Nigerian Investment Promotion Commission Plot 1181, Aguiyi Ironsi Street, Maitama District, Abuja PRESENTATION BY ENGR. MUSTAFA BELLO, FNSE EXECUTIVE SECRETARY/CEO NIGERIAN INVESTMENT PROMOTION COMMISSION AT THE NIGERIAN INSTITUTE OF INDUSTRIAL MANAGEMENT AT THE LAGOS SHERATON HOTEL APRIL 6 th 7 th, 2005
‘ The Role and Achievements of Nigerian Investment Promotion Commission’
TABLE OF CONTENTS 1.History of NIPC 2.The Role of NIPC 3.The New NIPC and the New Strategy 4.Achievements 5.Conclusion
HISTORY of NIPC The Industrial Development Coordination Committee (IDCC) was established as part of institutional reforms necessary for the implementation of Structural Adjustment Programme (SAP). Daunting problems which militated against its optimal performance resulted in the establishment of NIPC by Act 16 of 1995.
The Role of NIPC Improving Nigerian’s image within the investment community as a favorable location for investment; Providing services to prospective and current investors; Identifying and establishing direct contact with potential investors and persuading them to invest; Evaluating the business environment with the objective of advocating for improvements
Benefits of FDI Source of Capital inflow Employments Creation Technology Transfer Increase in Exports
The New Strategy: Targeted Promotion Why Target? The Commission has focused its’ promotional resources on attracting a defined sub set of FDI flows; rather than general. The targeted approach has the commission achieve strategic objectives as it relates to employment, technology transfer, exports and cluster developments. Another reason for engaging in investor targeting is to attract export-oriented FDI. A focused approach to export-oriented investment is likely to be less costly, vis-à-vis the result achieved, than one in which the commission attempts to attract new investments in more ad hoc fashion.
The New Strategy: Targeted Promotion Cont’ What we target? A country or part of it Industries Companies Ultimately individual Managers
NIPC’s Core Function Investment Promotion Investors Relations Policy Advocacy and External Relations
Investors Servicing Pre-investment Phase Information Door-Opener function facilitation of site visits Actual Investment Phase Assistance Licenses, start up activities Incentives Post-investment Phase (Aftercare) On-going trouble shooting Make them feel at home Support for expansion
Investment Climate Analyze Current Situation Systematic Feedback from Investors External Reports(e.g. FIAS, WEF, IMD) Benchmarking with Compotators Identify Critical Shortcomings As an economy in general With regards to key indicators
Investment Climate Work with EMT Alert them to the problems Suggest effective remedies Continue policy advocacy work until
Tracking of FDI in Nigeria YEARSNO OF COMPANIES RECORDED FDI INFLOW (Million $) LOCAL INVESTMENT (Million N) EMPLOYMENT GENERATION , , , , , , , , , , , ,814 TOTAL4621, ,283
ACHIEVEMENTS Reinvestment by major multinationals e.g. Nigerian Breweries Limited, Guinness Nigeria Plc, Unilever Nigeria Plc., West African Cement Company, Nestle Foods Plc. British America Tobacco company, MTN, V-Mobile, Globacom, etc. amount to over US$4billion
ACHIEVEMENTS Wealthy Nigerians Initiative Aimed at encouraging wealthy Nigerians at home and in the Diaspora to invest in the country. National Council on Investment To fashion out a national investment policy for the country and also facilitate streamlining of investment promotion activities nation-wide. Inter-agency Collaboration/Embassies Networked with government Agencies and Embassies to establish working relationships with them Workshops on Market Fires Organized two workshops in Abuja and Lagos to sensitize the traders of the negative impact of fire disaster on investment and what could be done to reduce or minimize the menace.
ACHIEVEMENTS CONT’ Presidential Advisory Council on Investment Set up by Mr. President to advise on investment and members are people in positions that can influence the investment decisions of their companies as well as their government to invest in Nigeria.. NIPC serves as the Secretariat. Policy Advocacy Effective Policy Advocacy mechanism designed to serve as an interventionist system of addressing problems encountered by investors. Business and Investment Forums Forums packaged to target identified potential investors and multinational companies. Countries visited include: Canada, Malaysia, China, London etc Matchmaking Investment Meetings Organized matchmaking meetings between Potential investors and government agencies, private sector associations, consultants and private companies.
ACHIEVEMENTS CONT Image-building Embarks on image building activities to project Nigeria as the most profitable investment destination in Africa through adverts in the local and international media, meetings and courtesy call on foreign Embassies etc. Collaborations with other International Agencies UNIDO- in which 75 projects were packaged and promoted abroad; WAIPA and Association of the West African Investment promotion Agencies AIPAWAS) and NIPC is Vice -Chairman of the Association. Incentive Package under presidential Cassava Initiative Prepared appropriate incentive package designed to stimulate investment in the sector. Role of NIPC in Micro, Small and Medium Enterprise (MSME) project/World Bank
Challenges Problems hindering investment into the country Inconsistent government policies Unfriendly Business laws Social vices such as corruption, drug trafficking, insecurity, Financial and economic crimes Uncompetitive incentives Frequent Labour crises Poor state of infrastructure High cost of doing business
Conclusion With the bias for private sector development, the NIPC is positioned to ‘facilitate’ rapid growth of investments in Nigeria by both foreign and local investors. Nigeria offers one of the most rewarding investment destination, not just in Africa but, in the World. Thank you for your attention!