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Investment Opportunities in the Industrial Sector
July 2012
H.E MR OLUSEGUN AGANGA
Honorable Minister of Trade and InvestmentFederal Republic of Nigeria
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Where we are
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Source: World Bank (2011)
Africa’s share of Global trade is 3% Africa’s share of Global trade is 3%
Africa’s share of Global manufacturing value added (MVA) is 0.1%
Africa’s share of Global manufacturing value added (MVA) is 0.1%
Africa is heavily dependent on imports Africa is heavily dependent on imports
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Projected African share of Global GDP
3
Source: World Bank (2011)
Low level of Manufacturing in the region has led to severe Industrial Balance of Trade Deficits.
Low level of Manufacturing in the region has led to severe Industrial Balance of Trade Deficits.
%
Southern Africa
East Africa
Central Africa
West Africa
North Africa
Africa
Nigeria
0 500 1000 1500 2000 2500 3000 3500
Value of Manufactured Imports Value of Manufactured Exports
We have embarked upon a Nigerian Industrial
Revolution Plan (NIRP)…
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Over the past decade, Nigeria’s growth has been fuelled by strong performances of its non-oil sector
1. Based on expected growth between 2010 and 2020 as predicted by Global Construction Perspectives and Oxford University 2010 publication
2. Growth data calculated from Nigerian National Bureau of Statistics data x% CAGR 2000-11
Agriculture / Oil and GasIndustry and other sectors
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Pillars of the NIRP
Power, Financing, Local patronage, Substandard goods, Special economic zones, etc
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Areas of focus: Based on competitive advantage
1 Includes processing of food and cash crops such as palm kernels, cocoa, sugar, tomatoes, rubber etc.
2. Excludes oil extraction and refiningAdditional NIRP sectors
Initial NIRP focus
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Benefits of Automobile Policy Reform
The Automotive Industry Value Chain (Holistic approach)
Fig. 1. Vehicle Assembly Process and Associated Supply Chain.
Body Assembly (Welding)
Assembly Trim Line (assembly of seats and internal fittings), wiring harness, bumpers, etc.
Painting
Mounting of Engine, transmission, axles and other components (dashboards, light modules, etc)
Line Roll-off Final Inspection and Testing
Press Shop: Preformed body parts
Paint Factory: Metallic Oxides, polymers, water, etc
SMEs: Plastic Parts
Rolling Mill: Steel Sheets
Petrochemical Industry
SMEs: Metallic parts
Steel Plant: Iron ore, Coking Coal, etc.
Ferrous and non-ferrous metal ind.
Ore Industry: Iron, Copper, aluminum, etc.
SMEs Raw material Suppliers
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Petrochemicals example
The Ministry has a focus on the petrochemical industry to maximize the value chain and its contribution to not just government revenue but also GDP and employment.
Our target is to make Nigeria the petrochemical hub of Africa. We are actively targeting investors in petrochemicals
Oil and Gas Production
Petrochemical Industry
PlasticsIndustry
TextilesIndustry
ChemicalPharmaceuticals
AutomobileIndustry
Propylene
Ethylene
Methanol
Fertilizers
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Our overall aspiration is to increase Industry’s contribution from 4% to 8% of GDP over the next 4 years
Source: Global Insights, McKinsey analysis, Nigerian National Bureau of Statistics
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Thank You
The opportunity is here and we are ready to welcome you..