greenfield investments which represented about 32%. The 35% of the 36% share by European affiliated companies registered in 2008 are operating in the service sector of the economy. In total, the service sector accounted for 27% of total Greenfield investments in 2008 followed by manufacturing which accounted for about 19% while engineering and commerce accounted for about 17% and 16% respectively. No. of Investment Employment Generated 2006 2007 2008 2006 2007 2008 Table 5.7.1.1: NIPC Sectoral Grant of Business Permit 2006-2008 S/N Investment Sector 60 60#611. Services 18 40 34 1,380 2,918 22,704 2. Manufacturing 16 45 24 1,866 14,859 9,385 3. Transport 4. 5. g 6. Agro/Agro-Allied Construction/Engineerin 4 Communication 63 7 120 7 7 1 220 813 25 25 24 22 821 3,264 3,264 6 7 56 692 7. Oil & Gas 11 19 12 616 3,621 636 8. Chemicals/Petrochemica 3 2 235 1150 ls 9. Infrastructure - LO 5 625 10. Solid Minerals 3 12 638 1,854 345 11. 12. Power 13. Tourism/Hospitality Pharmaceuticals 2 1 2 108 150 230 2 - 72 - 2 - 30 150 14 Commerce - - 21 1,461 15. Total 74 211 125 6,132 35,276 38,025 Fig. 5.7.1.2 NIPC Sectoral Grant of Business Permit 2006-2008 61#62Commerce Pharmaceticals Power Tourism/Hospitality Solid Minerals Infrastructure Chemicals/ Petrochemicals Oil & Gas Communication/Telecoms Construction/Engineering Agric/Agro-Allied Transport Manufacturing Services 0 10 20 20 30 40 40 2008 2007 2006 50 50 Fig 5.7.1.2: NIPC Sectoral Business Permit & Employment Generation 62 62#63Commerce Pharmaceticals Power Tourism/ Hospitality Solid Minerals Infrastructure Chemicals/Petrochemicals Oil & Gas Communication/Telecoms Construction/Engineering Agric/Agro-Allied Transport Manufacturing Services 0 5,000 10,000 15,000 20,000 25,000 5.7.2 Pioneer Status Incentive Pioneer Status (PS) is an incentive that in the form of tax holiday for three to five years anywhere in the federation.. The grant of Pioneer Status incentive to an industry is aimed at enabling the beneficiary industry make reasonable profit within its formative years. The profit so made is expected to be ploughed back into the business. Details of the approved industries declared pioneer industries, 63 2008 1 2007 1 2006#64which can benefit from such tax holiday is available in the NIPC publication: "Investment Incentives in Nigeria" and also on NIPC website. In 2007, a total of 55 applications for Pioneer Status were received in the Commission out of which 24 companies were granted Pioneer Status incentive with $23, 051.19 billion FDI recorded, a total equity of N10, 619.28 billion and employment level of 21, 532 people. In year 2008, a total of 46 applications were received in the Department out of which 23 were granted Pioneer Status incentive. The manufacturing activities accounted for 52% of total number of companies that were awarded this incentive with a potential of about 1,605 job opportunities to be created with an investment worth of N530.26million. It is therefore evident that the sector remains an attractive preposition to investors. It should however be noted that empirical evidences have shown that availability of fiscal incentives are not enough to attract investment, but the right operating environment needs to be put in place. The infrastructural base of the economy is a key criterion to stimulate industrial growth in the economy. The present power generation of about 2,000MW is grossly inadequate to support an economy where average power need had been put at about 7,000MW. The establishment of the Infrastructure Concession and Regulatory Commission (ICRC) is therefore expected to design appropriate mechanism that would create the right conditions to stimulate the private participation in infrastructure provision and management. (b) Public Presentation of Pioneer Status Certificates/Interactive Sessions with Investors The Commission conducted a Public Presentation ceremony for 22 Pioneer Status beneficiary companies during the year under review. The event, which held on 17th July, 2007 had representations from the Industrial Inspectorate Department, Federal Ministry of Commerce & Industry; Federal Inland Revenue Services (FIRS) and members of the electronic and print media. It allowed for interaction and exchanges of views on the Nigerian business environment between the Government agencies in attendance and the investors present. It gave the Commission the opportunity to demonstrate its transparency in the issuance of Pioneer Status incentive so as to facilitate the inflow of FDI to the country. 64#65Table 5.7.2.1: Sectoral Grant of Pioneer Status Incentive 2006 - 2008 S/N Sector of Investment 1. Services 2. Manufacturing 3. 4. 5. 6. 7. Agro/Agro-Allied Construction/Engineering Communication/Telecoms/ Oil & Gas Chemicals/Petrochemicals 8. Solid Minerals 9. Tourism 10. Pharmaceuticals 11 Infrastructure Total Pioneer Status Granted for Year 2008 No. of Companies 2006 2007 2008 Total 1 7 6 10 25 29 12 65 11 5 3 19 1 1 1 10 - 3 232 15 1 4 5 1 - I 1 4 4 8 5 1 7 6 8 66 54 23 143 Sector Number of Companies Agriculture 3 Services 6 Total Projected Total Worth of employment 163 1,963 Engineering 1 Manufacturing 12 62 1,605 Investment N88million N89.990million N1billion N530.26million Oil & Gas 1 24 N2.976million Total 23 3,817 N1.710billion 65#66Fig.5.7.2.1: NIPC Sectoral Grant of Pioneer Status Incentive 2006 - 2008 Commerce Pharmaceticals Power Tourism/ Hospitality Solid Minerals Infrastructure Chemicals/Petrochemicals Oil & Gas Communication/Telecoms Construction/Engineering Agric/Agro-Allied Transport Manufacturing Services 0 10 20 30 40 50 50 5.7.3 GRANT OF EXPATRIATE QUOTA (EQ) POSITIONS The Commission facilitates the grant of Expatriate Quota positions in conjunction with the Immigration Desk in the Commission. Companies enjoying such positions forwards to the Commission, on monthly basis, the utilization of the quota positions granted them. 66 ☐ 2008 2007 2006#67A total of 913 Quota positions were granted between 2004 and 2006. A total of 31 companies benefited from EQ in 2004, 12 companies in 2005 and 71 companies in 2006 which is 56.3% and 56.3% increase over that of 2004 and 2005 respectively. Fig 5.7.3.1 gives the details of the Quota positions granted in the period under review. Table 5.7.3.1: Sectoral Grant of Expatriate Quota for the years 2004 - 2006 Expatriate Quota Positions S/N Sector of Investment 2004 2005 2006 Total 1. Services 6 13 242 261 2. Manufacturing 124 90 163 377 3. Transportation 4 4 4. Agro/Agro-Allied 4 - 15 19 5. Construction/Engineering 38 33 53 124 6. Communication/Telecoms 8 7 29 44 7. Oil & Gas 6 6 8. Solid Minerals - 10 10 9. Tourism 5 5 10. Pharmaceuticals 1 3 4 11. Others 59 - 59 Total 255 143 515 913 Fig.5.7.3.1: Grant of expatriate Quota Positions 2004 - 2006 67 62#68Sectors Others Transportation Pharmaceuticals Tourism Solid Minerals Oil & Gas Comm./Telecoms Cons./Engring Agro/Agro Allied Manufacturing Services 515 3 33 59 0 50 100 150 60 200 No. of Quota Positions 2004 2005 2006 250 300 350 400 Sectoral Performance on FDI Captured through NIPC Approvals/Permits In 2007, the Manufacturing sector recorded the highest inflow of foreign investment of $23,070.31m representing 98.09%, with about 112 companies registered and a total of 30,847 people employed. The Service sector followed with 72 companies' registered and total employment of 3,996 people, its total FDI attracted of $373.76m or 1.59% is far below that of Manufacturing sector. The Oil & Gas sector followed with a total foreign investment of $54.01m or 0.23%, it registered 28 companies with an employment level of 4,856 people. While the Agric Agro allied sector registered about 36 companies with foreign capital far below with $12.42m or 0.05% and an employment level of 2,135 people. The Engineering & Construction followed with a total of $6.50m foreign capital all or 0.03% and registered a total of 30 companies with an employment level of 7,839. The Tourism, Solid Minerals, Communications and Infrastructural sectors recorded about $2.22m or 0.01% all together with 30 companies registered and an employment level of 3,247. While the least performing sectors during the period under review were the Chemicals and Petro Chemicals, Pharmaceuticals and Transport which registered about 14 companies with a total employment of 3,088 people, there was no foreign capital inflows recorded. 68#69The cumulative inflow of FDI in the year 2007 was $23,519.22m; total companies recorded are 332, and a total employment level of 56,808 people. In 2008, the Agriculture/Agro Allied sector recorded the highest inflow of foreign investment of $535.61million representing 69% with 4 companies registered and a total of 163 people employed. This sector was followed by ICT/Communications which came a distance second registering $142.25million as FDI inflow with 4 companies registered and 1,008 people employed. In third place is the Pharmaceuticals sector with FDI inflow of $74.97million, registering just one company and with employment generation estimated at 92 people. Following the Pharmaceuticals sector, is the Manufacturing sector with FDI inflow of $11.25million registering 17 companies with employment generation put at 1,511 people. In fifth place is the services sector with FDI inflow of $2.58million, registering 4 companies and generating employment for 246 people. Following in sixth place is the Solid Minerals sector with FDI inflow put at $0.72million with 2 companies recorded. However, data on employment generated is unavailable as this was not provided by the two companies registered. In last place is the Transport sector with FDI inflow put at $0.02million with one company recorded. Here too, there was no data on employment generated as none was provided by the company. Comparison of FDI Inflow In comparison, the Commission registered more companies in the year 2007 as against the year 2006 from 202 to 332; there is also a remarkable performance in respect of FDI inflow in 2007 as against 2006 as shown in the graph below ($1,962.44million FDI inflow in 2006 as against $23,519.22million FDI inflow in 2007). The rate of employment has risen dramatically from 24,832 in the previous year to 56,808 in 2007 The 2007 increase in FDI inflow is also as a result of huge investment in the following sectors - Manufacturing with $23,070.31million, Oil & Gas and Services with $373.76million, while the highest employment generation of 30,847 people was recorded from the Manufacturing sector. 5.7.4 ONE STOP INVESTMENT CENTRE (OSIC) The One Stop Investment Centre is structured as a special department of NIPC, with membership drawn from within and outside the Commission (participating agencies) and its operation are synchronized with that of NIPC mandate of investment promotion, facilitation as well as advocacy. The mandate is achieved 69#70without compromising the Policy objectives of the participating agencies. Giving the initial misconception, misinterpretation and resistance to the past efforts to establish a One Stop Shop in NIPC, it is easy now to appreciate the level of courage, tact, decorum, team work and cooperation that was employed to ensure successful take-off and effective running of the Centre in its third year of operation. (b) Objectives of the Centre: The objectives of the Centre (OSIC) include the following: (c) a. To substantially reduce the cost of entry into Business in Nigeria. b. To simplify procedural steps for obtaining business approvals. c. To shorten service delivery time without undermining the policy objectives of the participating Agencies/Ministries. d. To ensure transparency. e. To provide Investment Information and Advice to Investors promptly f. To fast-track public sector reform that will result in more attractive business environment. g. To maintain close and professional working relationship among government Agencies/Ministries in support of investors. Participating Government Agencies at the Centre: Thirteen Agencies/Ministries pioneered the first phase of the Centre in 2006. The number increased to sixteen (16) in 2008 with the coming on board of NIMASA, ODUA and NNDC, The centre maintained effective collaboration for the attainment of corporate objectives. Nigeria's model of OSS presents the best option of fast-tracking investments without hurting and triggering inter-agency rivalry. The centre provides each agency with a platform to conduct its statutory mandate but in accordance with OSIC's targets for service delivery in terms of speed, efficiency, and transparency in their dealings with investors. S/N Agency 1. NIGERIAN INVESTMENT PROMOTION COMMISSION Functions Registration of Foreign Investments, Issuance of Business Permits, Complaint Management, Linkages with NIPC Departments, and other Government Agencies, Country-wide liaison with 70 70#712. (NIPC) CORPORATE AFFAIRS COMMISSION (CAC) 3. NIGERIA IMMIGRATION SERVICE (NIS) 4. NIGERIA CUSTOMS SERVICE (NCS) the 36 States on investment matters and overall coordination of the Centre. Name searches, Company Incorporation and registration Expatriate Quota Positions, Regularization of Permanent Work Permits, other immigration facilities Issuance of Import & Export Guidelines, Procedure for citing Excise Factories, Goods clearance facilitation and general information on fiscal policy issues. Tax Registration, Payment of Stamp Duties, Issuance of Tax Clearance Certificates and issuance of Tax Forms OFFICE Registration of contract agreements dealing with TECH. Transfer/Acquisition of 5. FEDERAL INLAND REVENUE SERVICE (FIRS) 6. NATIONAL FOR ACQUISITION PROMOTION (NOTAP) 7. 8. 9 10 Technology, & Approvals/licenses for Technology Transfer, Patents and Franchises etc. NATIONAL AGENCY Registration of Regulated Products, Issuance of Export Certificates, Authorization to import of Unregistered Products FOR FOOD & DRUG ADMINISTRATION & CONTROL (NAFDAC) STANDARDS ORGANIZATION OF NIGERIA (SON) FEDERAL MINISTRY OF MINES AND STEEL DEVELOPMENT (FMMSD) NATIONAL BUREAU OF STATISTICS (NBS) 11 MINISTRY OF THE FEDERAL CAPITAL Facilitates all aspects of Standardization activities, approvals or permits for use of standards. Provides guidelines to investors. Exploration Licenses, Mining leases and information and guidelines on investing in the solid minerals sector Statistical Data on the Nigerian Economy by sectors and industry Land Matters for investment projects and general information on investment opportunities in the 71#72TERRITORY (FCTA) FCT. 12 FEDERAL MINISTRY OF FINANCE (FMF) 13 Administration of Industrial Incentives, Tariff Administration and general information and guidelines on fiscal policy CENTRAL BANK OF Provision of Information and Technical Advice on NIGERIA (CBN) 14 NIMASA 15 ODUA 16 NNDC the Nigerian, Banking and Financial System, guidelines on correspondent banking and funds transfer, including capital importation Provision of Information and Technical Advice on the Maritime Sector of the economy Land Matters for investment projects and general information on investment opportunities in the Western region Land Matters for investment projects and general information on investment opportunities in the Northern region OSIC has become an irresistible, unassailable and the preferred place to start implementing investment projects in Nigeria. The team of professionals drawn from the relevant investment facilitation agencies is very conscious and anxious to hold investors by the hand and help them navigate through Nigeria's legal and regulatory business environment. “OSIC is ready for Business" (d) • Services rendered include: Incorporation of Companies for both local and foreign investors. • Granting of various permits and licenses, • Facilitation of requests by investors and • Rendering of technical information/advice on the Nigerian economy. (e) Operations/Activities: The year 2007 being the second year of establishment of OSIC witnessed an upsurge in the activities of the Centre both in volume and quality of services rendered. It rendered services to a total of one thousand and six (1006) 72#73Companies compared to seven hundred and seventy (770) Companies serviced 2006. The trend of these services as shown in the graphics below clearly indicate that the highest number of Companies visited the centre in the month of July three months after the general elections in 2007. A total of 129 companies were attended to in July followed by June with 115 companies the lowest patronage was recorded in December with 32 Companies followed by April with 41 Companies. In terms of service offering, provision of, information and data ranked highest followed by approvals permits and licenses. Facilitation and company incorporation were the least of services received from the Centre. The country of origin and regional distribution show that investors from African countries are the highest callers to the Centre followed in a distance by Middle/Far East, Other regions such as South America, and Caribbean's rank lowest. In a similar vain the Sectoral distribution exhibited the same pattern where Services ranked highest followed in a distance by manufacturing sector. In 2008 information dominated the services rendered in the centre and it accounts for 74.9% of the whole services rendered, the issuance of Business permit followed at a distance of 14.1% incorporations 8.7% lastly immigration services 2.3% due to bottlenecks imposed by Internal Affairs Ministry. The monthly trend shows that the months of June and July recorded the highest patronage with 14.5% and 10.8% respectively. Whereas the months of October with 5.5% and December with 2.6% show the beginning of the effects of the economic meltdown, however the average monthly patronage to the Centre stood at 3.3%. The regional distribution shows that the greatest number of companies comes from Africa and Nigeria represents 64.8% of the entire patronage, Middle/far East ranked second with China accounting for 42.1% of the regional patronage. Europe accounted for 10.3% with UK recording 34.2%. 73#74Fig. 5.7.4.1: Trends of OSIC activities in 2007 TREND OF OSIC ACTIVITIES FOR 2007 140 120 100 88 Number of Companies 80 60 60 40 20 20 0 January Febuary March April May June July August September October Fig. 5.7.4.2: Distribution of services rendered in 2007 November December 74#75800 700 600 500 Number of Companies 400+ Distribution of services Rendered in2007 300 200 100 0+ Information Approval,Permit & Incorporation Facilitation Licences Fig. 5.7.4.3 Regional Distribution of OSIC Services in 2007 REGIONAL DISTRIBUTION OF OSIC SERVICES 2007 Number of 700 600 500 400- Companies 300 200 100 0 Les Africa North America Europe Others Middle/Far East 75#76Fig. 5.7.4.4: Sectoral Distribution of Services Rendered by OSIC in 2007 SECTORIAL DRISTRIBUTION OF SERVICES 2007 600 1 500- 400- Number of Companies 300- 200- 100- 0 ..... Services Manufacturing AgricultureInfrastructure Oil & Gas Chem/Pharm Solid Minerals Fig. 5.7.4.5: 2008 OSIC Distribution of Services 600 500 400 300 200 100 2008 Distribution of services 0 Incorporations Information Immigration Services Business permit Series 1 Series 2 67 575 18 108 76#77Fig. 5.7.4.5 OSIC Monthly trends of activities in 2008 Monthly Trend of Activities for 2008 120 100- 80 Number of 60 Companies 40 20 0. Month January Febuary March April May June July August September Fig. 5.7.4.6 2008 OSIC Regional distribution of Services Regional Distribution of OSIC Services 2008 600 500 400- Number of Companies 300 200 100 Series 1 Series2 October 0 Africa Europe Middle/Far East North America Others 521 79 114 45 9 November December 77 77#78(f) (g) International Reactions/Support: The World Bank and UNCTAD after reviewing the operations of the One Stop Shop concluded that OSIC model is and suitable and recommended the model for developing countries. Some African countries has requested the assistant of Nigerian One Stop Shop in setting up their own, notably Tanzania and Kenya. Gambia had send two set of delegations to understudy the operations of the Centre. • The World Bank and UNCTAD are now determined to assist the Centre in capacity building, support the institutionalization of the protocol of Authority and Agreement with the stakeholders and creation of state One Stop Shops Service and Process Improvements: • Operations at OSIC in Continuous Review for improvements. ● The Centre continued to maintain 24hours service target. • Perfected in information and inquiry management (h) • • Establishment and commissioning of OSIC office in Lagos in 2009. Additional 22 government agencies to make their presence in OSIC come 2009, selectable on the basis of their mandate and role in the investment facilitation process. Emphasis on International publicity and sensitization. Training and retraining of the staff within and outside the Country to build required capacity. Accomplishments: The achievements of the Centre are outlined below: (i) Provision of Office Space and Supply of Working Tools 78#79All the participating Agencies/Ministries at the Centre have been adequately accommodated and equipped appropriately with necessary working tools, including computers, printers, and telephone facilities. (i) OSIC Publications OSIC now has three publications ( OSIC AT A GLANCE, INVESTORS' GUIDE TO THE ONE-STOP INVESTMENT CENTRE & OSIC IN BRIEF) which serves as an Investor Road Map for the One Stop Shop. The aim is to guide Investors on the procedural steps to accessing OSIC services. The guide was prepared with inputs from all the participating Agencies. (iii) Protocol of Authority and Cooperation As part of measures to ensure effective performance by the One Stop Investment Centre (OSIC) and to create an enabling environment for continuous improvement both in process and in quality of service rendered to investors, a draft document titled: "Protocol of Authority and Cooperation for the One Stop Investment Centre (OSIC)" had been negotiated and signed with the participating Agencies and Ministries (i) Testimonials As a testimony of excellent services of OSIC, here are the comments of some clients: - "I have seen many "One Stop Shop" across Africa and never seen one so well run, empowered, and ready to act." Christian Wright, Director Power Aldwych International "Everyone I interacted with was very enthusiastic about their assignment, demonstrated good knowledge, and strong desire to make a difference" Bunmi Oni, MD/CEO Cadbury Nigerian Plc "Very refreshing, never know that the One-Stop-Shop is really, really One Stop. I Commend the Executive Secretary and staff of NIPC. Very great innovation."- Idi Farouk DG National Orientation Agency "We have also concluded all requirements by NIPC and I must say that this is one Agency that I would not hesitate to 79#80recommend to any Nigerian in Diaspora, b/c this agency is thorough and efficient" Foisi Broadcasting Network Inc in a Letter dated 7th December, 2007 to Mr. President. 5.7.5 ZONAL OFFICE INVESTMENT ACTIVITIES FACILITATION/SERVICING (a) Revitalizing Ailing Companies In North West Geopolitical Zone The Commission through its North West Zonal Office in Kano is collaborating with the Kano State Government for the purpose of revitalize the state ailing companies. Various committees have been formed by the state Government for this purpose. The NIPC Kano zonal office was appointed to serve as member in the Kano Free Trade Zone Committee. • • • Tax Reduction: The Commission through Its South East Zonal Office In Enugu assisted the Vegetable Oil Association to benefit from the reduction of corporate tax from 30% to 10% for the sector. Investors Forum: The Commission, through its south West Zonal Office in Ibadan collaborated with the Bank of Industry and Nigerian Export Promotion Council (South West zonal Offices) organized an investors Forum on 3rd May, 2006. The theme was "funding and Export Possibilities for Investors". The welcome address was delivered by the NIPC Zonal head and it was an opportunity to showcase the activities of the Commission. Kano Inland Dry Port: The Commission facilitated the Kano State government in flag off its Inland Container Depot, (ICD) when the licensed Concessionaire, Dala Inland Dry Port ltd, received its SOD on the 12th of September 2006 at a ceremony at Zawachiki. Kano Free Trade Zone Sensitization Seminar: The Executive Secretary was in Kano as a Resource Person at the sensitisation seminar on the Kano Free Trade Zone at Panisau, under the following topic: "Free Zone as a Catalyst for Economic Growth in Kano”. His presentation at the occasion received a big applause from the audience. • 27th Kano International Trade Fair 80 60#81(b) The Commission facilitated the Kano International Trade Fair which was held between 15th - 26th November, 2006 with the theme "Enhancing Economic Growth, Reduction of Trade Barriers and Tariffs. Collaboration with relevant Stakeholders The Commission through its Zonal Offices has, by way of visits and correspondences, consolidated its Inter-Agency collaboration on the working relationships with government establishments and other stakeholders within the zone. The efforts in addition to enhancing exchange of information and ideas, it also provided for the much-needed synergies between state governments and their agencies for a better service delivery to the business community in their respective states. Some of these agencies are: Nigerian Television Authority (NTA) and other Media Houses States Ministries of Commerce & Industry • • States Investment/Development Companies • • States Chambers of Commerce & Industry Nigerian Shippers Council (NSC) • • • Nigerian Tourism Development Corporation (NTDC) Nigerian Export Promotion Council (NEPC) Raw Materials Research & Development Council (RMRDC) States Ministries of Solid Mineral Development and others. 81#825.8. INVESTMENT PROMOTION ACTIVITIES 5.8.1 Sensitization of NIPC Activities The Commission carried out a sensitization programme aimed at educating the Public on its activities and to seek public support for its programmes. To this end, courtesy visits were made by the Executive Secretary/CEO and Management of the Commission to relevant government ministries, State Governors, State Investment Promotion Agencies, Heads of relevant government Parastatals, High Commissions/embassies of foreign countries, Multinational companies, accomplished Industrialists, and other stakeholders was successfully carried out. On the other hand, notable organizations and dignitaries also called on the Commission during the period under review. Most of the courtesy calls were to explore areas of collaboration and areas of investment from the Commission. This has helped the Commission to have a better appreciation of the challenges the investors grapple with in the Nigeria business environment and also to develop strategies to handle same. The surge in the number of enquiries is a further testimony of the realization of NIPC's role and effectiveness in investment promotion in the country. 5.8.2 HOSTING OF BUSINESS AND INVESTMENT FORUMS The following Business and Investment Forums were held during the reporting period: • NIGERIA-BRAZIL BUSINESS AND INVESTMENT FORUM The Commission successfully organized the 1st Nigeria-Brazil Business and investment Forum which held in Sao Paulo. The event was sponsored by the Securities and Exchange Commission and the Edo State Government. It was well attended by both Nigerian and Brazilian Participants. As a fallout of the event, the Commission has worked on the following areas: (i) A private airline - Al-Dawood Air Ltd interested to provide the air link between Nigeria and Brazil under Variq accreditation. The 82#83(ii) department has already held a fruitful meeting with the company Management while a proposal from the company is still being awaited. - Delta Global a Brazilian company with technology for the provision of cheap houses is scheduled to visit Nigeria. The Department is making all arrangements to ensure their visit is fruitful. CZECH BUSINESS DELEGATION The Commission in collaboration with the Czech Embassy in Nigeria, received and facilitated the visit of a Czech business delegation to Nigeria. The sectors focused on during the visit include telecommunication and ICT, Manufacturing, Agric, Ago-allied and oil and gas. • AFRICAN PETROLEUM ENERGY AND MINING CONFERENCE The Commission in collaboration with Foreign Investment Network (FIN) organized the 2nd African Petroleum, Energy and Mining Forum in Beijing, China which was a continental forum to attract inflow of investors into African Continent. The event was a Two day Forum from 3rd - 4th April 2006. The Commission provided all the Logistics by sending the invitation letters to all interested participants across the country where tremendous responses were recorded. The event which had well over 44 Nigerian participants also drew participation from several other African countries such as South Africa, Namibia, Mauritius, Kenya, Tanzania and Swaziland. Other agencies represented at the event were the Federal Ministry of Petroleum Resources, PPMC, NNPC, PPRA and NEPZA. The event which held alongside the 6th China International Petroleum & Petrochemical Exhibition (CIPPE) which is the biggest Chinese annual Oil & Gas exhibition for Technological know-how. was witnessed by unprecedented and remarkable gathering that is vast in Oil & Gas from both China and the African continent. The following papers were presented at the forum: The Reliable Banking Destination for Foreign Direct Investment Funds by the Managing Director/CEO GTBank. Nigerian Investment Climate and Opportunities presented by the Executive Secretary/CEO NIPC, ably represented by Stephen Amase. Investment Potentials of Cassava- The Miracle Crop presented by Special Assistant to the Hon. Minister of Commerce. 83#84Opportunities des Petroleum Du Gabon, Mission Chine Averil 2006 presented by the Hon. Minister of Mines, Gabon. Insuring Foreign Direct Investment: The Capabilities of International Energy Insurance Company Limited to provide strong cover for project sustainability presented by the Managing Director/CEO. Meeting the Challenges of Africa Oil & Gas Markets through joint initiatives by the Deputy Minister of Minerals & Energy South Africa. Republic of Mozambique Ministry of Mineral Resources an over view of Petroleum & Mining Mozambique" by Minister's Adviser, Mario Marques Mining Opportunities in Nigeria's 34 Minerals Resources by the Hon. Minister of Solid Minerals Development represented by Senior Specials Assistant to the Minister, and a host of others. NIGERIA-ARGENTINA BUSINESS AND INVESTMENT FORUM The Nigerian - Argentine BIF of 28th -30th June was a huge success given the fact that it was meant to be a ground breaking project. The Argentine Nigerian Business and Investment Forum completed the circle of the Commission's drive to portray Nigerian investment potentials in South America with its precursor in the Brazilian BIF. The NIPC delegation held three sessions in the Business and Investment Forum in Argentina, with two full business forums and a road show in Chilvicoy Province. INTERNATIONAL BUSINESS LEADERS CONFERENCE; LONDON The Conference was organized by the Foreign Investment Network in collaboration with the Commission. It held between the 19th-20th of October 2006 and was attended by about 187 participants drawn from all over the African continent including the Former Minister of Foreign Affairs, Dr. (Mrs) Ngozi Okonjo Iweala, Minister of Information Technology & Telecoms, Mauritius, Minister, Planning and Regional Development, Cameroon, Dr. Job Graca, Deputy Minister of Finance, Angola, Dr. James D. Rogers Governor, Central Bank of Sierra Leone, Hon. Zotawan D. Titus, Assistant Minister, Telecoms, Liberia. Other participants included the President, National Private Investment Agency and two representatives of the Federal Ministry of Science and Technology and the Nigerian Airspace Management Authority. ळ 84#85Private sector participants during the Conference included the Managing Director, Barclays Bank, UK, Mr. James Smith, Shell Country Chairman in the UK, Rebecca Harding, Executive Director, London Business School, Dr (Mrs.) C. G. Okpareke, ICAN President, Nigeria, Lisa Curtis, Private Sector Advisor, DFID, Chief Editor, Guardian Newspaper, Reuben Abati and the Vice Chancellor, Women University of Zimbabwe, Zimbabwe, Dr. Hope Sadza,. The Conference was yet another opportunity where the nation's rich investment potentials were showcased. EDO STATE BUSINESS DELEGATION TO CHINA The Commission represented the Commission in China during the signing ceremony for the construction a USD20million cement factory in Edo State. The contract was signed between the Edo State Government, New Era Limited and Ava cement Company of China on the 1st of November 2006. The Edo State Government was represented by the Governor and some of his cabinet members. . VISITING DELEGATIONS Visit of Chinese President H.E Hu Jintao The Commission in collaboration with the Chinese Embassy worked to receive the President of China, President H.E Hu Jintao who visited the country 26th - 28th April, 2006 on a State visit. He addressed a selected Nigerian entrepreneurs at the Transcorp Hilton Hotel on the 27th of April, 2006. Visit of Malaysian Consortium. The Commission hosted the visit of a Malaysian delegation that represented a consortium of investors from Malaysia. The delegation had series of meetings with banks with a view to encouraging equity participation in the in the financial sector due to the current reforms and consolidation. This was informed by the fact that, the consortium intended to make a reasonable level of investment and was desirous of being on the board of the bank that would manage the funds. The Malaysian Consortium of Investors also stated that it was willing to package an investment of US$2billion for the following projects: • 50,000 hectare Oil Palm Plantation. • IPP project of 1000MW. . A refinery for petroleum crude. Ancillary manufacturing concerns in agro and allied processes. 55 85#86The delegation prior to coming to Nigeria had targeted Ondo State to be the final destination of these proposed investments, and had discussed with the government officials. VISIT OF ESSAR GROUP OF INDIA. The Commission facilitated the visit of Essar Group of India, and escorted the delegation to the Coal Mining sites at Okaba, and Ogboyoga in Kogi, Onyeama and Okpara in Enugu and Owukpa in Benue States. This physical inspection of the Mines was necessary as the Department had submitted on the behalf of Essar Group of India their bids to BPE on the Coal Properties Auction. VISIT OF ISO INTERNATIONAL The visit of ISQ International, a Portuguese company specialized in the certification of welders for international standard, formed part of the department's activities for the year. The company which participated in the Business and Investment Forum held in Lisbon in 2004, had been discussing with NNPC on local content drive of the Federal Government. Consequently, the company's visit to Nigeria was to assess facilities on ground for accreditation. They visited Lagos, Port Harcourt, Warri and Kaduna. An MOU is expected to be signed between them (ISQ). • VISIT OF ARGENTINE INVESTMENT DELEGATION TO JIGAWA STATE. The Commission facilitated the visit of the 3rd Argentine Investment Delegation to Jigawa State; originally billed to cover three states, the delegation had to visit Jigawa State only due to the quality of investment that had taken place. The delegation had earlier visited and signed MOU with the State. This translated to investment in: a. b. Bovine insemination and cryogenic preservation centre for the state's animal embryo transplant programme. Water Treatment Plant at Kazaure and Birnin Kudu. VISIT OF OFFICIALS OF MESSRS CIRA PANACCI SRL AVERS OF ITALY. The Commission also facilitated the visit of an Italian Investment delegation which arrived Lagos on the 19th of April 2006. The group paid a courtesy call on the Executive Secretary and held discussions with officials of the Bureau for Public Enterprises on the Privatisation of the Eleme Petrochemical plant in Port Harcourt. 86#87The Company has core competences in the manufacture of aesthetic materials using polyethylene, currently available in the plant. BUSINESS DELEGATION FROM TURKEY The Commission has received of a 15-man delegation from Turkey on the 14th - 16th November 2006. The delegation had audience with two Ministers met with members of the Kaduna Chamber of Commerce today. INVESTMENT DELEGATION FROM THE US: MESSRS. GOMAN GROUP INC. The Commission facilitated the visit of Messrs. Goman Group Inc. of the US who arrived the country on the 12th of November 2006 and were granted audience by the Executive Secretary. They met with the Ministers of the Federal Capital Territory, Work and Housing and Information as well as officials of the Nigerian Communication Commission. BUSINESS DELEGATION FROM VIETNAM The Commission jointly hosted a 14-man business delegation from Vietnam with the Abuja Chamber of Commerce and Industry (ABUCCIMA) on the 6th of December 2006. Various stakeholders were invited to participate at the business forum held in their honour. CHINA DEVELOPMENT BANK (CDB) The Commission coordinated the visit of the African Team of the China Development Bank to the Honourable Minister of Communications, Special Adviser to the President on Manufacturing etc. Power point presentations on the activities of the bank and possible areas of collaboration where also presented. VISIT OF KOREAN IMPORTERS ASSOCIATION (KOIMA) TO NIGERIA The Commission received members of the Korean Importers Association (KOIMA). KOIMA visited Nigeria, Morocco and South Africa between October and November 2006 with the aim of promoting the countries' products in Korea. Their visit to Nigeria from 28th - 30th October 2006. They sought cooperation with Nigeria in various sectors and held official group and individual meetings with Nigerian exporters and manufacturers. NIGERIA POWER INVESTMENT FORUM The Commonwealth Business Council invited the Executive Secretary to present a paper on the "Promoting Investment in Nigeria Power Sector'. The forum held between the 28th and 29th of November, 2006 at Thistle Chairing Cross Hotel, 87#88London. The Executive Secretary attended the forum. While the Department prepared the power point presentation for the event. IPAWAS The Commission was represented at the Exco meeting of IPAWAS which held in Abidjan on the 1st May, 2006. The meeting discussed the setting up of a website for the group as well as sensitization tours to other ECOWAS countries who were yet to set up investment promotion agencies. NIPC was requested to submit a proposal for the set up of the new website and work to host the next meeting of the group in August. The trip was sponsored by Pro-invest. ring the trip. UNIDO CSF NATIONAL TEAM MEETING The Commission was represented at the Planning Committee for the proposed visit of DG of UNIDO Dr. Yumkella to Nigeria. The meeting held on the 27th of April at UN House Abuja. NIPC is the alternate Chairman of the Committee on Governance, Trade, Investment Promotion and Public-Private partnership. LAUNCHING OF THE NIGERIAN SOLID MINERAL BRAND The Commission participated in the Launching of the Nigerian Solid Mineral Brand by the Minister of Solid Mineral Development on 31st January 2006, where new developments in the sector were brought to fore: 1. 2. 3. 4. 5. 45 34 Minerals of Nigeria Online real Time Cadastre system 57 rare earth metals 10 locations with over 30,000 ounces of gold deposits in each. 27 billion barrels of bitumen. The Nigerian Solid Minerals Brand has attracted JP Morgan, Standard Bank of US and UK respectively in promoting the extraction of Nigerian Minerals, and proposals are said to be made by these big Banks to Mining majors and other Industrial Mineral stakeholder in the world to avail the plethora of Nigeria's vast wealth in the sector. Revalidation of Mining Tiles had been done, and currently there are 1417 leaseholds and titles existing in the sector. THE PRESIDENTIAL CONSULTATIVE AND ADVISORY COMMITTEE Pparticipated in the Presidential Consultative and Advisory Committee on SMEEIS, where copies of the Regulatory and Supervisory Guidelines on Micro 88#89Finance Banks (MFBs) in Nigeria were presented after they were launched by Mr. President. A progress report of SMEEIS fund utilization was also provided NATIONAL WORKSHOP ON COFFEE & TEA PRODUCTION Participated in the activities of the organizing Committee on National Workshop on Coffee and Tea production and export. The event held from the 28th - 29th of November 2006 in Lokoja, Kogi State. NIGERIA INVESTMENT FORUM - The Commission participated in the Nigeria Investment Forum which held in Johannesburg, South Africa from the 21st 23rd of August 2006. The event was organized by the Nigerian High Commission in South Africa in partnership with the South African Department of Trade and Investment. The event was also attended by the Hon. Minister of Finance and members of the Economic team. (CHINA, INDIA, BRAZIL, AFRICA BUSINESS FORUM, 26 -27 MARCH 2007, CAPE TOWN, SOUTH AFRICA The Commission made a presentation at the China, India, Brazil, Africa Business Forum, held in Cape Town, South Africa, from March 26-27, 2007. The Forum was aimed at facilitating discussions for a South South investment link especially in the four regions- China; India; Brazil and Africa (CIBA). Nigeria-Malaysia Business and Investment Forum - This event was the first of its series in Malaysia. It was witnessed with large number of attendance with over 150 participants from both Nigeria and Malaysian investors, including 3 of the Nigerian Ministers and Chief Executive of other Agencies. The event took place in Kuala Lumpur, at Menara Exhibition Centre on the 15th November, 2007. During the event, about 3 MOUs were signed with different companies, First Bank Plc, Elf Nigeria Ltd, Allied Management services and Diepreye Engineering and water Construction Ltd, all with their counterpart in Malaysia, while others had fruitful discussion and deliberations with the view to actualized them through follow-up action initiated by NIPC and other means. - Nigeria Business Delegation to Turkey, 8 15 December, 2007: The Commission, organized and held a successful Business Delegation trip to Turkey December, 8th - 15th, 2007. The visit was organized for those who expressed 89#90- interest to participate in the advertised Nigeria – Turkey BIF. During the visit, three presentations were made by the Federal Ministry of Information and Communications on the "Heart of Africa Project, by NIPC on the opportunities and incentives that are abound in Nigeria, and by the Nigerian Embassy on bilateral and Consular issues, between Nigeria and Turkey. A breakout session was also held, to enable the businessmen of the two countries to discuss together, on the possible areas of partnership. A number of companies and factories were also visited by the Delegation and partnership possibilities discussed. Places of historic interest were also visited. Proposal on Public Private Partnership Promotion Project (p-5) The Project is aimed at partnering with the private sector with a view to raise funds for the Commission's numerous activities. The Executive Secretary along with the Director and Deputy Director, Investment Promotion met with the consultant Adam Smith Institute, Mathew Uzzell to discuss the proposal. The institute is Britain's leading innovator of free market economic and social policies and has played a key role in developing practical initiatives to inject choice and competition into political services, extend personal freedom, reduce taxes, prune back regulation, and cut Government waste. The Commission's partnership with the institute is hinged on exploring avenues to access funds available at the World Bank, DFID and the IFC. The Funds will be used to pursue the Commissions mandate in improving the investment climate, investment promotion, as well as capacity building for the Staff of the Commission.. Memorandum of Understanding Ceremony (MOU) The Department facilitated the signing of MOU between Messr Guangzhou Xinguang International Company and the Ogun State Government. The signing ceremony took place on Monday, 26th March, 2007 in Abeokuta. As fallout of the Sino-African Summit held in Beijing last year, the Chinese Government had proposed to set up five free zones on the continent and as such Messer Guangzhou Xinguang International Company was on fact finding mission to explore the possibility of setting up one of the free trade zones designated fro Africa. A 10,000 hectare site to house between 100-300 factories has been offered by the Ogun State Government for the project. The project cost is estimated at about US$500 million. - Nigeria – Vietnam Chamber of Commerce, Signing of MOU: The Commission has concluded all necessary arrangement with the Legal Unit for the Commission to enter into MOU with the Nigeria Vietnam Chamber of Commerce in promoting Investment between the two countries. The MOU was 90#91drafted and agreed by both the omission and the Chamber and now waiting for the Executive Secretary's endorsement for the date to sign the MOU. Nigeria Business Road Show, Germany The Commission coordinated the event, (26th November - 1st December, 2007) in liaison with, delegation of German Industry and Commerce for West Africa and the German - Nigerian Business Association. Many Companies from the private sector and a number of public sector establishments were mobilized to participate in the programme. The Road Show was staged in (4) German cities namely: Berlin, Hamburg, Munich and Frankfurt, and was aimed at disseminating information on trade and investment opportunities in Nigeria, as well as creating avenue for interaction, between the business communities of the two countries. Stakeholders Meeting for Anti-Piracy and Counterfeiting in the Manfacturing Sector The Stakeholders meeting for anti-piracy and counterfeiting in the manufacturing sector was held in March, 2007 in the Boardroom of the Commission. The meeting was attended by the representatives of the Consumer Protection Council, NAFDAC, NOTAP, BAT and MAN. The meeting discussed possible avenues to chart a new course for tackling counterfeiting/piracy in the manufacturing sector and resolved that there would be concerted efforts at regulating and enforcing counterfeiting, intellectual property and consumer protection laws. It was also agreed that an appraisal of all laws guiding intellectual property, counterfeiting and consumer protection be carried out. A meeting to discuss the modalities for the Forum was held on the 25th April, 2007 with the Director IP and the BAT representatives. The BAT pledged to fund the activities of the committee with the seed money of N5million. Jebba Paper Mills The Commission was represented at the formal handing over of the Jebba Paper Mills to the Core Investor by the Bureau of Public Enterprises (BPE) on the 5th of April, 2007 in Jebba, Kwara State. A presentation was made by the Director, Investment Promotion on behalf of the Executive Secretary. Second Turkey-Africa Foerign Trade Bridge During the year under review, precisely 15th - 22nd May, 2007, the Department working with the centre for Inter-religious Dialogue succeeded in mobilizing a number of Nigerian companies and public sector organizations, to take part in the 2nd Turkey - Africa Foreign Trade Bridge in Istanbul, 15th - 22nd May, 2007. A 91#92"Nigeria Day" was organized at the event to specially show-case Nigeria. It was a very successful outing for Nigeria as numbers of MOUs were signed between Nigerian and Turkish Companies. The Commission is expected to participate in the next Trade Bridge, May, 2008. Turkish Investors visit to Kano A delegation of four Turkish businessmen led by the Commission were in Kano on November, 2007. As part of their itinerary, they had meeting with members of the business community as well as the officials of the Kano Chamber of Commerce Industry Mines and Agriculture at the then on going International Trade Fair Complex. Other places of the visit include Adhama textile and garment industry ltd, 'Gidan Bargo' Company ltd and some abandoned projects. 2nd Nigeria-India BIF: was held in Hyderabad and Calcutta from 24th-27th March 2008. It was organized in partnership with the Confederation of Indian Industries (CII) and has taken advantage of the annual CII-EXIM conclave that attracts large participation being an Africa wide event tagged India-Africa Partnership Project. 6th Nigeria-China BIF: held in April 2008 at Guangzhou and Beijing as a continuation of what has become an annual event of Nigeria in China that Chinese investors look forward to. 2nd Nigeria-Turkey BIF: held in Istanbul and Ankara from 21st-25th June 2008 2nd Nigeria-South Africa BIF: was held from 28th-31st July 2008 in two the South African cities of Johannesburg and Cape Town. The event organized in collaboration with the DTI South Africa was attended by the Governors of Imo and Borno States as well as the Deputy Governor of Nasarawa States while others such as Enugu and Anambra States also sent delegations in addition to private sector participants and federal agencies. Over 200 South African companies participated. 2nd Nigeria-Brazil BIF: was organized in Sao Paulo as part of the State visit of the President to Brazil from 26th-29th August 2008. It was meant to mobilize Nigerian businessmen that would accompany the President and use the opportunity to meet with their counterparts in Brazil. The forum, which was preceded by pre- forum discussions, was held on 28th August 2008. 92#937th Nigeria-China BIF: This was organized in response to the tremendous interest generated by the 6th session, where time was not adequate to accommodate the various interest on Nigeria. Thus, the event was held in Shanghai, Shenzen and Yiwu from 17th-24th October 2008. 1st Nigeria-Vietnam BIF: was held on 22nd and 24th October 2008 in the Vietnamese cities of Hanoi and Ho Chi respectively. It was organized to engender trade relations between the two countries. BUSINESS MISSIONS RECEIVED The Commission organized the reception of several business Missions to the country bearing in mind the need to create positive impression to guide their decision to invest in the Country. Most of these delegations were on a fact finding mission to several countries to enable them assess the best climate for investment. This informed the need for the Commission to offer them the best the Country has to offer. The Missions received during the period include: AUSTRADE: is a delegation from Australia tagged 'the African Infrastructure and Projects mission' organized to assess some African countries for possible location of Australian businesses. The team that comprised of public and private sector companies visited Nigeria, Ghana and South Africa. An interactive business forum was organized for them with the Nigerian business community on 20th June 2008. Preliminary Visit of Spanish Delegation to Nigeria: a Spanish delegation representing "the Federation of Companies in Andalucia for Investors and Workers (FEANSAL)" from Spain was received on 12th August 2008. The visit was a prelude to the visit of a larger delegation of the Association, which has the strength of about 5800 registered members. Japanese Joint Mission for Trade and Investment to Africa: is a 45-member high powered delegation comprising mainly of private sector but led by government officials at the Cabinet level. A business forum was held for them with the Nigerian business community on 15th September 2008, in addition to the visit to the Vice-President and meetings with the Cabinet Ministers of Energy and the Nigerian National Petroleum Corporation. Netherlands Trade Mission to Nigeria: The Nigeria's Ambassador to the Netherlands led a delegation of several businessmen from the Netherlands to 93 93#94visit Nigeria to explore possibilities for investment in the country. A business forum was organized for them with relevant Nigerian public and private sectors. Yara ASA Fertilizer Company of Norway: which is the largest supplier of mineral fertilizer in the World visited the Country to assess relevant gas resources and market towards establishing a fertilizer plant. They were received and meetings were arranged with Ministers of Agriculture & Water Resources and Gas as well as other relevant agencies Shenzhen Electrical Company of China: intends to invest in an Independent Power Project to produce 500MW of electricity in Nigeria. They visited the country and requested the Commission's assistance to actualize the project. They were accompanied by Stanbic/IBTC together with China Africa Development fund and China Africa Business Council Shanghai Wei Ke Que Industrial Company of China: is said to be one of the largest water treatment chemical company in the world with a proposal to invest $10m water treatment chemical project in Nigeria. They met with Gombe State Government and FCT Baz Tax Agric- USA: wants to establish large scale farm in Warri, Delta State to produce Tomatoes, Sugarcane etc Kairos development International Inc.: American firm that wishes to set up a waste to energy plant. Has signed MOU with FCT through the Commission' facilitation Chinese Investment Delegation to Bauchi State: on e-governance that is currently working towards an agreement. Other meetings facilitated by the Commission include: West African Investment Forum 2008 organized by Commonwealth Business Council in collaboration with federal government and Nigeria Economic Summit Group. NIPC was the Secretariat Nigeria-Ghana Business Forum organized with the Nigerian High Commission in Ghana Chinese Delegation that signed an MOU with Osun State Government Chinese investors with Ogun State government on joint establishment of a free Trade Zone 94 4#95Sports Personalities: The Commission has submitted a memo to Management for the Commission to take advantage of the popularity of the Country's sports men and women to attract attention of international investors and drive home an investment promotion massage that builds on the positive image they have already created. Inter-agency Coalition Committee against Piracy, Counterfeiting and Illicit Trade in Manufactured Products The Commission is the Secretariat for the inter-agency committee against piracy, counterfeiting and illicit trade in manufactured products. It is believed that the global threat of the phenomenon must have to be tackled through cooperation and coordination of all stakeholders, which informed the Committee. It meets periodically to discuss policy issues on the problem and provide advocacy as it has become a disincentive to investment promotion and facilitation. Launching of World Investment Report (WIR 08) The WIR08, which is an annual publication of UNCTAD, was launched by the Commission as the focal institution on 25th October 2008 released simultaneously worldwide ◉ ☐ Member Committee on D-8 Countries Roadmap, which is to draw up a roadmap in the second decade of cooperation 2007-2017 Member committee on NEPAD-Africa Trade Fair on Indigenous Products and Services, which has the objective of local content development, SMES, and non-oil export etc. Member committee on the organization of Nigeria Fashion Week Other Meetings attended include: IPAWAS Executive meeting in Banjul 26th-27th February 2008 WAIPA/UNCTAD XII Conference in Accra 20th-25th April 2008 Taraba Agricultural Summit held in Abuja 18th September 2008 Two local business and investment forum were hosted by the Commission during the reporting period The two forum were held in Jos and Maiduguri simultaneously. (a) NORTH CENTRAL ZONAL BUSINESS AND INVESTMENT FORUM: Upon the approval of the Management for the Zonal Office to organize the first 95#96edition of the local business and investment forum, the forum took place on 19th_ 21st November, 2008 in Jos Plateau State. The theme of the forum was "Strengthening Public Private Dialogue on Investment in the North Central Zone". The topic was tailored towards creating an effective synergy and collaboration with the relevant Government Stakeholders to discuss the economic strength and weakness of the North Central States. The Forum was organized for the purposed of creating an avenue for the States that comprised the North Central Zone take a lead in repositioning the country's investment climate and increases the inflow of FDI in the Zone toward the attainment of becoming the leading states by 2020. (b) NORTH EAST ZONAL BUSINESS AND INVESTMENT FORUM The North East Zonal Business and Investment Forum were held in Maiduguri on the 17th-19th December, 2008. The Theme of the conference is "Access to Finance by Local Business Community'. The forum was organized purposely to identify the various hindrances to the development of micro, small and medium enterprises. Further to these, it was also to create awareness for government financial support to small businesses, promoting entrepreneurship and skills development. It was also for the small enterprises access all government financial support to businesses, establish business development fund for women, promote grassroots financing of small businesses, and promote group cooperative and corporate finance. 5.9 ADVOCACY AND INTERVENTIONS ON BEHALF OF INVESTORS 96 96#97As one of its functions, the Commission is charged with the responsibility of removing bureaucratic bottlenecks in the process of doing business in Nigeria. Towards this, the NIPC has been advocating for improvements in the investment climate in the country by working with relevant agencies and officials involved in procedural bottlenecks and by promoting reform of policies, laws and regulation at higher levels of the government. The Commission had therefore put in place an effective mechanism for policy advocacy to tackle these problems. The Commission also visited ailing companies to appreciate the problems and made appropriate recommendations to government. Also, the Commission advocated on their behalf and obtained some special incentives. Some of the proposals submitted to government during the period under review included: • · • Collaboration with the Federal Inland Revenue Service (FIRS) to address issues related to investment climate in its tax reforms bill currently before the National Assembly. Memo to Mr. President on the review of the Coastal and Inland Shipping (Cabotage) Act, 2003 that restricts 100% ownership of inland shipping to Nigerians. NIPC intervened for special concessions abnd exemptions on existing foreign investors. Study by the Commission on the problems of the textile industry in Nigeria is designed to facilitate a package of incentives that would restore and turn around the fortune of the industry, which is threatened with several obstacles that require government intervention. Several memoranda to the President requesting for waiver/reduction in tariffs, concessions in respect of the following investments had been made to the presidency: ○ Shoprite checkers, South Africa; 。 Keyvee Nigeria, Cayman Islands; O O O African Oxygen and Industrial Gases, India; Conserveria Africana, Italy; African Automobiles, Dubai 97 97#98○ Parker Logistics; Illovo Sugar, South Africa; О ZTE Corporation of China; о Namitech Ltd; 10.Afrihub Ltd. Etc. The Commission was able to carry out some interventions in favor of companies that were granted Pioneer Status extension by the Commission. The Commission negotiated for the staggering of the accrued taxes under this period so that the effect would not be destabilizing to the affected companies. Beneficiaries of gesture include: De United Foods Limited Lagos, Turare Hausawa Kano etc. 5.9.1 PRESIDENTIAL/INTER-MINISTERIAL COMMITTEE ON PROBLEMS OF INVESTORS: In continuation of its secretariat responsibilities, the Commission facilitated meetings of the Presidential and Technical Committees on Problems of Investors during the year under review, and considered applications for relief / concessions from over 70 companies among which include: Table 6.4.2.1: List of Companies and Requests for Concessions/waivers S/N NAME OF COMPANY AND DETAILS 1. 2. 3. FRED ROBERTS FARMS LIMITED Ogan Village, Ifo, Ogun State. COMPANY'S REQUEST i. Importation of 50,000 Grand Parent Stock Day Old Chicks per annum for (Production of parent and commercial day-old chicks for 5 years supplies to poultry producers.) RMM GLOBAL COMPANY LTD. 7, Mai Malari Road, Bompai Kano (Processing and exportation of agricultural products) i-Cell Integrated Services Ltd. 49. Opebi Road, Ikeja, Lagos (Telecommunication Services) ii. Importation of 100, 000 Great Grand Parent Stock hatchable egg per annum for 5years Bridge importation of Sesame snacks for 2years i. Duty-free importation of display panels in two, forty-foot containers ii. Duty-free importation of other 88 98#99S/N NAME OF COMPANY AND DETAILS COMPANY'S REQUEST essential machinery and equipment. iii. Pioneer Status 4. BABEL(FARMS) NIGERIA LIMITED 27, Wurno Road, Kaduna (Rice Milling) i. importation of plant & machinery at zero duty (ii) Importation of Paddy rice at 20% duty and 10% levy for two years. iii. Tax holiday for 5years Importation of plant and machinery at 5. MODAL FOODS LIMITED Plot 337/8Sarki Dikko Street, Gyadi- 0% duty; Gyadi, Kano (Rice Millimg) Importation of Paddy rice at 20% duty and 10% levy for 2years; 6. FOOD, 7. AGRO INDUSTRIES LTD iii. Pioneer Status & ALLIED Importation of paddy & brown rice at concessionary duty rate Ground Floor, NCWS House, P. C. Ahmed OnibudoStreet, V/I, Lagos (Food & Agro-allied Industry) SHOPRITE CHECKERS The Palms Retail Centre, Off British International School Way, Off Lekki Expressway, Maroko, V/I (Retail Supermarket) Duty waiver on capital equipment 8. PCI RESINS LIMITED Import duty/VAT waiver and other 99 99#100S/N NAME OF COMPANY AND DETAILS 16, Jumoke Babalola Street, Alaba Bus- Stop, Opposite Eleganza Shopping Complex Old Alaba/ Orile Km.6, Lagos -Badagry Expressway, Lagos. (Production of Resins) 10. Sona Breweries Plc. 11. COMPANY'S REQUEST Port Duty Charges (i) Duty waiver on importation of Km 40, Lagos - Abeokuta Express Road, aluminium cans for bottling of its Sango Otta. (Brewers of non alcoholic malt drinks and beer.) JULIE FRANK INT'L LIMITED Plot C40, Amuwo Odofin Industrial Layout, Alakoso Avenue, Odofin, Lagos (Tomoto Processing) 12. AES NIGERIA BARGE LTD. Amuwo Power PHCN Plc.Egbin Electrict Business Unit Premises, Egbin, Ikorodu, Lagos. (Independent Power Producer) 13. GOHEHOL LIMITED 14. 15. 16. HENRY & HENRY LIMITED (Food & Canning Industry) G.M.O.COMPANY LTD. 1, Abimbola Shodipe Street, Opposite Barracks Bus Stop, Western Avenue, Surulere, Lagos (importers, exporters and manufacturers) MAC-TONNEL NIG. LTD products. i. Bridge importation of tomato paste at a concessionary duty rate of 2.5% and VAT free for 18months; ii. 2.5% Customs Duty and 0% VAT on plant, equipment and raw materials for the canning of the tomatoes Committee's intervention in causing the FGN to honour its obligations under the Power Purchase Agreement with the company as it relates to settlement of a backlog of monthly capacity payment and issuance of tax exemption certificate. Complaints over delays in concluding the processing of application earlier submitted by the company Importation of 35,000Mt. branded finished tomato for 1year at a concessionary duty rate of 5% (i.) Importation of machinery and plant 1-3 Creek Road, Nnewi Building Annex, at 0% duty rate; 100#101S/N NAME OF COMPANY AND DETAILS COMPANY'S REQUEST Apapa, Lagos (Manufacturing, Construction, Imports (ii.) Importation of 100, 000 metric & Contracting 17 OLAM Nigeria Ltd tons of tomato puree for 18 months at 5% duty rate pending the take off tomato puree manufacturing plant; (iii) Pioneer Status Renewal of duty concession for importation of 100,000mt of brown rice at concessional duty or waiver of rice levy 5.9.2 2008 (5TH) NATIONAL CONFERENCE ON INVESTMENT (NCI) The 2008 (5th) NCI was successfully held at Bauchi, Bauchi State, from Monday 6th Thursday 9th October, 2008. As part of its recommendations, the Conference: (i) (ii) noted the increasing difficulties being faced by States IPAs in attaining independent and autonomous status, which is required for successful operation of an IPA. It therefore resolved that the Executive Secretary, NIPC should intervene on behalf of these IPAs by having consultations with their various State Governors with a view to enlightening them on the strategic roles IPAs play in their quest for industrialization and financial independence. reiterated the need for proper monitoring and evaluation of the level of compliance to the implementation of decisions of the Conference and directed that NIPC should take on that responsibility as against the setting of a separate committee as earlier agreed. As an immediate fall-out of the NCI, the World Bank (in partnership with DFID) had indicated interest to assist the One-Stop Investment Centre (OSIC) in its operations: (i) (ii) (iii) capacity building needs to strengthen its operations; areas of support for the Protocol Agreement to ensure its realization; expected reforms in the collaborating agencies for effectiveness; 101#102(iv) creation of States OSIC and the proposed NIPC OSIC in some States (Lagos, Kano, etc). (b) Investment Promotion: (i) (ii) identifying areas for support to promote investment more effectively; creation of States Investment Promotion Agencies & their relationship with NIPC. 5.9.3 2007 (4th) National Conference on Investment (NCI) The Commission hosted the National Conference on Investment (NCI). The Conference was well attended, and some broad-based issues required providing a road map towards creating enabling investment environment for the Realization of Vision 2020 were discussed. The objectives among others include: . • • • • • Creating an enabling environment for private sector enterprises to grow in the country, Facilitate FDI inflow to the country, Fashion out a national investment strategy for the country, Harnessing the vast investment potentials available, Streamlining of Investment Promotion activities nation-wide for national focus, Address the inadequacies of State Investment companies whose activities ignored the elements of investment promotion and facilitation, Proffering practical solutions to the problems being faced by investors in the course of investing in the economy. The 2007, 4th National conference on Investment (NCI) took place in Ibadan. The theme was "Creating an Enabling Environment for the Realization of Vision 2020". The conference was held in October and it was a highly successful event. A communiqué was presented at the end of the conference. The communiqué contained the objectives of the conference and the recommendations made by stakeholders. 5.9.4 SECTOR-SPECIFIC INVESTMENT POLICY 102#103The Commission is handling the development of investment sector specific friendly policies that are globally competitive and ensure the free flow of FDI into all sectors of the economy. This is in line with the wish of the Federal Government of Nigeria to develop investment friendly policies that are globally competitive and ensure the free flow of FDI into all sectors of the economy. In addition to a broad-based generic policies and incentive package, Government desires to develop sector- specific policies aimed at creating a predictable, stable policy environment by eliminating, as much as possible, distortions often created by grant of discretionary concessions and privileges as well as creating a level playing ground for all investors. Sectors under consideration include, but not limited to, the following: Aviation, Agriculture, Energy, Maritime, Tourism, ICT, Manufacturing (all sectors), Oil and Gas, Banking &Finance, Solid Minerals, Health, Education, Construction, Research & Development, Industrial Parks & Free Zones, Road & Rail Transportation, Textile & Garment, and others. 5.9.5 STRATEGIC ECONOMIC PARTNERSHIP CONFERENCE IN ROMANIA AND BULGARIA DEVELOPMENT The Commission is participating in the Inter-Ministerial Meeting on Strategic Economic Partnership Development Conference in Romania, and Bulgaria, scheduled to hold in the two countries from February 22nd - 1st March 2009. 5.9.6 REVIEW OF INDUSTRIAL AND TRADE POLICY OF NIGERIA The Commission was in the review, update and harmonization of the Industrial and Trade Policy documents into one document; as carried out by the Federal Ministry of Commerce and Industry in collaboration with some relevant agencies. The final draft - Industrial and Trade Policy is being reviewed by the Department. NIGERIA - IRAN JOINT COMMISSION The Commission represented the Commission at the Inter-ministerial meeting of the Nigeria - Iran Joint Commission held at the Conference Room of the Ministry of Foreign Affairs on the 3rd June 2008. The purpose was to consider Nigeria's 103#104position during 3rd Session of the Nigeria - Iran Joint Commission held from 27th - 28th June 2008 in Abuja. THE PARCO GROUP The Commission facilitated a presentation in India by Parco Group to the following high Government Officials to buttress their seriousness to establish a mini-LNG Plant in Ogun State: the Honourable Minister of Agriculture, Minister of State Energy (Gas), CBN Governor, Executive Governor of Ogun State and the Executive Secretary of NIPC. This presentation coincided with Conclave India, held from 19th - 22nd March 2008. TECHNICAL COMMITTEE ON THE PROPOSED BILATERAL INVESTMENT TREATY (BIT) WITH THE USA The Commission was represented at the meeting of the Technical Committee on the proposed Bilateral Investment Treaty (BIT) with the USA held at the Conference Room of the Permanent Secretary, Ministry of Commerce, Garki, from 7th 8th February 2008. The purpose was to harmonize the two- drafts submitted by Nigeria and USA respectively, and to articulate Nigeria's position on the issue. THE INTER-MINISTERIAL COMMITTEE ON NIGERIA -CHINA RELATIONSHIP The Department participated at the meeting of the Inter-Ministerial Committee on Nigeria -China held on Thursday 7th August 2008 at the Federal Ministry of Finance. The purpose was to review the Terms of Reference (TOR) on the Position of Nigeria on the Relationship. CHINA-AFRICA BUSINESS FORUM The Commission participated at the Second China - Africa Forum held in Arusha, Tanzania from 28th - 29th April 2008, which was co-organized by China - Africa Business Council (CABC) and the Government of United Republic of Tanzania; and with support from UNDP. The objective of the forum was to strengthen trade and investment between Africa and China. 104#105The forum was attended by delegations from six African countries. NIPC and the Nigerian Economic Summit Group (NESG) represented the country. The next forum is scheduled for Cairo, Egypt this year 2009. The event was successful and there were some understandings between the host country and some Chinese businesses to finance investments in cement, fertilizer, iron ore and coal. UNDP was to fund the costs of the preliminary studies of these projects. Of importance to NIPC was the proposal from IFC to take a select group of top Chinese businesses to some African countries including Nigeria. The trip was proposed for July 2008, but did hold. Meanwhile, NIPC would still follow-up with IFC on the facilitation visit to Nigeria. MR. PRESIDENT'S VISIT TO UK: The Commission facilitated and mobilized some credible Nigerian businessmen to participate at the Business Session held during the visit of Mr. President to United Kingdom, from 16th - 18th July 2008. INTER- MINISTERIAL MEETING OF THE WORKING GROUP OF THE TRADE AND INVESTMENT FRAMEWORK AGREEMENT (TIFA) COUNCIL MEETING BETWEEN NIGERIA AND USA The Commission was at the meeting of the Working Group on the Council for Trade and Investment Framework Agreement (TIFA) between Nigeria and the USA, held in the Office of the Permanent Secretary, Ministry of Commerce and Industry, on the 3rd April 2008. The World Group was expected to execute and as well as follow-up on the decisions reached at the Council meetings. INTER-MINISTERIAL MEETING ON STATE VISIT OF MR. PRESIDENT ΤΟ UNITED ARAB EMIRATE (UAE) The Commission was represented at the meeting of the Inter-Ministerial Committee on State Visit of Mr. President to UAE in 2008. The Visit was later postponed indefinitely. NESG 14TH JOINT PLANNING COMMITTEE 105#106The Commission was represented at the NESG 14th Joint Planning Committee meeting held at the NESG Boardroom, Lagos, on the 7th April 2008. The purpose of the meeting was to consider reports of the sub-committees handling the organization of the 14th NESG Summit. NIPC is in the Marketing Committee. INTER-MINISTERIAL MEETING ON THE FIRST ECOWAS CHINA ECONOMIC AND TRADE FORUM The Commission was represented at an Inter-Ministerial meeting on the First ECOWAS China Economic and Trade Forum, which was scheduled to hold in Beijing, China from 23rd 26th September 2008. The meeting was held at the Ministry of Foreign Affairs on Tuesday 15th July 2008, and the purpose was to firm up Nigeria's position and arrangements on the event. PRESIDENTIAL COMMITTEE ON REVIEW CONCESSIONS, WAIVERS AND INCENTIVES The Commission was represented at the sittings of the Presidential Committee on Review of Concessions, Waivers and Incentives held from October 2007 to February 2008. The Committee concluded its reports during its last meeting held on Thursday 14th February 2008 at Transcorp Hilton Hotel, Abuja. Its position as regards the abolition of Pioneer Status and the merger of some parastatals with investment related mandate though not changed, was serious watered down by the Commission's strong views expressed against the recommendations. The report has since been submitted to the Honourable Minister of Finance for onward forwarding to Mr. President. PRESIDENTIAL COMMITTEE ON PHARMACEUTICAL SECTOR REFORM The Commission was represented at the meeting of the Presidential Committee on Pharmaceutical Sector Reform held at Rockview Hotel, Abuja, on the 17th June 2008. The Committee is charged with the responsibility to establish strategies towards revamping the Pharmaceutical Sector, with special focus on: 106#107i) Local manufacture of medicines with a view to achieving self- sufficiency in essential medicines; ii) Sanitization of the chaotic drug distribution system in the country. The report of the proceedings is being compiled. INTERMINISTERIAL MEETING ON THE NIGERIA – NAMIBIA JOINT COMMISSION The Commission was represented at the Inter-ministerial meeting for the 3rd Session of the Nigeria - Namibia Joint Commission held in the Conference Room of the Ministry of Foreign Affairs on the 17th June 2008. The main purpose of the meeting was to articulate the position of Nigeria for the 3rd Session of the Joint Commission. INTERMINISTERIAL MEETING TO FOLLOW UP ACTION ON THE VISIT OF THE INDIAN PRIME MINISTER TO NIGERIA An Inter-ministerial meeting to follow up action on the visit of the Indian Prime Minister to Nigeria was held in the Conference Room of the Ministry of Foreign Affairs on the 19th June 2008. The purpose of the meeting was to articulate the position of Nigeria, in preparation for the next Session of the Nigeria – India Joint Commission. NIGERIA - WORLD BANK MSME PROJECT - The Nigeria World Bank MSME Project is being implemented under a Development Credit Agreement (DCA) between the International Development Association (IDA) and the Federal Government of Nigeria (FGN). It aims to increase the performance and employment levels of MSMEs in selected non-oil industry sub-sectors and in three targeted States of the country (Kaduna, Lagos, Abia). It Commenced in Feb 2005, and will end in 2010. It has four components as follows: Access to Finance (ATF): This component seeks to increase access and availability of financial services to MSMEs through the introduction of new financial institutions, products and 107#108tools, re-enforced with selective financial sector legal and regulatory reforms being undertaken under Investment Climate. Achievements So Far: It was initially targeted at assisting the introduction of 2 New Micro- Finance Institutions (MFIs), investment of $15m, 60,000 Clients& $40m loans, and 1 (one) Bank Downscaled, but currently, has achieved the following: introduction of 4 New Micro-Finance Institutions (MFIs), investment of $24.8m, 127,000 Clients & $ 28m loans, 1Bank downscaled. Business Development Services (BDS): The objective of the BDS component of this project is to increase MSMEs' access to quality business services that are both specialized and well tailored to the specific needs of MSMEs. Targeted MSMEs are expected to improve their performance through the application of know-how acquired through BDS providers supported by the project Achievements so far: It was initially targeted at 20 grantees, 1,000 MSMEs, $ 5m grants with 75% cost recovery, and 4 value chains. Currently, it has assisted 58grantees, 5,600 MSMEs, $ 3m committed, 65% cost recovery, 1 completed value chain (catfish value chain), and 3 commenced. Good impacts achieved, value chains offer great impact potential. . BDS impact survey shows good impact across all 3 states new service delivery target has been exceeded. Strong demand for training to strengthen BDS providers- new BDS Network formed. Potential to increase sustainability of innovative, high quality services - improve recovery, repeat users. Catfish Value Chain has shown potential of providing embedded services - contract growing. Investment Climate (IC): IC-Slow progress, but getting there. i. Target: Reduce time to register business from 13 to 7 days. Status: 108#109MOU to integrate business & tax registration in place. Hardware purchased, negotiations going on CAC software development. ii. Target: ADR established in 3 states, to facilitate quicker, cheaper contract enforcement. Status: Contract let, work to assess what is needed taking place. Strong buy-in all 3 states on-going. Public-Private Partnership (PPP): PPP-Implementation on schedule to build awareness, capacity: . Over 100 staff of SMEDAN, NIPC trained. More training underway. In addition, NESG MSME Working group sponsored. Monitoring &Evaluation (M&E) producing lessons learned TROUBLESHOOTING VISITS TO INVESTORS i. ii. iii. HAKAMS INVESTMENT LTD.: The company requested the Commission to facilitate the procurement of a "Fluidized spray dryer" to improve on its beverage product. The Commission visited the farm as well as the production site and advised them to write to NEXIM Bank for a loan facility to procure the equipment. MINOR METALS & MINERALS: The mining company owned by Indians complained of the role of middlemen and illegal miners. On a working visit to the factory, the Commission suggested to the management of the company to engage the services of a registered/licensed security outfits to provide security over the site to checkmate illegal miners. Policy recommendation that could curtail the menace of middlemen have been made to both the federal and state governments. NASCO GROUP OF COMPANIES: The Company complained of inconsistency in government policies regarding investments in . We have maintained regular visits to the company to restore their confidence in further doing business and investing in the Nigerian economy. We further highlighted the government's reforms agenda as changing the state of power and energy, banking, provision of investor 109#110iv V friendly environment and favourable policies to support it, provision of incentive packages to stimulate investments etc. ASSOCIATED BEST FOODS: In response to our letter to the above company on ways and suggestions to improve the investing environment, the management had scheduled a meeting with us tentatively after the Christmas break to discuss issues that border on their operations. We shall elaborate on this in our subsequent reports. A. B. CHAMI NIG. LTD.: Similar letter was written to A. B. CHAMI NIG. LTD (manufacturers of beauty products) on her candid views of ways and suggestions of improving the investment climate. WORKSHOPS ON MARKET FIRES During the reporting period, the Commission served as Secretariat to the Technical Committee on Market Fires Workshop. The Committee was a product of the meeting of the stakeholders on market fires, which was convened by the NIPC on 15th January 2004. The Committee organized two workshops and campaigns in Abuja and Lagos on July 22/23 and July 29/30 respectively. The essence was to sensitize the traders of the negative impact of fire disaster in terms of the colossal loss of property and investments as well as what is required to ameliorate future occurrence. Markets accounts for a sizeable percentage of investments in the country as they provide employment and serve as the engine of growth for the nation's economy. It was against this background that NIPC made efforts to reduce or minimize the menace. HONORARY INTERNATIONAL INVESTORS COUNCIL (HIIC) Mr. President set up the International Investors Council in the year 2004, to advice on investment in Nigeria. Members were mostly international policy and business players who have excelled in their chosen fields. These are people that are in positions to authorize or influence the investment decisions of their companies and as well as play significant role in persuading their governments to invest in Nigeria. Baroness Lynda Chalker former Member of Parliament for Wallasey is the coordinator. Membership is also largely drawn from the Nigerian private sector. Public sector include the Economic Team Members, the Executive Secretary/Chief Executive 110#111Officer of NIPC, key relevant Ministers (Finance, Commerce, Agriculture, Communications, Solid Minerals Development, Agriculture, Power & Steel and Industry), the Economic Adviser and the CEO's of NNPC, NEPC, NEPA & BPE. The NIPC serves as secretariat for the council. (i) The Council's Terms of Reference: ■ ■ ◉ ■ To provide inputs that would shape future policy affecting business climate in the country and promote investment opportunities in Nigeria to the international community; To help increase the Government's understanding of the factors helping or hindering investment into the country; To offer perspectives on developments in the international community and communicate developments within the country to the international community; To advise on priority areas of economic activity for the purpose of enhancing Nigeria's attractiveness as investment destination; To avail the Government with the dynamics of investment location decisions of the international investing community; To advice Mr. President on value added strategies for attracting FDI's into Nigeria; To assist in promoting Nigeria's improved business climate and attractive opportunities to the international business community; To assist in influencing investment location decisions of targeted potential investors in favour of Nigeria through their good offices; and To enhance the image building effort of Nigeria. (ii) Activities of the (HIIC) in 2005 The Secretariat of the Council (NIPC) in liaison with the office of the Co- ordinator in London successful organized two meetings in 2005 as planned. The inaugural meeting of the new Honorary International Investor Council (HIIC) was held at the Four Seasons Hotel, Park Lane, London on the 6th July, 2005. The meeting was presided by His Excellency the President, Chief Olusegun Obasanjo, GCFR, as the Chairman of the Council. The Council members that attended the maiden meeting included Baroness Lynda Chalker (Council's Coordinator), Alan Patricof, Reuel Khoza, Antony Burgmans, Sam Jonah, Olivier Suinat, Rudi Lamprechet, Malcom Brinded, Zafar 111#112Siddiqi,, Thierry Desmarest (represented by Christophe de Margerie), Umaru Muttalab, Ndi Okere-Onyuike and Jim Ovia. Bertrand Collomb, George Soros and Felix Ohiwerei gave their apologies. The meeting was well attended by key Ministers and Chief Executives of Government Agencies, Economic Adviser to the President, Special Adviser to the President on Policy and Programmes Monitoring, Governor CBN and CEO's of NIPC, PHCN, NNPC and BPE. The meeting was also honoured with the presence of the Nigerian High Commissioner to UK, Dr. Christopher Kolade. (a) The Council's Conclusion include: • • • Hon. Minister of Finance to lead official delegation to Egypt to study the one stop shop model for promotion/facilitation. Other members of the delegation include the Hon. Minister of State for Internal Affairs, Hon. Min. of Commerce, Hon. Min. of Information, Governor of CBN, Executive Secretary of NIPC, CEO's of Corporate Affairs Commission, Bureau of Public Enterprises, Nigerian Stock Exchange, Comptroller General of Nigerian Immigration Service. Public relations group/experts to visit the country as recommended by a Council member and the Hon. Minister of Information and National Orientation to co-ordinate the visit. Attention of most major cities like Edo, Lagos and Rivers be drawn to the Council's observation on security and other pertinent issues Need to obtain and study World Bank's document on criteria for transparent business practices Hon. Minister of Finance and Governor of CBN to put in place machinery towards achieving the target 10% growth yearly with effect from year 2006 Mr. President urged members to drive investments into Nigeria individually & collectively (iii) The Second Meeting of the Honorary International Investor Council (HIIC) was held at the Banquet Hall, State House, Abuja from the 28th -29th 112#113November, 2005. The Chairman of the Council, His Excellency the President, Chief Olusegun Obasanjo, GCFR, presided over the meeting. Council members that attended the second meeting include: Baroness Lynda Chalker (LC-Council's Coordinator), Alan Patricof (AP), Antony Burgmans (AB), Sam Jonah (SJ), Olivier Suinat (OS), Malcom Brinded (MB), Zafar Siddiqi (ZS), Felix Ohiwerei (FO), Umaru Muttalab (UM), Ndi Okere-Onyuike (DG-NSE) and Jim Ovia (JO). Bertrand Collomb, George Soros and Rudi Lamprechet gave their apologies. The meeting was also honored with the presence of key Government Ministers and CEOs of Federal Government agencies. (a) The Council Conclusions: ■ ■ ■ The council was pleased with the progress on the establishment of the One-Stop-Shop service in NIPC, and the planned launch of this initiative in early 2006; The presentations from Ministers and others had presented factual evidence of positive change in Nigeria in the fields of macro-economic stability, banking and finance, agriculture, solid minerals, security and anti-corruption; The Council noted with satisfaction the foundation laid for a new partnership between the Federal and Lagos State governments in the areas of security, sanitation and transportation, and real hope for improvement for the city and people of Lagos; Council noted with concern that despite the positive achievements in the field of energy supply by the Ministry of Power and Steel and the PHCN, the demand for power in Nigeria would continue to outstrip supply, thus diluting some of the positive effects of other reforms on inward investment; That Nigeria still had to find a way to deliver affordable finance to the SME sector if this was to develop and grow, although it was accepted by the Council that no model existed elsewhere in the developed or developing world in which Nigeria could draw; 113#114" ■ ■ Council felt that new efforts were needed by the Government to communicate the positive changes to the world beyond Nigeria. Much of the international business community had no knowledge of the reforms underway in the country and continued ignorance would reinforce the traditional image of Nigeria as not an attractive investment location. Efforts included making it easier for businessmen to visit Nigeria without facing a laborious process to obtain visas etc; Reform of the Civil Service, further improvements in security and the continued fight against corruption, were all necessary if Nigeria was to build on the reforms it had made in many sectors; The Council looked forward to evaluating the progress of the initiatives agreed at its next meeting and agreed that the two meetings of the HIIC in 2006 would be held from 22-23 June 2006 in London or New York and 30 November to 1st Dec 2006 in Abuja. (iv) Activities of the (HIIC in 2006) The Commission successfully organized two Honorary International Investor Council Meetings which held in London from the 15th - 16th June, 2006 and in Abuja from the 27th - 28th November, 2006. The two meetings were respectfully chaired by the Chairman of the Council, His Excellency, President, Chief Olusegun Obasanjo, GCFR and Council Co- ordinator Baroness Lynda Chalker alongside other Council Members who attended the meetings. Also, in attendance were Ministers and Chief Executives of Government Agencies among which include Ministers of Finance, Agriculture, FCT, Solid Minerals, Power & Steel, Commerce, Communications, Information and National Orientation, Education, Economic Adviser, National Security Adviser, CBN Governor and CEO's of NIPC, NNPC, BPE and PHCN. (a) Third Council Meeting Conclusion: ■ Council noted that the deliberations were resourceful and innovative; and observed that the Government was making progress towards improving the image of the country, therefore, the council and other friends of 114#115■ Nigeria should complement such efforts and spread the good stories about the country; Council resolved that members should collectively and individually assist in promoting the potentials of Nigeria; Mr. President directed that the Minister of Finance should present the doing business in Nigeria report to the Federal Executive Council (FEC) for more decisive actions; Council observed that there must be affirmative action on the local content in Petroleum Industry. The HIIC Secretariat monitored and reported back to Council the extent of implementation of these Council Conclusions. This in-build feedback mechanism was essentially designed to track and follow-up on major decisions and action points of the Council. (b) The Fourth Meeting o fHIIC: 27th - 28th November, 2006 The deliberations of the fourth meeting primarily focused on the following: ✓ Update on the economy ✓ Heart of Africa programme ✓ Current activities of the EFCC MSMS financing and development Successful 2007 elections in Nigeria ✓ Energy and Privatisation ✓ Doing Business in Nigeria ✓ Ports, Customs Reforms and Trade Facilitation ✓ Sustaining the current efforts beyond 2007 115#116(c) ■ ■ ■ The Fourth Council Meeting Conclusion: Council observed that corruption was being tackled and there was the need to further improve on management of resources at various levels of Government; Council noted the various efforts of Government on improving the economy, privatisation and image related issues; Council noted the assurances of Government on free and fair elections in 2007; The next HIIC Council Meeting (with in-coming President participating) is slated for the 3rd-4th May, 2007 in Abuja. Tracking of Public Sector Reforms - The Commission engaged in tracking of all Public sector reforms of the National economy and their implications on the repositioning of the NIPC. This led to the study of the National economic Policy thrust document NEEDS (National Economic Empowerment Development Strategy) and its implications to the Commission among others. It also helped in identifying the unfolding investment opportunities. LEGAL DUE DILIGENCE SEARCH The Commission conducted Legal searches at the Corporate Affairs Commission (CAC) on the companies that applied for the grant of either Business Permit or Pioneer Status. The aim was to detect companies that have doubtful information. This activity only commenced in 2004 and the Commission was able to uncover some companies that were not duly incorporated. This was also a new concept to ensure due diligence in the Commission activities. Verification visits were carried out on a number of organizations as to ascertain their existence as well as their claims as they seek the commissions approvals for operation. Signing of IPPA Agreement in Germany The Commission was represented at the signing of IPPA Agreement between Nigeria and Germany, which took place in Berlin, Germany on the 24th August 116#1172007. The Nigerian Delegation was led by the Permanent Secretary, Ministry of Commerce and Industry, Mr. Rafiq Olayiwola Ogumbambi, while the Director General of Economic Affairs and Sustainable Development, Ministry of Foreign Affairs, Mr. Rudiger Freiherr von Fritsch -Seerhausen, represented Germany. Joint Commission Meetings The Commission was represented at the following Inter-Ministerial Meetings: - (i) Nigeria -Congo Brazzaville Joint Commission: The Inter-ministerial Committee on the Nigeria Congo-Brazzaville Joint Commission was held on the 24th November 2007 in the Office of the Permanent Secretary, Ministry of Foreign Affairs. The meeting was held to articulate the position of Nigeria for the 2nd Session of Nigeria Congo Brazzaville Joint Commission meeting in Brazzaville from 1st - 8th December 2007. (ii) Inter-ministerial Delegation to Saudi Arabia: - The Inter-ministerial Committee Meeting on the Ministerial Delegation from relevant Ministries, Departments and Agencies (MDAs) to Saudi Arabia was held from 30th October to 1st November 2007. The meeting was held to come up with the position of Nigeria on the impending visit of the Ministering Delegation to Saudi Arabia. (iii) Nigeria Brazil Joint Commission: - The Inter-ministerial meeting on Nigeria - Brazil Joint Commission was held on the 4th December 2007 in the Office of the Permanent Secretary, Ministry of Foreign Affairs. The purpose of the meeting was to articulate the position of Nigeria for the 6th Session of the Joint Commission expected to take place in March 2008 in Brazil. Presidential Review Committee on Waivers, Concessions and Incentives The Commission was represented at meetings of the Presidential Committee on Review of Waivers, Concessions and Incentives held in Abuja, and tour of some companies in the States that benefited from one form of concession or the other as well as the Retreat at Uyo, Akwa Ibom State. Investment Climate and Competitiveness Policy Commission: The Commission was also represented at the meetings of the Investment Climate and Competitiveness Policy Commission organized by the Nigerian Economic Summit Group (NESG). At the end of the meetings, especially the meeting held 117#118on the 8th February 2007, a decision was made that a Seminar be organized on specific issues on the Nigerian investment climate. Presidential Committee on Problems of Investors: As the Secretariat of the Presidential Committee on Problems of Investors, concerted efforts were made early in the year to keep the committee alive. Meetings were organized but the late constitution of the Federal Executive Council, coupled with the pronouncement of Mr. President on suspension of concessions, waivers and some incentives, put paid to these efforts. However, a memorandum has been forwarded to the Honourable Minister of Commerce & Industry to brief him about the committee and explore the possibility of resuscitating the committee. This may have to await the outcome of the work of the Presidential Committee on Review of Waivers and Concessions, which is almost rounding off its assignment Workshop on Export and Investment Promotion Through Export Production Villages in Katsina State Held on Tuesday 24th July 2007 The Commission was represented at the above workshop jointly organized by Nigerian Export Promotion Council (NEPC) and Katsina State Ministry of Commerce. The workshop emphasized the promotion of SMEs and private sector-led economy. The Department made a presentation on "Attracting Domestic and Foreign Investment: A Lesson for Katsina State". The presentation talked generally on domestic and foreign investments, their characteristics, nature and their conditions for attracting investments. It also brought out some lessons for Katsina State which included measures the State should take on to attract investments. Highlights of the One Stop Investment Centre, the NCI and the Sector -Specific Investment Policy were given. The Export Production Village (EPV) is a concept by NEPC and is defined simply as a village or group of villages which have a proven comparative advantage with regards to the production of one or more products for exports and in which an export production village (people) and company can be formed or organized. EPV scheme as a concept is meant to serve as an avenue where clusters of small/medium farmers/producers within a locality or geographical area are brought together in an organized manner, to produce and process high quality product(s) to meet the demand of a particular foreign market or markets. 118#119Amongst its objectives is to expand rural exports and generate new exports products through rural production. Meanwhile, NEPC has commenced developing the following EPV/Cluster projects: i. ii. iii. Sesame seed and ginger project in Nasarawa and Kaduna States in collaboration with Olam Nigeria Limited. The Leather cluster in Aba, Abia State in conjunction with UNIDO, Federal Ministry of Commerce & Industry and the Entrepreneurs. The Rose Flower project in Jos with Fresh farms Limited iv. The Textile/Garment capacity building project in Lagos. It is recommended that NIPC should cooperate with NEPC on this initiative to ensure its success and to woo private investments into the designated areas as well as draw the attention of the relevant Federal and sate Governments Agencies to infrastructural requirements. Business Environment and Competitiveness Across Nigerian States The Commission was at the preparatory meeting of the Organizing Committee of the Forum on Business Environment and Competitiveness Across Nigerian States, held at the Central Bank of Nigeria (CBN) on Thursday 31st May 2007; and the eventual unveiling of the Survey /Report of “Investment Climate Rating of all the 36 States of the country and the Federal Capital Territory (FCT)", held at TRANSCORP Hilton Hotel, Abuja, in July 2007. The 5th Trade and Investment Framework Agreement (TIFA) Council The Commission was represented at the preparatory Inter-ministerial meeting on the 5th Trade and Investment Framework Agreement (TIFA) between Nigeria and the United States of America held on the 8th November 2007in the Office of the Honourable Minister of Commerce and Industry, Garki, Abuja. It would be recalled that the 4th Session of the Nigeria -US Trade and Investment Framework Agreement (TIFA) was held from 8th - 13th June 2006 in Washington D. C., USA; and the 5th TIFA is expected to be held in Abuja. Nigeria – World Bank MSME Project - 119#120The World Bank MSME Project is being implemented under a Development Credit Agreement (DCA) between the International Development Association (IDA) and the Federal Government of Nigeria (FGN). The Nigeria Investment Promotion Commission (NIPC) is responsible for project implementation, through its designated Project Coordinator (Director, Policy Advocacy and External Relations) and his team of officers in the Department, under the oversight of an independent Project Review Committee made up of eminent persons drawn from the private and public sectors. The day-to-day operations is the responsibility of the PMU, established under a contract with Emerging Market Economics (EME), a United Kingdom based consulting firm, signed in late November 2004. The NIPC Team and Project Management Unit (PMU) of the Nigeria - World Bank MSME Project was at the Country Portfolio Performance Review (CPPR) meeting in July 2007 and made presentation on the status of the project to the Project Review Committee. The Review Committee (RC) meets on an annual basis to conduct a review of the MSME Project Portfolio. After the presentation, and in his response, the Country Director of World Bank in Nigeria commended the NIPC Team and PMU for an outstanding performance. He encouraged the team to maintain the tempo. Policy Document on the Textile Sector The Department received from the Director General of Textile and Garment Manufacturers Association of Nigeria, the Policy proposal containing their request for Textile companies in the country to enjoy Pioneer Status on all areas of their operation, as well as an elongated pioneer status beyond the 5years tenure, and has since commenced work on the proposed policy document to enable it produce the first -draft for Management's consideration. Tremendous progress had been made on the Project, having received support from the World Bank to implement it under its newly launched Business Environment Project. Collaborative Relationship with Indian Embassy: As part of on-going collaboration between Nigeria and India, the Indian High Commission in Nigeria approached NIPC to assist it in coordinating the participation of Nigerian businessmen and exhibitors at the following events: 120#121i. The First Hospitality Fair (India) 2007, October 8-11, 2007 ii. 17th Broadcast India Trade Fair and Exhibition November 1-3 iii. India Trade Promotion Organization (ITPO) Annual Trade Fair, November 14-27, 2007 Accordingly, NIPC mobilized many Nigerian businessmen and exhibitors as well as government officials to participate at the fairs. Consequently, the collaboration with the High Commission and the participation of Nigerian businessmen at the fairs has strengthened the existing economic relationship between Nigeria and India on one hand, and NIPC and the High Commission of India on the other. In addition, the participation of Nigerian businessmen/exhibitors has afforded them the opportunity to acquire new skills and professionalism in their respective sectors, facilitated the initiation of new businesses, strengthened existing business relationships and most importantly, improved the corporate image of the country. INVESTORS SERVICES AT NIPC ZONAL OFFICES In continuation of establishing collaborative relationship with investors and relevant stakeholders in the zones, the zonal offices visited companies operating within their areas of coverage. The aim was to identify peculiar issues considered as hindrances to the growth of businesses in these states. Below are some of the key issues: • ● Harassment by local authorities nationwide and security agents over sundry taxes nationwide. They were of the opinion that government should have a clear cut policy on taxes to stern this menace on our highways. Non Existence of Level Playing Ground for Stakeholders. The need for a level playing field for stakeholders should be created to avoid a market of monopoly. Destination Inspection: Most importers of major raw materials opined that government policy on Destination Inspection was being frustrated by 121#122(b) • customs officials who demand gratification and cause delay in the clearance of goods at the Ports. Inadequate Raw Materials: We encouraged those that are saddled with this problem to take advantage of the =N=50b set aside by government to support farming activities by the producers of these needed raw materials • Accessing the Export Market: Some of these investors desire to export products beyond Nigerian shores. Efforts to get NEPC attend to such companies are in process. Some were introduced to take advantage of the ECOWAS Trade Liberalization Scheme. ● • • Inability to Acquire Modern Equipment: The high cost of acquiring modern machines to improve their output has become a nightmare to some manufacturers (e.g Leather works and Mining industries). Lean Share of the Market: Some local producers complained that some banned items are still being imported from some Asian Countries. They therefore call on government to place a total ban on the importation of such products, to enable local producers have a chunk of the market as well as to encourage increase in capacity utilization. High Payment of Royalties: Investors in the Mining Sector have complained of an arbitrary increase in their payments of royalties, they are urging government to take a second look at this with a possible downward review. Trouble-Shooting Visits to Investors The Commission through its Geopolitical Zonal offices undertook facility visits to some investors to ascertain their levels of production, as well as render advices and guidance where necessary. Letters were written to them before the visits to solicit their inputs on perceived hindrances to investments. In the cause of the working visits to states, potential investors with projects that are capable of attracting interests for promotion were identified. These potential investors were advised and guided on how to package their projects for promotion. 122#123Assistance and support were provided to the enterprise through linkage to USAID MARKETS for assistance. The USAID MARKETS had since visited the company and pledged to assist it in capacity building free of charge, find markets and provide hybrid seedlings. The company is in the process of producing bean flour for 'moimoi' and 'kosai' in different sizes of sachets. The NEPC and the Katsina State Committee on Export Promotion organized a one day seminar on 'Export and Investment Promotion through the establishment of Export Production Villages- EPVs in Ktsina state' with the theme 'Enhancing the Linkage between Production and Processing for Export in the Rural Areas'. The Commission was represented by the Director, Policy and Advocacy, and External relation. (c) Collaboration with relevant Stakeholders It is worthy of mention that, the Chief Executives of the states within the zone, have through their various Commissioners of Commerce and Industry, pledged their support and willingness to collaborate with the Commission to promote investible / bankable projects from their various states. In the same vein, the Zonal offices had continued to net-work with state governments, their agencies, and members of the organized private sector (OPS) on ways to collaborate and improve the investment climate to further stimulate economic activities within the zone. Business Interactive Lunch: - We participated at a one-day Business Interactive Lunch organized by the Miners Association of Nigeria (MAN) in Jos and the NCZO made a presentation on "the available incentive packages to stimulate investments in the solid minerals sector". The forum provided a platform for interaction amongst stakeholders, who in turn provided insights into the policy directions of their various agencies and organization. Relationship with Governmental Departments /Agencies 123#124- The Commission continued to work closely with some Governmental Department's and Agencies in its bid to provide services to investors as required. Some of the Agencies include: Industrial Inspectorate Department (IID), Federal Ministry of Industry, Abuja Issuance of "Production Day Certificate" to Pioneer Status beneficiary companies. Federal Inland Revenue Services (FIRS) in actual implementation of the Pioneer Status incentive and clarification of Tax Status of companies seeking Pioneer Status incentive. ➤ Office of the Special Adviser to Mr. President on Manufacturing & Real Sector on problems experienced by investors in their operations in Nigeria. Ministry of Foreign Affairs Inbound Missions from Abroad. Organization of Investment Forums and ➤ Corporate Affairs Commission - Documentation and Registration matters by foreign investors. ➤ Honourable Minister's Office, Ministry of Internal Affairs - Regularization of Business Permits issued by the Commission. ➤ Immigration Desk, NIPC Headquarters - Facilitation of Expatriate Quota positions. Collaborations: The Commission collaborated extensively with Federal Ministry of Commerce and Industry on trade related issues and represented the Commission at relevant stakeholders meetings with various Ministries/Parastatal as highlighted below: a) The Commission is a member of National Focal Point (NFP) of Federal government that was established to deliberate on trade issues and make recommendations to government on WTO matters. To this end, the Unit was part of the Inter-Ministerial Committee that reviewed the Trade Policy of Nigeria during the period under review b) The Commission was part of the Technical Committee that has been saddled with the responsibility to prepare the forthcoming 7th Session of the Nigeria- South Africa Bi-national Commission (BNC) scheduled for Abuja, Nigeria on or before March 2008. Similarly, as a member of the Technical Committee of Nigeria-South African Bi-National Commission, the Unit was able to facilitate the various visits of South African Business Delegation to Nigeria in year 2007. c) The Commission was also was part of the NIPC Secretariat that partnered with the Commonwealth Business Council (CBC) to organize the 2nd West 124#125Africa Investment Forum in January 31st - February 2nd 2007 at Sheraton Hotel, Abuja. d) The Commission facilitated the meetings of Management of CNBC AFRICA from South Africa (who had established its broadcasting station in Nigeria) with the Management of NIPC and National Broadcasting Commission. e) The Commission also participated in the E-Learning programme of the World Bank Institute (WBI) in 2007 and was involved in the analysis conducted on Food and Agricultural Trade in Africa. The objective of the analysis are: a. to share the importance of Food and Agricultural Trade for African economies with the Department. b. It is also meant to share the sources and direction of African Food and Agricultural Trade c. The extent of Intra-regional trade in Africa and d. The sectoral composition of food and agricultural trade flows The Importance: e. Poverty levels are higher in rural areas f. A large share of Sub-Saharan African population resides in rural areas g. Rural households generally depend on agriculture African Countries Import Foods more than Exports h. There is a progressive growth in the imports of food into Africa at 11% on the average i. Nigeria is among the top importers of food and agriculture products in Africa 5.10 REFORM/REPOSITIONING ACTIVITIES IN THE COMMISSION The Nigerian Investment Promotion Commission had, in the last four years, undertaken far reaching re-engineering in keeping with the reform programme of the current Federal government. In order to restore the Commission on the path of corporate effectiveness, relevance and sustainable growth, the Executive Secretary, Engr. Mustafa Bello, on assumption of office in November, 2003, embarked on a far reaching restructuring, which has taken the Commission to its present enviable status as a 125#126very serious, reform-minded and performing agency of government. Today, NIPC enjoys tremendous goodwill, recognition and respect from various stakeholders in acknowledgement of the giant strides it recorded in recent times. The reform programmes among others include the following: Review of NIPC Condition of Service and Development of Human resource Manual The overall objective of the review was to make the Commission attractive to high quality manpower from both the public and private sector as envisaged in the original plan of the Commission and retains the loyalty of high quality staff that can compete with any Investment Promotion Agency (IPA). The review was also necessitated by the need to: (i) Ensure that the Commission is not over burden with additional financial responsibilities outside the exiting frame work. (ii) For staff motivation for enhanced productivity and continuous performance improvements i.e. a careful balancing between staff welfare and financial capabilities of the Commission. (iii) Create an enabling environment for businesslike efficient proactive and robust workforce that can cope with the challenges and dynamics of investment promotion and facilitation. Development of Commendation Award System/Criteria for the Commission The main objective of this exercise is to evolve a distinct but acceptable way of measuring and rewarding performance in line with the functions of NIPC; this is most important because NIPC is a service provider and its performance may not always be physically measured. The performance measurement and reward system in NIPC is therefore intended to achieve the following: 126#127• To recognize and reward consistent hard work; • • • . To motivate staff for greater performance; To inspire Loyalty to the organization; To inspire healthy competition in the Commission; To ensure continuous improvement of employee's capabilities to enhance professional service delivery; To offer competitive career prospects; Account Officer for Project Management in the Commission The concept of Project Account Officer or Account Executive was further consolidated in 2007 to provide quality, timely and personalized service to potential and existing investors. This concept which became popular and successful in the banking sector was being implemented in the Commission to boost investor confidence and improve the system of service delivery in the Commission. Over 100 Projects Accounts were monitored during the reporting period. Review of NIPC Service Charter to conform to the Guidelines Issued by SERVICOM Office. The Commission's Service Charter was rated as very good by the SERVICOM and has since been pasted on the SERVICOM website for reference. Coordination of the Development of Departmental/Unit Service Charter The Production of Departmental/Unit Service Charter to complement the main service Charter so as to facilitate efficient service delivery at all components and service windows of the Commission was enforced Implementation of SERVICOM in NIPC Intensified sensitization of the Commissions staff on the concept of SERVICOM and had also formed close collaboration with the SERVICOM office in the Presidency and participated in all SERVICOM activities. Upgrade of NIPC Network The Commission's current Network infrastructure includes a well structured cabling for 153 workstations designed to achieve a Local Area Network (LAN). The two blocks of the NIPC office buildings have four 28 port Ethernet switches 127#128in each block. The two buildings were connected using Fibre Optic cable. This arrangement was intended to facilitate information sharing among staff in the Commission Computer Hardware The Commission, during the period under review acquired a number of computer systems and Network devices to augment the existing IT infrastructure and support the network The following computer system and peripherals were acquired • • • 19 Nos Omatak Executive 900 Series Computers with 15″ Flat screens 19 Nos Sun Pac 650 VA UPS 6 nos Omatek Executive 700 series Laptops • 2 Nos Blade Servers A Network appliance called IO BOX was also acquired; it is an all-in-one network device that has a multiple function of being a VPN, File Server, Web Server, Wireless LAN and print server. The IO BOX is currently used as a wireless Access point for the provision of a wireless internet connection (Wireless LAN) Installation of Very Small Aperture Terminal(VSAT) Equipment C-Band VSAT satellite communications system was installed for the purposes of providing internet services, the acquisition of the VSAT was to improve the rate of internet speed in the commission. The VSAT is expected to deliver a bandwidth of 1MBps downlink by 512KBps Uplink. Web Host Server Upgrade - The Commission's Web server was upgraded to a UNIX based dedicated server with a storage capacity of 250 GB. The Website is now hosted with the new web host Multacom Corporation. The upgrade was necessitated by the need to increase the existing server memory space so as to accommodate the Minerals/Geological spatial maps of Nigeria which is a partnership between NIPC and Geological survey of Nigeria, it is also intended to support the repayment Implementation strategy. Registration of Government Top-Level Domain Name The domain name of the Commission was changed from nipc-nigeria.org to nipc.gov.ng in compliance with the Federal government IT Policy on Top level 128#129domain name registration. This also identifies NIPC as Nigerian Government Agency in cyberspace. The Website: The Commission has a web presence at (www.nipc.gov.ng) to facilitate the dissemination of information to prospective investors via the internet. The website which was designed and developed in house is based on open web architecture that can integrate electronic commerce (e-commerce) to promote online e-transaction and payment Intranet Portal The Commission had in place, an intranet portal which is a web -based information repository service. The intranet portal serves as electronic board for internal information and dissemination. PABX Upgrade The existing PABX was upgraded to Panasonic TDA 620 Hybrid IP PBX which has the capability of supporting Voice over IP and E1 card Electronic Billboard An outdoor electronic board was acquired and mounted on top of block A building for cutting edge advertisement and Publicity. Even though it's open to the public for commercial advertisement, it's mainly used in publicizing NIPC activities and upcoming events. Electronic Document Management System To maintain a secure document repository and ensure effective information sharing and retrieval, Document Management Software - DocumPlus version 4.1 was installed both at the server end and client side. 5.11 STAFF MATTERS Staff Development The primary purpose of any organization, be it private or public, is to satisfy the needs and desires of its clients, stakeholders, employees and the community at 129#130large with optimum efficiency hence the need for continuous skills and capacity building strategies in an organization Table 5.4.9.1: Staff Composition 2006 - 2008 DESIGNATION YEAR 2006 2007 2008 Directors 7 Ag Director Deputy Directors Asst. Directors Chief Invest. Officers 10 660 9 13 24003 6 9 9 15 13 253 9 Asst. Chief Invest. Officers 19 14 12 Asst. Chief. Exec. Officers Principal invest. Officers Principal Exec. Officers I Principal Exec. Officers || Principal Legal Officer Prin. Conf. Sec. II Senior Invest. Officers Senior Comp. Operators Senior Conf. Sec. Senior Exec. Officers 382 253 29 23 Invest. Officers I 15 Invest. Officers II Conf. Sec. I Higher Exec. Officer Exec. Officers Chief Clerical Officer Chief Drivers 1 4-3022-DON-3-3 3 30 ONWN ww 2 3 2 2141222 9 6 4 1 4 1 3 22 14713 9 130#131Senior Drivers I 8 9 6 Senior Drivers II 9 6 1 Senior Tech. Asst. 1 1 1 Clerical Officers 3 3 1 Fig. 5.4.9.1: Staff Composition 2006 - 2008 131#132Clerical Officers Senior Tech. Asst. Senior Drivers II Senior Drivers | Chief Drivers Chief Clerical Officer Exec. Officers Higher Exec. Officer Conf. Sec. I Invest. Officers II Invest. Officers I Senior Exec. Officers Senior Conf. Sec. Senior Comp. Operators Senior Invest. Officers Prin. Conf. Sec. II Principal Legal Officer Principal Exec. Officers II Principal Exec. Officers I Principal invest. Officers Asst. Chief. Exec. Officers Asst. Chief Invest. Officers Chief Invest. Officers Asst. Directors Deputy Directors Ag Director Directors 2008 2007 2006 132#133During the period under review, the Commission was able to engage in capacity building for staff within and outside the country. Over 80% of the entire staff attended training programmes that span investment promotion and facilitation, ICT, Human Resource Management, ISO Standards, Macroeconomic Policy Analysis Due Diligence, SERVICOM etc. Training in the Commission is mainly sourced from proposals obtained from training institutes, both local and international. These include: National Centre for Economic Management, (NCEMA), Ibadan; Administrative Staff College of Nigeria (ASCON), Topo - Badagry; Centre for Management Development (CMD), Shangisha, Lagos; Nigerian Institute of Public Relations, Lagos; etc. Some of the training programmes attended by staff during the period under review included the following: • . · Web content and Graphic Design at London College from March - May 2006. The Economic and Commercial Counsellor's Office, Embassy of the People's Republic of China offered one training slot to the Commission on "TRADE AND INVESTMENT SEMINAR FOR AFRICAN COUNTRIES" (JUNE 23- JULY 7, 2006). Training/seminar on Investment Promotion under the Japan International Cooperation Agency at Japan was offered the Commission (6th Sept to 19th October 2006) Two (2) day (9th-10th May, 2006) training programme organized by Tree Crops Development and Marketing Company plc; in collaboration with National Horticultural Research Institute (NIHORT), Ibadan, Raw Materials Research and Development Council (RMRDC), Abuja and Nigerian Stored Products Research Institute (NSPRI), Ilorin, workshop on PROCESSING OF MANGOES INTO SLICES (CHIPS) AND LEATHER FOR LOCAL AND EXPORT MARKETS. Which took place at RMRDC. "Business Planning Made Easy," organized by Abuja Enterprise Agency, on 27th October, 2006. 133#134• • • • • The Nigerian Institute of Advanced Legal Studies course for "GOVERNMENT LEGAL ADVISERS/LAW OFFICERS' in May 22nd- 26th, 2006. Makcenta Consulting 3-day in-house training workshop on Secrecy and Information Management, Security and Awareness and Interdepartmental Relationship from 24th - 26th May, 2006. Forty-four (44) Management staff were trained on Administrative Principles, Processes and Practice at ASCON Badagry. Under the Msme World Bank Finance Project, a total of twenty (20) Officers from the core Departments and the Zonal Offices underwent capacity enhancement training on MSME Promotion and Development, from June 21-22, 2006. In-service training in Chinese Language for a period of ten (10) months with effect from July, 2006, at the La Sagesse Language Centre, Abuja. Twelve (12) officers attended a one day seminar on "Investment Opportunity and Wealth Creation Strategies for the Future," organized by Muregi Associates on 23/08/06 at total cost of N240,000.00. In addition to the opportunity granted to 12 staff to undertake part-time studies leading to the award of Diploma and Degree certificates in Tertiary Institutions, the Commission also granted full-time study leave without pay to two officers and full-time study leave with pay to one officer. The Commission enhanced its collaborated with the National Planning Commission; the World Bank; Japan International Cooperation Agency (JICA); and other friendly bilateral and multilateral organizations in the achievement of its manpower development needs. (a) Training Policy of The Commission In recognition of the value of its workforce as an important factor to the achievement of its organizational objective, Management had adopted a policy of ensuring that all levels of staff were exposed to training both locally and foreign with emphasis on those that has never benefited form any form of training. 134#135Training in the Commission is mainly sourced from proposals obtained from training institutes, both locally and internationally. These include: National Centre for Economic Management, (NCEMA), Ibadan; Administrative Staff College of Nigeria (ASCON), Topo - Badagry; Centre for Management Development (CMD), Shangisha, Lagos; Nigerian Institute of Public Relations, Lagos; etc. (b) Conferences, Seminars and Attended in the year under Review: The Commission participated in a number of seminars, symposia, conferences and Business/Investment forums in the year under review. In some instances, the Department helped organize such forums. These activities are briefly profiled below: " The office was duly represented at a one-day interactive forum organized by the National Association of Small and Medium Enterprises (NASME) on How Entrepreneurs could access the Small and Medium Industries Equity Investment Scheme( SMIEIS) Funds". A representative of Union Bank of Nigeria gave the talk on how to access the funds. He highlighted the factors that a bank would consider before a project could be said to be viable. He also said that with the right credentials, entrepreneurs could access the funds easily Participated at the Seminar on Entrepreneur Innovation in Agric Business organized by the Raw Materials and Research Council (RMRDC) held from 27th - 28th August, 2007 in Abuja. Participated at the Interministerial Sessions on preparations towards the hosting of the 3rd meeting of Nigerians in Diaspora Forum held in June, 2007 in Abuja. Participated at Technical Committee Sessions to discuss areas of assistance for Nigeria by the International Trade Center (An arm of the United Nations) held on 21ts February 2007 in Abuja. Pioneer Status Presentation ceremony held on the 17th July 2007 to present Certificates to 24 recipient companies. 135#136(c) - Participated at a 2 day International Seminar on branding for globalization organized by Asia Business Support Services with the Nigerian Institute of Industrial Management (NIIM), Nigeria Israel Chamber of Commerce etc held from the 7th - 8th August, 2007 at the International Conference Center, Abuja. Participated at the Think Tank Session on the Resolutions at the African Cocoa Summit held on 31st January, 2007 Attended the Commissioning of Abuja Coca Cola plant by the - Nigerian Bottling Company Plc in Gwagwa, Abuja on 4th September, 2007 Participating on deliberations at the Presidential Committee on Incentives, Waivers and Concessions coordinated by the Office of the Honourable Minister of Finance. Participating on deliberations on the Gas 2 Power Project coordinated by the Office of the Honourable Minister of State, Gas. ☐ ◉ Participated at the 2007 Sugar Forum organized by the National Sugar Development Council in Abuja. Attended the Cabinet Committee on tourism held at the Federal Ministry of Culture & Tourism on the 31st January, 2007 Participated at the one day National Conference on Electricity Consumers in Nigeria held on 14th March, 2007 at the International Conference Center, Abuja. Acceptance of Corps Members: A total number of Twenty (20) Batch 'A' and twenty four (24) Batch 'B' corps members were accepted to undertake their primary assignment in the Commission. Batch 'A' corps members had completed their primary assignment and were issued discharge letters within the period under review. (d) Students on Industrial Attachment: A total number of Seventeen (17) IT Students were accepted by the Commission during the period under review, while eleven (11) had successfully completed the programme and were issued discharge letters. (e) MSME World Bank Finance Project: In continuation with the MSME World Bank Finance Project, a total 136#137of 20 officers drawn from the core departments and Zonal offices were trained on "MSME Promotion and Development" which took place from June 21- 22, 2007. (f) National Health Insurance Scheme All staff of the Commission and their dependants had been registered into the scheme. About 95% of staff and their dependants have been issued with NHIS ID Cards and are enjoying health facilities in the hospitals of their choice. The outstanding ID Cards are being pursued by the NHIS Desk Officer. It is hoped that before the end of 1st quarter of 2008 all outstanding ID Cards would be made available to the beneficiaries. Significant progress has been made towards assisting staff to own houses through the access of the Federal Mortgage Bank of Nigeria Housing loan Scheme and collaboration with some banks. The Department received several proposals from Estate Developers, negotiated and came up with the best options in form of "Special Purpose Project Vehicle." Other welfare matters such as Health Care Scheme, First Aid Services in all the Department and financial support to bereaved staff received the full support of Management. List of Training/Workshop/Seminar attended in 2008 DEPT/UNI COURSE TITLE S/N T 1. CDU "Enhancing the Competencies of Frontline Staff for Superior Performance" Organized by Chartered Institute of Certified Secretaries, from 7th-10th October, 2008, Ogun State. 2. HRD 3. ES OFFICE 11 137#1384. F&A 5. HRD 6. HRD 7. F&A 8. F&A 9. F&A 9. F&A 9. F&A "Improving the Competencies of Secretaries/Personal Assistance" Organized by Centre for Administrative and Advanced Secretarial Studies, from 7th-10th October, 2008, Enugu State. "Strategies for Intermediate and Junior Staff Attitudinal Change to Attain Peak Performance & Efficiency" Organized by FEBI Int'l from 27th - 31st October, 2008, Jos, Plateau State. "Manpower Planning and Budgeting as a Tool for Productivity Management in the Public Service" Organized by OHCSF, Establishment & Pension Office, Establishment & Industrial Relations Department, Federal Secretariat, Abuja, from 25th - 28th August, 2008, Lokoja, Kogi State. "Best Practice in Facilities Management” Organized by The Nigerian Society of Engineers from 15th - 17th October, 2008, Ikeja, Lagos State. "Best Practice in Facilities Management" Organized by The Nigerian Society of Engineers from 15th - 17th October, 2008, Ikeja, Lagos State. "A Three - Day Improvement Workshop for Budget and Accounting Officers” Organized by Federal Ministry of Commerce & Industry from 3rd - 5th December, 2008, Abuja, FCT. "Mandatory Continuing Professional Education (MCPE)" Organized by The Institute of Certified Public Accountants of Nigeria from 17th - 18th December, 2008, Kaduna, Kaduna State. "Fiscal Responsibility Act (2007) and Public Sector Financial Management: Implications for Accountability and Transparency" Organized by The Office of the 138#139Accountant General f the Federation and Leading Edge Academy, Nigeria from 26th - 29th August, 2008, Kaduna, Kaduna State. 9. HRD 9. Internal Audit Unit 9. F&A "Fiscal Responsibility Act (2007) and Public Sector Financial Management: Implications for Accountability and Transparency" Organized by The Office of the Accountant General f the Federation and Leading Edge Academy, Nigeria from 26th - 29th August, 2008, Kaduna, Kaduna State. "Fiscal Responsibility Act (2007) and Public Sector Financial Management: Implications for Accountability and Transparency" Organized by The Office of the Accountant General f the Federation and Leading Edge Academy, Nigeria from 26th - 29th August, 2008, Kaduna, Kaduna State. "Fiscal Responsibility Act (2007) and Public Sector Financial Management: Implications for Accountability and Transparency" Organized by The Office of the Accountant General f the Federation and Leading Edge Academy, Nigeria from 26th - 29th August, 2008, Kaduna, Kaduna State. TRAINING SPONSORSHIP: The following training slots were offered to the Commission by various training institutes overseas and were attended by three Officers in 2008. The Commencement date for Masters Degree in Human Resource Planning and Development is 1st February 2009 -31st January, 2010. NS S/ Ν NAME OF TRAINING COURSE TITLE NO. OF TRAINI INSTITUTE 1. Indian Technical and Advanced Multi- NG SLOT One (1) 139#1402. Economic Cooperation (ITEC) and Special Commonwealth Assistance for Africa Programme (SCAAP) ITEC/SCAAP Media and Website Design Technology 09/10/2008- 20/1/2008. Masters Degree One (1) in Human Resource Planning and Development 01/02/09- 31/01/10 Economic 3. Korea International Cooperation Agency Development (KOICA) Strategy 12- 4. Japan International 25/10/2008 Economic Cooperation Agency (JICA) Development (SME Promotion) 30/11/08-17/12/08 One (1) One (1) STAFF WELFARE MEDICAL: All staff members are registered under the National Health Insurance Scheme and the First Aid Boxes were replenished twice in 2008. Also, free eye screening exercises were organized for staff of the Commission by Maxrings Optical Eye Clinic and Stelladex Optometry (EYE) Clinic respectively. In addition, Staff member were vaccinated against the deadly diseases Hepatitis B and Typhoid Fever. STAFF HOUSE-OWNERSHIP: Considerable efforts have been made in the area of Staff Housing. Thirty (30) Staff indicated interest in the Post-Service Homes at Kurudu, while their National Housing Fund Loans would be processed by Post-Service Homes (Savings & Loans) Ltd, a Primary Mortgage 140#141Students on Industrial Attachment: A total number of three (3) IT Students with ICT knowledge were accepted by the Commission and posted to IT Unit during the period under review. Orientation Programme: During the period under review, orientation programmes was organized for Retainership Staff and Corps Members accepted by the Commission for their primary assignments. Draft Human Resources Manual: The Management at one of its meeting in 2008 had constituted a committee hedead by AD(R&CD) to come out with a draft copy of Human Resources Manual. The Committee had submitted a draft copy through DHRD to the Executive Secretary. Work is ongoing. It will be completed in 2009. 5.12 AWARDS AND COMMENDATION 2006-2008 COMMENDATION IN 2006 Mr. Isiaku S. Sabo (Chief Investment Officer) was commended for the evaluation of the 2005 promotion exercise which was predicated on the need to produce an acceptable mechanism for a balanced performance measurement and training needs assessment of staff in the Commission. END OF YEAR BEST PERFORMANCE AWARDS 2006 Chairman's Award OSIC Executive Secretary's Award Officer) Overall Best Staff A.Y. Sakaba (Director/Chief Operating Officer, Sabo S. Isiaku (Chief Investment Sabo Isiaku 2006 DEPARTMENTAL BEST PERFORMANCE AWARDS Directorate of the Office of the Executive Secretary: Department of Investment Promotion: Sabo S. Isiaku Abubakar Yerima 141#142Department of Finance and Administration: Department of Investors Relation: Department of Human Resource Development: One Stop Investment Center (OSIC): Iyamba Fenegal Uwem Akpan Kolo James Maryam Abubakar (NIPC Desk) 2006 BEST PROJECT ACCOUNT TEAM NAGARJUNA GROUP Team Members: Wange Dia - Team Leader Rashid Ahamed Uwem Akpan 2007 END OF YEAR AWARDS Chairman's Award Executive Secretary's Award Best Department Overall Best Staff Abubarkar S. Hassan (DHR) Mohammed Isa Human Resources Department Fatima Mohammed (Web master) 2007 DEPARTMENTAL BEST PERFORMANCE AWARDS Directorate of the office of the Executive Secretary Mohammed Department of Investment Promotion mohammed Finance and Administration Department of Investor Relations Department of Human Resource Development Department of Policy Advocacy and External Relations (i.) Fatima (ii) Patience Okala zubairu a. Ummar Bello Aisha H. wando James B. Kolo John Oseji 142#143One Stop Investment Center (i) Alfred U. Ahon (NIPC Desk) 20007 BEST PROJECT ACCOUNT TEAM: PROJECT: TEAM: XINGUANG INTL. GROUP: (ii). Adamu I. Alfa (Customs Desk) A. A. Adesugba – Team Leader (DIP) B. Ladi Katagun - Member (DDIP) C. Abubakar yerima – Memebr (CIO) 2007 COMMENDATION AWARDS: (i) The Following earned Commendation Letter Award for Outstanding Performance: A.Y Sakaba A. Adesugba Ladi Katagun Isaac Adesola Idowu Babagana Imam Eric U. Ani Longza W. Emmanuel Oladipo Baruwa (ii) The Following earned Accelerated Promotion to the Next Grade Level for Outstanding Performance: Waziri Laisu Aminu S. Takuma Abubakar Yerima Aisha H. Wando 143#144Benjamin Ikheloah Fatima Mohammed Lovina B. kayode Wange Z. Dia BALANCE SHEET EXTRACT The Commission's audited Balance Sheet position for the year ended 31st December 2006 stood at: • Current Asset (Prepayments) • Stock . Fixed Asset N65,825,426 N1,715,625 N1,184,330,536 The Commission's Motor Vehicles had fully depreciated, having spent minimum of four years life-span, except two kia Buses that were procured during year 2005, one 607 Peugeot and five 407 Peugeot cars procured in 2006. Closure of Accounts 144#145In line with the extant financial regulations, the Commissions' books for the year ended December 31, 2007 had the following balances: Personnel Overhead Capital (N423,014.92) N743.07 NIL The figures were confirmed by the Board of survey from the office of the Accountant-General of the Federation. 6.0 PRIORITIES FOR 2009 The economic environment under which the Commission operated in 2007 was a challenging one in of the political transition through the general elections. However as stakeholders are and international agencies like the World Bank, IFC, and the international media like CNN, are acknowledging and applauding the efforts of NIPC at improving the Nigerian investment climate, the Commission is further encouraged to improve on its efforts to ensure that, Nigeria becomes the preferred investment destination among the emerging markets. 6.1 Service Delivery 145#146The Commission will pay attention to improved service delivery to investors through the effective implementation of the NIPC Service Charter, reengineering processes at the OSIC center, improvements in the SERVICOM initiative and human capital development. 6.2 Targeted Promotion The Commission will focus on targeted investment promotion to build on the gains of 2007. Accordingly, countries, regions and sectors will be identified and prioritized in our promotional activities with a focus on regions of the world that have indicated keen interest to invest in Nigeria. The Commission has recognized that the country's potential as an investment destination and image overseas can best be promoted by private sector executives and industry captains who have operated successfully in the region. There is enough for everyone. To this end the Commission will improe on its aftercare serices. 6.3 Honorary International Investors Council (HIIC) The potentials of the International Investment council shall be fully tapped to effectively contribute to investment promotion efforts and improvement on the investment climate in Nigeria. 6.4 Aftercare Services Paucity of funds hindered effective aftercare services for investors during the reporting period. However with greater prospects for increased funding, impetus will be given to aftercare visits on both existing and Greenfield investments. The objectives among others include the following: Understanding and appreciating the problems of investors operating in the Nigerian business environment. Collating the views of investors as regards what constitutes a cog to the smooth operating investment environment in Nigeria and forwarding same to Policy Advocacy for necessary action. Developing a robust "Ailing Industry Reactivation Marshal Plan" with the objective of ensuring that all ailing Industries in Nigeria are revived by way of proactive measures to be advocated by the NIPC. 146#1476.5 Authentication of actual value of investments by investors in the economy. ➤ Verifying actual value of capital investments made by investors when setting up their projects in Nigeria. ➤ Authenticating actual employment opportunities generated by new investments in the Nigerian economy. Project Account Management The concept of managing projects through the assigning of account officers (executives) will be fine tuned for greater effectiveness and be institutionally supported. 6.6 Greater Impetus on Advocacy The Commission will prioritize its investment facilitation and advocacy on behalf of investors. In this light, the Presidential Committee on Problems of Investors will be resuscitated as the driving force for the investment facilitation and advocacy in the Commission. In addition, the Commission shall undertake troubleshooting visits to companies with a view to assisting them where possible. The Zonal offices will be effectively empowered and utilized in facilitating investment in the respective zones. An effective programme will be put in place for identifying and visiting ailing industries with a view to providing intervention where necessary. 6.7 FDI Tracking The real prospect of getting accurate and authentic FDI statistics lays in the establishment of collaborative research/investment Surveys with organizations like Central Bank of Nigeria, Federal office of Statistics, United Nations Industrial Development Organizations, and other multilateral and bilateral organizations. Investment related research is still a green area and a lot needs to be done with respect to funding. We will also pay attention to delivering a reliable FDI tracking mechanism in Nigeria through collaboration and soliciting international technical assistance. The Inter-ministerial Committee on FDI shall be supported to provide accurate and authentic FDI statistics for the country. 6.8 National Investment Policy 147#148Efforts will be put together by NIPC and stake holders to ensure the completion of a comprehensive National Investment Policy for Nigeria. 6.9 Codification of Investment Laws and Policies The Commission will pursue amendments and codification on investment related laws so as to make them investor friendly and ensure improved investment climate. 6.8 One Stop Investment Center (OSIC) The One-Stop Investment Center (OSIC) building under construction will be completed in 2008 and the number of agencies at the OSIC will be expanded. Also the center shall undertake a reengineering of the processes for effective, transparent and time delivery of services. 6.9 Development of Databank Attention will be paid to the development of a robust and reliable databank to support investment promotion activities. 6.10 Capacity building for Staff With improved funding and the articulated capacity building for staff will be implanted. Greater efforts will be made to get the assistance of donor agencies for capacity building. The training needs assessment of staff is currently ongoing and will be completed in the first quarter 2007 to form the basis for capacity building for staff. 6.11 Fast-tracking Domestic Investment The Commission will continue with its programme of National Conference on Investment. It will also empower the Zonal offices in the six geopolitical zones or organize states business and investment forums to educate the stakeholders on the activities of the commission, the government economic reform programmes and how to benefit from them. 148#1496.12 PROGRAMS OF THE NIGERIAN INVESTMENT PROMOTION COMMISSION FOR 2010-2013 1. 1.1 1.2 1.3 2. INTRODUCTION FDI flow to Nigeria is put at US$20 Billion (2008 UNCTAD) which was an improvement over 2007 figure of US$12 billion which are largely in Oil and Gas sector, however non-Oil sector attracted up to US$7 billion during the reporting period. With Government's commitment to the realization of the Seven Point Agenda and Vision 20-2020, Nigeria has to make a quantum leap in the area of FDI inflow if the Strategic Plan in view is to be realized. The current global economic crisis further provides Nigeria with an opportunity to offer itself as good alternative destination for FDI given our profile of being the most profitable, liberalized and safest economy in Africa, as confirmed by former Merrill Lynch, one of the world's leading financial and advisory company, to the effect that Nigeria is the least risky economy in the World. Investment promotion and facilitation are critical to economic growth of any nation because of their contributions in the creation of an enabling environment for FDI to flow and be sustained. It has been established that FDI contributes to GDP and GNP, helps in employment generation and human capital development, promotes economic stability, import substitution industrialization, transfer of technology, general growth and development, and improves the credit worthiness of countries with friendly investment climates. These conform with the goals and objectives of the Seven point Agenda and the vision 20:20:20. PROGRAMS FOR 2010- 2013 AND THE IMPLEMENTATION STRATEGY Based on Government's desire to attain double digit growth rate in GDP as a prerequisite for achieving its long term development plans, Nigeria requires attracting a minimum of USD 7.5billion especially in non-oil FDI annually. It is against this background that Investment Promotion, facilitation and private sector development should take centre-stage in current efforts to 149#150(vi) transform the economy as encapsulated in the Seven Point Agenda and vision 20: 20:20. OBJECTIVES OF THE 2010-2013 PROJECTS/PROGRAMS To position Nigeria as an attractive and profitable investment location for both domestic and foreign investors by taking advantage of the recent Investment policy review of Nigeria by UNCTAD. (vii) To target, promote and attract value-added investment projects into priority sectors of the economy in line with the 7-Ponit Agenda. (viii) To positively harness the role of FDI in the rapid transformation of Nigeria's economy and make FDI a viable source of funding the implementation of Nigeria's Development Plans. (ix) (x) To contribute to efforts aimed at promoting non-oil sectors for sustainable economic growth and development. To champion reforms and policies aimed at substantially improving Nigeria's investment climate for enhanced regional and global competitiveness. GOALS 1) Attract up to USD7.5billion FDI in non-oil sectors 2) 3) Generate employment of two million direct and five million indirect jobs annually in key sectors of agriculture, manufacturing, services and infrastructure. Target, promote and attract FDI into from key FDI exporting companies, countries and regions. 4) Identify and support expansion Programmes of existing TNCs in Nigeria including the resuscitation of ailing industries. 5) Set up mechanisms for effective co-ordination and streamlining of FDI Policies and activities. 150#1516) Explore alternative funding source to supplement budgetary provisions through a mutually beneficial partnership with the private sector 7) 8) 9) 10) Work with UNCTAD, World Bank and relevant stakeholders to implement Investment Policy Reforms as articulated in the Bluebook on Nigeria. Expand scope and quality of services at OSIC to effectively cover key critical sectors for ease of business entry and for enhanced Doing Business rating of Nigeria. Design and implement special publicity programmes aimed at building a positive image for Nigeria and reversing negative perceptions. Building capacity of staff and institutions of NIPC for higher performance and professionalism. 11) Sustain the HIIC's top Advisory role to ensure Nigeria's global competitiveness for FDI 3. CHALLENGES 3.1 In embarking on the implementation of the objectives/goals enumerated, the Commission is not unaware of the challenges that have continued to undermine Nigeria's investment climate namely; the dearth of infrastructure, the absence of a comprehensive investment policy for FDI, funding and budgetary constraints, legal and administrative impediments as well as investor concerns about security of lives and properties. 151#152152#153S/N ACTIVITY 1. Investment Generation WORKPLAN FOR THE NIGERIAN INVESTMENT PROMOTION COMMISSION (2010 - 2013) OBJECTIVES -To attract FDI and generate employment, and fast-track industrialization of the country STRATEGY - Identify and build database of Nigerian investors to be contacted for the BIFS -Target some countries that have comparative advantages in the priority sectors of the economy - Determine Nigeria's comparative advantages -Assessment of the trend of global FDI in competitors' countries, using the UNCTAD report - Target and attract Non- oil World TNCs -Encourage foreign affiliates of TNCs to expand or diversify to IMPLEMENTAT ION PROCESS TIME FRAME - FDI trends in competitors' countries analyzed and report produced. - Between 10-20 of the top 100 Non-Oil World Transnational Corporations (TNCs) attracted -Organize Business and Investment Forums (BIFs) in some identified countries -Organize inbound investment missions from some targeted companies and 2010 - 2013 REMARK S 153#1542. produce export products countries. Image Building (Publicity/Enlightenm ent Campaign) *OSIC Included -To sensitize the Investing Public on the investment opportunities and Doing Business in Nigeria -To launder the battered image of the country and correct -Organize Conference of Nigerians in Diaspora some wrong perception • of investors of the nation's economy. Multi-media Strategies Electronic and Print Media. Sensitization workshop with stakeholders. Media campaign (locally and internationally - CNN, Aljazeera, CCTV, etc). Publications (pamphlets, bulletins, etc.) Plans sensitization visits to some key nations of the world 2010-2013 - Monitor and partner with the Nigerian media houses to reduce sensationalism and negative reportage about the country. -Place Advertisements in various international media to highlight some of the positive events, and investment potentials of the country. 154#1553. Review and Develop Sector -Specific 4. Investment Policy Collaborate with Policy Stakeholders. - To review the existing policies and develop them for competitiveness -To develop investment friendly policies that are globally competitive and ensure the free flow of FDI into all sectors of the economy - To produce Investment Policy that is predictable, stable, and eliminates distortions often created by grant of discretionary concessions and privileges. - To follow deliberations at the National Assembly so as to influence positive actions on those policies/laws that affect investments in the country -Assessment of existing investment policies - Seek stakeholders inputs (Place advertisement) -Select and commission a consultant -Study trends in competitors' countries - Adopt best international practices -Buying-in of NIPC Management, Stakeholders, & FMC&I -Identify and develop a database of relevant policy stakeholders. - Consolidate linkage by establishing contacts and communication with relevant institutions. -Advert placed & memoranda received -Consultant Selected -Completed analysis and developed draft report -Presented final draft-report to NIPC Management -Presented draft- report to Stakeholders -Presented report to FMC&I -Developed Database of relevant policy stakeholders &MDAS. -Contacts & communication 2010-2013 2010-2013 155#1565. Organize National Conference on Investment (NCI) - To review and assess the extent to which an existing policy has achieved its objectives. -To cooperate with relevant agencies/ institutions' to identify possible sources of resistance within the public service/private sector to implementing investment policies. -To provide a platform to bring together the States, relevant investment development and promotion - Review relevant institutions' statutory responsibilities, vis-a-vis current developments - privatization, globalization, etc. - Develop report on findings and propose policy changes, where necessary. - Regularly report on outcome and status of collaboration with stakeholders. - Follow through activities to a logical end, that is, follow deliberations at the National Assembly. -Attend Sectoral National Council Meetings. -Plan sensitization visit of ES to key States/ Stakeholders -Select Host State established with relevant institutions. -Two (2)Meetings held with Policy Stakeholders - Attend four (4) Sectoral National Council Meetings. -Confirmed Host 2010 - 2013 State -Approved Budget 156#1576. Facilitate and organize In-bound Missions 7. Aftercare Services institutions/, agencies, to mobilize broad- based support for, and provide a road map towards creating an enabling investment environment to attract foreign direct investment (FDI) into Nigeria To create platforms where Foreign Trade and Investment Missions can interface, interact and network with credible Nigerian Entrepreneurs relevant Government Agencies. To build investors confidence in the economy Identify and assist in -Assess levels of compliance of States to 2009 Conference resolutions - Seek sponsorship -Advertise event -Prepares conference materials - Undertake pre- conference visit to host State -Organizes Conference & produce report. Network with Nigerian Missions abroad, Foreign Missions in Nigeria and other potential Investors • Select existing investors for special surveys and troubleshooting visits across sectors and - Secured Sponsorship - Organized Event - Liaise with Nigerian Missions Abroad and the Foreign Missions in Nigeria to arrange for the event -Update the list of Investors in all sectors of the 2010-2013 2010-2013 157#1588 removing bottlenecks faced by investors. • Provide Personalised care to • geographical locations Teams to visit and hold meeting with companies 10 companies to be visited every quarter economy Administration Of Industrial Incentives, i.e. Pioneer Status • resourcefully meet investors' vital needs. To identify impediments faced by investors for the purpose of advocacy. • To facilitate the effective administration of pioneer status incentives on qualified enterprises Sensitize investors on the incentives available • Assist investors on accessing the incentives hassle-free • Verify claims on the investment project for compliance with requirements of value addition Receive and process application from prospective investors 2010-2013 158#1599. Presidential Business Breakfast Meeting with Stakeholders 10 Honourary 11 12 International Investors council (HIIC) Administrative/ Legal Framework Review and Re-print All Publications and Information brochures To provide window of interaction between the President and high profile investors to brainstorm on ways to improve the investment climate To gather into a council Global and prominent Local Players in position to influence investment decisions and play advisory role in matters of Investment Climate To amend the NIPC ACT and provide full legal backing for OSIC To provide up-to-date information on Nigerian Business environment to . Propose and obtain Hon. Minister's approval • Hon. Minister to seek the President's approval • Identify Credible Investors. • Organise Event Organize their meetings in and out of the Country with top government officials • Work on the amendment of NIPC Act to incorporate OSIC operation Collection, analysis and packaging of economic/ sectoral information on the economy Prepare list of high profile Investors from the six geographical zones 2010-2013 Prepare a time- 2010 - 2013 table of their yearly activities - Work with legal 2010-2013 firm/Consultan t. - Follow-up with Attorney- General's Office and National Assembly. Liaise with relevant government and non-government 2010-2013 159#16013. 14 One Stop Investment Centre -Extension of OSIC Services to States - Protocol of Authority and Cooperation (PAC - Expansion of OSIC Agencies - OSIC Incentives - Provision of Business Suite for Investors Upgrade of Internet Network and e- Payment System Inauguration investment public -To provide OSIC services to State - To ■ Digitalization empower OSIC with adequate level of authority - To ensure coverage of all economic sectors by bringing additional regulatory Agencies - To relocate to new building -High speed internet and Intranet access - To ensure transparency and eliminate corruption Development of Lagos Comprehensive 15 Property services to investors within 24hours ■ " Re-negotiate with all the Agencies and reach consensus on level of authority and scope of operations. Identify 25 new agencies and role to join OSIC Allocate office space to Agencies Source for funds through national Budget or PPP Training of Staff, Payment of Internet services Source for funds through national Budget or PPP organisations Put in place electronic networking of OSIC Headquarters with interested States for streamlined operations. - Courtesy visits - Negotiate with Agencies - Sign and adopt - Agreements. Recommend new Agencies to Government -Work with service providers to commence operation - Acquire and install hard and soft ware 2010 2010 Source for funds through national Budget or PPP 2010 -Negotiation to be IT Basic infrastruc ture to be provided by States 160#16116 Opening of 5 Offices Abroad To attract FDI commenced with consultants - Target and attract Non- oil World TNCs -Encourage foreign affiliates of TNCs to expand or diversify to produce export products -Organize Conference of Nigerians in Diaspora Seek approval from Presidency Rent and furnishing of offices, Posting of staff 2010-2013 161#162S/N ACTIVITY 1. Investment Generation STRATEGIES ACTION PLAN 2010 - 2013 - Identify and build database of Nigerian investors to be contacted for the BIFS -Target some countries that have comparative advantages in the priority sectors of the economy - Determine Nigeria's comparative advantages -Assessment of the trend of global FDI in competitors' countries, using the UNCTAD report - Target and attract Non-oil World TNCs -Encourage foreign affiliates of 2010 2011 2012 2013 162#1632. Image Building 3. (Publicity/Enlightenment Campaign) Review and Develop Sector -Specific Investment Policy TNCs to expand or diversify to produce export products -Organize Conference of Nigerians in Diaspora • Multi-media Strategies Electronic and Print Media. Sensitization workshop with stakeholders. Media campaign (locally and internationally - CNN, Aljazeera, CCTV, etc). Publications (pamphlets, bulletins, etc.) Assessment of existing investment policies - Seek stakeholders inputs (Place advertisement) -Select and commission a consultant -Study trends in competitors' countries - Adopt best international practices - Buying-in of NIPC 163#1644 Collaborate with Policy Stakeholders Management, Stakeholders, & FMC&I -Identify and develop a database of relevant policy stakeholders. - Consolidate linkage by establishing contacts and communication with relevant institutions. - Review relevant institutions' statutory responsibilities, vis-a- vis current developments - privatization, globalization, etc. - Develop report on findings and propose policy changes, where necessary. - Regularly report on outcome and status of collaboration with stakeholders. - Follow through activities to a logical end, that is, follow deliberations at the National Assembly. -Attend Sectoral National Council Meetings 164#1655. Organize National Plan sensitization visit of ES to Conference on Investment key States/ (NCI) Stakeholders 6. 7. Facilitate and organize In-bound Missions -Selects Host State -Assesses levels of compliance of States to previous Conference resolutions - Seeks sponsorship -Advertises event -Prepares conference materials - Undertakes pre-conference visit to host State -Organizes Conference & produce report. Network with Nigerian Missions abroad, Foreign Missions in Nigeria and other potential Investors Aftercare Services Select existing investors for special surveys and troubleshooting visits across sectors and geographical locations 165#1668. 9. 10. 11 Administration Of Industrial Incentives, i.e. Pioneer Status Presidential Business Breakfast Meeting with Stakeholders Honourary International Investors council (HIIC) Administrative/ Legal Framework Teams to visit and hold meeting with companies 10 companies to be visited every quarter Sensitize investors on the incentives available Assist investors on accessing the incentives hassle-free Verify claims on the investment project for compliance with requirements of value addition Propose and obtain the President's approval Identify Credible Investors. Organise Event Organize their meetings in and out of the Country with top government officials Work on the amendment of NIPC Act to incorporate OSIC operation 12. Review and Re-print All Publications and Information brochures Collection, analysis and packaging of economic/sectoral information on the economy ☐ 13 One Stop Investment ◉ Digitalization Re-negotiate with all the 166#167Centre -Extension of OSIC Services to States - Protocol of Authority and Cooperation (PAC - Expansion of OSIC Agencies - OSIC Incentives - Provision of Business Suite for Investors Agencies and reach consensus on level of authority and scope of operations. Identify 25 new agencies and role to join OSIC 14 Upgrade of Internet Network and e-Payment System Inauguration 15 Development of Lagos Property Source for funds through national Budget or PPP Training of Staff, Payment of Internet services Source for funds through national Budget or PPP -Proposal would be made to get the blessing of the Presidency -Negotiation to be commenced with consultants 167#16816 Opening of 5 Offices Abroad Source for funds through national Budget or PPP 168