The Nation Newspaper

Tag: FDI

  • Group targets fresh FDI from Canada

    Group targets fresh FDI from Canada

    The Federal Government’s efforts to diversify the economy away from oil has received a major boost from some private individuals who have set machinery in motion to bring fresh crop of investors from Canada.

    As part of efforts to achieve this laudable objective, these group of individuals hope to organise a summit in Canada later in November.

    Tagged: ‘Canada-Nigeria Synergy for Improving Bilateral Trade, Investment and Partnership Opportunities in the new Nigeria’ the summit, the organisers are hopeful, will serve as a veritable tool to bring new set of investors into the country.

    Addressing a joint press conference at   the weekend, members of the organising team including Mr. Wale Adesanya, who also doubles as the President of Etcetera International Interactive Limited, Bode Thompson, President, JMT Integrated Limited and Prince Akinwale Ojo, Chief Engagement Officer/CEO, Diaspora Innovation Institute, said ‘Canibus 2016’ will help to galvanise the much sought after foreign direct investment (FDI) into the country.

    Justifying the need for the summit, which is scheduled to hold from Nov 2-5 at the International Plaza Hotel and Conference Centre, Toronto, Ontario, Canada, the organisers said the Canada/Nigeria intergovernmental business summit is timely especially at this point in time the government is determined to develop new streams of income to boost its revenue much of which has been eroded by the dwindling oil receipts due to falling  oil prices around the globe.

    “The primary aim is to attract investors in the key areas of power, agriculture, solid minerals, ICT, oil and gas, transportation and housing,” they said.

    “What informed the whole idea of Canibus 2016 is the need to help the country achieve its optimum in terms of boosting non oil sector. Canada is the better in mining and other sectors compared to other parts of the world.”

    The summit, the organisers noted, is specifically targeted at Nigerian private sector businesses, especially the organised private sector as well as the small and medium scale entrepreneurs.

    “We hope to take Nigerian business entities to Canada so that they can forge a synergy of cooperation with their counterparts over there and see how that can mutually affect businesses across the board.

    “Hopefully, we think at the end of the summit, fresh pool of investors will come into the country through our efforts. In choosing the target areas we considered the specific sectors where Canada has comparative advantage over Nigeria.”

    Pressed further, the group emphasised that “Alot of our potentials are yet untapped and we hope that the would-be investors from Canada will be persuaded to come and invest in the country if they hear from those companies already domiciled here. We want to be able to market Nigeria to prospective investors out there in Canada.”

    The summit which is being organised in partnership with the the Federal Ministry of Trade and Investment through the Nigerian Investment Promotion Commission has also received the nod of   the Deputy High Commission in Nigeria and Nigeria High Commission in Canada among other stakeholders.

  • ‘FDI’ll boost national development’

    The importance of foreign direct investment (FDI) to job creation and national development will be only be known if the government creates a minimum adequate economic environment for economic recovery, the Chairman, NovareLekki Mall, Prof Fabian Ajogwu, has said.

    He said this would entail putting in place investment-friendly reforms, scale economies in trade and investments, minimising policy changes and shocks, and building strong institutions for economic growth.

    Speaking on the sidelines after the inauguration of a mall in Lagos at the weekend, Ajogwu said   Nigeria’s attitude should be similar to that of South Koreans whose leaders have continually re-stated the fundamental truth that – “No one owes us (South Koreans) a living!”

    Therefore, he explained, Nigerians should realise that no one else owes their country a living; hence, the attitude must be clearly reflected in the country’s ways of doing business by creating and implementing innovative strategies that are aimed at turning the economy around.

    “We believe that with this in place, Nigeria can realistically expect to have increased inflow of investments or foreign capital. In the words of former President de la Madrid of Mexico, ‘Capital has no heart. Capital has interests and sees its security and income as fundamental’. Foreign investment only sees profits, and real and sustainable profits can only be made in a place with the minimum adequate economic environment,” he said.

    Ajogwu explained that the solution to the country’s problems does does not lie upon the West, but within the country and her citizens. This, he noted, was because help from the West came in the form of aids and policies and their inherent price tags.

  • ‘Nigeria’s FDI has dropped’

    The President, Abuja Chamber of Commerce, Mr. Tony Ejikeonye, has lamented the drop in the nation’s foreign direct investments.

    Ejikeonye who spoke at a pre-press conference to mark this year’s 11th Abuja international trade fair with the theme: ‘Making it in Nigeria,’ said: “There is a substantial drop on foreign direct invest in Nigeria. What we have noticed over the last few weeks also from the information we are getting from various sources is those foreign investments are trickling back in because of the value of the naira that has fallen so much.”

    Also speaking at the forum, the chairman, organising committee of the fair, Barr. Jude Igwe said the fair is expected to promote accelerated development of commerce and industry.

    According to him, the current state of the economy is the worst Nigeria has had in past years, blaming it on the fall in the prices of oil.

    “The connect between the low revenue and depletion of existing reserves is because we have been relying on a mono product economy which has encouraged massive importation of foreign goods and services to the detriment of local production of the same.”

    The fair, he emphasised, “Will promote revitalisation and diversification o the Nigerian economy by promoting the nation’s non oil exports, particularly the agro-allied products and mineral resources as well as encourage business networking and exchange of ideas, provide access to resource and technology findings and attract foreign investment into Nigerian economy.”

     

  • Attracting FDI to agriculture

    Attracting FDI to agriculture

    Attracting foreign direct investment (FDI) is critical to the survival of any economy. In the last two decades, the government has made efforts to adopt sound macro-economic policies, pursue sector reforms, and achieve more sustainable and inclusive growth by diversifying the economy.

    Experts believe that increased foreign investment and industrialisation would help to unlock the potential for job creation as well as poverty reduction.

    Stakeholders say the government should encourage the flow of foreign investment into the agric sector.

    They believe Nigeria has many comparative advantages in the agric sector. It has a varied agricultural sector reflecting diverse geography and providing raw materials for a rapidly growing range of processed exports. Besides, the country is located at the heart of West Africa and seen as an emerging destination for buyers from the United States and Europe. Nigeria is now in a period of golden population structure – at least 50 per cent of its population is of working age and the total population is growing. These factors all go some way to support why foreign investors should chose to invest in the nation’s agricultural sector.

    As of last month, there were not up to 100 active FDI agric projects that have come into the country in the last two years. Most major investments in the agric sector came from  groups such as Olam, Dangote, Flour Mills of Nigeria and a few other multinational corporations. This indicated that Nigeria has not become a destination of choice for foreign investors.

    Responding to this challenge, the Country Manager, Harvest Plus, Dr Paul Ilona, said Nigeria is categorised among the group of countries  without a well-managed economic regime.

    While global FDI is up and expected to rise over the next three years, experts say it will be driven mainly by stronger economies in developed countries.

    Several key factors are considered. These include an enabling environment for agriculture to grow, good macro-economic policies, particularly fiscal prudence, a competitive exchange rate policy and strong public sector and private sector institutions. While there are no international rankings consistently giving Nigeria high marks for business and investment climate, foreign investors are fearful of any administration that advocates confiscation and nationalisation policies.

    Ilona said Nigeria needs proper macro-economic management, including fiscal discipline during boom times, monetary management that kept inflation in single digits and that produced interest rates that encouraged domestic savings, and an exchange-rate policy that allows for flexibility and competitiveness for farmers.

    Alongside trade policy and adaptability, the Harvest Plus Nigeria chief stressed the need for the government to promote an enabling business climate and incentives for foreign companies developing mega projects in agriculture.

    So far, he said the country  lacked a functional blueprint for attracting foreign investment to the agric sector. He said: “We don’t have a blueprint to attract foreign investment into the agric sector.”

    Despite substantial policy commitments, he observed that productivity in the agriculture sector remains disappointing. A workable blueprint, he explained, should address land tenure, protection of investment and repatriation of  return on investment.

    Ilona said the strength in the country’s agribusiness stands as the most prominent opportunity for attracting and building foreign investment flows, if there is supportive improved infrastructure. Foreign investors, he explained are sources of capital, foreign exchange and technical know-how.

    He added that they contribute to infrastructure development, which can spur further economic activity.

    If the nation’s Gross Domestic Product( GDP) growth targets are to be achieved, Ilona  said  urgent and concerted attention is needed to enhance the country’s agribusiness capabilities, strengthen its position as a services hub, and implement the staple crop processing zones dreams.

    He advised the government to craft a strong agric dependent growth-oriented developmental path.

    As a major agricultural producer, the Director of Studies, Agricultural and Rural Management Training Institute (ARMTI), Ilorin, Dr Olufemi Oladunni believes Nigeria offers a lot of investment opportunities in the agribusiness and food sector.

    He advised the government to recognise that the FDI is an integral part of the economy – essential to restructuring the economy and raising national competitiveness.

    Besides, heavy investments in the agric sector are needed to bring growth in productivity, considering the estimated population of 250 million by 2050.

    Given that local farmers have little the ability to increase either the quantity of land devoted to agricultural production or their own agricultural productivity, he believesthat foreign directinvestment can provide capital and investment that provides jobs and agricultural innovations which enhance food production.

    He urged the government to improve infrastructure for small scale farmers in remote rural areas and improve their access to markets and services. He also stressed the need for the rehabilitation and development of new roads.

    More broadly, while the government’s increased investment in agric may improve production capability for primary producers, Oladunni urged the government to  also explore opportunities for greater investment ‘beyond the farm gate’ by creating incentives, such as tax concessions for agribusiness projects that improve processing, manufacturing, packaging and distribution efficiencies and practices.

    He believes the success of the agriculture sector will be underpinned by expansion of the irrigation schemes.

    Currently, few hectares nationwide are either under irrigation, or about to be brought under irrigation. New investments in irrigated agric development, Oladunni said would provide up new hectares of farming land.

    According to him, something has to change if the nation is to feed its growing population, and foreign investment could be part of the solution.

    Coordinator, Agribusiness & Youth Empowerment, Community of Agricultural Stakeholders of Nigeria, Sotonye Anga, stressed that increasing focus on international trade would be critical to boosting economic performance.

    He wants the government to offset the burdens on agro exporters with tariff-free access for productive input and with tax incentive subsidies.

    According to him, the Central Bank of Nigeria (CBN) should been concerned with ensuring the competitiveness of the country’s export sectors.

    The other strategy should be to ensure private sector representation in all key government economic decisions.

    This will ensure practical solutions are conveyed to political leaders.

    Since the agric sector accounted for two-third of employment and significant part of export earnings, experts urged the government to seek preferential treatment from the European Union (EU) for the nation’s exports to the EU.

  • Visa reforms to boost FDI, says Immigration boss

    The Comptroller-General, Nigerian Immigration Service, Muhammad Babandede, has said the ongoing visa reforms of the Federal Government will not only aid the ease of doing business in Nigeria, but also encourage Foreign Direct Investment (FDI) into the country.

    He stated this during the week while receiving the Turkish Ambassador,  CakilHakan, at the Immigration Headquarters in Abuja.

    Babandede called on Turkish businessmen and other foreign investors to take advantage of the visa-at-port-of-entry facility, also known as visa-on-arrival, to do business in Nigeria.

    A statement signed by NIS Public Relations Officer Ekpedeme King Babandede explained that the visa   issued at the country’s international airports, was introduced by the Federal Government as part of the measures to boost FDI.

    According to Babandede, “in order to encourage ease of doing business in Nigeria, the Immigration Act 2015 has given the CGI the powers to issue such visas to investors, frequently travelled business persons of international repute, executive directors of multinational companies, members of government delegations as well as holders of United Nations (UN), African Union (AU) and Economic Community of West African States (ECOWAS) Laissez-Passer”.

    The Act, the CGI explained, also empowers him to issue Permanent Residence Visas to foreign nationals, who according to him, are married to Nigerians and to foreign investors, who have imported an annual minimum threshold of capital over a period of time.

    Babandede said the agency intends to use the Visa reforms expeditiously and transparently in line with President Muhammadu Buhari’s stance on public accountability, adding that he has constituted a committee to clearly articulate the visa reforms to enable the service sensitise the public appropriately.

    Earlier, the Turkish Ambassador, CakilHakan, lauded the cordial relationship between Nigeria and his country.

    He said Nigeria was the first country in Africa to host a Turkish Mission and that about 25,000 Nigerians arrived Istanbul in 2015, out of which 18,000 were issued online visas.

  • Forex policy to attract FDI, says minister

    The Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah yesterday said the liberalisation of the foreign exchange (forex) market was designed to stimulate foreign direct investment (FDI) into the economy.

    Speaking at Business Day Technology Conference with Beyond Oil: ICT as a viable  alternative as theme, he said the system freed the supply side of the forex equation stressing that the old regime that allowed for double exchange rate, one from the Central Bank of Nigeria (CBN) window and the other from the parallel market, discouraged foreign investors because they were uncomfortable with the arrangement.

    The minister said the new regime of “willing seller, willing buyer” will make investors to have confidence in the economy. According to him, the new forex policy is a “journey” promising that any issue that arises in the course of its implementation will be attended to.

    Speaking to the theme of the forum, Dr. Enelamah lamented that the era of oil boom actually began its end about three years ago with steady decline in federal revenue, adding that the focus of the President Muhammadu Buhari-led administration now is diversification of the economy. To achieve this, he said emphasis in now being placed on agriculture, mining and solid minerals development.

    According to him, considering the huge contribution to the nation’s gross domestic product (GDP) by the information communications technology (ICT) sector, it is apparent that it is not a sector that could be ignored in the diversification agenda of the Federal Government.

    As a demonstration of the government’s commitment to actually using the ICT sector to leapfrog the economy, he said was the N500billion earmarked for social scheme will take care of skills acquisition, adding that 100,000 jobs will be created in computer related fields including software development, while 500,000 teachers will also be recruited stressing that mobile phone will be central to their performance.

    Another set of beneficiaries of the social initiative of the government would be reached through e-voucher which is another use of ICT in achieving mass reach, he added.

    He said the Biometric Verification Number (BVN) initiative of the CBN saved the Federal Government billions of naira that ordinarily would have been paid to 40,000 ghost workers. He said in the drive to diversify the economy, the private sector will be allowed to occupy the drivers’ seat while the Federal Government will provide the enabling environment.

  • Reverse decline in FDI, LCCI urges

    Reverse decline in FDI, LCCI urges

    President, Lagos Chamber of Commerce and Industry (LCCI), Mrs. Nike has called for a reverse in declining flow of investments.

    She urged the government to increase capital inflows, by relaxing foreign exchange policies to facilitate export proceeds’and diasporan remittances as well as foreign investments.

    The LCC chief was reacting to a report by the National Bureau of Statistics (NBS) that the flow of investment into the country declined to $11.68billion (N2.3 trillion)  from $51.7billion (10.18trillion).

    The report showed that all the three major components of investment, such as foreign direct investment, portfolio investment and other investments declined within a three-year period.

    It said last year’s drop was not unconnected with the tough economic environment resulting from the lower global oil price and the prevailing foreign exchange policies.

    But Mrs Akande raised concern over the down trend in the stock market, lamenting that it is not showing any sign of abating as the market capitalisation has continued to tumble.

    “As at March 18, the (NSE) All-Share Index and market capitalisation depreciated by 1.13 per cent at 25,694.79 and N8.839 trillion. The stock market performance is largely a reflection of the sentiments of investors in the larger economy,” she said.

    The LCCI boss also lamented the worsening power supply across the country, noting that it continued to pose challenges to business operators, despite the tariff increase.

    She regretted the high energy costs, especially the high expenditure on diesel and petrol for large and small businesses respectively as most businesses spend as much as between 15 and 25 per cent of their total operating cost on alternative power sources.

    Mrs Akande stressed the need to explore alternative models of power provision which focuses on diversification of energy sources and decentralisation of power supply channels.

    The high dependence on gas pipelines from the Niger Delta is charecterised by high vulnerability risks which the economy and the citizens can no longer bear, she added.

     

     

     

    She said: “To facilitate the adjustment, we urge the government to create an enabling environment that will enhance the capacity and productivity of private sector enterprises. The policy and institutional environment need to be enabling. There are numerous sectors of the economy which potentials are largely untapped. We believe that this is the time to look very closely at these various sectors in order to accelerate the economic diversification process.”

    While calling on government to improve on the ‘Ease of doing business’, she recalled that Nigeria ranked 169 among 189 countries with Mauritius ranking 32 as the best in Africa.

    She called for the speedy passage of Petroleum Industry Bill (PIB), Solid Mineral Industry Reform Bill, Railway/ Rail Transport and Inland Waterways Bill. Others are Port Reform Bill, National Transport Commission Bill, Competition and Consumer Protection Bill and the Land Use Act Bill.

    According to her the Organised Private Sector (OPS) believes that when the bills are passed into law, it will provide the much needed legal framework for economic diversification including support for the private sector to create economic opportunities in the country. According to her, the overall objective is for the nation to retain existing investment, attract new investors, create favourable business environment and boost current level of trade flows.

    On the budget, she stressed the need to improve the budgetary process to ensure timely presentation and expeditious consideration by the National Assembly. She said: “There are currently too much discretion on the part of both the executive and legislature on timing. There is need for framework that would be time bound as it is the practice in more advanced democracies. There should be statutory timeline for budget presentation; consideration by the National Assembly and assent by the President. If complied with, it would be beneficial for planning for public and private sectors; enhance faster delivery of infrastructure, reduce uncertainty. It also has the potential to enhance cash flow into the economy.”

  • Lagos woos global investors for FDI

    Lagos State will continue to protect the interests of global investors through provision of amenable operating environment and protection of private enterprises.

    The state gave this assurance at the weekend during the formal presentation of its Office of Overseas Affairs and Investment, otherwise known as Lagos Global, to members of the business world, diplomatic community and top government functionaries.

    Governor Akinwunmi Ambode, who was represented by the Secretary to the State Government, Mr. Tunji Bello, reiterated the state’s commitment towards making Lagos an investment destination of choice by creating a favourable environment for local and Foreign Direct Investment (FDI).

    As the world continues to acknowledge Lagos as a regional financial hub, he said, the government has demonstrated the commitment to strengthen this position through deliberate policies aimed at improving the business climate in the state.

    He outlined that the state has been on investors’ radar by putting in place effective legal and regulatory frameworks such as the Land Reform Act, Double Taxation treaties, Limited Liability Reviews and the development of Free Trade Zones, adding that the ongoing judicial reform is aimed at strengthening the laws for the protection of enterprise.

    Ambode emphasised that public infrastructure development and investment in security as well as the competitive edge are the things its residents enjoyed. Also, according to the Governor, access to local, regional and international markets, readily available labour, bourgeoning middle class with high purchasing power and investor-friendly disposition among the citizenry, had combined to ensure that the state remained investors’ haven.

    He urged investors to take advantage of investment opportunities in the state as government had prioritised the achievement of the four pillars of the Lagos State Development Plan (2012-2015) through the attraction of investments in eight major sectors which are power, agriculture, transportation, health, tourism, housing, ict and manufacturing.

    “With the array of prospects in different sectors, we are confident that you will take advantage of these opportunities by taking the decision to make the next investment here”, Ambode said.

    In his remarks, Special Adviser on Overseas Affairs and Investment, Prof. Ademola Abass said the Lagos Global was created to serve as a one-stop shop for investors to enhance the ease of doing business in the state.

  • How to attract FDI, by group

    Agroup Africa Young Entrepreneurs (AYE) has identified the creation of a stable economy where infrastructure and security are taken for granted as pre-requisites for attracting foreign direct investment (FDI) into the country.

    The group added that the government should also strive to create a friendly entrepreneurship ecosystem so that small and medium enterprises (SMEs) could flourish so that the current high level of unemployment could be reduced.

    Speaking with our reporters in Lagos at the weekend, its President, Summy Francis, said every investor across the globe is willing to come to Nigeria, lamenting that the high cost of production due largely to lack of infrastructure remained a major disincentive.

    He said this was because goods produced in the country will become more expensive and less competitive with imported ones.

    He lamented that the focus of successive governments has not been on private entrepreneurship, adding that even the government and the private sector have always got their focus on oil and gas.

  • Lagos gets N5bn FDI in three months

    Lagos gets N5bn FDI in three months

    Lagos State government has recorded over N5billion foreign direct investment (FDI) in the first quarter of 2016, Dr. Yakub Olajide Bashorun, Permanent Secretary, Office of Overseas Affairs and Investment has said.

    Dr. Bashorun made this disclosure at the weekend during a one-day sensitisation of MDAs on mandate of Office of Overseas Affairs & Investment in Lagos.

    Speaking on the investment profile of Lagos, the erstwhile Permanent Secretary in the Ministry of Agriculture and Co-operatives, said: “The investment projection for the state is very high. In the first quarter for instance, we have done about N5billion worth of investment into Lagos, creating hundreds of jobs for Lagosians.

    “That is over 50 per cent of what has come in to the country this year alone.  So you can imagine what will still be done with this kind of sensitisation workshop with everybody on the same page, whether in agriculture, in power, in transportation, health, medical tourism, ICT, education, entertainment and tourism sectors. So these are areas that are huge.”

    Continuing, he said: “We will continue to monitor with aftercare because it is not only enough to ensure that investment comes to Lagos we want to also ensure that investment is thriving. If they are doing very well how can they do even better? Can they open more branches? If they are not doing well is that something went wrong along the way? Is it in terms of implementation of agreement? There has to be somebody who is working out the interest of everybody and that is what we’re doing.”

    Office of Overseas Affairs & Investment, otherwise known as Lagos Global is a new parastatal was established in last May at the inception of the Governor Akinwunmi Ambode administration.

    While explaining the core mandate of the agency, Prof. Ademola Abass, Special Adviser, Office of Overseas Affairs and Investment, in a presentation titled: ‘Promoting FDI in Lagos: Yesterday, Today and Tomorrow,’ said: “We’re in the investment arm of the Lagos state government. Since the creation of this office, I can tell you they are in hundreds and if the trend continues with what we have seen I will be talking in terms of thousands. But again, make no mistake, not all proposals will come to fruition.  And you do not know the one which will come to fruition before you have dealt with it. So we have hundred proposals may it is going to be about five or six that would give you the traction that you need. And you may have just one proposal after over two months that would be a very major proposal. So you cannot really calibrate it but the important thing is that it is huge.”

    The former university don, who spoke on plans by the state government to turnaround the fortunes of the state said: “Lagos needs a lot of infrastructural development, especially with our transportation. For a city of 22 million people you cannot rely on a mono transport system. One of the things we’re trying to do in Lagos is to take the ferry service a lot more serious than we have always done. So we’re looking into investment in the transportation area. This has become inevitable because the oil revenue has been nose-diving. We’re trying to look into and develop our agricultural resources. In terms of health we want to make sure we develop our hospital infrastructural to be able to stop our people from going to spend millions on medical tourism. We want to invest on energy. Lagos today is need of about 4, 000 megawatts to function but we have just around 1, 000 mega watts. So we have less than one quarter. So these are the key sectors we’re interested in Lagos state.”

    On measures to encourage investment drive, Prof. Abass said: “There are many incentives. We have tax holidays for people. Obviously we’re also trying to cut down the time it takes to set up. We going recognising pioneer status and the government is also looking at using land as equity for those who may require land. Lagos has unique advantages.

    “We have a population of almost 22million. We’re not just giving them benefits but we’re asking our investors to look at our unique advantages that Lagos actually offers them. In terms of population, it’s 22million, almost 5million of which is in the middle class. That is a huge purchasing power for whatever investment you have in Lagos state. And you’re talking about a Lagos state that is today the fifth largest economy in Africa, talking about $135billion GDP, which is 42 countries in Africa as a whole.  So it’s not just giving investors benefits but we also helping them to take advantage when you come to Lagos state.”