Nigeria – Your preferred investment destination H.E MR OLUSEGUN AGANGA Honourable Minister of Trade and Investment Federal Republic of Nigeria July 2012

Nigeria: Where we are and what’s on offer.... Strictly Private & Confidential Nigeria: Where we are and what’s on offer.... Located in West Africa Nigeria is located on 923,768 square kilometers of land A rich diverse culture with more than 250 ethnic groups Made up of 36 states with Abuja as the Federal Capital Territory The third tier of government consists of 774 local government areas Nigeria Show Blown up map of Nigeria…higjhlight the states, highlight the states that are participating that they will hear from…on this slide or next…. 2

States represented at the Summit Strictly Private & Confidential States represented at the Summit Show Blown up map of Nigeria…higjhlight the states, highlight the states that are participating that they will hear from…on this slide or next…. 3

Energy Mining Agriculture Large Natural Resource Base 7th largest producer of crude oil globally with 37 billion bbls of proven reserves, Nigeria has a capacity of 3.0mm bpd and is the largest producer of crude oil in Africa 10th largest oil reserves in the world and 8th Largest Gas Reserve Major player in the gas market – reserves of 187 trillion cubic metres Geological Survey Agency of Nigeria records 34 exploitable minerals in commercial quantities 84 million hectares of Arable Land with just 40% utilized Mining Agriculture 4

The large market and strong work force 16 April 2017 Strong Demographics The large market and strong work force Nigeria has a population of about 167 million people (3x the population of South Africa) – 7th largest country in the world By 2050 Nigeria will be the 6th largest country in the world. 2070 Nigeria will have the world’s 3rd largest with a population of 433 million after India and China and above the US. A growing middle income which currently stands at 23% The population provides a ready market for telecommunications, IT, consumer goods, agriculture, manufacturing, hospitality & entertainment, construction and housing. 5

Investment Gateway to West Africa Nigeria is well placed to exploit the potential offered by the ECOWAS market, which has a population of over 300 million of which Nigeria makes up 60%. Nigeria also accounts for 47% of the ECOWAS GDP and over 50% of the ECOWAS manufacturing capacity. In addition to West Africa Nigeria also acts as a significant access point to other African Markets.

Strictly Private & Confidential Global Real GDP Growth Global growth expanded by 5.1% last year led by strong domestic demand in developing countries. Q1 2012 Nigeria GDP grew by 6.17% surpassing the forecasted 5.34% BRICs High Income Keep the chart at 2011! 7 Source: World Bank Databank, World Bank Africa’s Pulse 2012

Global Real GDP Growth - 2 In an era of instability, Nigeria has grown consistently! 6.7% * Source: IMF: The World Bank, * Forecasted 8

Sector Contributions to GDP in 2012 The largest contributors to GDP (and employment) are Agriculture, Wholesale & Retail Trade and Oil and Gas Source: National Bureau of Statistics (Q1 GDP Report 2012)

Debt Structure –Profile Strictly Private & Confidential Debt Structure –Profile Nigeria has a conservative debt position with a lot of fiscal space Average Africa Debt to GDP ratio in 2000s was 59%, Nigeria’s Debt to GDP Ratio is 19.6% (South Africa (35.6%), Egypt (85.7%) External Debt Domestic Debt US$5.91 billion N5.96 trillion (c. US$38 billion) 83% of External Debt is low-cost, long-tenor concessional debt Update - DMO 10 Source: DMO

Strictly Private & Confidential Low Debt-To-GDP Ratio With a Debt-To-GDP under 20% Nigeria has large fiscal space to operate within Update - DMO 19.6% Source: Public Debt, International Monetary Fund (IMF) 2011, (* 2010 data)

Development through reform Strictly Private & Confidential Development through reform Nigeria has established key reforms in critical areas Electoral Reform Fiscal Reform Sovereign Wealth Fund Oil and Gas Reform Petroleum Industry Bill Business Environment/Port Power Sector Investment Climate Judicial Agenda 12 12

Growth Through Investments

Investment Opportunities – comparative advantage Areas of Competitive and Comparative Advantage Agriculture Mining Oil and Gas Agribusiness and Agro-Industries Solid Mineral Processing and Related Industries Downstream Oil, Gas Industries and Oil and Gas Services Other Key Investment Areas Power Infrastructure (Rail, Roads, Ports) Real Estates Development Information and Communication Technology Banking & Finance Healthcare and Pharmaceuticals Maritime and Shipping Free Trade Zones Industrial Parks and Clusters

Why Nigeria? Source: Economist Intelligence Unit (EIU) 2012 – Selection from 30 countries [% of respondents] Of all the African markets, investors believe Nigeria will offer the best overall prospect for investment returns over the next 3 years

Key sectors of Investment Source: Economist Intelligence Unit (EIU) 2012 Key sectors investors have identified as providing the best investment returns over the next 5 years

Foreign Direct Investment Overview -Nigeria Strictly Private & Confidential Foreign Direct Investment Overview -Nigeria Nigeria has become one of the top global destinations for FDI Nigeria recorded US$ 8.9 billion in 2011 21% of Africa’s Inflow Africa recorded a total of $42.7 billion FDI inflow in 2011 A refocused policy framework to improve Nigeria’s investment climate 17 17

Strictly Private & Confidential Strong trends in FDI FDI Net inflows into Nigeria in 2011 was the highest in Africa at $8.9 billion, whilst the growth of FDI flows into Nigeria in 2011 surpassed global and regional averages. Growth in Net FDI FDI Net inflows Back to pre-crisis levels Box 2011 back to pre-crisis levels Source: UNCTAD Global Investment Report 2012

Government’s drive in attracting Investment Make FDI work for local economy; i.e. job creation, supply-chain, developing Nigeria as an outsourcing destination etc. Target and attract FDI and LDI into key priority sectors of Infrastructure, Agriculture, Mining, Oil and Gas Downstream and Tourism Promote a Private Sector led growth strategy Investment in renewable energy sources shall be encouraged Establishment of the Ministry of Trade and Investment OSIC strengthened to provide 48 hours service to investors Industrial Revolution: Promotion of Value-addition and Import Substitution Industrialization

Investment Friendly Incentives - General No Nationalization or expropriation of businesses by any government of the federation Foreign investors are free to repatriate their profits and dividends net of taxes through an authorized dealer in freely convertible currency. Up to 5-7 years tax holiday for activities classified as pioneer Research and Development – use of local inputs – 120% of expenses are tax deductible A one-off concession of 20% of the cost of providing basic infrastructure (roads, water, electricity) A 10% tax concession for 5 years for export oriented industries

Examples of International investors Strictly Private & Confidential Examples of International investors MINING OIL AND GAS Downstream AGRICULTURE MANUFACTURING INFRASTRUCTURE 21

Investment Highlights for Nigeria Strictly Private & Confidential Investment Highlights for Nigeria “If it [Nigeria] were to show the same increase in its growth-environment score over the next decade, many investors will look back and say why the hell didn’t I invest in Nigeria” Jim O’Neill – Global Head of Economic Research Goldman Sachs “Nigeria was identified as a top pick by some of the most influential investors in emerging markets finance” July 2010 Reuters Emerging Markets Summit – Sao Paulo “Africa’s economic momentum is widely recognised and the continent’s long-term growth prospects are very strong and global executives and investors cannot afford to ignore it” McKinsey & Co 22

Investment Highlights for Nigeria Strictly Private & Confidential Investment Highlights for Nigeria Tell me this: which part of the world has seen its number of democracies increase nearly eight-fold in just two decades? Eastern Europe? No, it’s Africa. Which continent has six of the ten fastest growing economies in the world? Asia? No, it’s Africa. Which country is predicted by some to have the highest average GDP growth in the world over the next 40 years?
You might think Brazil, Russia, India or China. No. Think Africa. Think Nigeria. David Cameron Prime Minister, United Kingdom 23

The opportunity is here and we are ready to welcome you.. Thank You The opportunity is here and we are ready to welcome you.. 24