Investor Presentaiton

The Country and its institutions KPMG Business Organisation Labour and Social and Regulation Security Regulations The Nigerian Financial Tax System Services Industry Foreign Exchange Transactions Investment in Nigeria Accounting and Auditing Requirements Importation of Goods Exportation of Goods COVID-19 - Economic and Fiscal Measures 7.6.3 Infrastructure Since independence in 1960, Nigeria's infrastructural facilities have suffered neglect from successive governments. For instance, the rail transport system is outmoded, and the road network is limited and largely decrepit. To reverse the trend, the country needs to modernise its rail system, expand the road networks and rehabilitate existing roads. Flight connections to and within Nigeria by international and domestic airlines are efficient and readily available. There are a few domestic airlines with scheduled flights operating to international standards within the country, in addition to chartered flight operators. The Federal Government commenced electric power sector reform in 2000 resulting in the enactment of the Electric Power Sector Reform Act in 2005 and establishment of the Nigerian Electricity Regulatory Commission as the independent industry regulator. The industry is open to participation by the private sector through investment in the generation and distribution segments of the industry. The defunct monopoly, the National Electric Power Authority (NEPA), was replaced by the Power Holding Company Nigeria Limited (PHCN) as the successor to its assets and liabilities. PHCN was subsequently unbundled into eighteen successor companies (1 transmission company, 6 generation companies and 11 distribution companies) which were later privatised and handed over to their core investors on 1 October 2013. In 2001, the Government awarded licences for the Global System for Mobile Telecommunications (GSM) to three companies. The auction process was widely acclaimed as very transparent and successful. The launching of GSM in the country has significantly improved the country's domestic and international telecommunication services. A second national carrier licence was awarded in 2002, which increased the number of GSM operators to four. Though a fifth operator was licensed in 2007, Nigeria currently has four active GSM operators. Under the current unified licensing regime, which was introduced by the Nigerian Communications Commission in 2006, there is no more segmentation of wireless licences into mobile and fixed service categories. On allocation of a spectrum, all licensees are free to offer voice, data or multimedia services as they deem fit. Subject to any geographical or regional limitation contained in their licences, fixed wireless and mobile operators are now able to operate on a level playing field. This harmonised platform has led to increased competition from all the telecommunication service operators in the country. How we can support you At KPMG, our tax team consists of experienced professionals who provide our clients with value-added tax and regulatory advice. We can support you with the following: . • Regulatory Compliance & Advisory Services Start-up compliance Liaison with regulatory agencies for the obtainment of operating licences, permits and incentives (including pioneer status incentive and registration and licensing of Approved Enterprises in Export Processing Zones and Free Trade Zones) etc. Corporate Secretarial Services Company liquidation and divestitures Deal Advisory Tax Services - - Tax Due Diligence Services Tax Structuring of M & A transactions Corporate Restructuring - entity, capital, balance sheet etc. Fund raise and capital market advisory Private equity/Venture capital advisory services Management Buy-out Liquidation and dissolution of companies Key Contact Ajibola Olomola Partner, Deal Advisory, M&A Tax Services KPMG in Nigeria T: +234 127 18933 E: [email protected] Investment in Nigeria Guide - 8th Edition 72

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