Investment Opportunities in the Industrial Sector July 2012 H.E MR OLUSEGUN AGANGA Honorable Minister of Trade and Investment Federal Republic of Nigeria

2 Where we are 2 Source: World Bank (2011)  Africa’s share of Global trade is 3%  Africa’s share of Global manufacturing value added (MVA) is 0.1%  Africa is heavily dependent on imports

3 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. %

We have embarked upon a Nigerian Industrial Revolution Plan (NIRP)…

5 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 Agriculture / Oil and Gas Industry and other sectors

6 Pillars of the NIRP Power, Financing, Local patronage, Substandard goods, Special economic zones, etc

7 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 refining Additional NIRP sectors Initial NIRP focus

8 Benefits of Automobile Policy Reform The Automotive Industry Large Employment Generation Can account for up to 10% of employment Acquisition of Technological Know-how Serves as a pre-cursor to our industrialization Effective utilisation of Raw materials Wealth Creation Can account for up to 10% of GDP

The Automotive Industry Value Chain (Holistic approach)

10 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 Plastics Industry Plastics Industry Textiles Industry Textiles Industry Chemical Pharmaceuticals Chemical Pharmaceuticals Automobile Industry Automobile Industry Propylene Ethylene Methanol Fertilizers

11 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

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