Investor Presentaiton

25,000 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

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