Presentation on theme: "BUSINESS OPPORTUNITY INITIATIVES"— Presentation transcript:
1BUSINESS OPPORTUNITY INITIATIVES WEST AFRICA SUB REGION2010By Michael Abiodun
2COUNTRIES IN THE REGION West Africa Sub-region: Sites:Benin Pendjari (S/F), Park “W” (S)Burkina Faso Ranch de Nazinga (S/F), Park “W” (S)Cote D'Ivoire* Tai (F), Marahoue (S/F), Comoe (S)Ghana* Kakum (F), Mole (S)Guinee Conakry* Ziama (F)Liberia* Sapo (F)Mali Gourma (S)Niger Babah Rafi (S), Park “W” (S)Nigeria Sambissa (S), Yankarri (S)Senegal Niokolo-Koba (S)?Sierra Leone* ?Outamba-Kilimi (?)Togo* Keran (S), Fosse aux Lions (S)
4Current Projects: Overview Many opportunities have been identified and are in progress or pending completion between Michigan-based businesses and various Africa government entities. Two of these current opportunities are presented with detailed overviews. These opportunities can serve as representative examples of the size and scope of current opportunities available for various business sectors. Details of these opportunities are presented:Project 1: Concrete U Block Production System PlantProject 2: Nigeria Biometric Visa Clearance Application
5ISSUES OF CONCERNFor specific matters, investors are strongly advised to obtain further information and take professional advice before making any decisions.Nigeria’s economy has much in common with those of China, Malaysia and India. Free enterprise is the norm, although there are a number of important economic sectors like Telecommunication, Electricity and Water that have been, or continue to be, partially Government owned and controlled. The Government’s policy is to promote the commercialization, restructuring and privatization of certain government owned enterprises.Economic structureNigeria has one of the largest free market economies on the African continent. Most of Nigeria’s economic activity occurs in four main metropolitan areas, namely Lagos, Abuja, Kano and Port Harcourt.The country accounts for the highest production of crude oil in Africa.
6Concrete Block Production System Plant: Plant Schematic Proposed factory to be built in Lekki Free Zone. Materials and technical assistance to be provided by Besser, a U.S based company, headquartered in Alpena, MI.
7Concrete Block Production System Plant: Financial Projections: TransAtlantic Investment & Development Corporation Projected Sales in Units for 1 yearPriceTotalPer unitMonth 1Month 2Month 3Month 4Month 5Month 6Month 7Month 8Month 9Month 10Month 11Month 12year 1Product A in units year 112216,986245,940260,583288,206289,5373,328,008Year 2 at 20% gowth rate.1.20260,383295,128312,700345,847347,444Year 3 at 15% growth rate.1.15299,441339,397359,605397,724399,561Year 4 at 19% growth rate.1.19356,335403,882427,929473,291475,477Year 5 at 22% growth rate.1.22434,728492,736522,074577,416580,082Year 6 at 24% growth rate.1.24539,063610,993647,372715,995719,302Year 7 at 28% growth rate.1.28690,001782,071828,636916,474920,706Year 8 at 32% growth rate.1.32910,8011,032,3341,093,7991,209,7461,215,332Year 9 at 33% growth rate.1.331,211,3651,373,0041,454,7531,608,9621,616,392Year 10 at 34% growth rate.1.341,623,2291,839,8261,949,3692,156,0082,165,965
8PrivatisationThe public sector’s role in Nigeria’s economy has historically been substantial in comparison with the private sector’s. The Federal Government however, is taking steps to commercialize, restructure and increase private sector participation in Government enterprises.Imports, exports and free trade areasMost of Nigeria’s exports to industrialized countries consist of primary and intermediate commodities. A large proportion of exports consist of unprocessed raw materials, with the oil and gas industry contributing the greatest proportion to the country’s total exports. Nigeria is a major exporter of crude oil. The country is also an exporter of Cocoa, Rubber, cashew nut and raw timber.Imports include mainly capital goods, refined petroleum, and intermediate goods.International relations and associationsNigeria has become a significant player on the world’s political stage and plays an important role in international organizations like the World Bank and in international affairs generally.Nigeria is one of the founding members of African Union, successor to the former Organization for African Unity.
10Doing Business in Nigeria | Nigerian and Business Culture A Nigerian Culture OverviewFact Fileo Official name – Federal Republic of Nigeriao Population – 146,255,312o Official Languages – English (official), Hausa,Yoruba, Igbo (Ibo), Fulanio Currency – naira (NGN)o Capital city – Abujao GDP – purchasing power parity $296.1 billion*o GDP Per Capita – purchasing power parity $2,100*
11Working practices in Nigeria • Due to the Nigerians’ more relaxed attitude to time, schedule business meetings well inadvance, preferably a month or two before the intended visit. Confirm the appointmentby calling the day before.• Aim to arrive on time for business meetings. However, this may be difficult due to therather chaotic traffic in major cities of Nigeria. Being punctual is appreciated.• Working hours in Nigeria are Monday to Friday, am to 5pm. In the northern partof Nigeria, Friday is a holiday for the Muslim community.o Structure and hierarchy in Nigerian companies• Senior executives and colleagues expect a degree of respect. Therefore, be prepared forinterruptions by people of a higher rank when in meetings.• In Nigerian business culture, decisions are typically made by the most senior manager.Nevertheless, input from employees is rewarded and encouraged.o Business relationships in Nigeria• Establishing a personal relationship with your Nigerian counterpart is common practicebefore starting to do business. Be prepared to spend the first hour or two of the firstmeeting for that purpose only. Don’t try to avoid this practice, as it might affect yourbusiness.•
12Patience & Political Uncertainty 2. Safety and Security • In the first few business meetings, expect the atmosphere to be rather formal. WhenNigerians’ start to feel comfortable with you as a person and mutual trust has beenestablished, they will become less formal. Then follow suit..o Business practices in Nigeria• Nigerians like to be addressed by Mr/ Mrs/ Ms and their last name. Titles are oftenused, as the person having a title sees this as a privilege.• Shaking hands is the common greeting procedure. Women normally don’t shakehands. Due to the various cultures and languages prevalent in Nigeria, greeting oneanother in English is the most common practice.• Business dress in Nigeria is smart. Outer appearance is very important, because it’san indicator for status. Some Nigerians tend to wear traditional “native dresses”(colourfully printed long gowns).Patience & Political Uncertainty2. Safety and Security3. Uninterrupted Power SupplyPatienceSafety and SecurityUninterrupted Power Supply
13Nigerian Business Etiquette (Do’s and Don’ts) DO keep in mind, that even though officially illegal, favouritism and nepotism is still a common practice in Nigeria.DO remember, that Nigeria has a long history of colonial and military suppression. This effects on Nigerian business culture and makes it conservative. Be formal, punctual and dress smartly.DO keep in mind, that Nigeria is a multi-religious and multi cultural country. Alwaysfind out which religion or culture the people you are working with belong to.DON’T hold eye-contact while talking to somebody for too long as this might bemisinterpreted as a threat. Instead try to keep your eyes at forehead or shoulder level.DON’T confront your Nigerian co-workers in public when you have an issue with them.Do so directly and openly, but in a private setting so as to not undermine theircredibility.DON’T be irritated when Nigerians insist on being addressed with all their titles. People are quite class conscious which relates back to the history of suppression during slavery and colonialism.
16The West African challenge for water, sanitation and hygiene (WASH) Four out of five sick people in West Africa suffer from diseases caused by dirty water and/or unhygienic practices. Inadequate water and sanitation claim lives, usually in the poorest communities, and especially the lives of women and children.Water is widely available in West Africa but is it safe?Will it be enough for the 400 million people expected to live in the region by 2025?Will it be enough for livelihoods as well as for health and hygiene – water for drinking, keeping clean, growing food, keeping livestock and other productive work?Will it be of good enough quality?How can the region address its huge sanitation challenge? Will there be the financial resources to do this in a coherent way?These questions suggest that being in charge of water, sanitation and hygiene (WASH) services requires the skills of a fortune teller… or good governance.Map of water and sanitation coverage in the world. Countries in dark blue are at extreme risk, with WASH coverage under 50% [Source: Maplecroft Maps, January 2010]
17Good local governance needed to meet Millennium Development GoalsGood local governance is essential to reach the Millennium Development Goals (MDGs) and to guarantee sustainable WASH services beyond 2015.In recent decades, the mandate for delivering improved water and sanitation facilities has been decentralised to districts and municipalities. But human resources at this “intermediate level” are lagging behind the size of the task. Capacities for planning, setting tariffs, and supporting and empowering communities to manage their water and sanitation facilities are not up to the challenge.Population (in millions) served and unserved with improved sanitation [total access] in West Africa. [Source: Joint Monitoring Programme
18• 100% foreign ownership • 100% income and corporate tax exemption • 100% Capital & Profit repatriation • Long term renewable lease • Strategic location with access to over 1.2 billion consumers • Transparent laws and regulations • Promotion centers in Dubai and Abu Dhabi • Simple and fast application procedures • State of the art communication facilities • Excellent Sea port and International Air port facilities • Easy international Access • Abundant energy supply • Marketing support services • Prohibition of strikes' and lock outs • One stop for all permits and the business licenses
23Lekki Free Trade Zone is a major project conceptualized, licensed and coordinated by the Lagos State Government and anchored on a private capital investment strategy. The history of Free Trade Zones in Nigeria dates back to 1982 when the Federal Government set up a committee to look into alternative sources of foreign earnings as against the dependence on oil exports which resulted in the establishment of the Export Processing Zone Act 63 of 1992 and the establishment of the Calabar Export Processing Zone, fully government sponsored, in Lekki Free Trade Zone was initiated by the Government of Asiwaju Ahmed Bola Tinubu in 2003 with a land area of 1000hectares allocated for the project which was later increased to 3000 hectares on registration with the Nigerian Export Processing Zone Authority (NEPZA). However, realizing the relative advantage of a Free Zone in Lagos above other parts of the nation, the vision was expanded to building a model city devoid of stress and accompanying social vices and the land area was increased to 16,500hectares.
24SUMMARY OF LEKKI FREE ZONE PROJECT A SUMMARY OF LEKKI FREE ZONE PROJECT A. A preferential policy hi-tech industrial sector, targeted to create a minimum of 2 million jobs and high efficiency services in: 1. Oil and Gas 2. Petrochemicals 3. Electronics 4. Mechanical - Light and Heavy equipment, machinery and automobiles 5. Pharmaceuticals 6. Textiles 7. Shopping, Warehousing and Transportation 8. Banking and Financial Centre including Insurance services B. A high-grade residential Zone with first class environment due to the envisioned economic strength of the Lecky Free Zone, comprising of: 1. High Class residential apartment and villas for investors and employees 2. Shopping Malls & Plazas 3. Specialist Hospitals and Clinics 4. Schools and Research & Development Centers 5. Hotel, Tour & Recreational Centers including Sandy Beach Gardens and bathing, Golf Course, Gyms and Water Sports sector, all in harmony with environment and nature's green
25COMPETITIVE ADVANTAGES OF LFTZ 1 COMPETITIVE ADVANTAGES OF LFTZ 1. LFTZ is located on the southern coast of Nigeria and connected to the major international waterways via the Atlantic Ocean and the Gulf of Guinea. 2. LFTZ is located on the southern coast of Nigeria and connected to the major international waterways via the Atlantic Ocean and the Gulf of Guinea. 3. Access to the largest consumer market in Africa, with over 500 million potential customers. 4. Access to abundant natural resources such as Oil, Natural gas, Timber, Rubber, Cocoa, Arabic gum and Sesame seed to name but a few. 5. Favorable geographical location and ascendant location to other parts of Africa, Europe, Middle East and the Americas. 6. It has availability of skilled and semi-skilled man power. 7. The social situation of LFTZ with its natural ecosystem, unpolluted green lands and ecological lakes and lagoon which together make it ideal for a modern, yet serene city.
28ABOUT LEKKI FREE TRADE ZONE BUSINESS OPPORTUNITIES: Lekki Free Trade Area compilation of the major incentives1, the company set up areas: 1, the park to encourage foreign-owned or joint ventures. 2, foreign investment can be withdrawn at any time. 3, foreign investment profits and dividends can be freely exported. 4, Park Nigerian business enterprises enjoy equal national treatment. Second, preferential tax policies: 1, the current Nigerian tax, customs duties and foreign exchange control laws and regulations do not apply to Lekki Free Trade Zone; all federal, state and local taxes on the free trade zone should be exempt. 2, since the free trade zone companies and investors for the production of raw materials, manufactured goods, machinery and equipment, consumer goods and other items related to investment projects, are exempt from federal, state and local governments in Lagos called for import tariffs, and not subject to quota restrictions. 3, all the free trade zone manufacturing or processing of finished products to the domestic market in Nigeria. And in this case, the officers used only for manufactured goods or raw materials and spare parts tariffs. 4, Nigeria is "Lomé Agreement," a member of Lekki Free Trade Zone products exported to EU countries and the United States to enjoy preferential tariffs and special preferential rates.
29Third, business and trade areas: 1, Park products can be sold to the Nigerian domestic market, Customs only on production of raw materials used in manufactured goods and parts tariffs. 2, no need to apply for import and export goods, import and export licenses. As the "African Growth and Opportunity Act," local businesses from the EU and the U.S. export quota. 3, the area to prohibit strikes and lockouts. 4 Land areas: 1, according to related laws has leased to the admission enterprises and factories. 2, land-use life span of 99 years. 3, free of land rent during the plant construction. 5 Other services: 1, the park set up a "one-stop" service center. 2, Agent enterprises can handle all the procedures for admission. 3, Policy Q & A and investment consulting. 4, for admission enterprises to provide security, property management services. 5, the introduction of law firms, accounting firms handle business for the admission of legal and financial advisory and agency services. 6, the introduction of logistics, trading companies for admission enterprises to provide logistics and trading agency services.
30Related Investment Opportunities: - Fish farming opportunities lure investors - Unique marine environment perfect location for aquarium - Particle board manufacturing: A viable business proposition - Lights, camera, action: Invest in the Lagos Film City - Invest in Lagos State's healthcare infrastructure
31Investment Opportunities Join other multinationals in rice productionPosted on: 21-DEC-09Local suppliers cannot meet Nigeria's large demand for rice, creating viable opportunities for investment. >> Read moreInvestors invited to process cassava into glucose syrupPosted on: 10-DEC-09Investors have the opportunity to invest in the processing of cassava into glucose syrup in Kwara State, situated in central Nigeria. >> Read moMotel development holds exciting potentialLocal and foreign investors have the opportunity to invest in the upgrading of the Patigi Motel, situated in central Nigeria. >> Read moreFruit juice factory to do well in Kwara StateThe Kwara State Government is calling on interested parties to come forward and invest in the production of fruit juice. >> Read moreTricks of the trade – invest in skills trainingThe Kwara State Government is looking for investors to invest in the state's education sector by establishing skills training facilities. >> ReadCapitalise on significant demand for ethanolForeign and local investors have the opportunity to invest in the production of ethanol in Kwara State, situated in central Nigeria. >> Read moInvest in the cultivation and processing of maizeInvestors have the opportunity to capitalise on the current high demand for staple foods by investing in the cultivation and processing of maize in Kwara State, situated in central Nigeria. >> Read moreTraditional and renewable power companies invited to investInvestors with strong credentials in the energy sector have the opportunity to invest in power generation and distribution in central Nigeria. >>Mixed-use development open for investmentIn a bid to further develop Kwara State's tourism industry, the state government is inviting local and foreign investors to invest in a mixed-use development at Asa Dam. >> Read moreSecond commercial agriculture project to take-off soonFollowing the success of the Shonga commercial agriculture project, the Kwara State Government is now looking at attracting a new group of farmers and investors to the Commercial Farming II project. >> Read more
32Investment Opportunities Cassava processing holds promising potentialPosted on: 19-NOV-09The industrial processing of cassava in Nigeria holds much potential for successful investment. The crop is increasingly attracting attention and processing businesses are slowly starting to spring-up all over the country. >> Read moreCapitalise on agrarian revolution by investing in fertiliserInvestors looking to capitalise on Nigeria's growing agriculture sector have the opportunity to invest in fertiliser manufacturing in Kwara State. >> Read moreLocal production of refined sugar doesn't meet demandNigeria's local sugar suppliers cannot meet the country's demand for the commodity and investors now have the opportunity to invest in a sugar refining facility in Kwara State, situated in central Nigeria. >> Read moreFish farming opportunities lure investorsInvestors have the opportunity to establish a fish farming business in Kwara State. Nigerians are large consumers of fish and it remains one of the main products consumed in terms of animal protein. >> Read moreOpportunity to develop an inland beach resortAn opportunity has opened-up to develop an inland beach resort in Kwara State, situated in central Nigeria. >> Read more
33Good incentives for mining and processing of kaolin Posted on: 19-NOV-09Kwara State, situated in central Nigeria, has proven deposits of kaolin and interested investors are invited to consider the potential for the mining and processing of the mineral. >> Read moreProduce cut flowers for European marketPosted on: 27-OCT-09The Kwara State Government is inviting local and foreign investors to consider the potential the state has in cut flower production. >> Read moreCement production: Feasibility study shows good potentialPosted on: 23-OCT-09Investors have the opportunity to invest in cement production in Kwara State, situated in central Nigeria. >> Read moreCultivate and process soya beans in central NigeriaPosted on: 22-OCT-09Investors with a proven capacity in agriculture and agri-processing have the opportunity to participate in the cultivation and processing of soya beans in Nigeria. >> Read morePartner with local operators in gold miningMining companies are invited to consider the potential for gold mining in Kwara State, situated in central Nigeria. >>
34investment opportunities Investors invited to process cassava into glucose syrup Investors have the opportunity to invest in the processing of cassava into ...Waste management offers promising business opportunities Lagos State governor, Babatunde Fashola on Tuesday said that there are significant opportunities in the waste management chain such as recycling and power generation.Join other multinationals in rice production Local suppliers cannot meet Nigeria's large demand for rice, creating viable opportunities for investment
35Hidden Treasures: Untapped mining opportunities in central Nigeria A host of opportunities exist in the mining and processing of solid minerals in Kwara State, situated in central Nigeria.Investment OpportunitiesNigeria's preoccupation with its oil industry has resulted in a grossly underdeveloped solid minerals industry. The present administration of Kwara State is actively promoting investment in the sector and is committed to create a favourable environment for investors.Currently there are few significant mining activities in the state and most miners only operate on a small scale. The Kwara State Government is advising prospective investors to partner with local miners already in possession of mining licenses.Minerals found in the state include:GoldLimestoneTantaliteColumbiteCassiteriteSilica sandTalcTourmalineMicaGarnetIncentivesThe Kwara State Government is committed to create an enabling environment for investors.Investors will be assisted in the following areas:Acquisition of landFinancingAdequate security at the facility Electricity supplyInfrastructureContact Details Investors interested in this opportunity should contact Segun Olanipekun, Special Assistant to the Executive Governor, Kwara State (Investments) at
36Related Investment Opportunities: - Agriculture project: Follow in the footsteps of Zim farmers - Produce cut flowers for European market - Cement production: Feasibility study shows good potential - Mixed-use development open for investment - High Food Prices: Cash in by investing in maize production- $400 million poultry farm starting operations at end of year- Nigerian cement industry set for period of major growth - Zim farmers making progress in Nigeria
37Develop and operate an oil palm processing facility Rich deposits of phosphate rock found in northern NigeriaCapitalise on agrarian revolution by investing in fertiliserLight your Fire: Opportunity to resucitate match manufacturing companyMining opportunity: High demand for gypsum in NigeriaLekki Free Trade Zone offers opportunities in a range of sectorsSokoto State encouraging investment in agri-processingInvest in the processing of manureGood market potential for leather productsRice processing opportunities in Sokoto StateInvestors sought to invest in the world's 'wonder tree'Sokoto State well-suited for clay-based industriesLekki FTZ offers excellent incentives for manufacturersAttractive incentives available for glass productionLocal production of refined sugar doesn't meet demandMotor vehicle assembly plant needed in KwaraInject new life into dormant textile factoryHigh demand for motorcycles offers business opportunitiesJatropha business has potential to thrive in northern NigeriaCement production: Feasibility study shows good potentialPaint manufacturing industry: Good incentives availableMineral Wealth: Opportunity to run a marble processing factorySolid future for cement producers in NigeriaInvestors needed for kerosene and gas stove manufacturingConstruction materials industry planned for Kwara StateKwara borehole and drilling industry needs investment
38Manufacturer of welding electrode manufacturing plants seeks buyers in Nigeria Company looking to export plate glass sheets to NigeriaManufacturer of wire nails making machinery is looking for buyers in NigeriaNigerian agents wanted for waste compaction equipmentFor sale: Textile machineryProvider of CNC machine tools seeks agent in NigeriaManufacturer of freezing equipment seeks buyers/distributorsSolar panel manufacturer seeks energy JV partnerBearing manufacturer looking to export to NigeriaIrrigation products and services offeredManufacturer of safety equipment seeks Nigerian clientsCompany looking to import canola, corn and soybean oilPlastics manufacturer seeks Nigerian buyersOptical goods manufacturer looking for partnerManufacturer of bedding looking for buyersBall bearing trader looking for buyersIndian producer of heavy industrial gears proposes exportsManufacturer and exporter in India looking for a business partner
39Sino-Nepalese trade and economic cooperation zones in one-stop service: Sino-Nepalese trade and economic cooperation zone enterprises entering the zone will be "one-stop" services, from registration to the enterprise to solve a series of demands assigned to the park. Include: - Park policy advice; - Industrial and commercial registration, registration services; - China Visa Service staff; - Local staff recruitment, hiring and training services; - Nigerian law, accounting, investment consulting and investment agency and other intermediary services; - Customs clearance, warehousing, logistics and transportation services; - Standard factory leasing services; - Admission corporate facilities design, construction services; - Submitted to the Government on behalf of the applicant company to apply for and receive from the relevant governmental agency to issue operating licenses and approval documents; - On behalf of the Nigerian government right from the cooperation of the exported products according to the provisions of FOB FOB charge service fees; - With the Nigerian Government departments and agencies, coordination of services; - Other business services they need.
40ORIENTED INDUSTRIES:Domestic and overseas businessmen and women are encouraged and welcome to LFTZ to invest solely or jointly in the projects as follows:Manufacturing of home appliances and electronics, textiles and garments, light industry, building materials, agricultural products processing, machinery manufacturing, motor vehicles and parts manufacturing, etc.Oil, natural gas and chemical industry, transport and logistics, R&D of science and technology, etc.Commercial, real estate, tourism and leisure industries, supermarkets, shopping malls, hotels, schools, hospitals, tourist resorts, and golf courses.Infrastructure: ports, power plants, water plants, sewage treatment plants, liquefied petroleum gas pipeline project, and transportation construction projects.The invested projects in the zone must be in compliance with Nigeria's industrial policy, in line with the overall planning of LFTZ, and meet the requirements of environmental protection
41SOLID MINERALS AND LOCAL SOURCING OF RAW MATERIALS Nigeria is richly endowed with a variety of solid minerals ranging from precious metals various stones to industrial minerals such as barites, gypsum, kaolin and marble. Most of these are yet to be exploited. Statistically, the level of exploitation of these minerals is very low in relation to the extent of deposits found in the country. One of the objectives of the new National Policy on Solid Minerals is to ensure the orderly development of the mineral resources of the country. There are tremendous opportunities for investments in the solid mineral sector of the Nigerian economy. Prospecting licenses for investors (both local and foreign) to participate in the exploitation of the vast mineral resources in Nigeria is granted by the Federal Ministry of Solid Minerals Development.1.1. PROCEDURE FOR OBTAINING A MINING LICENCEA grant of a Mining License to a prospective company is subject to proof of economic reserve of the mineral commodity for which a concession is sought. The process involves the company first applying to the Honorable Minister for Certificate of Entry into Mining Industry. The requirements for this include submission of the company's Certificate of Registration from CAC, evidence of technical competence and of financial capability. The next step is for the company to apply and obtain a prospecting right (PR) to enable it carry out general and scientific prospecting for the categories of minerals within the prospecting right. If properly conducted, work on this right will guide the company towards zeroing in on a particular mineral within a specific land area.
42The company will then put up application for an exclusive prospecting license (EPL) in the State Mines Office where the mineral is located. This is an exploration license for the particular mineral(s) over a particular land area, which, by law, should not exceed 22 square kilometers. Once granted, the area is held exclusively to the company, which will now confidently invest in mineral exploration work on the area without hindrance. This license is renewable every one or two years depending on the nature of the terrain. It is only after the company has satisfied itself of the availability of the mineral in commercial quantity on the EPL that will apply for grant of a Mining License over the whole or part of the area covered by the EPL.In the course of all these processes, the law insists that the company employs the services of a “technically competent person” in carrying out the prospecting under the PR, the exploration within the EPL and finally the extraction of the mineral within the mining license area. This is necessary and to the advantage of the mining company if it is to reduce investment risks and reaps the maximum benefit from the investment.2. PROFILE OF SOLID MINERAL DEPOSITS IN NIGERIA TalcOver 40 million tonnes deposits of talc have been identified in Niger , Osun, Kogi, Ogun and Kaduna states. The Raw Materials Research and Development Council (RMRDC)'s 3,000 tonnes per annum catalytic Talc plant in Niger state is the only talc plant in the country. The talc industry represents one of the most versatile sectors of the industrial minerals of the world. The exploitation of the vast deposits would therefore satisfy local demand and that for export.
43GypsumGypsum is an important input for the production of cement. It is also used for the production of Plaster of Paris (POP) and classroom chalks. A strategy for large-scale mining of gypsum is urgently required to sustain the existing plants and meet the future expansion. Currently, cement production is put at 8 million tons per annum while the national requirement is 9.6 million tones. About one billion tons of gypsum deposits are spread over many states in Nigeria .Iron OreThere are over 3 billion metric tons of iron ore in deposits found in Kogi, Enugu and Niger States as well as the Federal Capital Territory . Iron Ore is being mined at Itakpe in Kogi State and is already being beneficiated, up to 67 per cent of iron. The Aladja and Ajaokuta Steel complexes are ready for consumer of billets and other iron products for down-stream industries. Lead/ZincAn estimated 10 million tons of lead/zinc veins are spread over eight states of Nigeria. Proven reserves in three prospects in the east-central area are 5 million tons. Joint venture partners are encouraged to develop and exploit the various lead/zinc deposits all over the country.Bentonite and BaryteThese are the main constituents of the mud used in the drilling of all types of oil wells. The Nigerian baryte has specific gravity of about 4.3. Over 7.5 million tons of baryte have been identified in Taraba and Bauchi States . Large bentonite reserves of 700 million tons are available in many states of the federation ready for massive development and exploitation.
44GoldThere are proven reserves of both alluvial and primary gold in the schist belt of Nigeria located in the south-western part of the country. The deposits are mainly alluvial and are currently being exploited on a small scale. Private investors are invited to stake concessions on these primary deposits. BitumenThe occurrence of bitumen deposits in Nigeria is indicated at about 42 billion tons; almost twice the amount of existing reserves of crude petroleum. Analytical results suggest that this potential resource can be used directly as an asphalt binder. Most bitumen used for road construction in Nigeria is currently imported. CoalNigerian coal is one of the most bituminous in the world owing to its low sulphur and ash content and therefore the most environment-friendly. There are nearly 3 billion tons of indicated reserves in 17 identified coal fields and over 600 million tons of proven reserves. Rock SaltThe national annual demand for table salt, caustic soda, chlorine, sodium bicarbonate, sodium hydrochloric acid and hydrogen peroxide exceeds one million tons. A colossal amount of money is expended annually to import these chemicals by chemical and processing companies including tanneries and those in food and beverages, paper and pulp, bottling and oil sector. There are salt springs at Awe ( Plateau State ), Abakaliki and Uburu ( Ebonyi State ), while rock salt is available in Benue State . A total reserve of 1.5 million tons has been indicated, and further investigations are now being carried out by Government.
45GemstonesGemstones mining has boomed in various parts of Plateau, Kaduna and Bauchi states for years. Some of these gemstones include sapphire, ruby, aquamarine, emerald, tourmaline, topaz, garnet, amethyst; zircon, and flourspar which are among the world's best. Good prospects exist in this area for viable investments. KaolinAn estimated reserve of 3 billion tons of good kaolinitic clay has been identified in many localities in Nigeria . 3. ENCOURAGING PRIVATE SECTOR PARTICIPATIONThe mining industry is basically a private sector affair all over the world. The duty of government is customarily to provide the enabling environment, make and enforce regulatory laws and collect royalties and fees from operators. The Nigerian government appreciates this fact and is doing everything possible to build and sustain a private sector-led mining industry. 4. INCENTIVESThe Federal Ministry of Solid Minerals Development has worked out a package of attractive incentives for potential investors in the solid minerals sector. These include: (i) Up to 5 years tax holiday;(ii) deferred royalty payments depending on the magnitude of the investment and the strategic nature of the project;(iii) possible capitalization of expenditure on exploration and surveys;(iv) extension of infrastructure such as roads and electricity to mining sites; and(v) provision of 100% foreign ownership of mining companies or concerns.
465. ENVIRONMENT, HEALTH AND SAFETY Issues connected with environment, health and safety form an integral part of development policy and even more so in the area of solid minerals . development. It follows, therefore, that the environmental impact, health and safety measures need to be incorporated from the beginning in any mineral development project. The Federal Ministry of Solid Minerals Development and the Federal Ministry of Environment ensure strict enforcement of environmental protection, health and safety regulations in the mining industry for protection and restoration after any mining activity. 6. AGENCY FOR LOCAL SOURCING OF RAW MATERIALSThe raw material potentials of Nigeria are enormous. These potentials have been documented by the Raw Materials Research and Development Council (RMRDC) which was established in 1987 and given the mandate to ensure increased utilisation of local resources for industrial development and output. To date, the Council has carried out detailed surveys of the nation's resources, which have been documented in over 30 different publications. The Council has also been actively encouraging the efforts of private and corporate entrepreneurs in developing these resources. Examples of the Council's involvement are found in the establishment of pilot projects in five centres in the country. These are: (i) Talc Project in Niger State.(ii) Pharmaceutical Grade Kaolin in Katsina State .(iii) Cocoa Processing in Ondo State.(iv) Phosphate Beneficiation Plant in Sokoto State.(v) Soda Ash Plant from Trona in Maiduguri, Borno State.
477. SUPPORT ROLE OF THE RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL (RMRDC) 7.1. Joint Venture Scheme:The Council, through its Joint Venture Scheme, supports individuals or groups of investors (local/ foreign) with necessary data on specific projects and offers technical advice, assists with preparation of feasibility studies, and advises on sourcing of machinery and finance. The Council may also take up equity in the projects under specified terms and conditions.7.2. Information on Raw MaterialsRMRDC has developed a computerized information system known as the Raw Material Information System (RMIS). Through databases in the system, vital information on raw materials development and utilization can be generated. The United Nations Development Programme (UNDP) supports the RMIS project. 7.3. Boosting of Farm OutputsIn recognition of the need to boost the supply of agricultural produce and meet the requirements of industries, the Council embarked on the following programmes: (i) Seed MultiplicationAgricultural research institutions were commissioned to develop high-yielding varieties of some crops, which are known to perform satisfactorily in the different ecological zones in the country. The seeds
48and seedlings so developed were distributed to farmers in the relevant zones. The result has been a significant increase in the overall farm output of crops such as cassava, soya beans and ginger.(ii) Development of Agro-MineralsSome of the mineral deposits in the country could be used as sources of fertilizer by farmers. Laboratory and green house studies indicate the suitability of the rock phosphate in Sokoto State as fertilizer by direct application into acid soils. Other tests also confirm good outputs in rain forest zones. 7.4. National Risk FundRMRDC initiated the formation of a venture capital company known as the National Risk Fund. Other sponsors of the company include banking institutions and manufacturing companies. The Fund offers financial support to projects, especially those of pioneer status, which will utilize local raw materials for the production of marketable goo
49FACTS ABOUT TIDC & WIDC (NIGERIA) LTD.: Transatlantic Investment & Development Corp., TIDC, is a Michigan, US based Corporation, a parent company to WORLDWIDE INVESTMENT & DEVELOPMENT COMPANY (NIGERIA) LTD., WIDC, with office in Lekki, Nigeria, led by a team of industry professionals with proven leadership experience in manufacturing, construction, finance, business acquisition and other relevant industrial projects including land acquisition..Transatlantic Investment & Development Corp. Dba TIDC has sought land acquisition and investment for the establishment of an Architectural U Block Concrete Production System Plant and two other projects. In brief, the funding required will provide the following:_ Completion of purchase of 4 or more hectares of land in Nigeria to the tune of US$2.0 Million_ Site and land development and procurement_ Equipment purchase and plant constructions_ Preparation of marketing and sales campaigns and materialsTIDC is prepared to offer common (voting) shares, in return for in investment, a seat on the board and also a position on the staff, and is considering other forms of financing, from equipment leasing to institutional financing of hard assets and land.Based on the unique value and wide applications for TIDC’s projections IN Manufacturing & Construction Engineering Management, TIDC team is confident it will be self-sustaining by the end of the first year primarily due to eight months of pre-sales positioning and gaining market support through a network of top land developers and strategic partnerships. The plant is expected to be at full capacity in year 2 and offer a 3-year return on investment (ROI) based on pro forma financial and will employ up to 5,000 hourly and salary employees.TIDC believes that the Concrete Block Production System represent a paradigm shift in the precast construction industry and will set new standards for quality, speed, sustainability and affordability through a wide variety of residential, commercial and industrial applications.TIDC is currently working with BESSER COMPANY, an architectural building blocks manufacturer located in Alpena, Michigan US to build this project in Nigeria.
50Addressing housing deficiencies resulting from socioeconomic living conditions in low income families with affordable and durable housing plan; producing innovative lightweight fiber – reinforced concrete panels for use in residential and non-residential construction. A new form of concrete that is lighter and stronger than traditional concrete and can be cost-effectively used for a variety of residential and commercial buildings. First priority is to provide durable, affordable housing for the disadvantaged of the world. This is the foundation for the belief that a safe and secure home is key to a healthy family environment. Indeed, safely “putting babies in homes is essential to the development of future generations.The program was originally formed to meet the need for affordable housing in around the globe. Poverty, natural disasters, population growth, changing demographics, and the challenge to responsibly manage our resources have created a need to produce high quality housing at an affordable cost.Increase the versatility of design options and improve production techniques while maintaining concrete’s astounding strength and durability.
51As a lightweight fiber reinforced concrete composite, architectural blocks and precast slab or concrete also known as HOLLOW CLAY-POT provide many benefits to people in both developing countries and in mature, developed nations. Ease of construction, flexibility of design, ability to adapt to building codes globally, environmental sensitivities, and safety from fire, wind, mould, mildew and termites makes U Block an ideal building material for the new millennium.BUSINESS OBJECTIVES:1. The objects for which the TIDC & WIDC are established are:-The basic purpose for which the Companies are formed is to engage in all aspect of legal business activities within the scope for which corporations may be formed under the Business Corporation Act of The Federal Republic of Nigeria and The United States of America.The Companies are organized and established to procure business operations worldwide in manufacturing, investment opportunities, venture capital deals, financing broad range of industrial, commercial and technological ventures and projects not limited to engineering endeavors but high tech inter-communication, engineering, technological entrepreneurship, constructions, architectural blocks with concrete masonry, masonry floor system, seismic construction, landscaping, acquisitions and land development deals.
52b) To carry on business as manufacturers, assemble of all types of Vehicles Vessels, craft and other carriage conveniences and to undertake and execute any agency or commission and to carry on business as agents, factors, brokers for manufacturers, merchants, buyers, tradesmen or otherwise as shippers, carriers, forwarding agents, clearing agents, warehousemen, contractors, job stock buyers and dealer and merchants generally.c) To carry on business as general traders or merchants, importers, exporters, buyers and sellers of and dealers in merchandise of all description and articles or goods, and to engage in the importation and distribution of general goods especially automobile equipments and spare parts.d) To carry on business as assemblers, manufacturers, suppliers, importers, exporter distributors, buyers and sellers, of and agents for the sale and purchase of all kinds of and types of computers part and accessories, whether or not regarded as hardware or software including keyboard units, touch-touch phones, cards as readers, paper tape units, flip-flopped, magnetic disk units, cores, floppy disks, central units, flip-flopped, analogue-to-digital converters, oscilloscope, wires, automatic typewriters line printers, key punch machines, audio device, and visual display units.
53e).To carry on the business as Agents, and Distributors for the manufacturers, dealers and other principals (local or foreign) and to carry on any other business which can conveniently be carried out in this connection.f).To borrow or raise money in such manner as the company shall think fit, and in particular by the issue of debentures or debenture stock (perpetual or otherwise) and to secure the repayment of any money borrowed, raised or owing by mortgage charge or lieu upon the whole or any part of the company's property or assets (whether present or further) including its uncalled capital, and also by similar mortgage, charge lieu to secure and guarantee the performance by the company of any obligations or liability it may undertake.g). To do all such other things as may be considered to be incidental orconductive to the attainment of the above objects or any of them.2. The companies are Private Companies.3. The Liability of the members is limited by Shares4. The Share Capital of the company is N20,000,000:00k divided into 20,000,000 Ordinary Shares of N1:00 each.
54CORPORATE VISION AND MISSION: TIDC & WIDC will partner with manufacturing experts and create leadership in the area of 'Responsible, Sustainable, Competitive Enterprise and Service', by developing a presence for innovative, leading-edge business creativity and initiatives and construction technology and pioneering the marketplace to gain widespread acceptable for Nigeria made goods and services.TIDC/WIDC will supply high-quality, sustainable, affordable and responsible manufacturing solutions for residential and non-residential applications.Customer Service Vision:To provide superior customer value through parts, technical service, training, warehouses and documentation for all TIDC/WIDC product lines in the world.Management Team:TIDC has established experienced and dedicated Management Team moving forward with this venture. The company is sourcing out positions of management and operations as financial arrangements are being secured. With strategic partners who are actively building in the Nigeria marketplace, to site and project development experts, to consultants with major experience in the product manufacturing industry, to financial and corporate structuring professionals, to personnel with manufacturing and operational expertise, TIDC will be assembling a strong management team and board of directors.
55THE BUSINESS FACE: MICHAEL O. ABIODUN: As TIDC initializes business and operations, Michael will be a key liaison for marketing and business development as the plant is established. He will serve as President & CEO for the company. He will serve on the board and continue to bring new innovations to the company through his industry connections and working with provincial partners and construction companies.Michael Abiodun is a Dean’s list graduate from the University of Detroit with Bachelor of Science Degrees in Chem. Engineering and minor in Chemistry. He received his M.Sc. in Aeronautic Engineering from Embry Riddle Aeronautical University, Daytona Beach, FL. He has over 27 years experience in Automotive related positions and quality assurance including supplier base management, marketing and promoting products internationally and nationally. Michael has vast experience in Automotive Paint design and development having developed 3800 automotive colors and 8500 color formulations.Michael brings extensive business development, training and marketing experience to the management team. In his past experience, Michael held a key role in a start-up International Import and Export Company taking sales from zero to $3 million in procurement in as little as 4 years, through extensive media, radio, tv and newspaper marketing programs and a 6 person sales team..His experience also encompasses international marketing and consulting since 1984, Michael was part and chair of the Ford Motor Company launch team that built the new US$400 million Dearborn Truck Plant Paint Facility in 2001.His experience through personal business ventures and being involved with and around automotive business for the last 27 years makes him the right person to head these mega projects.Michael is certified in both Green Belt and Black Belt Six Sigma.
56Nigerian Culture Quiz - True or False 1. If you hear a hissing or kissing sound made by someone on the streets, you caninterpret this as an offense.2. It is considered impolite to receive something with the left hand.3. Nigerians are very title conscious and the most sought-after title is doctor.4. English is the common language used in business.5. Nigerians like to schedule early breakfast business meetings.Answers1. False. This is purely a frequently used beckoning call.2. True. Always use the right hand or both to accept something that is handed over to vou.3. False. The most sought-after title is chief.4. True. Nevertheless avoid using slang or idioms.5. False. In Nigeria, business always starts after breakfast.
58Project 2: Nigeria Biometric Visa Clearance Application Overview: Involves the development of a biometric application which increases the accuracy and efficiency of providing clearances for visa requests with the West African country of Nigeria.Background: Having established itself within the Southeast Michigan area, IC Data Communications, through a joint partnership with Tranzonix and Onyx Group, LLC, has expanded its current operations to include the West African region, with an established subsidiary – IC Data Solutions, a limited liability corporation to be headquartered in Nigeria.This new partnership will be focused on: developing, implementing, and the monitoring of a Biometric Criminal Tracking Database intended to accurately track criminals, suspects, and other travelers during the mandatory clearance process of all visa requests.The application requires that prospective visa candidates provide fingerprints and a photo, which then scans the current criminal database to ensure that there are no criminal records. If there are no criminal records found, a visa is issued for travel.Currently, the % of individual’s seeking such visas for travel exceeds an estimated 8,400 requests daily.The cost of obtaining visa clearances are $50 USD and such clearances must be obtained prior to the issuance of any travel visas.Overall, efficiency and accountability are two major areas that are adversely affected by the current process that is in place.
59Project 2: Nigeria Biometric Visa Clearance Application Current Visa Clearance Background:The current process requires that clearance document reviews are conducted manually using hardcopy records.This involves reviewing numerous files to determine whether the individual requesting clearance has committed any crimes, is the suspect of any current crimes, or has any other restrictions regarding traveling outside of the country.There is no centralized database currently in place, to store this information so that searches could be done faster and more efficiently.This results in longer wait time for the complete and thorough processing of these clearances.Solution: Biometric Tracking Database:First and foremost, during the initial stages where the application is transitioning into the live environment, an extensive database will be built to house the electronic criminal records.A mobile version of the application, with a fingerprint scanner, has already been developed for the purpose of collecting records from established criminals that are currently incarcerated or have been recently discharged. This ensures that recent criminal violations would have been entered in the database. To further expand on this database, identifying information from suspects of crimes, during the legal indictment process, will also be recorded.Finally, the third stage involves the collection of records as visas are requested. Eventually, the database will hold enough information so that the significant violators of the law, or current suspects, will not granted clearance for travel.
60Nigeria Biometric Visa Clearance Application: General Components The application prints clearance and criminal history reports which are used for applications for travel visas, importing and exporting authorizations, and for employment background checks.It allows for registering of criminals, entering/tracking of crimes that have been committed and those that are currently being reviewed with the suspects associated with those crimes.Users can search the database to clear citizens of crimes, verify citizens suspected of crimes and with corresponding travel restrictions.In addition, it ensures – from an administrative standpoint – that employees are logged in and are provided only with necessary access to these records.The application would have the following major components:Fingerprint ReaderPhoto CameraPC (to run the application)Web Database/SoftwareSQL Server (to house the database on)As alluded to earlier, a mobile version has been developed to aid in the collection of records of already existing criminals.
61Nigeria Biometric Visa Clearance Application: Snapshots To the right is an illustrationof an actual, hardcopy,fingerprint card currently utilized inthe clearance process:
62Nigeria Biometric Visa Clearance Application: Snapshots The screen shot presented below is of the application’s fingerprint scanning interface. Utilizing the small, mobile, fingerprint scanning device, records can be collected and identifying information can be paired with individual fingerprints. This information can then be entered into the database.
63Nigeria Biometric Visa Clearance Application: Snapshots Once a card is scanned,the application promptsthe user to drag thefingerprints into the openpink slots, as presentedbelow. This willelectronically transposethe fingerprints into anelectronic version to bestored in the database.