Kimberly-Clark lays off 90% of employees as it begins Nigerian exit

"Kimberly-Clark, the manufacturer of Huggies diapers, has begun shutting down its Nigerian operations, laying off 90% of its employees. This comes three days after announcing its exit from the country. The company cited "refocused strategic priorities" and "economic developments" as reasons for its departure. Kimberly-Clark's exit marks another significant departure of a multinational company from Nigeria, following similar moves by Unilever, GSK, and PZ Cussons. The company's $100 million manufacturing facility in Lagos, launched in 2022, will be written off, and production and marketing of Huggies and Kotex products in Nigeria will cease."

Google to take businesses online (Google getting Nigerian Businesses online GNBO).

Google to take businesses online (Google getting Nigerian Businesses online GNBO).

Global information Technology giant , Google in conjunction with Ecobank and telecommunication giant MTN have engineered an initiative called “Getting Nigerian Businesses Online.”

This is to increase the number of Nigerian businesses online. Mrs Juliet Ehimuan, the Google country manager said on Friday that the initiative was targeted at helping small and medium scale Enterprises create their first website for them to tap from the opportunities offered by a web presence on the internet.

According to her, the initiative will transform the Nigeria SME landscape and contribute to the country’s economic growth by making it quick, easy and free for businesses to register an online presence, at a time when more and more Nigerians are accessing the internet.

She said , “Google believes that the power of the internet will help small businesses in Nigeria to succeed .The number of internet users in Nigeria has increased fourfold since year 2008, and now stands at over 43 million. Having a website means that customers can find local businesses and local information easily and quickly. This year we plan to help thousands of Nigerian SMEs get online, together with our partners”

Mrs Omobola Johnson, the minister of Communication Technology corroborated what the Google boss said “in line with its objectives to build a viable digital economy and sustainable information society in Nigeria ,the ministry of communication Technology supports projects and initiatives that increases the online presence of businesses in Nigeria. Which includes Google’s Getting Nigerian Businesses Online Initiative and its goal of facilitating the online registration of thousands of small and medium scale businesses.”

The GNBO initiative which is aimed at taking thousands of Nigerian businesses online over the next year, giving them web presence and enables businesses to develop a free, easy- to -build, professional website for desktop and mobile computers.

It also offers free sub domain names, free hosting for the life of the website, a free local business listing on Google places with the purchase of a custom domain name as well as 10 free email accounts to match the domain name among others.

The Executive Director, Domestic Bank, Ecobank Nigeria PLC Mr Kingsley Aigbokhaevbo said “ Nigeria’s economy is expanding at a fast pace and the growth of small and medium businesses plays an important part of this.”

INVESTMENT OPPORTUNITIES IN THE TOURISM SECTOR

INVESTMENT OPPORTUNITIES IN THE TOURISM SECTOR

The Federal Government of Nigeria in its determined efforts to develop and promote tourism into an economically viable industry had in 1991 evolved a tourism policy. The main thrust of the policy is to make Nigeria a prominent tourism destination in Africa, generate foreign exchang, encourage even development, promote tourism-based rural enterprises, generate employment, accelerate rural-urban integration and foster socio-cultural unity among the various regions of the country through the promotion of domestic and international tourism.

It also aims at encouraging active private sector participation in tourism development.

The following special investment potentials exist within the country:
- Overland Safaris

- National Parks

- Game and Gorilla viewing

- Deep Sea Recreational Fishing

- Lake and River Fishing

- Archaeological Tours

- Beach Resorts and Hotels

- Transportation-Water, land and sea

- Surfing and snorkeling

- Theme Parks and Exposition Centers

 

JOINT VENTURE & INVESTMENT OPPORTUNITIES IN THE TRANSPORTATION

JOINT VENTURE & INVESTMENT OPPORTUNITIES IN THE TRANSPORTATION

Aviation Sub-Sector
1) Maintaining a Hangar. Existing hangar owned by the airline needs refurbishment and modern equipment;
2) Aircraft Engine Workshop - A workshop that can effect A, B, C, & D checks on various grades of aircrafts used in the Country and in the West African sub-region;
3) Development and management of a five-star hotel in Lagos.
4) Provision of catering equipment and infrastructure to meet the needs of the airline industry;
5) Establishment of a modern aircraft training facility;
6) Development/construction of airport terminals.
Maritime Sub-Sector
1) Liner Services - Foreign Shipping Companies can engage in the provision of Liner Services through joint sailing agreement with Nigerian shipping companies;
2) Cabotage - Government encourages joint ventures in the ownership and operation of light vessels between ports, which must be fully registered in Nigeria;
3) Ship Acquisition and Ship Building Fund/Lifting of Crude Oil and Gas;
4) Pollution Control in the Oil Producing Coastal Regions
5) Search and Rescue - provision of equipment to meet various requirements;
6) Training /Technical Assistance;
7) Tanker Trade - joint venture with Nigerians in the exportation of Nigerian crude oil;
8) Proposed Nigerian Maritime Consultancy Centre - this will cover the following:

a) Marine engineering spare parts supplies;
b) Ships and Port management;
c) Ships, Ports and boat supplies;
d) Seaports, oil terminals and ship communication equipment;
e) Seaports and ships educational material;
f) Combined maritime publications.

Railway
There is need for modernization of the Nigerian Railway System which is still based on the prevailing technology at its inception early in the century, that is the 3" - 6" (1067mm) guage. These include:

1) Conversion of wagon bearings to roller bearings;
2) Conversion of train braking system from vacuum to air;
3) Conversion of AB coupler to more effective system;
4) Modernization of track maintenance;
5) Improvement of ticketing system;
6) Manpower development and training.

Road Transport
Provision of:
1) Modern buses equipped with communication system;
2) Trams to facilitate passenger movement in both rural and urban areas;
3) Suitable haulage trucks for goods and services;
4) Service facilities at the terminals on both the highways and destinations;
5) Collection of tolls for the use of the service facilities provided to help sustain the system;
6) Computerization of services to enhance efficiency and control of operations;
7) Commercialization of terminal facilities;
8) Central terminals in various urban and rural locations in the country with service facilities.

National Inland Waterways
1) Dredging of the River Niger; 2) Rehabilitation of Warri and Lokoja Dockyards, operational vessels, pollution control, etc; 3) Study and Development of River Benue System for all year round navigation; 4) Dredging of Oguta Lake for effective navigation with larger vessels.

Free Port Zones
The establishment of the Onne Free Port Zone makes Nigeria the focal point for the oil and gas industry in West Africa. It provides incentives such as, easy registration in the Nigerian oil and gas market - drilling, construction, pipe coating, ship repair, etc, minimum bureaucracy, free corporate tax, import and export duties exemption for goods within the zone, 100% foreign repatriation of capital and profit, 100% foreign ownership, free pre-shipment inspection for imported goods, free expatriate quota and the possibility to sell products and services in the West African sub-region.

It also offers excellent business opportunities to investors wishing to participate in both planned and existing projects that require huge investment - the Bonny Terminal, Eleme Petrochemical complex (NNPC), fertilizer plant (NAFCON), aluminum smelter plant (ALSCON) and the West African Gas Pipeline (Escravos - Ghana).

Proposed Terminals
1) Bulk Cargo Terminal - major bulk commodities such as coal, sugar, petroleum, grain, ore and bauxite, can be handled here.
2) Onne Self-Run Transit Terminal - this will accommodate a container terminal, a RORO terminal and a center with trans-shipment facilities for the West African sub region and neighboring land-locked countries.
3) Lagos Specialized Trans-Shipment Terminal - this will provide a break away from the usually congested Apapa and Tin Can Island ports, serving both the manufacturing and trading sectors.

Incentives and Strategies for Investment in Solid Minerals

Incentives and Strategies for Investment in Solid Minerals

Investment Incentives:

- 3-5 years Tax Holiday.
- Deferred royalty payments.
- Possible capitalization of expenditure on exploration and surveys.
- Extension of infrastructure such as roads and electricity to mining sites, and provision of 100% foreign ownership of mining concerns.

HOW TO OBTAIN A MINING LEASE IN NIGERIA

There are two options available to a company or an individual to enter into mining industry in Nigeria.

Through the acquisition of an existing mining property from the original owner. Approval must be obtained from the Ministry of Solid Minerals Development for such a purchase.
By obtaining an application, either a Prospecting Right (PR), an Exclusive Prospecting License (EPL), or a Special Exclusive Prospecting License (SEPL), the application should state financial and technical capability qualifying the applicant for entry into the mining sector.

PERMIT REQUIREMENTS DURATION
Entry permits into the mining sector
-Statement of financial capability
-Statement of technical capability
-Proof of statutory existence of company Life
Prospecting Right/License -Certificate of entry into mining
-Prospecting License 1 Year renewals
Alluvial-Max. Of 2
Bassalt-Max. Of 4
Lode-Max. Of 5
Exclusive prospecting Renewals exceeding 20.72)
-Same as above. Duration of 1- 5 Right/License (for areas up Years Depending on Reserves
Mining Lease (gives right to mine specified land area of 80 hectares)
-Possession of a Prospecting Right, Exclusive Prospecting License or Special Exclusive Prospecting License.
-Submission of a plan of the prospecting done, a schedule of the mineral value found and a statement of ore reserves.
-Submission of an environmental impact assessment and production plan. Not exceeding 21 years Renewal depending on remaining reserves
Special mining lease for an area larger than 80 hectares
- Same as above. Metallic minerals not More than 21 years.
More than 21 years.
not exceeding 70 years. Renewals at Minister’s discretion, for not more than 21 years.

Entry into the mining Industry
- Statement of financial capability
- Statement of technical competence
- Proof of statutory existence of company.
- Evidence of tax clearance
- Payment of prescribed fee

Prospecting Right (P.R.) - Certificate of entry into the mining industry.
- Payment of prescribed fee 1 year (Renewable annually)
Exclusive Prospecting (E.P.L.)
(for areas up to, but not exceeding 20.72km2) - Certificate of entry into the mining Industry
- Extant Prospecting Right (P.R.)
- Payment of prescribed fee 1 year renewable for:
Alluvial Deposits- maximum of 2
renewals: Basslt:-
Max. Of 4 renewals Max. Of 5 renewals
Special Exclusive Prospecting License (S.E.P.L.)
(For areas greater than 20. 72km2 & of difficult terrain Mining Lease (M.L.) - Certificate of entry into Mining Industry
- Extant Prospecting Right (P.R.)
- Payment of prescribed fee
- Certificate of entry into mining Industry
- Extant Prospecting Right (P.R.)
- EPL or SEPL
- Prospecting plant of the area showing Ore reserve estimates.
- Payment of prescribed fee. 1-5 Years.
Up to 21 years, renewable depending on remaining on reserve
Special Mining Lease (SML)
(for areas greater than that of ML. With difficult terrain and large capital out-lay). - Certificate of entry into mining Industry.
- Extant prospecting Right (PR)
- EPL and SEPL
- Prospecting plan of the area showing on reserve estimates
- Payment of prescribed fee. Up to 21 years renewable depending on the remaining on reserve.

INVESTMENT OPPORTUNITIES IN TELECOMMUNICATIONS INDUSTRY

INVESTMENT OPPORTUNITIES IN TELECOMMUNICATIONS INDUSTRY

The deregulation of the telecommunications sector in 1992 through Decree 75 was to allow for private sector participation in the sector and expand the nation’s communication facilities. The Nigeria Communications Commission (NCC) was established consequently to regulate the performance of the sector. The liberalization thrust was further strengthened by the Nigeria Communications Commission (Amendment) Decree No. 30 of 1998 which deleted those provisions in the first decree that inhibited competition in the sector thus enhancing the expected role of private sector enterprises.

The functions of Nigerian Communications Commission include:

* Regulating the privatized sector of the telecommunications industry.
* Facilitating entry into the telecommunications market by private entrepreneurs.
* Creating a regulatory environment for the supply of telecommunications equipment and facilities.
* Issuing of telecommunications licenses.
* Promoting fair competition and efficient market conduct among all players in the telecommunications industry.
* Arbitrating disputes between participants in the telecommunications industry and protecting consumers against unfair practices.
LOCAL MANUFACTURE OF EQUIPMENT
The telecommunications industry in Nigeria is far from being developed. There is a dearth infrastructural facilities and this has placed a constraint on the provision of services to existing and potential customers. There is therefore an urgent need to expand the infrastructures in this sector if it is to effectively play its role in the economic, social, political, cultural and in fact overall development of the Nigerian society and properly integrate it into the international community. Such desired expansion can not be achieved under the present dispensation where the needed equipment are usually imported with attendant problems of foreign exchange procurement, freighting cost, long delivery period etc. There is therefore no other realistic option than the local manufacture of these equipment and spares.

SWITCHING AND TRANSMISSION EQUIPMENT
Local manufacture of switching and transmission equipment is required since no single company exists in Nigeria or even neighboring countries for this purpose. Hence any company that goes into the venture will have its market beyond the frontiers of Nigeria.

1. CABLES
In Nigeria, there are three companies engaged in the production of telecommunication cables using imported copper and other local resources like poly vinyl chloride materials for insulation. There is no company that is currently producing fiber optic cables in the country.

The copper cable producing companies are producing only low pair capacity of 50, 100, 200 pairs. There is need for a plant that will produce high pair capacity cables that will enhance massive provision of lines to the teaming population.

2. FACILITIES AND SERVICES PROVISION
With Nigeria’s population that is over 140 million people, an installed telephone capacity has grown from 500,000 in 2001 to more than 35M in 2007. Nigeria is one of the fastest growing telecoms market in the world. The number is poised to double in the coming years. More than 98 percent of this growth is in the mobile telecoms sector. Fixed land lines have not experienced much significant growth.

Hence, the sector is still a virgin land for investors wishing to provide and operate private network links employing cable, radio communications, data services, INTERNET Business and Satellite communication, Payphone services and Cellular radio phone services.

OPPORTUNITIES FOR INVESTMENT IN THE SOLID MINERALS SECTOR

Nigeria is endowed with numerous mineral resources. Recent policy reforms have brought the solid minerals sector to the fore. The emphasis is on encouraging massive foreign investors’ participation in this sector.

PROFILE OF SOLID MINERALS DEPOSITS IN NIGERIA

TALC
An estimated reserve of over 100 million tones of talc has been obtained in Niger, Osun, Kogi, Kwara, Ogun, Taraba and Kaduna States. There are only two medium size talc processing plants currently operating in Nigeria and both are located in Niger State. The color of the Nigerian talc varies from white through milky-white to gray. The talc industry represents one of the most versatile sectors of the industrial minerals of the world. The exploitation of the vast talc deposits in Nigeria would therefore satisfy not only local demands but also that of the international markets as well.
IRON ORE
There are over 3 billion tones of iron ore found in kogi, Enugu, Niger, Zamfara and Kaduna States. Iron is currently being mined at Itakpe (Kogi State), which is more or less at the center of the region of crystalline iron deposits. The large deposit of oolitic iron ores of Kogi and Enugu States are yet to be fully explored. Itakpe iron ore is being beneficiated to 67% Fe. To feed Aladja and Ajaokuta Steel complexes. Besides there are three in-land rolling mills at Oshogbo, Jos and Katsina in addition to some privately owned rolling mills in Lagos and Kano.

GOLD
There are proven reserves of both alluvial and primary deposits of gold with proven reserves in the shiest belt covering the western half of Nigeria. At present exploitation of alluvial deposits is being carried out mostly by artisan miners in a few places in the country. A number of primary deposits, which are sufficiently big for large scale mechanized mining, have been identified in the northwest and southwest parts of the county. Private investors are invited to stake concessions on these primary deposits. It is interesting to note that the primary deposits are of relatively high grade and at shallow depth. Production costs will easily be as low as about $50 per ounce.

BITUMEN
The occurrence of Bitumen deposits in Nigeria is indicated at about 42 billion tones almost as twice the amount of existing reserves of crude petroleum. When fully developed, the industry will no doubt meet local requirements for road construction and also become a foreign exchange earner for the country.

ROCK SALT
The national demand for table salt, caustic soda, chlorine, sodium bicarbonate, sodium hypochloric acid and hydrogen peroxide exceeds one million tones. A colossal amount of money is expended annually to import these chemicals by various companies including tanneries, food beverages, paper and pulp, bottling and other industries including the oil companies. There are salt springs at Awe (Plateau State), Abakaliki (Enugu State) and Uburu (Imo State), while rock salt is available in Benue State. A total reserve of 1.5 billion tones has been indicated, and further investigations are now being carried out by government to ascertain the quantum of reserves.
OPPORTUNITIES FOR INVESTMENT IN THE SOLID MINERALS SECTOR - continued

GYPSUM
Gypsum is an important input for the production of cement. It is used for the production of Plaster of Paris (P.O.P) and classroom chalk, etc. A strategy for large-scale mining of gypsum used in the cement industries is urgently required to sustain existing plants and meet future expansion. Current cement production is put at 8 million tones per annum while the national requirement is 9.6 million tones. About one billion tones of gypsum deposits are spread over many states in Nigeria.

LEAD/ZINC
An estimated 10 million tons of lead/zinc veins are spread over eight States in Nigeria. Joint venture partners are encouraged to develop and exploit the various lead/zinc deposits all over the country.

BENTONITE AND BARYTE
These are the main constituents of the mud used in the drilling of all types of oil wells. The Nigerian baryte had specific gravity of about 4.3. Over 7.5 million tons of baryte have been identified in Taraba and Bauchi States. Large bentonite reserves of 700 million tonnes are available in many states of the Federation ready for massive development and exploitation.
COAL
Nigerian Coal is one the most bituminous in the world owing to its low sulfur and ash content and therefore the most environment friendly. There are nearly 3.00 billion tonnes of indicated reserves in 17 identified coalfields and over 600 million tonnes of proven reserves.

GEMSTONES
Gemstone mining has boomed in various parts of Plateau, Kaduna and Bauchi States for years. Some of these gemstones include Sapphire, Ruby, Aquamarine, Emerald, Tourmaline, Topaz, Garnet, Amethyst, Zircon and Flourspar which are among the world’s best. Good prospects exists in this area for viable investments.

KAOLIN
An estimated reserve of 3 billion tonnes of good kaolinitic clays has been identified.

TANTALITE
Large deposits of Tantalite are known to occur in Nasarawa, Gombe and Kogi tates as well as the Federal Capital Territory. The deposits ar both alluvial and primary in the numerous pegmatite bodies that infest these ares. Grades of well over 50% Ta2O5 are found. Private investors are invited to stake concessions for the development and exploitation of tantalite in these areas.

Pelletisation of Coal for Domestic Use
Given the large deposits of brown coal in the tertiary sediments east and west of River Niger; Nigeria can cash in on foreign investors’ technology to produce coal pellets for industrial use, coal briquettes for domestic use; that is, to replace firewood.

INVESTMENT OPPORTUNITIES IN THE POWER, STEEL AND ALUMINIUM SECTORS.

INVESTMENT OPPORTUNITIES IN THE POWER, STEEL AND ALUMINIUM SECTORS.

POWER SECTOR:
Government has concluded plans towards revitalization of installations of the Power Holding Company of Nigeria (PHCN, forerly NEPA)to enable it meet its total installed capacity of 10,000MW by December 2007. Sufficient funds are being injected for the rehabilitation of ageing plants and equipment. In order to allow full private sector participation in power generation, transmission and distribution, government has accepted to deregulate the sector by the year 2000. This will allow local and foreign investors to build, own and operate and/or transfer independent electricity. All laws that inhibit private sector participation in the power sector are being reviewed with a view to amending them and encouraging investment. This step will complement the de-consolidation of the industry as far as the state-owned PHCN is concerned. The hitherto largely over-centralized operations of this agency will be decentralized.

Guidelines and framework for Independent Power Products (IPP’s) are now being put together following the interests and applications already put forward by independent producers from all around the world.

Investment Opportunities exist for hydro-power generation in Mambilla Fall, Adamawa State and Agbokin fall in Cross-River State. PHCN will readily negotiate a Memorandum of Understanding (MOU) with any foreign energy company to cover the following areas:
i) Development of energy resources and infrastructures,
(ii) Management of energy infrastructure;
(iii) Commercialization of energy
(iv) Training; and
(v) Exchange of information and experience.

It is expected that further discussions will centre on:

(i) Construction and management of power stations by private companies;
(ii) Production of Steam and gas turbine spare parts;
(iii) Repairs and testing of power transformers;

(iv) Development of wind turbines for generation of electricity;
(v) Manufacture of distribution transformers and line hardware;
(vi) Technology transfer through joint erection of new power plants;
(vii) Training of PHCN staff in computer based maintenance system etc.

PHCN and the foreign company will then set up a joint committee for the purpose of achieving these objectives.

THE STEEL SECTOR:
The Federal Government, through the BPE has already divested Government holdings in Delta Steel, Aladja, Ajaokuta Steel, Ajaokuta and the inland steel rolling mills.

With a large percentage of annual domestic consumption of steel products fed by imports, the sector is wide open for new investors t build new steel plants with captive power plants to satisfy their energy needs. Steel products from Nigerian plants also have an open market in the West Africa through the ECOWAS trade protocols

THE ALUMINIUM SECTOR:
Government holdings in the Aluminum Smelter Company of Nigeria, ALSCON, Ikot Abasi has been divested. Output from the plant does not meet domestic current domestic market and there are open markets in the West Africa trade zone.

OPPORTUNITIES IN THE OIL AND GAS SECTOR

OPPORTUNITIES IN THE OIL AND GAS SECTOR

Foreign and domestic investors are being encouraged through improved fiscal incentives in the Nigeria oil and gas sector. In the Upstream and Downstream sectors, the following are some of the areas where there are pressing needs for investors.

(A) UPSTREAM ACTIVITIES

(i) Petroleum Exploration and Exploitation.

(ii) Search for development of local substitute for such items as Medium pressure valve, pumps, shallow drilling equipment, Drilling mud, bits fittings, drilling cements etc.

(iii) Manufacturing of consumable materials in exploration such as explosives, detonators, steel castings, magnetic tapes etc.

(iv) Other areas in the services sector of the upstream are:

1. Construction and Installation
2. Maintenance
3. Pipelines
4. Well Services and
5. Transportation Support Services. 
B) DOWNSTREAM ACTIVITIES:

(i) Domestic Production and marketing of Liquefied Petroleum Gas (LPG)

(ii) Manufacturing of LPG cylinders, valves and regulators, installation of filing plants, Retail distribution and development of simple, flexible and much less expensive gas burner to encourage the use of gas instead of wood and other fuels.

(iii) Establishment of processing plants and industries for:

- The production of refined mineral oil, petroleum jelly and grease.

- The manufacture of bituminous based water/damp-proof building materials such as roofing sheets, floor tiles, rubber products, tarpaulin. Building of asphalt storage, packaging and blending plants to handle the product for export.

(iv) Establishment of chemical industries such as distillation units for the production of naphtha and other special boiling point solvents used in plant and other food processing industries.

(v) Establishment of industries for processing Linear Alkyl Benzene, Carbon Black and Polypropylene.

(vi) Development of Phase II (Phase III to join later) of Nigeria’s Petrochemical Programmed.

(vii) Participation in all phases of the Nigeria Gas Industry development programmed from exploration, gathering, production and processing to transmission.

(viii) Establishment of small scale industries to produce chemicals and Solvents, for example Chlorinated methane, Formaldehyde, Acetylene, etc., from natural gas
(B) DOWNSTREAM ACTIVITIES: -
(ix) Refining: One condition for purchasing Nigerian Crude Oil is the ownership of an efficient refinery. The shelter which the domestic petroleum products market enjoys, almost completely seals the prospects and viability of privately financed refinery for locally consumed petroleum products. However, opportunities exist for the construction of a refinery in bonded premises with adequate export facilities for dedication to the export market. Companies with the technological know-how can undertake turn-around maintenance of refineries. Refineries consume a lot of chemicals and utilize a broad range of spare parts. There is tremendous scope for small scale joint venture manufacturing concerns with foreign technical partners. Such ventures can start warehousing arrangements that will ensure continuity of supply at competitive prices. Other investment opportunities contingent upon refining and ancillary activities are the manufacture of special products such as:

- Industrial and food grade solvents
- Insecticides
- Cosmetics
- Mineral Oil, petroleum jelly grease
- Bituminous-based water/damp-proof building materials such as floor tiles, rubber products, tarpaulin, etc., and
- Asphalt storage, packaging and blending plants to handle products for export and local use. Export of refined products surplus also exists as an opportunity in refining.


(x) Products Marketing: Petroleum Product Marketing would seem sealed with hardly any opportunity except by way of establishing an independent marketing outfit or aspiring to establish dealership with the marketers.

While indeed those opportunities remain viable, far more challenging opportunities may be explored in the areas of product transportation, by road and coastal tankers.

Associated with products distribution and marketing is a chain of manufacturing and maintenance business such as lubricating oil reprocessing, LPG bottles and accessories, oil cans reconditioning, etc.

The nation’s pipeline and depot network consists of 3,001km of pipeline of varying sizes as well as sixteen (16) storage depots. These pipelines and networks traverse the length and breathe of the country. The system therefore must be maintained in a healthy state for effective and efficient distribution of products.

OPPORTUNITIES IN THE OIL AND GAS SECTOR

Foreign and domestic investors are being encouraged through improved fiscal incentives in the Nigeria oil and gas sector. In the Upstream and Downstream sectors, the following are some of the areas where there are pressing needs for investors.

(A) UPSTREAM ACTIVITIES

(i) Petroleum Exploration and Exploitation.

(ii) Search for development of local substitute for such items as Medium pressure valve, pumps, shallow drilling equipment, Drilling mud, bits fittings, drilling cements etc.

(iii) Manufacturing of consumable materials in exploration such as explosives, detonators, steel castings, magnetic tapes etc.

(iv) Other areas in the services sector of the upstream are:

1. Construction and Installation
2. Maintenance
3. Pipelines
4. Well Services and
5. Transportation Support Services. 
(B) DOWNSTREAM ACTIVITIES:

(i) Domestic Production and marketing of Liquefied Petroleum Gas (LPG)

(ii) Manufacturing of LPG cylinders, valves and regulators, installation of filing plants, Retail distribution and development of simple, flexible and much less expensive gas burner to encourage the use of gas instead of wood and other fuels.

(iii) Establishment of processing plants and industries for:

- The production of refined mineral oil, petroleum jelly and grease.

- The manufacture of bituminous based water/damp-proof building materials such as roofing sheets, floor tiles, rubber products, tarpaulin. Building of asphalt storage, packaging and blending plants to handle the product for export.

(iv) Establishment of chemical industries such as distillation units for the production of naphtha and other special boiling point solvents used in plant and other food processing industries.

(v) Establishment of industries for processing Linear Alkyl Benzene, Carbon Black and Polypropylene.

(vi) Development of Phase II (Phase III to join later) of Nigeria’s Petrochemical Programmed.

(vii) Participation in all phases of the Nigeria Gas Industry development programmed from exploration, gathering, production and processing to transmission.

(viii) Establishment of small scale industries to produce chemicals and Solvents, for example Chlorinated methane, Formaldehyde, Acetylene, etc., from natural gas.
(B) DOWNSTREAM ACTIVITIES: -

(ix) Refining: One condition for purchasing Nigerian Crude Oil is the ownership of an efficient refinery. The shelter which the domestic petroleum products market enjoys, almost completely seals the prospects and viability of privately financed refinery for locally consumed petroleum products. However, opportunities exist for the construction of a refinery in bonded premises with adequate export facilities for dedication to the export market. Companies with the technological know-how can undertake turn-around maintenance of refineries. Refineries consume a lot of chemicals and utilize a broad range of spare parts. There is tremendous scope for small scale joint venture manufacturing concerns with foreign technical partners. Such ventures can start warehousing arrangements that will ensure continuity of supply at competitive prices. Other investment opportunities contingent upon refining and ancillary activities are the manufacture of special products such as:

- Industrial and food grade solvents
- Insecticides
- Cosmetics
- Mineral Oil, petroleum jelly grease
- Bituminous-based water/damp-proof building materials such as floor tiles, rubber products, tarpaulin, etc., and
- Asphalt storage, packaging and blending plants to handle products for export and local use. Export of refined products surplus also exists as an opportunity in refining.


(x) Products Marketing: Petroleum Product Marketing would seem sealed with hardly any opportunity except by way of establishing an independent marketing outfit or aspiring to establish dealership with the marketers.

While indeed those opportunities remain viable, far more challenging opportunities may be explored in the areas of product transportation, by road and coastal tankers.

Associated with products distribution and marketing is a chain of manufacturing and maintenance business such as lubricating oil reprocessing, LPG bottles and accessories, oil cans reconditioning, etc.

The nation’s pipeline and depot network consists of 3,001km of pipeline of varying sizes as well as sixteen (16) storage depots. These pipelines and networks traverse the length and breathe of the country. The system therefore must be maintained in a healthy state for effective and efficient distribution of products.

Investment Opportunities in Agricultural Sector

INVESTMENT OPPORTUNITIES IN AGRICULTURE

The agricultural potential of Nigeria is barely being tapped and this explains the inability of the country to meet the ever increasing demand for agricultural produce. Although the agricultural sector remains a dominant employer of labour, serious investment is needed across the board to enhance production and increase the contribution of the sector to GDP. Investment is required in the following priority activities:

(a) Crop production to achieve food security and to provide industrial raw materials. Potentials exist for the following crops:

Cereals: Maize, rice, sorghum, corn, millet, wheat.

Root crops: Cassava, yam, ginger, potato, cocFruits: Mango, banana, oranges, guava, papaw, pineapple.

Vegetables: Cabbage, green pepper, carrots, lettuce, spice, onions, melons.

Tree crops: Oil palm, cocoa, rubber, coconut, kola nut, coffee, she nuts, beniseed, cotton, cashew nut, sugar cane.

Others:
Commercial growing of flowers and ornamentals and experimental orchards for more temperate fruits-apples, grape vines and pears have been successfully established in the high plateau regions.

(b) Food processing and preservation involving industries that will use agricultural produce as raw materials.

(c) Livestock and Fisheries production which possess great potentials for development. Grazing lands are abundant, facilities for animal feed production are plentiful, and the in-land rivers, lakes and coastal creeks are sufficient to augment ocean fishery resources.


(d) Agricultural inputs supplies and machinery, water resources development especially for flood control infrastructure and irrigation.

(e) Commodity trading and transportation.

(f) Development and fabrication of appropriate small-scale mechanized technologies for on-farm processing and secondary processing of agricultural produce.

(g) Exploitation of timber and wood processing activities. A wide range of wood resources abound.


AVERAGE ANNUAL (1990-1998) OUTPUT OF MAJOR AGRICULTURAL COMMODITIES
CROP PRODUCTION (‘000 TONES)
A. Cereals
Maize 5954
Millet 5134
Millet 3048
Wheat 205
Sorghum 7096

B. Grain legumes or Pulses
Cowpea 1644
Soybean 248

C. Root Tubers
Yams 21100
Cassava 214
Coco yam 1589
Irish potato 85
Sweet potato 812

D. In Industrial Crops
Cotton 287
Groundnut 1716
Cocoa 288
Coffee 346
Sugar Cane 755
Palm kernel 742
She nut 265
Rubber 170
Ginger 49
Benniseed 58
Palm Oil 784
Coconut 141

These are widely used in food and beverage sub-sectors like flour mills, breweries, chemical, pharmaceuticals, pulp and paper, wood products and industrial starch.o yam.

Legumes: Soya beans, groundnuts, cowpeas.