Nigeria's Minister of Industry, Trade and Investment, Olusegum Aganga, said "policy changes implemented by the Federal Government of Nigeria in recent months, and improved corporate governance, has provided an enabling environment for domestic and foreign investors".
Speaking at the New York Stock Exchange, Aganga said "investor confidence in Nigeria is rapidly gaining momentum, with a significant number of Nigerian and global companies investing in Nigeria".
For the second year running, the United Nations Conference on Trade and Development (UNCTAD) reports for 2013 and 2012 ranked Nigeria as Africa's number one destination for foreign direct investment (FDI).
Nigeria was ranked fourth globally in terms of average returns on investments, at 35.5%. The country's current growth rate is between 6% and 7%, well ahead of the global average.
Recent major announcements and investments in 2013, such as the Dangote Group's $9 billion investment and GE's $1 billion ($250 million for capital investment commitment in 2013 with expected completion of construction in 2017) and power investments, would bolster Nigeria's position to maintain its lead as Africa's number one investment destination and potentially surpass the 2012 FDI figure.
Minister Aganga further said the recent investment by the Dangote Group of $9 billion to build one of Africa's largest industrial complexes and oil refineries in Nigeria is a "significant manifestation of investor confidence in Nigeria and provides a major boost to the country's industrial sector and long-term growth prospects".
In early September 2013, the Dangote Group signed a $3.3 billion loan finance deal with Nigerian and foreign banks to fund the investment to build the largest oil refinery in Africa as well as a fertiliser and petrochemical plant that would not only see Nigeria attain self sufficiency in refined petroleum products, but would also see it become a net exporter of petroleum products by the end of 2016.
Aliko Dangote, President and CEO of the Dangote Group, said: "As an investor who believes in Nigeria, knows Nigeria well and whose prosperity was made in Nigeria, we are confident in the long-term growth prospects of this great country.
"Our recent investment of over $9 billion will turn Nigeria into an exporter of petroleum products for the first time ever and play a valuable role in Nigeria's long-term GDP."
The oil refinery is to be located at the Olokola Free Trade Zone (OKFTZ) and will be the largest oil refinery in Africa. Currently, Nigeria is Africa's biggest oil producer but lacks refining capacity and has to import most of its fuel.
Aliko Dangote yesterday in New York announced plans to invest an additional sum of $7 billion, in cement, sugar, rice, as well as oil and gas downstream projects. This will bring the total investment to $16 billion.
Commenting on the latest landmark $9 billion investment, Managing Director and CEO of Nigeria's Bank of Industry (BOI), Evelyn Oputu, said: "It would produce the most fundamental positive impact on the structure, growth and development of Nigeria's economy.
"The Bank of Industry is fully committed to providing financial and business support services to facilitate the transformation of Nigeria's industrial sector, domestication of the country's production capacity and it's long-term economic growth."
Commenting on GE's investments in Nigeria, the Global Chairman and CEO of General Electric, Jeffrey Immelt, said: "The time is now, and the place is Nigeria. Where we are now, is the point of execution. The government of Nigeria has made significant progress in its economy within the last few years. GE, as a global infrastructure company, will be investing $1 billion in Nigeria within the next five years, which will create about 2 300 jobs. We see a lot of opportunities in Nigeria."
View this news release online at:
http://www.businesswire.com/news/home/20130925006039/en
For enquires and interviews in New York with Minister Aganga, contact:
Waheed Olagunju
Executive Director, Bank of Industry
Tel: (+23) 4 803 403 2123
E-mail: wolagunju@boinigeria.com
Terhas Berhe / Lynette Lambert
Brand Communications
Phone: (+44) 020 7638 6856
E-mail: terhas@bc-uk.com / lynette@bc-uk.com
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