「一帶一路」 - 尼日利亞的投資平台

「一帶一路」 - 尼日利亞的投資平台
“ONE BELT-ONE ROAD”: INVESTMENT PLATFORM IN NIGERIA

The primary vision of the “One Belt-One Road” initiative is to expand investments beyond the traditional markets to new markets. Nigeria, therefore should serve as an investment platform for such critical and noble initiative. Against this backdrop, the Consulate General of Nigeria is writing on the “One Belt-One Road” initiative and the opportunities that exist in the new markets such as Nigeria.

WHY INVEST IN NIGERIA:
1. Nigeria is profitable and viable destination to invest in. Like other acclaimed countries that make up the “Next 11” countries, Nigeria’s attractive demographics, rising and well-educated middle class and increased domestic consumption have positioned it to become a strategic partner and contributor to global growth. Nigeria’s economic outlook is positive, with the largest population on the Aftican continent, with 170 million people, is an investment-friendly destination that has the propensity to accommodate any cross-border economic activities.

2. Economic Outlook: Goldman Sachs selected Nigeria as one of the “Next 11” countries that would provide similar economic impetus as the BRICS would do to global economy. It is estimated that by 2020, Nigeria will have a large, strong, diversified, sustainable and competitive economy that will effectively harness the talents and energies of its people. Beyond the estimations, the economy is projected to grow by 7%-8% in the next few years, barring any economic turmoil.

3. Critical sectors of the economy:
i. Oil and Gas: Currently, Nigeria has proven gas reserve of 188 trillion cubic feet, with potential, estimated to be 600 trillion. The Nigerian Governments had made Oil and Gas sector development a strategic priority. There are also plans to increase domestic and foreign partnership and participation by way of Public-Private Partnership ventures”. Presently, Nigeria is the biggest exporter of crude oil in Africa, with the largest deposit of natural gas reserves in Africa.

ii. Agricultural Sector: Nigeria has a land area of 93.3 million hectares, of which 74 million hectares is arable. However, only half of the land area is practically being utilised. The Government therefore, plans to engage the private sector in agricultural mechanization that will be productivity and employment-driven.

iii. Power and Energy: The Government plans to re-strategize and re-focus the power and energy sector by further engaging the private sector in the on-going Public-Private-Partnership (PPP) initiative. By 2020, it plans to increase power generation by 146%

iv. Solid Minerals: Currently, Nigeria possesses 34 solid minerals and the critical ones include; Coal, Iron Ore, Bitumen Gold, Silver and Zinc. Other are; Lead, Manganese, Granite, Marble, Limestone and Talc. The proven reserves of some of the critical minerals are:

- Coal – 639 million metric tonnes, with inferred reserves of up to 2,75 billion metric tonnes
- Iron Ore- 3 billion
- Bitumen – 27 billion barrels
- Gold – 600,000 ounces

v. Tax Incentives as Motivational Factor: To actuallse project-PPP, the Government had introduced tax incentives as an operational platform to encourage foreign and private partnership in all facets of the economy. Some of the tax incentives include:

- Corporate tax for non-resident companies, in which non-resident companies in Nigeria is charged at 30%, but only charged on Nigeria sourced income.

vi. Telecommunications Sector: Nigeria had one of the most successful growths in the telecommunications industry, leading to the number of mobile subscribers exceeding well over 100 million. The focus had shifted from “Voice” to investment opportunity in “Data”, thus the government seeks to replicate the investment success recorded on the “Voice” to creating a “Digital Economy”. It therefore, thends to increase broadband penetration to 12%, from the current 3% to 6%, as well as increase the number of internet users to over 70 million from the present 33.6 million. It alos plans increase locally assemble computers to over 1 million from the current 50,000.

Remak: Article from Consulate General of Nigeria Hong Kong, SAR