NIGERIA Invest in 2012-13 - Newsdesk Media

Invest in 

NIGERIA 2012-13 

Published in partnership with the 

Nigeria High Commission, London

Investing in the global community 

By providing advanced telecommunications 

services across Nigeria

Mubadala is an investment and development 

company that is deploying capital in those 

sectors and geographies that hold exciting 

potential, and promise tangible returns for 

partners and stakeholders. 

Launched in 2008, Etisalat Nigeria, our joint 

venture with Etisalat, is now the fourth largest 

mobile operator in the country and the fastest 

growing. 

Since making the first official call on its network, 

the company has expanded its operations to 

provide mobile and data services to over twelve 

million people. 

For more information on this and other 

projects, please visit mubadala.com

A business completely focused on agriculture 

As a pure-play agricultural solutions provider, AGCO aims to 

promote sustainable growth through superior customer service, 

innovation, quality and commitment. AGCO has developed a 

focused African strategy to ensure these commitments deliver 

real benefi ts to the continent. 

©AGCO Corporation. 2012 

www.agcocorp.com

Invest in 

NIGERIA 2012-13 

Editor Lawrie Holmes 

Editor-in-chief Barry Davies 

Sub-editors Emily Eastman, Laura Pledger 

Art director Jean-Philippe Stanway 

Art editor James White 

Production and distribution manager Malcolm Green 

Editorial production assistant Elizabeth Heuchan 

Sales director Martin Cousens 

Sales executives Dalila Benabdallah, Melanie Vaughan 

Managing director Andrew Howard 

Chief executive Alan Spence 

Chairman Paul Duffen 

Pictures: Alamy, Corbis, Demotix, Getty, iStockphoto, Press Association, 

Rex Features, Shutterstock 

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Invest In nIGeRIA 2012-13 

5

Achievements and activities of NEXIM Bank, 

geared to the current transformation agenda 

Mr Roberts U Orya 

Managing Director/Chief Executive Officer 

NEXIM Bank 

Introduction 

The Nigerian Export-Import Bank 

(NEXIM) was established by Act 38 of 1991 

as an Export Credit Agency (ECA) to diversify 

the external sector of the Nigerian economy. 

It currently has authorised and called-up share 

capital of naira (N)50 billion ($306 million), 

held equally by the Federal Ministry of 

Finance, represented by the Ministry of Finance 

Incorporated (MOFI), and the Central Bank 

of Nigeria (CBN). 

Functions 

• Provision of export credit guarantee and 

export credit insurance facilities to its clients; 

• Provision of credit in local and foreign 

currencies to its clients in support of exports; 

• Establishment and management of funds 

connected with exports; 

• Maintenance of a foreign exchange 

revolving fund for lending to exporters who 

need to import foreign inputs to facilitate 

export production; 

• Maintenance of a trade and market 

information system in support of 

export businesses. 

Activities/initiatives undertaken 

Sourcing / Facilitating Investment Capital 

• US$20 million commercial line of 

credit from EXIM India 

The bank secured a US$20 million 

commercial line of credit from the Export 

Import Bank of India (EXIM India), 

following the signing of an agreement 

with EXIM, India in November 2011. The 

US$20 million line from EXIM India is an 

enhancement of a US$5 million LOC, which 

was granted to NEXIM in 2007. 

• Collaboration with the Export-Import 

Bank of the United States 

The bank continued its collaborative 

arrangement with the Export-Import Bank 

of the United States, through which lines of 

credit will be made available to Nigerian 

The bank’s achievements under the current 

managing director include: 

Corporate Transformation 

In 2010, the Bank commenced a transformation 

programme with a five-year strategic plan, 

which has the following strategic objectives: 

• Having a clear market focus and becoming 

a major contributor to non-oil exports; 

• Building a world-class institution that 

absorbs best-in-class corporate governance 

and risk management practices; 

• Becoming a relevant player in the export 

market and significantly influencing 

government trade policies; 

• Building a profitable institution with 

robust balance-sheet size; 

• Building a highly skilled and 

motivated workforce. 

One of the major highlights of the corporate 

transformation is the redefinition of the 

target sectors to be promoted by NEXIM 

to include the high-growth sectors, namely 

manufacturing, agriculture, solid minerals and 

services, all of which come under our MASS 

Agenda. We have also redefined our target 

markets, with a greater emphasis now placed 

on encouraging and developing exports to the 

regional market of ECOWAS, while not losing 

sight of other markets in the rest of Africa, 

• 

• 

exporters wishing to import inputs from the 

United States. The US EXIM line, when 

made available, would be non-funded 

and transaction specific, which will help 

to boost the bank’s activities under the 

Foreign Input Facility. 

US$50 million Afrexim Line of Credit 

The bank continued to manage the US$50 

million AFREXIM commercial line of 

credit, which was availed by leveraging on 

the bank’s balance sheet to provide funding 

support to three projects in the cumulative 

sum of US$38 million, with US$ 16million 

currently outstanding as contingent liability 

to the bank as at year end 2010. 

US$200 million African Development Bank 

(ADB) Sovereign Guaranteed Loan 

The bank concluded arrangements / 

negotiations with the ADB towards securing 

Asia and other developed regions. The current 

market focus is aimed at deepening trade in 

the ECOWAS region in line with the ECOWAS 

protocols. Other aspects of the transformation 

were the establishment of new corporate 

governance and risk-management structures, 

as well as the Rebranding and Information 

Technology Upgrade. 

The bank recorded an increase in 

operating profit, which rose by 217 per cent 

to N599.63 million ($3.7 million) from the 

N189.39 million ($1.2 million) that was realised 

in the period ended 31 December 2010. The 

total funding support to the non-oil export 

sector under the bank’s various facilities 

during the period amounted to N8.54 billion 

($52.3 million), comprising of N6.26 billion 

($38.4 million) and US$15.03 million. This 

represented an increase of N1.66 billion 

($10.2 million) or 19.44 per cent compared 

with the equivalent period in 2010. The 

bank’s intervention covered various sectors, 

which include manufacturing (61 per cent), 

agriculture (14 per cent), solid minerals 

(14 per cent) and services (11 per cent). 

The developmental impact of NEXIM’s 

intervention through loans disbursed during the 

year was expected to create/sustain over 5,575 

direct jobs and generate/sustain foreign exchange 

earnings of about US$178.60 million annually. 

a US$200 million Sovereign Guarantee 

Loan, with US$50 million to be disbursed 

as first tranche. The loan is expected to 

facilitate funding intervention to SMEs 

in sectors of the economy including the 

creative arts / entertainment industry. 

Intervention in the Entertainment Industry 

The Nigerian entertainment and creative 

industry has high growth potentials in terms of 

job creation and foreign-exchange generation 

opportunities, and falls under the bank’s mandate 

of promoting the export of services. In this 

regard, in line with the company’s strategic 

focus and Mr President’s policy initiatives 

towards the creative arts and entertainment 

industry, NEXIM played a leading role in 

facilitating structured funding intervention 

and capacity-building to the industry in 2011.

Trade Facilitation/Development Initiatives 

ECOWAS Trade Support Facility (ETSF) 

In line with the bank’s strategic initiatives 

of enhancing intra-regional trade, the bank 

introduced the ECOWAS Trade Support 

Facility (ETSF), designed to achieve the 

following developmental objectives: 

• Facilitating formal/recorded trade within 

the ECOWAS sub-region; 

• Deepening intra-regional payment system; 

• Increasing Nigeria’s trade flows within 

ECOWAS from the current level of 

8.5 per cent of total non-oil exports; 

• Broadening trade and market access for 

Nigerian goods and services, especially 

manufactured goods; 

• Promoting the development of SMEs/ 

Small and Petty cross-border traders and 

facilitating their integration into the formal 

sector of the economy. 

A seed fund of N500 million ($3.1 million) 

was set aside in 2011, of which N155 million 

($950,395) was disbursed to two beneficiary 

projects, which have cumulatively exported 

over 200 tonnes of manufactured goods valued 

at US$1,032,500 as at 31 December 2011. 

The Regional Sealink Project 

The Regional Sealink Project was conceived 

in response to the huge gap that had existed 

as a result of the absence of a regional marine 

transport to facilitate trade in the ECOWAS 

region. This challenge has made it difficult to 

transport large volumes of goods, particularly 

perishable commodities, within the region in a 

cost-effective and timely manner. 

The Sealink initiative has been conceived 

as a private-sector project, culminating in the 

establishment of a regional maritime company 

to be owned and funded by private investors. 

The key objective is to enhance trade flows 

from Nigeria to ECOWAS and the entire African 

region from the respective current levels of 

11 per cent and 8.5 per cent, create employment 

and enhance the contribution of the non-oil 

sector to Nigeria’s foreign-exchange earnings. 

Other objectives include mitigation of nontariff 

barriers and infrastructural deficiencies so 

as to unleash the intra-regional trade potentials 

as evidenced by ECOWAS intra-regional cargo 

haulage, which has grown from 4.7 million 

tonnes to 13.4 million tonnes in the last decade 

without corresponding improvement in basic 

road/rail and logistics infrastructure. 

Advertisement 

Activities in 2012 

NEXIM has continued to make significant 

progress on its development projects in 2012. 

Its intervention in the entertainment industry 

led to the flag-off of the production of the 

Doctor Bello movie announced during a world 

press conference in April 2012. The bank 

has projected to disburse about N32 billion 

($196.2 million) during the year in support of 

non-oil export, which will lead to 24,000 jobs 

being created/sustained and foreign-exchange 

generation of about $230 million annually. 

NEXIM HOUSE 

Plot 975, Cadastral Zone A0, 

Central Business District, Abuja 

E-mail: neximabj@neximbank.com.ng 

Phone: +234 9 460 3642 - 45 

www.neximbank.com.ng

NIGERIA�ELECTRICITY�LIABILITY�MANAGEMENT�LTD/GTE 

FEDERAL GOVERNMENT�OF�NIGERIA POWER�SECTOR�REFORM 

Pursuant to the implementation of the provisions of the Electricity Power Sector Reform Act, 2005, (EPSR), 

the�National�Council�for�Privatisation�in�pursuant�to�Section�8�of�the�Electric�Power�Sector�Reform Act,�incorporated 

the Nigeria Electricity Liability Management Ltd/gte (NELMCO) as a company limited by guarantee of the Federal 

Government of Nigeria with registration number RC 664658. NELMCO is one of the companies created from the 

unbundling�of�the�Power�Holding�Company�of�Nigeria�(PHCN) 

MANDATE 

To�assume�and�administer�the�stranded�debts�and�non-core�assets�of�PHCN 

pursuant�to�the�provisions�of�EPSR�Act�2005. 

To�assume�and�manage�Pension�liabilities�of�employees�of�PHCN. 

To�hold�the�non-core�assets�of�PHCN,�sell�or�dispose�of�or�deal�in�any�manner 

for�the�purpose�of�financing�the�payment�of�debts�or�other�related�matters. 

To�take�over�the�settlement�of�PHCN's�Power�Purchase�Agreement�(PPA)�debts 

obligations,�legacy,�debts�and�other�liabilities��as�may�be�determined�by�the 

National�Council�on�Privatisation�from�time�to�time. 

To�sell,�let,�mortgage,�dispose�of,�deal�in�any�of�the�property�or�non-core�assets�of 

the�company�as�may�be�expedient�with�a�view�to�promoting�its�objects. 

To�do�all�such�other�things�as�are�incidental�or�may�be�thought conducive�to�the 

attainment�of�the�above�objects�or�any�of�them. 

STATUS 

In�August�2010,�the�Federal�Government�of�Nigeria�through�its�Government�Notice 

th 

No.�374�issued�its�Official�Gazette�No.85�Vol.97�dated�20 August2010�containing 

the�details�of�the�transfer�of�Assets,�Liabilities,�and�Staff�etc�to�NELMCO. 

rd 

On�23 October,�2011,�the�Shareholders�of�PHCN,�that�is,�the�BPE�and�MOFI�executed 

the�Transfer�Instrument�that�formally�transferred�all�PHCN�Non-Core�Assets,�Liabilities 

and�relevant�Staff�to�NELMCO. 

NELMCO�commenced�start�up�activities�in�January,�2010�and�is�now�fully�operational. 

Nelmco’s�Functions 

Liability�Management 

Debt�&�Liability�Management 

Assets�Management 

Pension Management 

Superannuation�Fund�Mgt. 

Consultancy�&�Procurement 

Corporate�Services 

Budgets 

Finance�& Accounts 

Procurement 

HR 

Administration 

PENSION 

Plot�1359B, Alfayyun�Street,�Wuse�Zone�3, Abuja,�P.�M.�B.�136,�Garki Abuja, 

Tel�:+234�7098513425,�+234�7098513426,��E-mail:�info@nelmcong.org 

website:�www.nelmcong.org 

Dr.�Sam Agbogun 

MD/CE�NELMCO 

Vision 

To�be�a 

world-class 

manager�of�liabilities 

and�stranded Assets�in 

a�transitional 

electricity�market 

Mission 

To�ensure 

sanctity�of�contracts 

and�settlement�of 

pension�and 

third�party 

liabilities 

Core�Values 

Honesty, 

Integrity, Accountability, 

and 

Transparency 

TMT

Contents 

Forewords 

16 

21 

The Policy Agenda 

24 

Goodluck Ebele Jonathan 

President of Nigeria 

Dalhatu Sarki Tafida 

Nigeria High Commissioner to the 

United Kingdom 

Realising Nigeria’s 

investment potential 

Nigeria has become one of the world’s 

fastest-growing economies and has good 

investment potential across all sectors 

32 

38 

41 

Democracy and reform: 

looking to the future 

Nigeria’s progress and annual growth is 

encouraging. This article takes a look at how 

this progress can be sustained in the long-term 

Working to achieve the Millennium 

Development Goals 

Despite strong efforts towards meeting the 

MDGs, Nigeria’s oil wealth could prove an 

obtacle to the country’s development 

Progress in governance reform 

Legislation is in place to tackle corruption and 

raise accountability to improve democracy, 

transparency, justice and development 


9

ADVERTISEMENT 

How Airtel is setting the pace in Nigeria 

Bharti Airtel has brought a breath of 

fresh air to the market since it took over 

the reins in Nigeria 18 months ago, promising 

to take the country’s telecoms industry to a 

higher level. � e network has demonstrated 

uncommon commitment to subscribers, with 

exciting o� erings that have since rede� ned 

the scheme of things in the market and 

consistent tari� reductions that truly empower 

subscribers to talk more than ever before. 

With rapid growth of over 20 per cent in its 

market share in less than 19 months, Airtel is 

building a concrete foundation as it increases 

its investments to over $700 million within the 

� rst year of operation. 

A bouquet of exciting o� ers 

and human kindness 

True to its brand promise and aspiration, 

Airtel has ensured that mobile users enjoy 

very a� ordable call rates. Its pioneering 

approach to price cuts has meant that it has 

continually been � rst to implement a series 

of sometimes unsettling, surprise price cuts 

across all networks. Airtel’s goal is to meet 

every individual’s communication needs and to 

give each member of society across Nigeria the 

opportunity to enjoy telecoms services. 

Airtel changed the face of marketing, 

pricing and tari� structure in the Nigerian 

telecoms sector when it announced the launch 

of 2Good. � is was on 1 December 2010, 

barely two weeks a� er the launch of the Airtel 

brand in Nigeria. � e 2Good o� er, in the 

Airtel’s goal is to meet 

every individual’s 

communication needs 

and give everyone the 

opportunity to enjoy 

telecoms services 

words of many telecoms pundits, was not just 

revolutionary in design and bene� ts but created 

a real stir as it shook the very foundations of 

the country’s telecommunications landscape. 

� e company followed the launch of 2Good 

with 2Good Extra, which extended 2Good 

bene� ts to post-paid customers. In a short 

period, Airtel delighted Nigerians with 

several o� erings such as Big Family, Big 

Family Extra, 2SIMS, Easy Recharge (Wazobia 

Recharge), My Airtel My O� er, SPOC packages 

for SMEs and post-paid customers and Club 10, 

among several others. 

Airtel’s business operation in Nigeria has 

also had a recognisable human face throughout 

its one year of operation. With its Corporate 

Social Responsibility strategy and focus on 

education, the company has demonstrated 

uncommon commitment to its CSR vision. 

Within three months, Airtel built, furnished 

and handed over a multi-million naira sixblock 

classroom - Oremeji Primary School 2, 

in Tolu Complex, Ajegunle - as part of its 

adopt-a-school project. � e facility came 

complete with blackboards, desks and chairs, 

uniforms and textbooks for all the pupils. 

Awards and recognition 

Since 2003, when awards � rst started in the 

telecommunications sector, the company has 

consistently taken home the Best Customer 

Care Operator of the Year awards - to the 

admiration of her loyal consumers and partners. 

Conclusion 

� e Airtel story is synonymous with the story 

of telecommunications in Nigeria. It has 

been quite revolutionary on all fronts. Airtel 

has maintained its � agship status of being 

the � rst in virtually all key elements in the 

market, driving prices to an exciting all-time 

low, while providing extremely innovative 

o� erings to consumers. 

Head O� ce: Airtel Networks Limited 

Plot L2, Banana Island, 

Ikoyi, Lagos 

Tel: +234(0)8221901500 – 3 

www.ng.airtel.com

44 

Promoting free and fair elections 

Institutions across the country are delivering 

change, with reform of the democratic process 

at the forefront of development agendas 

The Economy and Finance 

48 

55 

62 

66 

Nigeria’s economic uplift 

Emerging economies are prospering despite the 

continuing effects of the global financial crises 

Banking on Nigeria 

The depth of fraud and corruption that 

pervaded Nigeria’s banking system is being 

eliminated through tough, reformative action 

Sovereign wealth 

Nigeria has a newfound confidence in itself, 

investing in a sovereign wealth fund to best 

utilise the country’s significant oil wealth 

Project and trade finance 

A pre-eminent trade hub with the second 

strongest economy in Africa, Nigeria offers an 

attractive selection of business opportunities 

69 

Oil, Gas and Minerals 

72 

89 

94 

97 

101 

105 

110 

Energy 

116 

Nigeria Vision 2020 

Vast investment opportunities are bringing 

Nigeria closer to realising its ambition of 

becoming a top 20 economy by 2020 

Capitalising on Nigeria’s oil resources 

Local oil companies are tasked with 

developing sites to boost refining capacity 

Step on the gas 

The Nigerian Gas Master Plan is part of a 

drive to diversify the country’s economy and 

maximise the value of its natural gas reserves 

Local players 

The government has set up a mimimum local 

content target in oil and gas to address income 

inequality and improve skills and employment 

NEITI: the Nigerian Extractive 

Industries Transparency Initiative 

Set up to overcome governance abuses in the 

resources industry, the NEITI standards are 

providing mutual benefit to involved parties 

A petrochemicals industry emerges 

Major investors who are prepared to back the 

development of large plants could transform 

Nigeria’s petrochemicals industry 

Oil and the Niger Delta 

Controversial reforms in the oil sector are 

dividing opinion in Nigeria, but are central to 

securing the country’s economic future 

Non-oil and solid minerals 

Nigeria has efforts under way to exploit its 

natural resources and non-oil sectors 

Powering up 

Development is gaining momentum across the 

energy sector and is set to address and tackle 

the country’s chronic electricity problem 


11

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120 

Industrial Infrastructure 

124 

132 

Social Infrastructure 



Alternative and renewable energy 

A look at sustainable energy options, with 

renewables set to head rural electrification 

Travel and transport improvements 

A new policy is set to improve and update 

Nigeria’s transport networks 

Supporting the IT sector 

Hailed as the Nigeria’s next big growth area, 

the ICT industry could depend on foreign 

investment and native-born IT talent 

Ringing the changes in the 

mobile market 

Nigeria is experiencing explosive growth in the 

use of mobile phones and internet technologies 

Tackling education and 

vocational training 

Nigeria is assigning resources to develop a 

robust and forward-looking education system 

142 

Agriculture and Water 

146 

Healthcare: a growing market 

Healthcare reform is improving national 

health and creating new opportunities for 

private-sector investment 

Growing the agriculture sector 

A political drive by the Nigerian government 

coupled with private-sector interest is placing 

the farming industry on the verge of a revival 

Media, Tourism and Culture 

156 

160 

164 

A rich cultural diversity 

Nigeria is showcasing its unique cultural mix 

to a growing number of tourists 

A cinematic experience 

The ‘Nollywood’ phenomenon is having a 

profound effect on the Nigerian film industry 

Directory 

170 Index of advertisers 


13

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At Courteville, we create innovative solutions to fit strategies that drive business processes forward 

Adebola Akindele, 

Group Managing 

Director, Courteville 

Business Solutions plc 

Incorporated in 2004 as Courteville 

Investment Limited, a financial and 

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The team is able to achieve these results 

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Company philosophy 

One of the first major innovations delivered 

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In recognition of our superior standards 

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certification in ISO 9001:2008 standard by 

(Left to right) Group Captain MO Salami (ret’d) Chairman, CBS, 

Mr Adebajomo ED, NSE and Mr Adebola Akindele GMD, CBS 

2011. The company was officially listed on 

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Courteville is a dynamic, forward-looking 

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16 

FOREWORD 

Goodluck Ebele Jonathan 

President of Nigeria 

InvEst In nIGERIA 2012-13 

Nigeria’s aim of becoming one of the world’s 20 biggest economies by 2020 

remains on track, despite the fact that the world is still living in the shadow of 

the financial crisis that started five years ago. We understand that investment 

decisions of institutions the world over are going to be driven by an ever-reducing 

set of high-quality opportunities, as they rebuild in the shadow of the crisis. 

With that in mind, I am proud to say that Nigeria has been at the forefront of a global 

effort to reform banking systems that were vulnerable to systemic risks threatening to topple the 

global order. It is also fair to say that this country, through its exceptional financial 

policymakers, including Finance Minister Dr Ngozi Okonjo-Iweala who stood for presidency of 

the World bank this year, has been able to reshape its financial system to make it able to 

effectively support this fast-growing country. Whether at the national level or through the largest 

banks, the stock market or local levels, an infrastructure is being put in place that should instil 

greater confidence in partners looking to take a more active interest in working with Nigeria, 

while the fight against corruption continues apace. 

These improvements were necessary to create the bedrock for growth in Nigeria’s economy, 

in which energy resources of course play a key role. But it is the changes to the political 

process, witnessed in last year’s elections, that set the standard for how a modern, democratically 

thinking country should operate that is of huge importance to our partners. Observers in the 

wider world are aware of how important this is for Nigeria to face up to its challenges, including 

religious sectarianism, that are a potential roadblock to becoming a secure and modern economy. 

Observers of Nigeria will understand that it is best judged in how far its gains have been in 

these economic areas, as well as in its continuing efforts to modernise society in the areas of 

healthcare and education. Nigerians display a great passion for tackling the shortfalls where 

they exist in these areas, and understand that these improvements can only come if power 

supplies and transport infrastructure are vastly improved. Yet these areas too offer great 

investment opportunity and a way of partnering with Nigeria as it moves faster down the path 

of becoming one of the top 20 economies in the world by 2020. 

Of course, the other key characteristics of being a modern functioning economy, such as a 

fully developed technological base and infrastructure, will come in time as electricity becomes 

available at all times throughout the country. It will also happen as larger numbers of well-educated 

Nigerians in various areas return to the country to live and work after developing skills overseas. 

With improving transport infrastructures such as rail and port facilities, Nigeria can look 

more confidently at how it develops its under-rated mineral and agricultural assets. The 

potential of Nigeria’s vast landscape in these areas has been overlooked over the years because 

of the success of the oil industry, but their importance will only increase, especially given 

Nigeria’s strategic importance in west Africa alongside countries demanding these assets. 

Another area to consider is Nigeria’s petrochemical industry, which will inevitably take greater 

advantage of Nigeria’s oil supply as facilities improve.

But it is inevitably the oil industry and world events that determine the oil price that will 

have a powerful, short-term effect on Nigeria’s fortunes. The current high oil price ensures that 

Nigeria’s income can continue to grow from natural resources, but this should improve further 

as greater efficiencies and more local players are able to participate in this industry. How 

this can be achieved will also depend on a careful assessment of the manner in which this 

resource is harnessed and utilised. 

Being the world’s eighth largest exporter, as well as being the second largest supplier of oil 

to the US, means that Nigeria has a huge role to play in how the global economy develops. Both 

on a global level and a national level, Nigerians have woken up to the responsibilities that 

owning this powerful asset assumes. With this in mind, the sovereign wealth fund was created to 

ensure that capital raised from the sale of oil assets is carefully managed. This in turn ensures 

the best returns which can then be employed both to maintain the economy and improve the 

welfare of Nigerians in the long-term. 

As the country’s wealth improves, the trappings of a highly developed state will be 

seen more clearly. Not only will the cultural values of the country – espoused by our greater 

writers and globally renowned film industry – develop further, but tourism is also likely to 

become a growing industry for us. In turn, that creates a further burden on ensuring, for 

example, that a number of our airports are of an international standard to cope with the 

increased traffic. But those are the challenges of a country keen to deliver on its ambitions 

of becoming one of the most important economies in the world in the years to come, and we 

are ready to meet them. 

FOREWORD 17 

InvEst In nIGERIA 2012-13

Ahmadu Bello University, Zaria, Nigeria (1962-2012) 

The Ahmadu Bello University (ABU) 

Zaria was established on 4 October 1962. 

It will, therefore, celebrate its Golden Jubilee in 

October 2012, and the preparations for this 

occasion are well under way. 

With a student population of more than 

30,000, ABU is easily the largest university 

in sub-Saharan Africa. 

From its foundation, the University has had 

a clearly defined vision and mission, which is 

set out as follows: 

(i) Vision: it shall be a world-class centre of 

learning and research that is responsive 

to the needs of its immediate community, 

nation and the world at large; 

(ii) Mission: to advance the frontiers of 

learning and break new ground through 

Shika Brown® broilers: the result of years of research 

National Animal Production Research 

Institute (NAPRI), ABU, Zaria 

This is the only Institute in Nigeria that is 

charged with improving the productivity of 

all livestock (such as cattle, sheep, goats, 

pigs, poultry, rabbits, camels, donkeys etc) 

through breeding/genetics, nutrition and the 

socioeconomics of production. 

Many years of breeding/selection have 

resulted in an egg-laying strain of chicken 

registered as Shika Brown® to produce parent 

stock for commercial hatcheries. Similar work 

is ongoing to develop the broiler strain. 

Dairy technologies and innovations in 

artificial insemination, breeding/selection and 

nutrition have produced crossbreeds to increase 

the milk production of farmers’ herds. 

Research into sheep and goat production 

has led to the establishment of sheep and goat 

teaching, research and the dissemination 

of knowledge of the highest quality. 

To live up to its mandate, the Ahmadu 

Bello University has, over the years, established 

12 faculties, nine research institutes and centres 

and three agricultural colleges. All these 

institutions are now ICT-compliant. 

The expansive university is coordinated 

and operated through a multi-campus system, 

which takes care of the needs and comfort of 

students, lecturers and administrators. 

The effectiveness of this strategy is 

manifested in the output of most of the 

academic and research units of the university. 

We will illustrate this development with respect 

to only a few of the units, as outlined here. 

pilot projects in the six agro-ecological zones of 

the country for easier access to the technologies 

and innovations by farmers. 

Improved technologies in the techniques 

of forage production and utilisation by animals 

complements other disciplines in improving 

productivity in livestock. 

The Institute collaborates with other 

national research institutes and international 

research and development organizations – such 

as the IAEA, IDRC, ILRI and IITA – to carry 

out its mandates and achieve its goals. 

Faculty of Pharmaceutical Sciences, 

ABU, Zaria 

The Faculty is charged with the task of 

producing high-quality pharmacists for 

the manpower needs of the nation and 

also conducting advanced research in 

pharmaceutical sciences. The stature of the 

faculty research team has grown remarkably 

and two areas are now excelling: herbal 

medicine research, with the potential to screen 

thousands of medicinal plants for bioactive 

compounds – a herbal preparation, Herbal 25, 

for the management of malaria is one of the 

successes in this area; and neuropharmacology 

– the Faculty is an Academic Institutional 

member (AIM) of the International 

Pharmaceutical Federation. 

Institute for Agricultural Research 

(IAR), ABU, Zaria 

The Institute for Agricultural Research (IAR), 

Samaru, has been the bedrock of crop research 

in the Savanna region of Nigeria since 1922. 

Sir Ahmadu Bello KBE MHA, Sardauna of Sokoto, 

first Chancellor of the University 

The mission of IAR is to generate, disseminate 

and impart improved agricultural technologies 

for enhanced crop production and utilisation 

to achieve national self-reliance in food and 

industrial raw materials, with sufficient 

surplus for export. 

The IAR’s mandate is to conduct research 

and provide, among others, the following 

services to agriculture: 

(a) Genetic improvement of cowpea, cotton, 

groundnut, maize, sorghum, castor, 

jatropha, artemisia and sunflower; 

(b) Proffer solutions to the problems of 

production of all agricultural food 

crops grown in the north-west agroecological 

zone covering Jigawa, 

Kaduna, Kano, Katsina, Kebbi, Sokoto 

and Zamfara states. The problems 

include genetic, socioeconomic, 

agronomic, soil and water management, 

mechanisation etc. 

Significant progress has been made in the 

development and release of high-yielding, 

disease- and pest-resistant, drought-tolerant 

varieties of crops that are acceptable to 

farmers, processors and consumers. 

Several of the IAR’s most recent 

achievements are in the field of research 

outputs, including: 

(a) Cultural operations technologies 

Over the years, IAR has introduced, 

bred, tested, selected and formally released 

for production numerous improved crop 

varieties, alongside their appropriate 

production packages, pest, disease and

Centre for Energy Research and Training (CERT), ABU, Zaria 

The Centre for Energy Research and Training, 

Ahmadu Bello University, Zaria, is a centre 

of excellence in nuclear science, energy and 

technology. The Centre has as its mission 

the promotion of the peaceful application of 

nuclear science and technology in the fields 

of agriculture, health, environment, solid 

mineral development, petroleum resources 

and other relevant sectors of the economy. 

The Centre has been carrying out 

soil-fertility mapping to improve on the 

application of fertiliser in agriculture. 

It has also set out a geochemical map, 

analysed food and other items suspected 

to be contaminated with radioactivity, and 

successfully determined the source of a 

petroleum seepage from a petrochemical plant 

– which had contaminated nearby ground 

water – using a radiotracer technique. It has 

also provided dosimetry services to radiation 

weed control, harvesting, processing 

and storage techniques. 

(b) Crop-based technologies 

Important crop varieties from IAR include: 

1. Cowpea: Nine varieties of cowpea for 

different ecologies have been developed 

and released for production. 

2. Cotton: There are 13 cotton varieties 

that have been developed and released to 

cotton farmers in Nigeria. SAMCOT 11, 

SAMCOTT 12 and SAMCOTT 13 are 

the latest varieties released. They are long 

staple and resistant to alteranria leaf spots 

and bacterial blight diseases. 

3. Groundnut: 23 varieties have been 

developed in collaboration with ICRISAT 

and released to farmers in different 

ecologies. The most popular are the rosette 

and drought-resistant varieties. 

4. Maize: 14 maize varieties have been 

released to farmers in different ecological 

zones. Of the newly released varieties, 

SAMMAZ 11 is Striga hermonthica 

resistant, while SAMMAZ 12 and 

SAMMAZ 13 are extra-early white and 

yellow grains respectively. SAMMAZ 14 

is quality protein maize, which has 

higher levels of lysine and tryptophan, 

the two limiting essential amino acids in 

maize. A lot of the maize consumed in 

every house in Nigeria in one form or 

the other is a product of IAR in 

collaboration with IITA and other 

national research institutes. Maize is 

users in the country, as well as other radiation 

protection services, and provided analytical 

services, using nuclear and other related 

analytical techniques, to both government 

and the private sector in the country. It has 

also provided training to Nigerians in the 

application of nuclear techniques in various 

industrial processes. 

Since 2004, the Centre has been operating 

a nuclear research reactor (Nigeria Research 

Reactor-NIRR-1) providing analytical services 

using neutron activation analysis and the 

training of Nigerians in nuclear science and 

technology. The Centre also has an array of 

other research facilities available, such as XRF, 

both isotopic and tube-type, and the AAS, 

14-meV Neutron Generator and Diviner 2000 

(a soil moisture monitor). 

We are now on the verge of installing an 

isotopic mass spectrometer, which we are sure 

SAMMAZ 13 breed produce at IAR, ABU 

indispensable in the attainment of 

national food security and as a raw 

material in many agro-based industries. 

5. Sorghum 45 sorghum varieties 

suitable for Sahel, Sudan and Guinea 

Savanna ecologies have been developed 

and released in collaboration with 

ICRISAT. Among the most prominent are 

SAMSORG 17 and SAMSORG40, which 

are suitable for malt production. 

Nigerian breweries have since been using 

these varieties as a substitute for barley. 

The bulk of foreign exchange needed to 

import barley is therefore conserved. 

6. Artemisia, jatropha, castor and 

sunflower: these are a relatively recent 

addition to our mandate crops. Research 

efforts are rigorously being made to 

improve these crops in relation to the 

Nigeria Nuclear Research Reactor NIRR-1 

at CERT, Ahmadu Bello University, Zaria 

www.abu.edu.ng 

Advertisement 

will prove to be a very important facility. This 

facility will be able to serve not only Nigeria, 

but also the West Africa sub-region in the 

areas of water-resource management. 

needs of the end users, particularly those 

of the pharmaceutical industry and the 

biofuel prospectors. 

a. Food technology/product development 

In order to promote the industrial usage 

of some agricultural produce, IAR has 

the Food Science/Product Development 

Programme. The unit researches into 

the industrial use of farm produce, as 

well as training individuals, groups and 

organisations on processing and the 

utilisation of farm produce. 

b. The development of farm and 

off-farm machineries 

A number of on-farm and off-farm 

machineries have been developed 

and perfected by the Agricultural 

Mechanization Programme of the 

Institute. The equipment includes crop 

threshers, weeders, planters, solar dryers, 

onion storage rack, mini-silo for grains 

storage and so on. Entrepreneurs who are 

willing to collaborate with us for mass 

production are welcome.

since 1989 

Rotary kiln incinerators and accessories 

for various wastes 

Smokeless oil-field flares and remote 

ignition systems 

Reliable & appRopRiate 

technologies at 

inteRnational standaRds 

Thermal desorbers for 

oil-contaminated soils and sludges 

Industrial wastes management 

Boskel Nigeria limited 

• Thermal Process Engineering 

• Environmental Management 

Km.17 Port Harcourt – 

Aba Expressway 

P.O. Box 500 

Port Harcourt 

Nigeria 

tel: +234 805 267 8796 

+234 803 626 7535 

email: boskel@aol.com 

www.boskel.com

Dalhatu Sarki Tafida 

Nigeria High Commissioner to the United Kingdom 

FOREWORD 21 

I 

would like to personally welcome you to this edition of Invest in Nigeria, which 

provides the reader with a comprehensive overview of the various sectors of Nigeria’s 

economy that are likely to be of particular interest to overseas investors. 

Nigeria’s relationships with our global partners is something we sincerely appreciate. 

Without building on the historic and economic ties that bind us together we are less likely 

to succeed in our stated aim of becoming a top 20 economy by 2020. We are very keen to 

embrace those partners’ interests in working with Nigeria – partners who are looking at our 

country with an understanding of the huge investment opportunities it offers. 

Those opportunities can be best grasped when viewing the rapid changes that are taking 

place in Nigeria – not just in economic terms, but also in the transformation of the political 

landscape and policy agenda. Reform of the political process has been a central plank in the 

process of becoming a modern democracy that shares the same values as leading economies 

around the world. By creating the right infrastructure we are well placed to achieve the 

Millennium Development Goals as we move closer to 2015. Last year’s elections were a clear 

reflection of the exceptional progress that has taken place in this respect. 

That said, there are plenty of challenges ahead. Investors who are aware of Nigeria’s 

potential will also be aware of the challenges the country is undertaking to deliver modern 

infrastructure. Those challenges can be found in the need to quickly update the existing road 

and rail network to one capable of supporting such a rapidly developing economy, and airports of 

international standard are needed to service increasing numbers of passengers. Having the right 

power station capability and effective power distribution is also key to ensuring that economic 

development can be maintained at the current trajectory. 

Investors will also be aware of the tremendous strides that Nigeria has taken towards 

creating a stable financial system that will be a vital backbone to a growing economy. In recent 

years, Nigeria’s leading financial policymakers have worked tirelessly to tackle a banking system 

that was in need of updating. We have gone much further than most countries in light of the 

financial crisis, recreating a system capable of withstanding further shocks that may take place 

by stripping out failing universal banks. What we are left with is a system that can be effective 

in supporting growth. The Nigerian Stock Exchange and local financial initiatives are also 

playing a key role in ensuring stable development of the economy at every level. 

The recently developed sovereign wealth fund – a noteworthy sign to international 

partners of Nigeria’s long-term interest in stabilising its revenues from energy production – is 

another step in the right direction. By ensuring we have the right measures in place, both 

economic and democratic, Nigeria can look to the outside world with fresh excitement about 

partnering in various respects. As leading financial institutions have identified, Nigeria has all 

the right characteristics for becoming a global powerhouse economy. With the efforts put in 

place so far, and a willingness and determination to foster better relations with partners around 

the world, Nigeria is excellently placed to make progress and move forward. 

InvEst In nIGERIA 2012-13

Pushing 

boundaries 

An emerging leader in 

the energy sector

SIRIUS GROUP 

In search of profi table business opportunities during a downturn, Sirius Group is currently 

diversifying its operations. The Group has diversifi ed into power with an ongoing 600MW coal power 

plant project in West Africa, which involves over 69 million tonnes of coal concession, $5bn PPA 

to supply over three billion kilowatt hours per annum and in excess of $1bn infrastructure development 

over a 15-year period. This is expected to kick off in the last quarter of 2012 and will provide 

over 10,000 jobs. 

Additionally, the group has taken its fi rst steps into upstream through its subsidiary, Sirius Energy 

Resources (SER). SER has acquired the rights to exploration of the Grein block in the neighbouring 

Niger Republic, in the vicinity of which other companies are already producing. The block 

covers approximately 22,020 square kilometres and falls within the oil-rich Cretaceous-Tertiary 

West African Rift system, running all the way from Mali to Kenya. The bordering blocks, Tenere 

and Agadem, are operated by CNPC and have reserve estimates of one to three billion and 0.5 billion 

barrels of oil respectively. 

Similarly, Equatorial Guinea is another country of signifi cant interest for Sirius Group, as the company 

is involved with GEPetrol for entering into exploration and oilfi eld development partnership. 

Other future projects for the group include a plan of expansion and partnership in Kazakhstan in 

areas of exploration, refi ning and product lifting. 

The Group has a holding company, Sirius Corporation LLC, strategically located in Dubai, UAE, with 

a commodity trading offi ce in the United Kingdom. The holding Company is responsible for 

overseeing all of Sirius’ global operations, specifi cally in the energy trading, power and mining sectors 

of the economy. 

With the group’s plan to go public in a couple of years, its focus has been to develop a diversifi ed 

business structure, which will make it a one-stop shop for investors. This geographical 

diversifi cation will give additional resilience to the business structure in its entirety and boost 

potential investors’ confi dence in the group, due to its interest in a wide geographic range, 

spanning different industries. 

Tony RAPU 

Managing Director and CEO 

CORPORATE HEAD OFFICE: 

209 Muri Okunola Street, 

Off Ajose Adeogun Road, 

Victoria Island, 

Lagos – Nigeria. 

Tel: +234-1-7303033, +234-70-98004233 

Fax: +234-1-7307552 

UNITED KINGDOM 

2nd Floor Berkeley Square House, 

Berkeley Square, 

London. W1J 6BD. 

Tel:+442078871586, +442078871585 

Fax: +442078871575 

Email: enquiries@siriusgroupnigeria.com

24 

the policy agenda 

Realising Nigeria’s 

investment potential 

A new road leads from Abuja’s airport to the city centre. Major 

changes are under way across Nigeria to upgrade critical infrastructure 

invest in nigeRia 2012-13

Nigeria has experienced a decade 

of democracy, a credible election 

in 2011, and is now positioned as 

one of the world’s fastest-growing 

economies. Heather McKenzie 

considers the country’s investment 

potential in light of the recent 

transformation policy outlined by 

President Goodluck Jonathan 

Between 2003 and 2010, Nigeria 

recorded average GDP growth of 

7.6 per cent, in part driven by an 

ambitious reform agenda and 

almost a decade of political 

stability. With the largest population in Africa 

– around 167 million people – and significant 

reserves of natural resources, Nigeria is 

attracting increasing interest from 

international investors. 

The World Bank’s Country Brief on 

Nigeria states: “With these large reserves of 

human and natural resources, Nigeria is poised 

to build a prosperous economy, significantly 

reduce poverty, and provide health, education 

and infrastructure services to its population 

needs.” But there are challenges ahead for 

Nigeria if it is to fulfil such potential. 

At a meeting in January 2012, at the 

London School of Economics, Lamido Sanusi, 

governor of the Central Bank of Nigeria (CBN), 

said the Nigerian economy was still plagued 

by some daunting challenges, despite its 

robust growth. These challenges, which have 

slowed down the transmission of growth into 

higher employment opportunities, include 

weak links between the main growth drivers of 

agriculture and manufacturing and the high 

cost of infrastructure. 

“The need for low-cost, long-term 

infrastructure financing requires more than 

the Central Bank of Nigeria alone can tackle,” 

he said. “Major bottlenecks and supply-side 

constraints, including an enabling legal 

framework, have slowed the responsiveness 

of some CBN reform measures.” 

the policy agenda 25 

In a developing economy such as 

Nigeria’s, the central bank should not only offer 

price stability, but also play a developmental 

role to support positive economic 

transformation and rapid growth, he said. 

In its appraisal report of its economic 

and power-sector reform programme in 

Nigeria, the African Development Bank Group 

(ADB) pointed out that the second-round 

effects of the global financial crisis and its 

associated economic downturn had adversely 

impacted the economic outlook of Nigeria. 

“This situation still presents tremendous 

macroeconomic challenges for Nigeria, as oil 

continues to play a dominant role in the 

economy, accounting for over 95 per cent of 

exports and nearly 80 per cent of government 

revenue. It also threatens the significant gains 

from reforms successfully implemented by the 

Federal Government of Nigeria (FGN) since 

2003, and the subsequent economic 

performance achieved so far.” 

Signs of economic improvement 

Overall, recent developments indicate that 

the macroeconomic framework of Nigeria is 

improving as a result of past successful 

reforms, the government’s response to the 

global crisis and the improving external 

environment, said the ADB. However, major 

constraints remain and have been exacerbated 

in the context of the global crisis, it added. 

Challenges faced by the government 

include maintaining macroeconomic stability, 

ensuring the banking sector’s soundness and 

addressing power-sector bottlenecks. This will 

create an enabling environment for private 

activities in order to sustain growth in the 

non-oil sector, create jobs and reduce poverty. 

Major changes are under way in the 

country to diversify the economy beyond 

petroleum, improve food sufficiency, 

upgrade critical infrastructure and increase 

private-sector participation in the economy, 

says Niyi Yusuf, managing director of 

consultancy firm Accenture Nigeria. He cites 

seven important changes that “have the 


Foreign policy and the investment 

environment in Nigeria today 

The Nigerian economy has undergone a 

major transformation, which is reflected 

in its impressive growth profile. With an almost 

eight per cent growth rate in 2011, the economy 

is rightly ranked as one of the fastest growing in 

the world. The Nigerian Government is 

targeting a sustainable double-digit growth rate, 

which makes the country an attractive 

proposition for emerging-market investors. 

Nigeria has fantastic economic potential, with: 

• an estimated population of 160 million 

people, it is Africa’s most populous nation; 

• a low-cost labour pool; 

• the largest domestic market in 

sub-Saharan Africa; 

• oil reserves: it is the sixth largest oil 

producing country in the world; 

• the most viable natural gas region in Africa; 

• huge reserves of several types of critical 

solid minerals; 

• an expansive and fertile land for agriculture; 

• a massive, dynamic and human capital 

resource; and 

• an attractive geo-strategic location. 

Nigeria’s potential as an economic powerhouse 

is not in doubt. This current positive trajectory 

makes it an investor’s haven. But Nigeria cannot 

do it all alone; and the Government’s approach 

is one of partnership. It is therefore, inviting 

credible and committed foreign investors to 

come and join it in the enterprise of translating 

the great potential of the country into 

sustainable economic growth and development. 

Nigeria’s foreign policy is now therefore 

investment-driven: while the Government 

is committed to providing an enabling 

environment, its Embassies and High 

Commissions worldwide have been mandated 

to promote Nigeria’s impressive investment 

environment and opportunities. 

Prospective foreign investors can now view 

summaries of Nigeria’s investment documents 

on Government websites. Foreign investors in 

Nigeria could expect to get good returns on 

their investment; there is a superb, world-class 

infrastructure; discernable and consistent 

business policies; security of lives and 

property; the government is committed to 

the rights of investors; there is ease of 

commencing business operations, etc. 

In other words, the new Nigerian 

investment environment is one where stable 

electricity supply, sterling and efficient port 

facilities, expansive and modern transportation 

networks, potable water supply, and security 

of lives and property can be taken for granted 

as existing official bottlenecks to business 

operations are being dismantled towards 

minimising the cost of doing business and the 

period of starting new ones. 

The Nigerian Government is committed 

to providing and sustaining this investment 

environment. The following areas of reform 

soundly attest to that commitment: 

Governance 

Nigeria is a stable democracy. Military rule 

ended with the inauguration of a civilian 

administration in May 1999. The country has 

since organised three general elections, in 2003, 

2007, and 2011, all resulting in a civilian-tocivilian 

handover of power. Reform of the 

democratic process is a crucial aspect of the 

current administration of President Goodluck 

Jonathan’s transformation agenda. 

Legal framework 

With few exceptions, the Nigerian Investment 

Promotion Commission (NIPC) Decree of 

1995 allows 100 per cent foreign ownership 

of firms outside the petroleum sector, where 

investment is limited to existing joint ventures 

or production-sharing agreements. 

Nigerian laws apply equally to domestic and 

foreign investors. Nigeria regulates investments 

in line with the World Trade Organization 

(WTO) Trade Related Investment Measures 

(TRIMS) Agreements. Foreign companies 

operate successfully in Nigeria’s service sector, 

including telecommunications, accounting, 

insurance, banking and advertising. 

Privatisation 

Nigeria has maintained liberal market-oriented 

economic policies, including privatisation. 

The Privatization and Commercialization Act 

of 1999 established the National Council on 

Privatization to implement the programme. 

The Bureau of Public Enterprises has focused 

on key sectors, including telecommunications 

and power, and calls for core investors to 

acquire shares in enterprises that were 

formerly state-owned. The government 

has substantially opened up the 

telecommunications sector. 

Expropriation and compensation 

The Companies and Allied Matters Decree 

of 1990 prohibits the nationalisation or 

expropriation of foreign enterprises, except 

in cases of national interest. The government 

has not expropriated or nationalised foreign 

assets since the late 1970s. 

Investment and dispute settlement 

Disputes between corporate bodies and the 

Government of Nigeria, as well as between 

Nigerian businesses and foreign investors are 

handled by Nigeria’s civil courts. 

Import policies 

In September 2008, the Government issued 

the 2008-2012 Common External Tariff (CET) 

Book that harmonises its tariffs with its West 

African neighbours under the Economic 

Community of West Africa States (ECOWAS) 

CET. The CET has five tariff bands and import 

duties were reduced on several items. The five 

are: zero duty on capital goods, machinery, and 

essential drugs not produced locally; five per 

cent on imported raw materials; 10 per cent 

on intermediate goods; 20 per cent on finished 

goods; and 35 per cent on luxury goods. 

The Nigeria Customs Service (NCS) and 

the Nigerian Port Authority (NPA) have 

exclusive jurisdiction over customs service 

and port operations. The modernisation and 

professionalisation of the NCS and NPA have 

resulted in reduction of port congestion and the 

very welcome 48-hour clearance time. 

To reiterate, Nigeria today is an investor’s 

haven. The Government supports competitive 

business practices and protects private property 

rights. It is hereby inviting credible and 

committed foreign investors to partner it in its 

developmental project. This is an important 

pillar of Nigeria’s foreign policy today. 

It is within this investment-friendly foreign 

policy that the NIIA is making strenuous 

efforts to give a new life to Nigeria’s diplomacy. 

Nigeria’s foreign policy is increasingly driven 

by the people. In the many NIIA brainstorming

Mandate 

The NIGERIAN INSTITUTE OF INTERNATIONAL AFFAIRS was established 

in 1961 as an independent and non-profit making organisation and became a 

government-funded Institute in 1971. 

The Act of 1971 (CAP.31 1) establishing the Institute states its objectives 

as follows: 

(a) To encourage and facilitate the understanding of international affairs 

and of the circumstances, conditions and attitudes of foreign countries 

and their peoples; 

(b) To provide and maintain means of information upon international questions 

and promote the study and investigation of international questions by 

means of conferences, lectures and discussions and by the preparation and 

publication of books, reports or otherwise as may seem desirable so as to 

develop a body of informed opinions on world affairs; 

(c) To establish contacts with other organisations with similar objectives. 

Structure 

Patron and Supervisor 

The President of the Federal Republic of Nigeria is the Patron of the Institute. 

Until 2006, the Institute was supervised by the Vice-President of the Federal 

Republic of Nigeria. At present, that responsibility rests with the Minister of 

Foreign Affairs. 

The Governing Council 

The Governing Council of the Institute consists of the following members 

appointed by the President: 

• A Chairman 

• The Director-General; a representative of the Ministry of 

Foreign Affairs 

• Three Persons from Federal Universities in Nigeria. However, 

no two persons shall be appointed from the same University. 

• Six persons with special interest in international affairs 

The Director-General: Professor Bola A. Akinterinwa, PhD, Sorbonne 

The Director-General is appointed by the President. He is both the Chief 

Executive and the Chief Research Officer of the Institute. 

The Department of Research and Studies 

The Research and Studies Department was established in 1961. It is headed 

by a Research Professor who is responsible to the Director-General. 

The Department has the following divisions: 

• International Law and Organisations 

• Security and Strategic Studies 

• International Politics 

• International Economics 

• African Politics and Integration 

sessions on various issues in Nigeria’s foreign 

policy, civil society organisations, academics, 

businessmen and media professionals have 

taken active part. So have seasoned, retired 

ambassadors and public servants. 

Indeed, the NIIA has deepened its 

cooperation with several other research 

institutions with a view to also explain the 

place of investment in Nigeria’s foreign policy. 

Investment serves as a catalyst in the efforts 

being made to promote economic growth and 

development which, in turn, will ensure the 

well-being of the people. And true enough, 

a well-developed global community without 

Nigeria can only create a vacuum. In other 

words, an undeveloped Nigeria can only be 

to the detriment of the developed countries. 

It is, therefore, necessary for investors to take 

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Library and Documentation Services Department 

The Library is computerised. Some of the subscriptions, especially for journals 

are online. The Press Library has a stock of more than 380,000 newspaper 

clippings. There are seven professional Librarians, including the Director. 

Administration and Finance Department 

The Department renders support services. It ensures that resources necessary for 

the smooth running of the institute are made available, as well as ensuring the 

proper maintenance of equipment. The Department is headed by a Director who 

supervises 15 qualified Administrative and Accounting Staff. 

Publications 

The NIIA has two major journals and several publications, such as: 

• The Nigerian Journal of International Affairs (NJIA) 

• The Nigerian Forum 

• Survey of Nigerian Affairs 

• Public Lecture Series 

• Monograph Series 

The Dialogue Series 

The Dialogue Series with sister institutions were instituted as one of the channels 

for fulfilling the mandate of the Institute. It is an intellectual exercise designed 

to explore with opinion formulators in other countries some carefully delineated 

current policy issues in international relations. To this extent, the Dialogue 

Series enable Nigeria through the NIIA to assess the sincerity or otherwise of 

other nations on foreign policy issues, particularly those relating to African 

affairs. It is also an avenue for the country’s perception of key global issues and 

pattems of relations with Nigeria. 

Collaboration with other Institutions 

The NIIA was fashioned after the Royal Institute of lnternational Affairs (RIIA), 

also known as Chatham House. The relationship with Chatham House has been 

revamped. Chatham House had provided valuable assistance to the Institute. 

The NIIA is in collaboration with many institutions, such as the South African 

Institute of International Affairs (SIIA); Babangida School of International 

Studies, University of Liberia; Kofi Annan International Peacekeeping Training 

Centre (KAIPTC); Indian Council of World Affairs (ICWA); International Peace 

Institute (IPI), New York; the Institute of Global Governance, South Africa; and 

China Institute for Contemporary lntemational Relations (CICIR). 

Teaching and Award of Diploma 

The NIIA is involved in teaching at the Foreign Service Academy and Military 

Institutions such as the National Defence College, Abuja and the Command and 

Staff College, Jaji. The Institute in the past has awarded postgraduate Diploma in 

International Relations; plans are under way to upgrade the teaching programme. 

Nigeria more seriously, put resources together 

and reduce global poverty and threats to global 

peace and security by ensuring new flows of 

direct investment funds to Nigeria. 

13/15 Kofo Abayomi Road, Victoria Island, 

Lagos, Nigeria Tel: +234-01-9500983; 

Email: director-general1@hotmail.com, 

dgeneraI@niianet.org

28 


prospects of leading to double-digit growth in GDP in the 

coming decade – we have had above seven per cent GDP 

growth since 2007 – and can lead to Nigeria becoming one 

of the top 20 economies in the world”. These are: 

• Privatisation of utilities/electrical power to improve 

generation to above 20,000MW by 2020; 

• Deregulation of the downstream oil industry; 

• Liberalisation of the upstream oil industry and 

increase of local content; 

• Focus on the gas industry to boost power and export; 

• Transformation of the agricultural value chain for 

six strategic crops to boost food production and 

reduce imports; 

• Policy to improve broadband access nationwide; and 

• Private-sector investments in public-private 

partnership mode to provide critical infrastructure. 

Overarching these changes is The Transformation Agenda; 

a set of priority policies and programmes proposed by 

President Jonathan that will run until 2015. The aim of the 

agenda is to address the lack of continuity, consistency and 

commitment to agreed government policies, which has resulted 

in the growth and development of the Nigerian economy without 

a concomitant improvement in the welfare of the country’s 

citizens, affected by unemployment, inequality and poverty. 

The agenda covers the macroeconomic framework and 

economic direction of the country, including an aim to ensure 

greater harmony between fiscal and monetary policy, and to 

pursue sound macroeconomic policies. It also tackles job 

Olusegun Aganga, Nigeria’s trade and investment minister, 

seeks to enhance the country’s intra-African trade 

invest in nigeRia 2012-13 

creation, charging the government with pursuing policy 

measures to invigorate sectors of the economy and improve 

their employment-generating potential; for example, a youth 

employment safety-net support programme, which includes 

conditional cash transfer and vocational training. 

Other areas addressed by the agenda include: public 

expenditure management; governance; justice and the 

judiciary; foreign policy and economic diplomacy; legislature; 

education; the health sector; labour and productivity; 

infrastructure policies, programmes and projects; information 

and communications technology; power; the Niger Delta 

(whereby investment will be made to encourage peace and 

stability, and drive sustainable socio-economic development in 

the area in order to reduce poverty and unemployment, and 

improve security); and transport. 

“The Transformation Agenda is a serious attempt 

to provide critical human and physical infrastructure, to 

transform and modernise the Nigerian economy,” says Yusuf. 

“It is required to diversify income sources, reduce import 

dependency, transform the economy and improve the 

competitiveness of Nigeria.” 

Transforming growth into tangible change 

Samir Gadio, emerging markets strategist at Standard Bank in 

London, says the key challenge for Nigeria is structural 

transformation. “The main concern is the extent to which the 

economic growth rate has translated into tangible change on 

the ground,” he says. “In reality, poverty and inequality are still 

very high in the country, and there is also a big infrastructure 

gap – there is virtually no functioning electricity grid, for 

example, and many people have to use generators.” 

Another concern is the slow pace of government reform 

and opposition to the Sovereign Wealth Fund bill by some state 

governors, who fear they may lose revenue as a result. In January 

it was reported that the Nigerian government would produce a 

new draft of the law to overhaul its oil and gas industry, which 

had been with parliament since 2008. “Such uncertainty about 

legislation means international companies are reluctant to 

invest more money in the oil sector,” explains Gadio. 

He also says there is a mixed perception of Nigeria 

among investors from overseas. “International investors are 

looking at emerging markets and, in doing so, they are 

increasingly looking at Africa. On the one hand, Nigeria is 

recognised as one of the leading economies in Africa – it is 

too big to ignore. South Africa and Nigeria have liquid markets 

in a continent characterised by the illiquidity of its assets. Also, 

Nigeria has a large population, which provides a potentially

Nigeria: map and statistics 

Area: 923,768 sq km 

Land: 910,768 sq km 

Water: 13,000 sq km 

significant consumer story. At the same time, there is a 

perception that there is not a great deal of transparency in 

public policy, but this may be starting to change gradually.” 

Nigeria has been identified by Goldman Sachs Asset 

Management (GSAM) as a country that could achieve growth 

market status in the medium term. Jim O’Neill, chairman of 

GSAM, says growth market economies will be the driver of the 

world economy in the coming decade. These economies include 

Brazil, Russia, India and China, as well as what O’Neill calls 

the “Next 11” or “N11”, which are the next most-populous 

countries beyond these four. Nigeria is among the N11, being 


Population: Around 170,123,740 (July 2012 est) 

Growth rate: 2.553% (2012 est) 

Source: CIA – The World Factbook, www.cia.gov 

a country that has 20 per cent of Africa’s population, and it 

could become a growth economy within the next 20-30 years. 

Nigeria’s potential is also cited by JPMorgan Chase, 

which is opening a branch in Nigeria. John Coulter, the bank’s 

chief executive for sub-Saharan Africa, has said that senior 

management identified significant growth opportunities in 

Nigeria over the next decade. Moreover, the bank’s clients are 

increasingly investing in the country and in Africa in general. ■ 

Heather McKenzie is a freelance editor and journalist 

in the financial services industry 


www.nosakgroup.com 

Corporate Offi ce: 2 Ramat Cresent, Ogudu GRA, Box 4290 Apapa, Lagos, Nigeria 

Email: info@nosakgroup.com, Telephone: 234-1-7617548

NOSAK GROUP 

We are a diversifi ed business group with interests in key sectors of the Nigerian economy, 

including agriculture, manufacturing, international trade and particularly the importation of 

industrial chemicals for distilleries, pharmaceutical industries, paints and allied industries. 

With over 20 years of experience in birthing and running businesses, we remain a leading 

national and regional player with eyes on the world at large. 

GRAND PETROLEUM 

An integrated energy trading company in Nigeria’s downstream sector with strong 

international alliances and state-of-the-art facilities, such as a 30,000 MT tank 

farm in the Calabar and a 25,000 MT lubricant plant in Lagos. 

NOSAK HEALTHCARE 

The pharmaceutical arm of the group, we are affi liated to major global players 

in the healthcare industry in Europe and South East Asia. We have a robust 

product profi le and a state-of-the-art manufacturing base to produce various 

local drug labels for everyday needs. 

NOSAK DISTILLERIES 

We enjoy the distinction of being the pioneer in this business sector. We 

were incorporated in 2001 to manufacture various industrial and consumer 

chemicals, particularly ethanol. We have two modern distilleries for ethanol 

production at the Amuwo Odofi n Industrial Layout in Lagos, to meet 

70 per cent of Nigeria’s local demand. 

NOSAK HAULAGE 

A provider of logistics, bulk haulage and distribution services to other corporate 

organisations within the private and public sectors of the economy, with a fl eet 

size of 90 trucks and haul of 215,000 MT per annum. 

NOSAK PLASTICS 

The industrial packaging subsidiary manufacturing high-quality and durable 

plastic containers for corporate organisations. Our products range from 

one-litre bottles to 250-litre drums. 

NOSAK FARMS 

Since 1991, we’ve made an impact in cash cropping. Today, the farm is 

a forward-integrated agro-allied company, with its main thrust in integrated 

oil palm plantation. 

CCD STORES 

CCD is a trading concern that focuses primarily on the importation and 

distribution of a wide range of consumer goods to largely retailers, 

cooperative societies and sales outlets. 

Welcome to Nosak. 

Global standards. Local success story.

32 


Democracy and reform: 

looking to the future 

A woman casts her vote in northern Nigeria during 

the 2011 elections. Extending democracy and reform 

will play a key role in enabling future prosperity 


Nigeria has made enormous strides in recent 

years in its journey towards democracy. 

Adrian Holliday assesses the road ahead and 

whether President Goodluck Jonathan can 

continue with his reform agenda, create jobs 

and draw quality investors to the country 

There’s no getting away from the facts. Nigeria 

has a starkly unequal distribution of resources, 

startling ethnic and socioeconomic fault lines, 

and there are real concerns about Islamist group 

Boko Haram’s campaign of violence. Yet Nigeria 

has come a long way since 1999, when military rule under 

General Abdulsalami Abubakar came to an end and democracy 

took hold, says London-based Norton Rose lawyer Bayo 

Odubeko. 

“What people have to remember is that Nigeria is a country 

that only gained independence from the British in 1960,” 

he says. “We have been building our democratic and political 

system over these past 50 years. Nigeria has not had the same 

sort of timeline that the UK and other developed countries 

have had to develop more robust and accountable systems.” 

Looking back over the past 12 years, he believes that 

“[democracy] has been a key part in rebuilding Nigeria and 

the increased foreign direct investment it has attracted. 

The important thing is to maintain democratic and political 

accountability, and while we’re not there yet, we’re on track.” 

Elizabeth Donnelly, Africa programme manager at 

London’s Chatham House, an independent international 

think tank, says the country has achieved a lot in terms 

of its young democracy. “There have been two peaceful 

transitions of power,” she says. More recently, there has also 

been the creation of the economic and financial crimes 

commission. “It is a testing time for Nigeria, but the 

progress at last year’s elections and in the reform 

agenda is encouraging.” 

Potential powerhouse 

A lot of Nigeria’s issues, such as the large gaps between rich 

and poor, its fractious and fledgling democracy, go back to 

colonial times. Nigeria is a hugely diverse country in terms of 

religious and ethnic complexion; managing and governing such 

diversity is a stupendous challenge, but Nigeria is also an 

African powerhouse – or it could be. 

With a population of 170 million people and as a 

huge producer of oil, Nigeria is expected to see its economy 


climb to $400 billion by 2016, from $268 billion this year, 

according to the International Monetary Fund (IMF). It is 

envisaged that Nigeria’s gross domestic product (GDP) could 

even overtake that of South Africa by 2025. 

Certainly, there has been a substantial power shift to 

the south of the country in terms of central government over 

the past 12 years. President Goodluck Jonathan, the former 

vice-president, inherited his position upon President Umaru 

Yar’Adua’s death in 2010, following a long illness. Jonathan 

then went against the ruling People’s Democratic Party’s 

tradition of presidential power-sharing between north and 

south. It was a seemingly smooth, almost meteoric rise to 

power. Military amnesties followed. 

Steps to encourage investment 

Tim Newbold, of pan-African communications consultancy 

AfricaPractice, is hopeful for the future, but he doesn’t play 

down the challenges facing President Jonathan. “A series of 

vital economic reforms are on the agenda this year, including 

the privatisation of the power industry and the restructuring of 

the upstream oil and gas sector through the Petroleum Industry 

Bill, which should kick-start investment when it is passed. 

Alongside that you have potential for the complete removal of 

the fuel subsidy, which would encourage refining investment 

in Nigeria,” he says. 

“The interesting thing here is that most people don’t 

object to the basic economic argument behind this move. It is 

whether the government can be trusted to use the savings to 

drive the economy. It’s the trust deficit issue that drove protests 

in January, and how the government is seen to address the 

underlying issues, that will be key to Nigeria’s success in 2012.” 

The fuel subsidy is a highly sensitive issue. The Economist 

claims it costs Nigeria $7 billion every year, sucking cash from 

the state and filling the pockets of various middlemen en route, 

yet President Jonathan has vowed to deal with the issue this 

year. If he succeeds where other Nigerian leaders have failed, 

the achievement will boost support for him and, in the longer 

term, may even encourage more people to become involved in 

local and national politics. 

Recently, President Jonathan persuaded World Bank 

managing director Ngozi Okonjo-Iweala to return home from 

Washington to become ‘super-minister’ for finance and the 

economy. The governor of Nigeria’s Central Bank, Lamido Sanusi, 

is also a reformer and uncompromising with regard to spending. 

“Subsidies should be paid from savings and not from 

borrowing and deficits,” he declared during a BBC radio 

interview in January 2012. 


Sustainable business, social reponsibility 

About our business 

British American Tobacco (BAT) was 

founded in 1902. We were born international, 

with roots in Africa, the Americas, Asia and 

Europe. We are the only international group 

with significant interest in tobacco- 

leaf growing, working with thousands 

of farmers internationally. 

We take a long-term view, focusing on the 

quality of our business and how we work. So we 

also seek to be recognised as industry leaders and 

to be the first-choice partner for governments, 

NGOs, investors and potential employees. 

We will only do this by continuing to 

demonstrate that we are a responsible tobacco 

group, with a sustainable business, outstanding 

people and superior products. 

That is why our strategy to deliver our vision 

has four elements around which all our efforts 

revolve: Growth, Productivity, Responsibility 

and building a Winning Organisation. 

For more than a century, British American 

Tobacco has built a reputation as a leading, 

fast-moving consumer goods business with 

brands sold in over 180 markets through 

more than 15 million retail outlets. 

The British American Tobacco Group 

purchases about 400,000 tonnes of tobacco 

leaf a year, grown by some 250,000 farmers 

with about 80 per cent by volume coming 

from suppliers in emerging economies. 

The company has been in Nigeria since 

1912, and in 2012 will be celebrating its 100th 

anniversary. In 1951, Nigeria Tobacco Company 

Limited (NTC) was incorporated as a subsidiary 

of British American Tobacco Limited. 

British American Tobacco Nigeria was 

incorporated on 11 July 2000 and subsequently 

merged with Nigerian Tobacco Company on 

6 November the same year. The company is a 

fully owned subsidiary of the British American 

Tobacco Group. 

On 24 September 2001, the British 

American Tobacco Group formally signed 

a Memorandum of Understanding (MoU) 

with the Federal Government of Nigeria, 

with the immediate requirement being the 

establishment of a new factory in Ibadan. 

On 17 June 2003, BAT Nigeria completed 

and commissioned its factory in Ibadan. BAT 

Nigeria has continued to invest in technological 

developments, while at the same time ensuring 

BAT Nigeria commissioned its factory in the western Nigerian city of Ibadan in June 2003 

employee skills are well developed. Our 

manufacturing processes have been certified 

by the Standards Organisation of Nigeria, in 

compliance with ISO 9001:2008. 

The investment started a process that has 

impacted all aspects of the tobacco industry, 

from leaf growing, through to the manufacture 

and distribution of tobacco products. 

BAT Nigeria commenced export operations 

to West and Central Africa in 2006. Currently, 

we export our products to 14 countries within 

the subregion. 

Statistics have shown that more than 

70 per cent of Nigerians are classified as poor 

and living below the poverty line of less than 

one dollar a day. Poverty is especially severe 

in rural areas, where many people have little 

or no access to essential services because 

infrastructure is limited. 

The BATN Foundation was established by 

BAT Nigeria as a community empowerment 

organisation to help improve the livelihood 

of Nigerians, especially in rural areas of the 

country. The foundation was incorporated 

on 13 November 2002 as a Company Limited 

by Guarantee. Its establishment is in fulfilment 

of the MoU that BAT Nigeria entered into 

with the Federal Government of Nigeria 

in September 2001. 

Corporate 

organisations can 

assist in developing 

socioeconomic 

sustenance in 

emerging economies 

The BATN Foundation operates throughout 

Nigeria on a series of local initiatives and 

projects, with focus on the following key areas: 

• Agricultural development 

• Potable water supply 

• Environment protection 

• Vocational skills development 

BAT Nigeria’s contribution to 

socioeconomic development 

• Total value of social investment in 

the country since inception in 2002 

is more than N1.3 billion; 

• The BATN Foundation applies rigid 

project-screening, monitoring and 

follow-up processes to ensure that 

its investment is effective;

BAT Nigeria has continued to invest in technological developments at the Ibadan plant 

• As at end of 2011, 108 community projects 

have been executed in the 36 states of the 

Federation and the Federal Capital Territory; 

• At November 2011, 75 students have 

obtained scholarships to study agriculture 

and related disciplines under the BAT 

Nigeria/BATIA (British American Tobacco 

Iseyin Agronomy) scholarship scheme; 

• Capacity-building workshop was organised 

for scholarship awardees in partnership 

with the Fate Foundation; 

• As part of our CSR initiatives, $170,000 has 

been committed to the University of Lagos, 

in partnership with USAID and Kansas 

State University, to enhance the academic 

curriculum of the Faculty of Business 

Administration in specific areas. 

It is often believed that, with the technical 

knowledge and rapidly increasing interests 

of many corporations in building sustainable 

markets, corporate organisations can assist 

governments in emerging economies in 

developing socioeconomic sustenance, 

particularly at the rural level. 

By listening to the expectations of our 

stakeholders in successive dialogue sessions, 

BAT Nigeria as an organisation and a business 

realised that one of the most important social 

interventions required from a business such 

as ours is the provision of voluntary financial 

and technical support for the development of 

citizens and communities in which we operate. 

Economic contributions 

• Total tax payment as at the end of 2011 

totalled N 158.2 billion; 

• Facilitation of the FDI of NAMPAK Limited 

in Nigeria. NAMPAK Limited invested 

$34 million in the country by building a 

printing and packaging plant in Ibadan; 

• Capacity-building programmes for the 

Nigerian customs, CPC and SON in 

support of the fight against illicit trade; 

• Other capacity-building programmes 

include support to EFCC, NIPC, NOTAP, 

Nigerian Immigration Service, Ministry of 

Commerce, Ministry of Finance, Nigerian 

Copyright Commission, and the intellectual 

Property Lawyers Association; 

• The company’s ‘Proudly Nigerian’ 

campaign was launched in 2002 to 

coincide with Nigeria’s drive for greater 

international visibility and appreciation, 

following the country’s return to 

democratic governance; 

• We directly employ about 850 full-time 

staff across the country. Each summer 

Advertisement 

we also hire up to 400 temporary staff 

for leaf processing. We have 850 farmers 

on contract, 400 employed via business 

partners in direct distribution and other 

services, and we also buy goods from 

about 610 local companies. 

In addition to this, a large number of 

wholesalers and retailers are known to 

derive some income from the selling of 

legal, regulated, tax-paid tobacco products. 

The Nigerian community seeks in many 

ways to encourage the private sector to 

volunteer its resources to fight poverty. 

BAT Nigeria’s performance in this regard 

has been widely appreciated and applauded 

by stakeholders. 

For more information, visit: 

www.batnigeria.com 

Tel: +234 1 4617500-2 

Fax +234 1 4617515

36 


There is no doubting Nigeria’s entrepreneurial spirit. 

Its economy, despite the country’s problems, has been 

seeing average annual growth in excess of seven per cent 

Samir Gadio, emerging markets strategist at Standard 

Bank, thinks that Nigerian politicians have two options for 

broadening the country’s economy, and creating more jobs in 

the longer term, if it is serious about loosening its dependency 

on the oil and gas sector. “You could argue that Nigeria could 

be an attractive market for Asian companies, but it is complex. 

There are substantial electricity [supply] worries. You need to 

rely on generators, which are very expensive – about 30 per cent 

of total costs in the Nigerian manufacturing sector.” 

Routes to growth 

The second route, says Gadio, is agriculture. “It has been 

overlooked, which is typical of oil-producing countries. There is 

a push on the government side to boost the primary agricultural 

sector. You could argue that Nigeria has a similar climate to 

that of Ghana, so there is cocoa potential, not to mention other 

commodities such as coffee, cotton in the north of the country, 

and rubber,” he says. 


With most people in Nigeria relying on 

private generators for power, investment 

in electricity networks is much needed 

There is no doubting Nigeria’s entrepreneurial spirit. Its 

economy, despite well-documented problems, has been seeing 

average annual growth in excess of seven per cent. 

The international front 

On the international front, President Jonathan’s stature and 

reputation has been boosted following support for reform in 

Libya and Côte d’Ivoire. The European Union has made 

promises to support Nigeria with expertise and technical help 

regarding the Boko Haram problems and security worries in the 

Niger Delta. If Jonathan can continue with his reform agenda, 

create jobs and draw high-quality private investors to the 

country – as well as keeping the lights on – then the roots of 

democracy will dig deeper into the country. Despite all the very 

considerable challenges, there is much hope. ■ 

Adrian Holliday is a business and financial writer who contributes 

to publications including The Observer and The Sunday Times

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38 


Working to achieve 

the Millennium 


Continuing progress has been made 

towards the Millennium Development 

Goal of universal education by 2015 


Nigeria’s efforts towards meeting the Millennium 

Development Goals have resulted in many 

positive achievements, but the country’s oil 

wealth could prove to be an obstacle to 

development, as Bija Knowles discovers 

is running behind in the goals, 

but I am optimistic that with necessary 

support from all stakeholders, the goals 

will be attained.” These were the words of 

“Nigeria 

Precious Gbeneol, senior special assistant 

to President Goodluck Jonathan, in reference to the Millennium 

Development Goals (MDGs) during an address to Nigeria’s 

Youth Parliament at her office in Abuja in January 2012. 

The MDGs were devised by the world’s leading development 

organisations and developing countries with the aim of placing 

key human development factors at the heart of the international 

agenda. The goals range from ending extreme hunger and 

poverty to reducing child mortality, and improving the quality 

of maternal healthcare. 

So, what has Nigeria accomplished since the eight MDGs 

were launched in 2000, and what is the likelihood that all of 

the goals will be achieved by the target date of 2015? 

There are no easy answers; measuring and planning for 

the MDGs is dogged by an absence of reliable, recent data on 

many of the indicators. This is due, in part, to a lack of funding 

for data generation and management, as well as a lack of 

infrastructure and inter-state cooperation. The politicisation of 

data is also a factor – officials may be reluctant to share data 

for fear of the political or financial consequences. 

Evaluating progress 

The data that is available shows that steps have been made in 

some areas. For example, the targets on reducing child mortality 

and improving maternal health could be attainable by 2015. 

However, achievements in other areas have been painfully slow. 

The goal of environmental sustainability is looking unreachable, 

as the forest area in Nigeria shrunk from 14.4 per cent in 2000 

to 9.9 per cent in 2010. 

The first of the eight MDGs aims to eradicate poverty and 

hunger. One of the targets is to halve (from 1990 to 2015) 

the proportion of people whose income is less than $1 a day. 

According to the United Nations (UN), the proportion of people 

living in extreme poverty in developing regions has fallen from 

46 per cent to 27 per cent globally. In contrast to this global 

figure, Nigeria is one of many countries in sub-Saharan Africa 

that are still far from making progress towards this target. 


In 2010, 68 per cent of the population was living on less than 

$1.25 per day. However, there have been some success 

stories, such as the National Special Programme for Food 

Security, which has helped to almost double agricultural yields 

and farmers’ incomes. 

World Bank figures on the second MDG of universal primary 

education show that 74.4 per cent of children completed 

primary school (78.8 per cent of boys and 69.7 per cent of 

girls) in 2010. The percentage of children completing primary 

school peaked at 88.7 per cent in 2006, before falling to 

70 per cent in 2008, and it has been rising slowly since. 

Another important indicator on educational progress is 

literacy – in 2009, 71.8 per cent of 15- to 24-year-olds were 

considered literate, according to UN data, compared with 

68.9 per cent in 2003. 

According to the 2011 MDG Report from the UN, of the 

total number of primary age children in Nigeria who do not 

attend school, about three-quarters are unlikely to have any 

exposure to education. “This pattern indicates that barriers 

to education in Nigeria are especially difficult to overcome,” 

the report concludes. It suggests that for those living in 

extreme poverty, there are few pathways out of poverty. 

Steps towards equality 

Gender equality is the third MDG. In 2011, the proportion of 

seats held by women in Nigeria’s national parliament was 

seven per cent, or 25 out of 358 seats – a figure that has 

remained stable since 2008. 

Significant progress has been made in reducing child 

mortality, the fourth MDG. The mortality rate for the under-fives 

reduced from 213 per 1,000 live births in 1990 to 143 deaths 

per 1,000 live births in 2010. Meanwhile, infant mortality 

(up to one year old) dropped from 126 per 1,000 live births 

in 1990 to 88 in 2010, according to UN figures. 

Maternal mortality, one of the indicators in improving 

maternal health (MDG 5), decreased from 980 per 100,000 

live births in 2000 to 840 in 2008. A further indicator, the 

proportion of births attended by a skilled health professional, 

also shows improvement, from rising from 38.9 per cent in 

2008 to 43.5 per cent in 2011. 

MDG 6 aims to combat HIV, AIDS, malaria and other 

diseases. The first target of this goal is to halt and reverse 

the spread of HIV and AIDS by 2015. Educating young 

people in how to protect themselves is one of the key ways 

of stopping the spread of this disease. In Nigeria in 2009, 

70 per cent of men and women aged 15-24 were aware that 

they could protect themselves by using a condom every time 


40 


they had sexual intercourse, while just 52 per cent had been 

aware of this in 2005. Despite this increased spread of 

knowledge, only 49 per cent of young people aged 15-24 

reported using a condom during higher-risk sex. 

Key to another of the targets of MDG 6 – to halt and 

reverse the incidence of malaria – is the use of mosquito nets 

treated with insecticide. The 2011 UN report found that, 

while there has been an increase in the percentage of children 

under five sleeping under a treated net (from just one per cent 

7. 

Environmental 

sustainability 

8. 

Developing a global 

partnership 

for development 

6. 

Tackling HIV and 

AIDS, malaria and 

other diseases 


1. 

Eradicating 

extreme 

poverty and 

hunger 

The Millennium 


5. 

Reducing 

child mortality 

2. 

Universal 

primary education 

4. 

Improving 

maternal health 

in 2000 to six per cent in 2010), Nigeria is still lagging far 

behind almost all other sub-Saharan countries in its distribution 

of anti-mosquito nets. 

Nigeria is one of five countries with the highest number of 

tuberculosis cases and it is one of the three remaining nations 

where polio is endemic. According to the Polio Eradication 

Initiative, Nigeria is “one of the most entrenched reservoirs of 

wild poliovirus in the world”. However, progress has been made 

towards fighting the disease: operational improvements in the 

northern states in 2009 (following initial reluctance among 

some communities to use the vaccine) led to a 90 per cent 

decline in cases of wild poliovirus type 1, and a 50 per cent 

decline in overall cases compared with 2008. 

Nigeria, and the rest of the developing world, is now 

looking to 2015. Progress has been made in health and 

education, but this hasn’t been distributed equitably across 

Nigeria’s geopolitical zones, with the northern states lagging 

behind. Ironically, one obstacle to development could be 

the country’s oil wealth. With its natural resources, Nigeria is 

now considered to be a middle-income country (MIC), despite 

a large portion of the population living in extreme poverty. 

A 2010 report from the Institute of Development 

Studies at the UK’s University of Sussex suggested 

that three-quarters of the world’s poor (totalling 

one billion people) now live in MICs. The 

3. 

Promoting 

gender equality 

financial crisis has spurred several political 

and developmental bodies to consider 

withdrawing aid from MICs, even though 

this would have a detrimental effect 

on the Nigerian federal government’s 

ability to ensure public spending 

accountability at state level. 

Corruption is another problem. 

Despite the democratic election of a 

leader in 1999, Nigeria has slid down 

the Corruption Perceptions Index; from 

90th place in 2000 to 143rd in 2011. 

The rise of the fundamentalist 

Islamic group Boko Haram in the north 

of Nigeria is also hindering development. 

Uche Igwe, a member of the Institute of 

Development Studies, points out there are many 

unseen implications of political unrest: “With the 

military on the streets there is a violent environment 

where more women are raped and killed. When they see 

soldiers on parade, they do not go to hospital to access 

maternal healthcare because they are frightened.” 

Nigeria’s proposed financial budget for 2012 committed 

a large proportion of money – N921.91 billion ($5.8 billion) 

– to national security. This was deemed necessary in light of 

the violence surrounding the 2011 election and attacks by 

Boko Haram, but the amount far exceeded the N682.92 billion 

($4.3 billion) allocated to education and health. ■ 

Bija Knowles is a freelance writer and editor, contributing to 

publications including gtnews, Euromoney and Financial Times

Progress in 

governance reform 

Governance and corruption have dogged 

perceptions of Nigeria for decades, but the 

situation is changing. Heather McKenzie 

considers the raft of legislation that aims to 

tackle corruption and raise accountability 

In May 2011, President Goodluck Jonathan signed into 

law the Freedom of Information Act in a move perceived 

as an important step in the improvement of democracy, 

transparency, justice and development in Nigeria. 

“With the new law, Nigerians finally have vital tools 

to uncover facts, fight corruption, and hold officials and 

institutions accountable,” said Ene Enonche, coordinator of 

Right to Know, an organisation established to champion the 

right to access officially held information at all levels of public 


The Nigerian National Assembly in Abuja. 

New legislation has brought improvements 

in democracy, justice and transparency 

institutions and to establish legal standards for these rights 

in Nigeria. The legal affirmation of this right is a necessary 

precondition for the establishment of open and democratic 

government in the country. 

Under the Act, all publicly funded institutions will have 

to be open about their operations and expenditure, while 

citizens will have the right to access information about their 

activities. Whistleblowers who report wrongdoing by their 

employers or organisations will be protected from reprisal. 

Other anti-corruption and governance-reform bodies in 

Nigeria welcomed the move. Maxwell Kadiri, associate legal 

officer at the Open Society Justice Initiative, said the law 

would “profoundly change how government works in Nigeria”. 

The Freedom of Information Act was first submitted to 

parliament in 1999, only to be stalled and eventually vetoed 

in early 2007, by the then President Olusegun Obasanjo. 


42 


“The improved governance and fight against corruption 

witnessed in the past few years have improved the 

international perception of Nigeria” 

In the same year, the law was returned to both chambers of 

the country’s National Assembly and was eventually passed in 

May 2011. The Act covers seven key areas: 

• Guarantees right of access to information held by 

public institutions, irrespective of the form in which it 

is kept, and is applicable to private institutions that 

utilise public funds, perform public functions or 

provide public services; 

• Sets a requirement for all institutions to proactively 

disclose basic information about their structure and 

processes, and mandates them to build the capacity 

of their staff to effectively implement and comply 

with the provisions of the Act; 

• Provides protection for whistleblowers; 

• Makes adequate provision for the information needs 

of illiterate and disabled applicants; 

• Recognises a range of legitimate exemptions and 

limitations to the public’s right to know, but makes 

these subject to a public interest test, which may, in 

deserving cases, override such exemptions; 

• Creates reporting obligations on compliance with the 

law for all institutions affected by the Act. Reports 

are to be provided annually to the Federal Attorney 

General’s office, which will make them available to 

the National Assembly and the public; and 

• Requires the Federal Attorney General to oversee the 

effective implementation of the Act and report on 

execution of this duty to Parliament annually. 

Institutional reform 

The Freedom of Information Act is only one of a number of 

corporate governance and anti-corruption reforms that have 

been undertaken in Nigeria over the past decade. In 2001, 

the Economic and Financial Crimes Commission (EFCC) 

was established to help in the fight against what was then 

considered a preponderance of economic and financial crimes 

in Nigeria, including money laundering. According to the 

EFCC, these crimes had severe negative consequences for 


the country, leading to decreased foreign direct investment in 

and harming its national image. 

During a recent presentation, the United Nations 

Development Programme (UNDP) outlined some of Nigeria’s 

achievements in institutional and governance reform. It pointed 

out that between 1960 and 1999, the EFCC estimated that 

about $400 billion in oil revenues had been stolen by the 

country’s rulers. Over the same period, two-thirds of the 

population had been living in poverty. The lack of infrastructure, 

high unemployment and poverty levels led to insecurity and 

conflict, said the UNDP. 

Reforms in Nigeria began in 1999, and have since 

continued. The first move was the Minerals and Mining Act of 

1999 (subsequently repealed, and replaced by the Minerals 

and Mining Act of 2007), followed by the Petroleum Industry 

Bill of 2008, the Public Procurement Act of 2007, the Niger 

Delta Development Commission Act of 2000, and the 

Sovereign Wealth Fund Act of 2011, as major moves towards 

improving the country’s governance environment. 

The European Commission (EC) is helping to fund the 

Niger Delta reforms to the tune of about ¤200 million via the 

European Development Fund, as part of the European Union’s 

2011 Annual Action Plan for Nigeria. Andris Piebalgs, 

commissioner for development at the EC, said the commission’s 

support for Nigeria will help the country to consolidate peace 

in the Niger Delta and improve governance. 

Among the funding initiatives is support for state and 

local governance reform. The programme will aim to improve 

transparency, accountability, and the quality of public finance 

and human resources management across six states in the 

area. The programme will also build the capacities and 

processes of these states in public finance programming and 

management, and will work towards improving the delivery 

of social services at local level. 

The 2011 Action Plan also includes support for 

anti-corruption programmes in Nigeria. Funding will be used to 

help strengthen the institutional and operational capacity of 

the main anti-corruption agencies in the country, and provide

them with effective support to coordinate their activities, 

formulate policy and prepare legislation. 

Any nation with poor governance and a high level of 

corruption is bound to receive poor rating from outsiders, 

leading to a reduction in its attractiveness, says Niyi Yusuf, 

managing director of consultancy firm Accenture Nigeria. 

“The improved governance and fight against corruption 

witnessed in the past few years have improved the international 

perception of Nigeria. However, we still need to sustain our 

efforts as a nation in these two areas to further improve the 

international perception of Nigeria and to make the country a 

destination of first choice for investors.” 

Yusuf highlights the Freedom of Information Act, the 

strengthening and independence of the anti-corruption agencies, 

reform of the oil and gas industries, the Nigeria Extractive 

Industry Transparency Initiative, the establishment of the 

Bureau of Public Procurement and judiciary reform as helping 

to improve governance and reduce corruption. 

Financial regulation 

In the finance sector, the Securities and Exchange Commission 

(SEC Nigeria) and the Central Bank of Nigeria (CBN) have both 

introduced corporate governance codes. The SEC’s code, 

launched in 2003, makes provision for best practice to be 

followed by publicly quoted companies and all other companies 

with multiple stakeholders registered in Nigeria. The CBN’s 


Lamido Sanusi, governor of the Central Bank of Nigeria, says that 

reform measures have restored public confidence to the banking sector 

code, introduced in 2006, is aimed at addressing a number 

of weaknesses in the corporate governance of banks in the 

country. Such weaknesses include: board oversight and 

ineffectiveness; fraudulent practices of board members, 

management and staff; the overbearing influence of chairmen, 

managing directors or chief executives, particularly in family 

controlled banks; and weak internal controls. 

CBN governor Lamido Sanusi says substantial progress 

has been made and that significant public confidence has 

been restored to the banking sector with the reform measures 

adopted by the central bank. 

One of the turning points in Nigeria’s anti-corruption 

and governance reform programme occurred in 2011, says 

Samir Gadio, emerging markets strategist at Standard Bank in 

London. “A new generation of reformers has come into power 

in the country. The finance minister, head of the SEC and the 

governor of the Central Bank, to some extent, changed the way 

the market has behaved and should continue to do so.” 

However, Gadio warns that unless there is a sustained 

period of growth and a decline in poverty, corruption at the 

low level, such as bribery of police officers, will continue. 

“At a high level, such as in politics, corruption has been 

declining for many years. There is a much greater possibility 

in Nigeria that politicians caught up in corruption scandals 

will be exposed to public condemnation. Such corruption is 

no longer tolerated by the population.” ■ 


44 


Promoting 

free and fair 

elections 

A voter shows the indelible ink on her thumb 

to signify that she has cast her ballot – one of 

the measures to help prevent electoral fraud 


Reform of the democratic process is a crucial 

aspect of President Jonathan’s agenda. 

Rekha Gupta Menon looks at the achievements 

of institutions such as the Electoral Reform 

Committee and the Independent National 

Electoral Commission in delivering change 

Nigeria, the largest democracy in Africa, has had 

a long and painstaking path to democratic rule 

– one which has been marked by turmoil and 

instability. While the country gained 

independence from colonial rule in 1960, for 

several years it was under a succession of brutal military 

dictatorships. It has only been since 1999 that the country has 

enjoyed a sustained period of civil rule. 

Even then, for much of the past 13 years, the country 

has yet to reach the desired level of democracy. The benefits 

of equality, justice and opportunity have not been delivered in 

full to its people. Despite being endowed with abundant 

natural resources – Nigeria is Africa’s top oil producer and 

among the world’s largest producers, earning over $60 billion 

annually through oil and gas exports – the country’s human 

development indicators are among the lowest in the world, 

and a large proportion of its population lives in acute poverty. 

Corruption is rife across all levels of government, and 

the common concerns of the country’s citizens include basic 

issues such as electricity, availability of running water, 

education and transport. 

Responsible governance has long been one of the key 

elements missing from Nigeria’s democratic set-up. Out of the 

four national elections held since the end of military rule in 

1998, the first three elections, held in 1999, 2003 and 2007, 

were universally derided as being unfair and fraudulent. 

The 2007 elections that brought Umaru Yar’Adua of 

the People’s Democratic Party to power were so marred by 

widespread rigging, violence and mismanagement that even 

the newly elected president conceded that the elections were 

flawed. He appointed a panel, comprising government officials, 

former judges and civil-society representatives, to recommend 

changes to the country’s electoral institutions. This Electoral 

Reform Committee (ERC), presided over by former chief justice 

Mohammed Uwais, submitted its report in December 2008, 

recommending several reforms, such as the introduction of 

independent candidates, the prosecution of electoral offenders 

and the establishment of new legislative bodies to deal with 

the problem of election irregularities. 


Some of the reforms suggested by the ERC were 

implemented. However, one of the most important 

developments took place in 2010, when President Goodluck 

Jonathan, who had taken office following Umaru Yar’Adua’s 

death, installed respected academic and civil-society activist 

Professor Attahiru Jega as head of the Independent National 

Electoral Commission (INEC). His appointment met with 

stiff resistance in several quarters, but played a key role in 

shaping the process for the most recently held general 

elections in April 2011. 

Professor Jega put in place a new and credible voting 

register, and retrained his staff, whom he deployed to 120,000 

polling stations across the vast country, all in just six months. 

Furthermore, the officials put in place a new voting system 

that helped to curtail fraud. The mammoth election exercise, 

with over 70 million registered voters and around 325,000 

poll workers, resulted in President Jonathan’s re-election. 

Despite some violence, international observers lauded the 

elections, rating them as credible, and “largely free and fair”. 

A solid foundation 

Johnnie Carson, the United States Assistant Secretary of 

State for African Affairs, said in a statement: “Nigeria has 

just completed its most successful elections since its return 

to multi-party democracy in 1999. Despite some technical 

imperfections, those elections represent a substantial 

improvement over the flawed 2007 electoral process. This 

reverses a downward democratic trajectory, and provides the 

country with a solid foundation for strengthening its electoral 

procedures and democratic institutions in the years to come. 

The Nigerian people have shown to the world their resilience 

and will to have their voices heard. These elections were a 

real opportunity to choose their leaders.” 

Speaking at a media briefing in Abuja on 18 April 2011, 

the chair of the Commonwealth Observer Group, former 

Botswana president Festus Mogae, said that the elections 

marked a genuine celebration of democracy in Africa’s most 

populous country and a key member of the Commonwealth. 

“Previously-held notions that Nigeria can only hold flawed 

elections are now being discarded, and this country can now 

shake off that stigma and redeem its image. Notwithstanding 

the organisational deficiencies that resulted in the 2 April 

National Assembly elections being aborted after they had 

started, and in spite of persistent procedural inconsistencies 

and technical shortcomings, the elections for the National 

Assembly and Presidency were both credible and creditable, 

and reflected the will of the Nigerian people.” 


46 


The April 2011 elections were a landmark event in Nigeria’s 

political landscape, reconfirming the government’s 

commitment to democracy, but challenges remain 

Women queue at a polling station in northern 

Nigeria. Independent monitors endorsed 

the credibility of the April 2011 elections 

Mogae added: “The success of the electoral process 

must be attributed in large measure to the respect and 

confidence enjoyed by the Independent Electoral Commission, 

and in particular by its chairman, Professor Attahiru Jega. 

In him, the nation was able to look up to a person of deep 

integrity, transparency and commitment, who was determined 

to make every Nigerian’s vote count. His willingness to accept 

full responsibility for the fiasco of 2 April, and his readiness 

to postpone the National Assembly elections a second time in 

response to requests by the stakeholders, helped Nigerians 

keep faith in the INEC.” 

In a report on the Nigerian elections, the Observatoire 

de l’Afrique, a network of independent institutes and experts 

based in Europe and in Africa, also praised the INEC chairman. 

“It was recognised that Professor Jega’s independence and 

integrity have been instrumental in favouring a credible 

electoral process,” stated the report. 

There is no doubt that the April 2011 elections were a 

landmark event in Nigeria’s political landscape, reconfirming 

the government’s commitment to democracy, but several 


challenges remain, such as the need to align interests across 

Nigeria’s multi-ethnic, multilingual and religious landscape. 

With 170 million people, Nigeria is the most populous 

country in Africa, and it has more than 250 ethnic groups 

with varying languages and customs. There are deep divisions 

between the Muslim-dominated north and Christian-dominated 

south. In order to prevent hostility between regions and 

religions, since 1999 there had been an unwritten political 

power sharing agreement, often referred to as ‘zoning’, through 

which the presidency is expected to alternate between the 

Christian south and Muslim north. 

Highlighting the north-south divide 

The first democratically elected president in the Fourth 

Republic, President Olusegun Obasanjo, was from the south. 

He was in power for two consecutive terms and his successor, 

President Yar’Adua, was from the north. The latter’s untimely 

death in the midst of his first term in office put Goodluck 

Jonathan, a southerner, in the presidential seat. 

There was debate on whether the PDP should field a 

northern presidential candidate in the 2011 elections, but 

President Jonathan prevailed and was re-elected, raising 

questions over the future of zoning arrangements. Moreover, 

the violence that flared up in the north after the elections, 

in protest at President Jonathan’s win, was much more severe 

than in previous years, reflecting a deep rift and resentment 

among sections of the electorate. 

Last year’s elections have helped to reinforce Nigerians’ 

belief that democracy is finally working, but the task before 

the government is not easy. To build on the gains of the 

2011 elections, the government needs to address issues of 

transparency and accountability in governance, social inequality, 

justice and corruption, and it must also provide equal access 

to resources for all. Importantly, the government needs to 

work towards achieving economic prosperity to meet the 

aspirations of the country’s citizens. ■ 

Rekha Gupta Menon is a freelance journalist and has written for 

publications including the Financial Times, The Banker, Securities 

Industry News and Professional Wealth Management

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48 

the economy and finance 

Nigeria’s economic uplift 

A recent opinion poll found that a large majority 

of Nigerians expect greater prosperity in 2012-13 

invest in niGeRia 2012-13

While the effects of the financial crisis continue to undermine 

attempts at growth among Western economies, Nigeria has joined 

the pack of nations experiencing increased prosperity. Beth Holmes 

considers Nigeria’s status in Africa and across the global stage 

as it steers a course to become one of the world’s top 20 economies 

While the developed 

nations in the West 

continue to buckle 

under ongoing debt 

crises and severe 

economic instability, the emerging 

nations are not only beginning to catch 

up, but to forge ahead. 

According to the International 

Monetary Fund (IMF), Nigeria’s economy, 

which is fuelled mostly by oil exports, 

is expected to be worth $400 billion by 

2016. Meanwhile, a recent survey by 

Gallup of economic optimism around 

the globe found that Nigerians are the 

most optimistic about the year ahead, 

with more than eight out of 10 saying 

that they expected a “year of economic 

prosperity” in 2012. 

With economists at investment 

bank Morgan Stanley predicting that 

Nigeria’s gross domestic product (GDP) 

will probably overtake that of South 

Africa by 2025, the prospects for the 

country are bright and seem to be a far 

cry from the instability that has dogged 

its progress in decades past. 

It is up to the policymakers, 

the investment community and the 

population at large to take advantage 

of emerging opportunities, and help to 

position Nigeria as the most influential 

African voice on the world stage. 

Although issues of security continue 

to be a challenge, a transparent and 

consistent focus on key strategic policies 

at the macroeconomic level have helped 

to make Nigeria an economic success 

story, and may help to turn the nation’s 

international aspirations into reality. 

Nigeria has lived through distinct 

periods of growth and development 

under various policy regimes, from the 

pre-oil boom decade of 1960-70, 

through the oil boom of the 1970s and 

to the current day. 

A succession of development plans 

was introduced from the 1960s to 

provide a framework for development 

and restructuring. The First National 

Development Plan (1962-68) was 

introduced to kick-start the economy, 

with priority given to agriculture and 

industrial development. The Second 

National Development Plan (1970-74) 

focused on rebuilding the infrastructure 

that had been damaged during the 

country’s civil war. 

Response to the oil boom 

The Third National Development Plan 

(1975-80) was launched as a response 

to the large oil revenues that the country 

enjoyed during the oil boom of the 

1970s, but the subsequent collapse of 

international oil prices meant that a 

Fourth National Development Plan 

(1981-85) was introduced. Two changes 

of government seriously disrupted the 

implementation of this final programme 

and, consequently, the performance of 

the economy during the fourth plan 

period was generally poor. 

In 1986, the government accepted 

the IMF-sponsored Structural Adjustment 

Programme (SAP), which was aimed at 

creating a more market-friendly 

environment that would encourage 

private enterprise. Some of the benefits 

that accompanied increased deregulation 

the economy and finance 49 

were lost in 1994, with the actions of 

the new military government, which, over 

five years, reregulated after interest rates 

reached an all-time high of 48 per cent 

in commercial banks and 60 per cent in 

non-bank financial institutions. 

A series of reforms aimed at 

halting economic decline and stimulating 

growth were instigated with the return to 

democracy. They also improved Nigeria’s 

image abroad and enabled it to be more 

proactive – regionally and internationally. 

Between 2003 and 2007, there 

was a major initiative to raise living 

standards though the National Economic 

Empowerment Development Strategy 

(NEEDS), which attempted to tackle 

basic deficiencies such as electricity 

and water supplies, while also 

addressing macroeconomic stability 

through a variety of reforms, including 

deregulation, privatisation, transparency 

and accountability. 

A longer-term economic 

development programme is the United 

Nations (UN) sponsored Millennium 

Development Goals for Nigeria, which 

covers the years from 2000-15. It 

commits the country to achieving 

ambitious objectives concerning 

poverty reduction, education, gender 

equality, health, the environment and 

international development cooperation. 

International goodwill was further 

boosted in May 2011, after a successful 

national election. President Goodluck 

Jonathan tasked his government with 

continuing to focus on economic 

progress, while also tackling concerns 

over terrorism and militancy. 

The emergence of the BRIC 

countries (Brazil, Russia, India and 

China) as the economic giants of the 

future also creates an opportunity for 

oil-rich Nigeria. The country is the 

primary supplier to Brazil, provides 

20 per cent of India’s crude oil, and is 


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Nigeria’s petroleum industry is set for an 

overhaul of its regulatory and legal framework 

also the latter’s largest trading partner 

in Africa. In addition, Nigeria is the 

fifth largest supplier of crude oil to 

the United States. 

Looking ahead to the remainder of 

the decade, Nigeria is striving to broaden 

its economic base by increasing private- 

sector participation. A number of 

initiatives are already under way. 

At the start of 2012, there was a 

renewed commitment from members of 

Nigeria’s Bankers’ Committee – made 

up of the chief executives of banks, 

financial institutions, and regulatory and 

supervisory agencies – all underpinning 

a resolve to create a regulatory framework 

under which the economy can thrive. 

In a statement from the Central 

Bank of Nigeria (CBN), the members 

said: “We hereby sign this Joint 

Commitment Statement with the aim of 

developing a set of sustainable banking 

principles for the Nigerian banking 

sector, to drive long-term sustainable 

growth whilst focusing on development 

priorities, safeguarding the environment 

and our people, and delivering 

measurable benefits to society and 

the real economy.” 

Improved financial standards 

Banking is not the only sector to be 

facing a period of regulatory change. 

As part of his country’s drive to become 

a global player, President Jonathan 

signed the Financial Reporting Council 

of Nigeria Act 2011 into law, and the 

staged adoption of International 

Financial Reporting Standards (IFRS) 

began on 1 January 2012. 


IFRS have already been adopted in 

most developed economies (with the 

United States a notable exception) and 

implementation in Nigeria will help to 

reassure foreign investors with a credible 

financial-reporting regime. 

Oil is critical to Nigeria’s future, so 

it is unsurprising that the industry has 

also been earmarked for improvement. 

The Petroleum Industry Bill (PIB) is a 

piece of legislation, which, when passed 

into law by the National Assembly, will 

radically overhaul the regulatory and 

legal framework of the Nigerian 

petroleum industry. The federal 

government hopes to pass the bill into 

law during the second half of 2012. 

The Nigerian Stock Exchange 

continues to play a crucial role in the 

economic health of the country, but it 


52 


has been subject to volatility over recent 

years, which has dented investor 

confidence. Although the All-Share Index 

depreciated by 17 per cent over the 

course of 2011, the Exchange’s chief 

executive, Oscar Onyema, is driving 

forward plans to revitalise the market. 

In 2011, a review of market 

performance showed that the total 

turnover value of shares had fallen from 

N797.55 billion ($4.9 billion) in 2010 

to N622.60 billion ($3.9 billion). 

However, new listings increased from 

31 to 33. “The deregulation of the 

downstream oil and gas sector... will 

encourage a number of companies 

operating in that sector to access the 

capital market and be listed on the 

stock exchange,” said Onyema. 

Key initiatives for 2012 include the 

expansion of the stock market’s product 

range from two (bonds and equities) 

to five. These include the gold-backed 

Exchange Traded Fund, which was 

launched in December 2011. 

A series of initiatives is under way 

to strengthen and expand Nigeria’s 

fledgling, but fast-growing bond market. 

The market is fairly developed, with the 

maturity of obligations ranging from 

three to 20 years. The 20-year bond is 

the longest-tenure debt instrument ever 

offered in Nigeria. It was first issued in 

November 2008 in an attempt to 

deepen the bond market. 

In 2011, the government issued a 

$500 million bond that pays interest in 

US dollars for the first time. Called the 

Eurobond, it was aimed at investors 

who would like to minimise the risk of 

currency fluctuation. It struggled 

throughout the year, but rallied at the 

start of 2012, as investors bet that oil’s 

surge to a 32-month high would help 

investors to overcome their jitters. 

The Federal Government revealed 

through the Debt Management Office 

invest in niGeRia 2012-13 

(set up in 2000 to centrally manage 

Nigeria’s debt) that it intends to raise 

up to N240 billion ($1.5 billion) 

from the capital markets in the first 

quarter of 2012. It plans to do this by 

auctioning 10-year sovereign bonds that 

mature before the end of March, in order 

to plug the revenue gap. 

Fund for new projects 

The Central Bank of Nigeria (CBN) has 

taken the lead in financing the real-estate 

sector and infrastructure projects by 

establishing a N500 billion ($3 billion) 

fund, of which N300 billion ($1.8 billion) 

is for the power/infrastructure and 

aviation sectors, and N200 billion 

($1.2 billion) for the refinancing and 

restructuring of banks’ loan portfolios 

to manufacturers and small- to 

medium-sized enterprises (SMEs). 

Also, a N200 billion ($1.2 billion) 

Small and Medium Enterprises Credit 

Guarantee Scheme has been created to 

complement the earlier, N200 billion 

Commercial Agricultural Fund for loans 

to farmers. So far, the CBN has released 

over N190 billion, of which N130 billion 

has been distributed to SMEs at a fixed 

rate of seven per cent. 

Following in the footsteps of all but 

two other members of the Organization 

of the Petroleum Exporting Countries 

(OPEC), Nigeria launched its own 

Sovereign Wealth Fund (SWF) in January 

2012, to help the country save for the 

future, invest in strategic infrastructure 

projects and act as a buffer against 

volatile oil prices. 

It is hoped that the fund, which 

was launched with government seed 

capital of $1 billion, will help ordinary 

Nigerians benefit from the billions of 

dollars of oil revenues that the nation 

has seen over the past half-century, and 

Ngozi Okonjo-Iweala was reappointed as 

Nigeria’s finance minister in July 2011 

also respond to criticism that savings 

have been detrimentally affected by 

years of mismanagement. 

Many analysts have welcomed the 

introduction of the fund, but believe that 

because of its long-term nature, it is 

more appropriate for investing in local 

equities on the Nigerian Stock Exchange, 

rather than investing abroad. This will 

help to build up a debt profile more 

safely while deepening the market. 

On a more regional level, there has 

been a big increase in local finance 

initiatives. At the end of 2011, the First 

Bank of Nigeria and its investment

anking subsidiary, FBN Capital 

Limited, signed a Memorandum of 

Understanding with the Oyo State 

Government to fund key 

multibillion-naira developments there. 

These include the construction of 

independent power projects, rice and 

grain cultivation, revitalisation of 

existing farm settlements and the 

establishment of new ones, the creation 

of vehicle-assembly plant and the 

purchase of mass-transit vehicles. 

Access to banking 

Starting in 2006, the Central Bank of 

Nigeria started to transition several 

hundred community banks into official, 

licensed microfinance institutions. 

There are now more than 900 such 

banks, which help to give ordinary 

Nigerians access to a wide range of 

banking services while helping to boost 

SMEs. Plans are afoot to increase the 

number of microbanks, although there 

are significant challenges around 

spreading awareness in an uneducated 

population and obtaining proper support 

from regulators. 

Progress is being made in the 

right direction, however, and the 

National Association of Microfinance 

Banks Lagos State chapter (NAMB-LAG) 

recently announced plans to work with 

organisations such as the Institute of 

Chartered Accountants of Nigeria (ICAN), 

the Chartered Institute of Bankers of 

Nigeria (CIBN), Centre for Management 

Development (CMD), Nigeria Institute of 

Management (NIM), and the Industrial 

Training Fund (ITF) to improve the 

quality, scope and depth of its capacity 

building programme. 

The CBN stated in the revised 

policy guidelines for microfinance banks 

that efforts would be made to promote 

capacity building within the sector. 

It also introduced the Microfinance 

The Central Bank of Nigeria is 

encouraging more electronic transactions 

Certification Programme (MCP); an 

accreditation initiative to help ensure 

staff in such banks have the appropriate 

operational and technical skills. 

The most immediate impact for 

ordinary Nigerians, however, has been 

the introduction of the CBN’s ‘cashless’ 

policy. In a move to reduce the high 

level of cash transactions within the 

economy, a pilot scheme was launched 

in Lagos state on 1 January 2012, 

which sets daily limits on deposits and 

withdrawals of N150,000 ($920) for 

individuals and N1 million ($6,100) 

for corporations. 

By encouraging more electronic- 

based transactions, the hope is to 


minimise issues related to security, 

cash-management costs and money 

laundering, while also improving the 

electronic payment system and 

centralised back-office systems. 

Nigeria is on the crest of a wave. 

If it can continue to follow growth- 

friendly policies and realise its long-term 

economic potential, the country is 

well on its way to becoming one of the 

world’s top 20 economies by 2020, 

as predicted by the PwC consultancy at 

the start of 2011. ■ 

Beth Holmes is a freelance journalist, 

specialising in business and finance, and 

former features editor of Accountancy 


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Banking on Nigeria 

Nigeria has worked hard to overcome an image problem associated 

with major frauds of the past and has made huge strides to eliminate 

corruption, largely due to the action taken by the governor of the 

country’s central bank, as Alex Hawkes discovers 

In a speech to students of Bayero 

University, Kano, in February 2010, 

Central Bank of Nigeria (CBN) 

governor Mallam Sanusi Lamido 

Sanusi described how the financial 

crisis had revealed the depth of fraud 

that pervaded Nigeria’s banking system. 

Some bank chief executives, he 

explained, had set up special-purpose 

vehicles to lend money to themselves to 

manipulate their stock prices, or to buy 

properties around the world. 

“One bank borrowed money and 

purchased private jets, which we later 

discovered were registered in the name 

of the CEO’s son. In another bank, 

the management set up 100 fake 

companies for the purpose of 

perpetrating fraud,” said Sanusi. 

Afribank had used depositors’ 

funds to purchase 80 per cent of its 

initial public offering, paying N25 

($0.15) a share – those shares later 

collapsing to just N3 ($0.02). 


New measures to improve the Nigerian banking 

system spark optimism about the sector’s future 

During the crisis the Nigerian 

stock market, dominated by banks, fell 

by 45 per cent and has not recovered. 

But despite the difficulties suffered 

by the banking sector, there is an air 

of optimism about the Nigerian 

financial sector, and about the country’s 

economy in general. 

With the CBN cleaning out the 

system, and with Nigerian banks 

consolidating to form stronger entities 

that have the ability to operate not just 

within Nigeria but beyond, there are 

hopes that the country’s financial sector 

could forge ahead. 

Furthermore, global investment 

banks are advising their clients that 

Nigeria is on course to be one of the 


56 


Facts and figures 

Annual percentage growth in Nigeria’s gross domestic product (GDP) 

8 

7 

6 

5 

4 

3 

2 

1 

0 

-1 

2000 

2.93% 

2001 

0.65% 

fastest-growing economies in the world 

over the next 40 years. 

While there are many caveats to the 

investment story, hopes that the country 

can follow Sanusi’s lead and rid itself of 

corruption are fuelling optimism that 

Nigeria could soon realise its potential. 

Financial reforms 

By any estimation, the overhaul of the 

Nigerian financial sector in recent years 

has been significant. Standard Bank 

emerging markets analyst Samir Gadio 

suggests one of the biggest developments 

was the banking consolidation of 2004, 

when the government dramatically 

raised capital requirements, reducing 

the number of banks from 89 to just 25. 

“It created larger and better- 

capitalised banks, which started to 

expand across Africa. It was a positive 

step, but on the prudential side there 

was clearly a lack of transparency,” says 

Gadio. Those transparency issues came 

home to roost during the global financial 

crisis, when the frauds outlined by 

Sanusi in his university lecture emerged. 

His reforms have been dubbed 

the “Sanusi Tsunami”, so dramatic have 


2003 

7.62% 

2002 

-0.9% 

2004 

7.9% 

2006 

3.6% 

2005 

2.82% 

2007 

3.83% 

2008 

3.39% 

2009 

4.35% 

2010 

6% 

The rapid increase 

in mobile-phone 

subscribers in Nigeria 

2001 

source: World Bank 266,461 96.7 million 

they been. The Nigerian Securities and 

Exchange Commission (SEC) eventually 

levelled charges against 260 companies 

and individuals, while the previous 

management of Nigeria’s Securities and 

Exchange Commission was removed. 

Nine banks were nationalised and 

a body – the Asset Management 

Corporation of Nigeria (AMCON) – 

created to buy up non-performing loans 

from Nigerian banks. Once the process 

is complete, AMCON will have bought 

approximately $17.3 billion of bad debts. 

Corporate governance codes have 

been updated, including requirements to 

ensure transparency, accountability and 

good governance. Directors of boards 

will also have to pass through a director 

certification programme. 

The moves have not made Sanusi 

popular – daily death threats have 

forced him to hire armed guards – 

but they have got him noticed 

internationally, winning him a string of 

awards for taking on the entrenched 

corruption in Nigeria. 

“The SEC is striving to create 

markets that are more transparent, 

sophisticated and credible,” says 

2010 

Gregan Anderson, an analyst at Business 

Monitor International. 

Ratings agency Standard & Poor’s 

has, following those changes, improved 

its risk assessment of Nigerian banking, 

moving it from group nine to group 

eight, where a lower number signifies 

reduced risk. The agency cited the 

willingness of the Nigerian state to 

support banks as a factor in its decision. 

Recent results from the banks 

have also been positive. Ecobank 

Transnational, which acquired Nigerian 

lender Oceanic in October 2011, saw its 

profits before tax grow by 50 per cent 

year on year for the first three quarters 

of 2011 (the latest figures). Likewise, 

First Bank, Guaranty Trust Bank and 

Zenith Bank have all seen strong profit 

growth for the same period. 

“The sector has survived the crisis 

in 2009. You can’t expect it to rebound 

very quickly, but some of the signs are 

positive. Private-sector lending seems 

to be rising, and confidence has been 

restored,” says Standard Bank’s Gadio. 

The optimism about the policies 

being instituted in the financial sector 

is bettered only by the optimism about

Diversifying the economy: oil and gas 

revenues as a percentage of Nigeria’s GDP 

1980s 2009 

35% 16% 

the Nigerian economy as a whole. In 

2005, Goldman Sachs picked Nigeria as 

one of its ‘Next 11 economies’, the 

emerging growth centres that are 

taking over the growth mantle from 

the BRIC countries – Brazil, Russia, 

India and China. By 2050, it expects 

Nigeria to possess the 12th largest 

economy in the world. 

Citigroup puts Nigeria in its 

Frontier 15 – countries that, it says, 

“have the potential to generate the kind 

of returns for equity investors over the 

coming decades that the emerging 

markets themselves have produced over 

the past quarter-century.” 

Reasons for optimism 

Business Monitor says Nigeria is one of 

the most promising markets in the 

sub-Saharan Africa region: “Despite 

ongoing challenges, its large youthful 

population, scope for efficiency gains, 

emerging middle class and competent 

(and improving) macroeconomic 

management all suggest immense 

potential. Indeed, in several segments 

of the economy, this optimistic view 

has already begun to play out.” 

The importance of agriculture and 

oil and gas to the economy 

Combined 

percentage of 

Nigeria’s GDP 

60% 

Between 1971 and 2000, Nigeria’s 

average rate of growth in its gross 

domestic product (GDP) was just 3.0 per 

cent. Since 2000, real GDP growth has 

more than doubled, to 6.4 per cent. 

What has changed? In part, argues 

Citigroup’s Africa economics analyst 

David Cowan, it is a question of politics, 

with the country leaving behind its 

history of military coups and brief 

civilian governments. “While it would be 

a long stretch to describe the current 

political structures as democratic, 

there still does seem to be a consensus 

that the 2011 elections were one of 

the freest and fairest in the country’s 

history,” he says. 

The government has run a very 

small fiscal deficit, of around 1.6 per 

cent of GDP, in the past 10 years, and 

privatisation and financial reform has 

deepened and strengthened the 

country’s financial system. 

The ingredients for growth 

Fundamentally, the global banks argue, 

the country has all the raw ingredients 

for growth. Nigeria’s large population – 

170 million people – makes it a good 

the economy And fInAnce 

candidate for fast growth, Cowan 

says: “For poor countries with large 

populations, growing fast can actually 

be quite easy if the government gets 

the basics right and catch-up growth 

starts to accelerate.” 

That view is in keeping with 

Goldman Sachs’s Next 11 countries 

exhibiting a common thread of having 

large populations that are also young: 

“The N-11 countries have large 

populations and a majority have a 

median age of under 30, creating the 

potential to become a massive 

consumer base, as well as provide scale 

to other growth trends.” 

Nigeria has demonstrated some of 

that consumer potential. The country 

has witnessed a mobile-phone revolution 

– at the end of 2001, there were 

266,461 connected mobile lines, 

increasing rapidly to 96.7 million by the 

end of 2010. This phenomenal rise has 

highlighted that Nigeria is not just an 

oil-rich nation, but also a nation with 

the potential for huge growth in its 

consumer markets. 

The country is also weaning itself 

off its dependence on oil. Crude 


57

58 


petroleum and natural-gas production 

accounted for 35 per cent of GDP in the 

1980s, according to figures from the 

National Bureau of Statistics. This was 

down to around 16 per cent by 2009. 

The country’s former vulnerability 

to changes in oil and gas prices made its 

growth very volatile. Even so, there is 

plenty more growth to come from oil, 

increasingly from offshore rather than 

onshore fields. The government is 

reforming the industry under the 

auspices of its Petroleum Industry Bill, 

turning the state oil company, the 

Nigerian National Petroleum Corporation 

(NNPC), into an independent entity. 

At the end of December, 

Standard & Poor’s revised its outlook 


Equally, a rebasing will give 

Nigeria a lower debt-to-GDP ratio, which 

could make international investors take 

another look at the country. 

Benefits and risks of oil reserves 

Even given all the changes in Nigeria, 

there are still plenty of risks to the 

exciting growth story. Nigeria has the 

seventh largest oil reserves in the world 

– a huge benefit, but also a risk, 

encouraging political corruption. As 

Citigroup’s Cowan puts it: “If Nigeria’s 

elites do not focus on fighting over the 

large rents that result from its resource 

abundance – as regrettably has been the 

case a number of times in the past – but 

instead use the natural-resource rents to 

Rebasing Nigeria’s GDP statistics 

could see the country’s output revised 

upwards by as much as 60 per cent 

on Nigeria from stable to positive, citing 

reform initiatives and attempts to move 

the country away from its oil dependency. 

“The authorities have restructured and 

strengthened the banking sector, and we 

expect economic growth to remain 

strong,” the ratings agency said. 

The potential of rebasing 

The Nigerian government is in the 

process of rebasing its GDP statistics – 

a move that could see the country’s 

output revised upwards by as much as 

60 per cent. Currently it is third, trailing 

South Africa and Egypt. “The rebasing 

has the potential to make Nigeria the 

largest economy in Africa. That would 

have a big impact on its profile,” says 

Business Monitor’s Anderson. 

enhance human capital and infrastructure 

and to encourage private-sector enterprise 

and employment, the low-hanging fruits 

of growth are likely to be gathered.” 

Political uncertainty caused by the 

recent terrorist activity in the Muslim 

north of Nigeria adds an extra dimension 

to those risks. Bismarck Rewane, an 

analyst at Lagos-based Financial 

Derivatives, says that many of the 

government’s policies are sound, but the 

country’s institutions will require 

strengthening: “We have the leadership, 

we have the policies. But the institutions 

– democracy, the judiciary, the central 

bank – are fragile.” This is further 

compounded by policy inconsistency 

and lack of continuity, which the 

government is currently addressing. 

When the country’s economy is 

rebased, one thing that will be 

highlighted again is the low level of its 

tax revenues as a percentage of GDP. 

Tax revenues, separated from oil 

revenues, languish below 10 per cent 

of GDP. It is expected that the new tax 

law will help to address the issue. 

Obstacles to business 

Infrastructure issues – particularly 

around power – are a key stumbling 

block. And despite the strengthening 

reforms to the financial sector, Standard 

Bank’s Gadio argues that there is a 

disconnect between banking and the 

general economy in Nigeria. “Economic 

growth seems to be exogenous, because 

of the weight of agriculture and oil and 

gas,” he says. The two make up 60 per 

cent of GDP, and generally attract 

capital from elsewhere, he argues. 

Citigroup’s Cowan suggests that 

many of these roadblocks will not 

hinder Nigeria’s growth in the short 

term, however. The country will have 

room to grow, he says, before 

institutional issues prove restrictive. 

“Nigeria will have its hands full to 

realise its growth potential. But on the 

plus side, it does not need to get all 

its ducks in a row. Sporadic progress, 

even on power, may well prove 

sufficient to maintain, and even 

accelerate, the rate of GDP growth in 

the coming years, with the possibility 

of an even greater upside.” 

Nigeria needs a middle class and 

efficient state institutions, Cowan says. 

“But those are problems of 

middle-income countries and, for now, 

there is clear daylight between the 

middle-income countries and Nigeria.” ■ 

Alex Hawkes is a Mail on Sunday business 

and financial journalist who has previously 

worked as a writer for the Guardian

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62 


Sovereign wealth 

The creation of a sovereign wealth fund is an attempt to make 

use of Nigeria’s enormous oil wealth to the best advantage. As 

Michael Dynes learns, the country’s newfound confidence to invest 

in itself is a development that appeals to international investors 

President Goodluck Jonathan’s 

decision in May 2011 to 

create the Nigerian Sovereign 

Investment Authority (NSIA), 

the country’s fledgling 

sovereign wealth fund, represents a 

wholesale break with the past. 

Gone are the days when Nigeria’s 

ruling elites were content merely to live 

off the proceeds of one barrel of oil to 


the next. On the contrary, NSIA has set 

out to enable Africa’s biggest oil exporter 

to dramatically improve the management 

of its often squandered natural-resource 

earnings, while laying solid foundations 

for future economic prosperity. 

During her first visit to Nigeria in 

December 2011, International Monetary 

Fund managing director Christine Lagarde 

singled out the creation of the new 

Nigeria’s new sovereign wealth 

fund seeks to capitalise on the 

country’s substantial oil riches 

investment authority as one of the 

landmark government decisions most 

likely to boost investor confidence in the 

prospects for the Nigerian economy. 

Despite the dark shadows being cast 

over global growth by the ongoing debt 

and anaemic growth difficulties faced by 

more mature economies, “with the right 

vision, and the right action, today’s 

global risks need not become Nigeria’s 

reality”, she said. 

Within months of NSIA’s creation, 

Fitch, one of the leading international 

credit ratings agencies, announced an 

upward revision in Nigeria’s sovereign 

credit rating from ‘negative’ to ‘stable’,

elevating the country to the upper ranks 

of its B-rated African peers. Evidence of 

a commitment to rigorously implement 

the core mandate of the new state 

investment arm can be expected to 

lead to further upward revisions in the 

years ahead, triggering new inflows 

of capital from emerging market 

investors, and putting Nigeria well on 

the road to realising its aspiration of 

becoming a leading global economy in 

the decades ahead. 

Nigeria’s new state investment 

arm is the latest to be inaugurated in 

Africa, following the creation of similar 

institutions in Angola, Botswana, Libya, 

Mauritius and Uganda, and Beijing’s 

China-Africa Development Fund. 

However, it has the potential to become 

one of the continent’s biggest. 

Over time, NSIA’s initial seed 

capital of $1 billion could grow – 

depending on the price of oil and 

how effectively the new institution 

is managed – into a fund that 

houses tens of billions of dollars, 

similar to the amount operated by 

Abu Dhabi, Kuwait and Singapore. 

Structure and mandate 

NSIA has been designed to house three 

distinct funds. An Infrastructure Fund 

will invest in Nigeria’s historically 

underfunded infrastructure – electricity 

generation, ports, bridges, and road and 

rail networks – in an effort to unlock 

the latent potential of the country’s 

fast-growing, non-oil sector. 

A Future Generations Fund will 

invest in stocks, bonds and other 

international asset classes; recognising 

that hydrocarbons are a non-renewable 

resource that needs to be harnessed to 

provide new revenue streams to meet 

the aspirations of generations to come. 

In addition, a Stabilisation Fund 

will provide the federal, state and local 

governments with a reserve revenue 

stream on which to draw to iron out price 

fluctuations in the notoriously volatile 

commodities cycle during times of crisis. 

The new state investment arm will 

replace the Excess Crude Account, the 

de facto sovereign wealth fund established 

in 2004, as part of the IMF/World Bank 

inspired reform programme, which, 

in turn, led to the writing off of some 

$18 billion in accumulated debt arrears. 

Although the Excess Crude Account 

(which holds oil-export revenues in 

excess of the budget benchmark price) 

greatly boosted Nigeria’s appeal to 

emerging market investors, early investor 

optimism that Nigeria was now seeking 

to harness its petrodollar wealth to fund 

future growth has gradually dissipated. 

Nigeria has transformed 

from being a debtor to 

a creditor nation 

At its peak in 2008, the Excess 

Crude Account held an estimated 

$20 billion in surplus oil revenues. 

Following the financial crisis and 

subsequent global economic downturn, 

those reserves had fallen to around 

$300 million by December 2010, as 

the federal, state and local authorities 

fought with each other over how to 

distribute them. Although the oil-price 

recovery has since helped to replenish 

some of the reserves held in the Excess 

Crude Account, the Nigerian Central 

Bank and Finance Ministry have been 

fighting a rearguard action to prevent the 

depletion of surplus revenues demanded 

by the federal spending ministries, and 

the state and local authorities. 


Despite the good intentions of its 

architects, the Excess Crude Account 

had no firm constitutional basis, and the 

three tiers of government – federal, state 

and local – were legally entitled to lay 

claim to a proportion of the surplus 

revenues accumulated. The Central Bank 

and Finance Ministry, both anxious about 

the inflationary pressures that such large 

disbursements repeatedly unleashed, 

were effectively powerless to stop them. 

According to Razia Khan, regional 

head of economics, Africa, at Standard 

Chartered Bank, “there were simply no 

rules about withdrawals, or whom the 

money belonged to among the three tiers 

of government in Nigeria”. 

The new sovereign wealth fund is 

an effort to overcome those shortcomings. 

It aims to eliminate the void at the 

heart of the nation’s finances by 

establishing strict rules about how 

the fund will be tapped in future. 

President Jonathan’s finance 

minister, Ngozi Okonjo-Iweala, 

who also has a wider role as 

coordinating minister for the 

economy, said the fund would 

be used solely for “saving for 

the future, investing in strategic 

infrastructure, and building a buffer 

against shocks like the global economic 

crisis”. The days of funding profligate 

state election promises are over. 

Formalising a savings culture 

Tony Elumelu, chairman of private 

equity firm Heirs Holdings and ex-head 

of the Nigerian banking group United 

Bank for Africa, hailed the sovereign 

wealth fund as a long-overdue “attempt 

to formalise a savings culture in Nigeria”. 

While the Excess Crude Account had no 

formal legal underpinning and could 

be raided constantly, “the sovereign 

wealth fund seeks to institutionalise 

a savings culture”, he said. 


64 


“If well managed and deployed 

efficiently, the sovereign wealth fund will 

play a vital role in the economic and 

social development of Nigeria,” Elumelu 

said. “The economies of Singapore, the 

United Arab Emirates, Kuwait, Malaysia, 

Norway and China have all been boosted 

by the activities of their respective 

sovereign wealth funds. My hope and 

expectation is that Nigeria will replicate 

that pattern,” he added. 

Efforts have been under way for 

some months to recruit a trio of top 

executives to run the NSIA, including a 

chief executive officer, a chief investment 

officer and a chief risk officer. The first 

post must be filled by a Nigerian, but 


the other two will be open to all comers. 

At least 10 years’ experience will be 

required for all applicants, who, according 

to the job description published in 

national and international media, will be 

expected to win the confidence of the 

Nigerian people. “The performance, 

reporting and transparency of the NSIA,” 

the job description stated, “must be 

exemplary, and will enable Nigerians 

to see and understand how their 

patrimony is being managed and 

increased for the future.” 

In the near decade-and-a-half since 

the transition to civilian rule, Nigeria’s 

attempts to revive its economic fortunes 

have seen mixed results. During that 

A previous lack of finance for construction 

and infrastructure projects is expected to 

be addressed by the newly created fund 

time, however, Nigeria has transformed 

from a debtor to a creditor nation. Its 

elections have evolved from the chaotic 

to the credible, and its new leaders have 

set about tackling the institutional and 

structural constraints that have inhibited 

the country from realising its full 

economic potential. 

The sovereign wealth fund is a clear 

signal that Nigeria now has the confidence 

to invest in itself. And, with the country 

prepared to invest in its own future, 

foreign investors are likely to follow. ■ 

Michael Dynes is a business and lifestyle 

journalist specialising in subjects related 

to African culture and economics

Zenith Bank plc 

Zenith Bank was established in May 1990 and started operations in July of 

the same year as a commercial bank. It became a public liability company 

on 17 June 2004 and was listed on the Nigerian Stock Exchange on 

21 October 2004 following a very successful Initial Public Offering (IPO). The 

bank is one of the biggest and most capitalised companies on the Nigerian 

Stock Exchange. It presently has a shareholder base of over 700,000 – 

an indication of the strength and wide acceptance of the Zenith brand. 

Zenith Bank Plc has evolved through innovation, dynamism, rare business 

insight and excellent leadership to become a leading fi nancial institution in 

Nigeria. Within the fi rst decade of commencing operations, it made its mark 

in profi tability and a number of other performance indices. 

Over the years, the bank has redefi ned customer service standards and 

created diverse service delivery channels. The Zenith brand has become 

synonymous with the use of Information and Communication Technology 

(ICT) in banking and general innovation in the Nigerian banking industry. 

The bank continues to drive its competitive edge through the use of robust 

ICT platforms in delivering exceptional customer services. Coupled with 

its strong brand recognition and strategically distributed branch network, 

the bank has maintained a good share of the Nigerian market. Zenith Bank 

also continues to reinvent its service excellence strategy to consolidate 

its exceptional performance. Thus its service channels, especially for 

electronic solutions (e-products) are re-engineered and strengthened for 

greater effi ciency and effectiveness. 

Zenith Bank has become a brand prized for its tremendous success in 

e-banking, global credit guarantee status, niche marketing, cutting-edge 

competitive advantage in a number of areas of fi nancial services, provisioning 

and unwavering commitment to technological deployment in line with 

international best practices. The bank’s competitive advantage as a fi nancial 

powerhouse for value creation in Nigeria results from the combination of 

people, talent, proprietary knowledge, strong brand equity, leadership, 

integrity and excellent relationship management. 

With over 350 branches, the bank has built on its successes to explore 

opportunities beyond Nigeria. Consequently, four foreign subsidiaries have 

been established: Zenith Bank (Ghana) Limited, Zenith Bank (UK) Limited, 

Zenith Bank (Sierra Leone) Limited and Zenith Bank (Gambia) Limited. The 

bank also operates representative offi ces in South Africa and China: Zenith 

Bank (South Africa Rep Offi ce) and Zenith Bank (Beijing Rep Offi ce). 

The bank maintains sound corporate governance culture in line with global 

best practices. Its core values include service excellence, investment in 

human capital development, superior asset quality and strong credit culture. 

Zenith Bank has good and sustainable earnings, a strong capital base, and 

is reputed for its professionalism and excellent community development 

initiatives. The bank has become synonymous with excellence. Its impressive 

growth pattern and performance, over the years, have earned Zenith Bank 

excellent ratings from local and international agencies. Standard and Poor’s 

recently affi rmed the bank’s ratings at B+/Stable/B. Fitch Ratings (2010 

International) confi rmed the bank’s ratings at B+ on long-term foreign 

currency Issuer Default Ratings (IDR). 

The bank is confi dent it can sustain its superior performance and growth 

trajectory in the years ahead by accentuating the positive disposition that 

drives its determination to be a benchmark for the banking industry in Nigeria. 

Godwin Emefi ele 

Group Managing Director / Chief Executive Offi cer 

...in your best interest 

people 

technology 

service 

www.zenithbank.com

66 


Project and trade finance 

Nigeria is offering an attractive selection of trade and project 

opportunities in its bid to become an international business centre. 

Antony Collins looks at recent economic reforms that are providing 

the financial markets with the confidence to back new investments 

The case for investing in 

Nigeria is clear: it has a 

large population, is rich 

in resources and is a 

pre-eminent trade hub. 

Already it can lay claim to being the 

second strongest economy in Africa 

– UK Trade & Investment estimates that 

British exports to Nigeria are valued 


at approximately £1.2 billion annually – 

and the country has ambitions to 

become a middle-income market over 

the next 10 years, which has put it 

firmly in the sights of investors. 

Global business interest in Nigeria 

is also growing. Investment bank Citi 

told Reuters in February that it expected 

to see its clients double their investment 

The construction industry is among the 

sectors that can expect to be boosted by 

growing investor confidence in Nigeria 

levels in the country during 2012, while 

international investors traded assets in 

2011, notably Royal Dutch Shell’s sale 

of holdings in oil blocks to Nigeria’s 

Nestoil, Kulczyk Oil Ventures and 

Elcrest. KFC, Google, United Airlines 

and Heineken are some of the other 

major international names to consider 

investment opportunities in Nigeria. 

“We have seen a lot of interest 

from British businesses in our trade 

missions to Nigeria,” explains Annabel 

Fogden, head of world trade at the 

London Chamber of Commerce and 

Industry. “Companies from a range of


Public resources and development banks will not be able 

to cover the substantial costs involved in infrastructure 

projects. Private capital is a potential financing outlet 

sectors, including food, construction 

and training and education have 

shown interest, with many looking at 

working with Nigerian agents or 

distributors rather than open their own 

business on the ground.” 

Challenges to securing finance 

Forming trade agreements usually 

means establishing a line of credit. 

It has been difficult to secure financing 

for Nigerian investments because of 

local risks. Efforts have been made to 

stamp out corruption and violence, but 

investors remain wary of issues such as 

delayed or missing payments and 

non-delivery of products. “Nigeria can 

be a challenging place. As in any 

overseas market, it is important to 

undertake due diligence and ensure the 

legality of contracts,” Fogden stresses. 

A deregulated foreign exchange 

system has helped to ease concerns, but 

lenders still often require protection for 

trade financings – for example, invoice 

financing and export receivables- 

backed financing where credit is secured 

in advance, or e-payments. Banks can 

also insist on risk guarantees, so that 

borrowers carry the financial burden if 

political or civil unrest disrupts 

business, or they simply place a high 

price on loans to mitigate that risk. 

Nigeria’s biggest financing 

challenge, however, remains its 

infrastructure: public transport is 

unreliable, schools and hospitals need 

investment and power outages are 

common. The cost to provide the country 

with modern and stable transport, power 

and communication systems is expected 

to surpass $100 billion, according to 

sources including the World Bank. 

The government has made 

investment a priority. The prime 

initiative is Vision 20:20, a $5.5 billion 

plan to achieve 16,000MW of capacity 

to the grid by 2013. The World Bank, 

meanwhile, claims that a further 

$14 billion per year is required over the 

next decade to deliver transport and 

social infrastructure projects if the 

country is to reach its growth targets. 

Investment gap 

The traditional source of funding for 

such programmes – public resources and 

development banks – will not be able to 

cover the substantial costs involved. 

Private capital, through privatisations 

and public-private partnerships (PPPs), 

is a potential financing outlet. 

“The Nigerian Government simply 

does not have the funds to provide 

infrastructure,” observes Oluseyi 

Bickersteth, the national senior partner 

in Nigeria at KPMG Professional 

Services. “The 2012 budget has only 

28 per cent going to capital budget. 

That is why PPPs are important. That is 

why privatisation is important. In project 

financing, the key has been government 

realisation that private financing is 

crucial and needed.” 

Eleven distribution organisations 

and six power stations have already been 

offered for privatisation in a bid to open 

up the energy market. Hundreds of 

expressions of interest were lodged for 

the assets following roadshows that 

took place in Lagos, Dubai, New York, 

London and Johannesburg. 

The privatisations are likely to 

attract asset financing, while 

non-recourse debt will be required if 

the PPP programme is to succeed. The 

PPP model involves projects being 

funded and maintained by a private 

company, which assumes the financing 

and operational risk, while the 

authorities pay an availability fee for 

the use of the project. 

The pathfinder PPP is the 

$450 million design, build, finance, 

operate and maintain project for a new 

terminal and air traffic systems at 

Lekki-Epe International Airport in Lagos. 

The tender opened in 2011 with 33 

bidders, including divisions of Bouygues, 

DSC Infrastructure, Grupo Isolux Corsán 

and Samsung registering interest. Other 

proposed PPPs include a second bridge 

across the Niger, two national arenas in 

Lagos and Abuja and the redevelopment 

of the General Hospital in Lagos. 

Focus on the banks 

Key to this process will be Nigeria’s 

banks, which have been able to increase 

their liquidity after the government 

provided a $4 billion rescue package 

during the global economic crisis. This 

came about after Central Bank of Nigeria 

(CBN) reforms to recapitalise the banks 


68 


also required them to abandon the 

universal banking model and instead 

obtain licences for ‘core’ businesses, 

such as investment, commercial or 

mortgage banking, with non-commercial 

operations being divested. 

Funding revival 

The rekindled desire to finance has 

already started to show. Last year, the 

$265 million NLG2 project, sponsored 

by NNPC and ExxonMobil, brought in 

five Nigerian banks during syndication. 

Meanwhile FHN 26, the project company 

of First Hydrocarbon Nigerian, which is 

part-owned by oil company Afren, closed 

a $180 million debt package arranged 

by Stanbic and FCMB Capital. 

“Because of the consolidation in 

the banking industry, Nigerian banks 

now have the muscle to finance large 

projects,” Bickersteth says. “There is 

certainly more interest in traditional 

oil and gas, and telecoms. In recent 

times, power has also attracted 

international interest.” 


Nigerian banks are not capable of 

funding the proposed investments by 

themselves. Deals involving solid 

international sponsors with global 

backing will play an important role in 

delivering the capital required. 

International sources of financing 

are also starting to emerge. Last year, 

the CBN finalised rules allowing Islamic 

banking, owing to the country’s large 

Muslim population and a growing 

interest from investors in the Middle 

East. It also granted to Jaiz Bank the 

first licence to operate as an 

Islamic-compliant organisation. 

The balance of risk (Shariah- 

compliant financing is more similar to 

leasing deals, where the financier holds 

the assets until the borrower fulfils the 

payment) is attractive to banks, with 

Western banks also starting to embrace 

Islamic finance products. 

International capital markets are 

also providing financing facilities. There 

was little movement from Nigerian 

companies following a boom in the early 

Funding projects such as new highways will 

help Nigeria to develop into a centre for 

international business and investment 

1990s, until 2007 when Guaranty Trust 

Bank issued a $350 million Eurobond. 

In 2011, Afren issued $450 million of 

senior secured notes, while the 

government placed a $500 million bond 

– its first-ever sovereign bond. 

Other recent developments include 

the CBN launching a $3 billion power 

and aviation infrastructure fund, and 

Macquarie and Old Mutual closing a 

$500 million fund – operated out of 

Lagos and Nairobi – to target 

infrastructure in sub-Saharan Africa. 

Such a diverse set of investments 

by domestic and international sources is 

central if the government is to deliver its 

pledges and attract more trade and 

investment. If strong financing can be 

put in place, Nigeria will finally have the 

infrastructure it requires to become a 

genuinely global economic centre. � 

Antony Collins is a freelance journalist 

who has held a number of roles including 

acting editor of Credit Today and senior 

reporter at Project Finance International

Improving Nigeria’s electricity network is a main priority for the 

government and for major manufacturers of electricity products, 

enabling the country to become one of the world’s leading economies 

Nigeria Vision 2020 

Nigeria’s natural resources are vast and underexploited, but the 

government’s programme of deregulation and privatisation means 

there are equally huge opportunities open to investors from all 

over the world. The result could bring the country’s ambition of 

becoming a top 20 economy by 2020 closer, says Graeme Burton 

On the surface, Nigeria 

ought to be bubbling with 

prosperity. In addition to 

vast oil and gas reserves, 

the country has plentiful 

supplies of low-sulphur-content, 

good-quality coal, as well as recently 

discovered coking coal suitable for iron 

and steel production, plentiful supplies 

of iron ore, and reserves of manganese, 

tin, limestone, lead, zinc, gold, silver 

and rare-earth minerals. 

It is with this consideration that 

the government has committed to the 

previous administration’s declaration 

of intent to place Nigeria among the 

world’s 20 largest economies by 2020. 

The Business Support Group, an 

initiative of the Secretariat of the 

National Steering Committee of Vision 

2020 (NV2020), is intended to 

engender private-sector support for 

the NV2020 process. Its priorities are 

to generate publicity, mobilise resources 

from the private sector, organise 

fundraising activities to support 

NV2020 and provide technical and 

financial support. 

With two major rivers – the Niger 

and the Benue – running through the 


country, it should be little surprise that 

arable land accounts for one-third of 

Nigeria’s 900,000 square kilometres of 

land, producing corn, rice, sorghum, 

cocoa, peanuts, cotton, palm oil and 

yams, as well as rubber, among many 

other agricultural products. The country 

also has plans to use those rivers and 

their tributaries to generate as much 

as 67,000 Megawatts (MW) of 

hydroelectric power by 2030. 

What more could an ambitious 

nation need? Unfortunately, with the 

exception of oil and, until recently, gas 

much of the country’s resources – both 

on the ground and underground – have 

remained underexploited. 

Now, however, Nigeria’s economy 

is turning. “The oil sector is the main 

driver of the economy, accounting for 

more than 90 per cent of exports and 

over 80 per cent of government revenue, 


70 


despite accounting for about 15 per 

cent of GDP,” says Robo Igbu, managing 

partner at investment company 

Pilgrims Resources. “However, the 

non-oil sector is growing faster, with 

major contributions to growth coming 

from agriculture, wholesale and retail 

trade, telecoms, manufacturing, and 

finance and insurance,” he adds. 

With a reform-minded 

government in the Nigerian 

capital, Abuja, moves are 

being made to deal with the 

bottlenecks that have held the 

country back. However, such is 

the scale of the infrastructure 

building required that it 

cannot possibly be done without 

a large injection of foreign 

investment and know-how across 

the entire economy. 

Paving the way 

According to Professor Akpan H Ekpo, 

director general of the West African 

Institute for Financial and Economic 

Management, many of Nigeria’s 

richest resources are in remote 

locations, and better road and rail links 

are needed in order to open them up. 

Investors, he adds, also need 

reassurance that the government’s 

newfound enthusiasm for foreign 

investment will be enduring, and that 

they will be backed by robust legal 

reforms and an impartial judiciary. 

“Nigeria needs good, well-maintained 

roads to the areas; it needs power close 

to those areas and it needs to introduce 

some tax incentives for investors and to 

guarantee their security,” says Ekpo. 

Building up the country’s 

electricity infrastructure is currently the 

priority. It needs upgrades across the 

board, estimated at N520 billion 

($3.4 billion), just to increase 

generating capacity from around 


four gigawatts (GW) to 13GW by 2013, 

according to Nigeria’s minister of power, 

Professor Bart Nnaji. The power grid also 

requires substantial upgrades to be able 

to carry the higher capacity. After 2013, 

the government will no longer build any 

additional power stations – it will be 

up to the private sector to satisfy the 

country’s power needs. 

Nigeria already exports 

coal to the UK and Italy, 

but the potential is huge 

To attract outside investment, 

the government has passed laws 

deregulating the industry and paving the 

way for privatisation. The final step will 

be a withdrawal of subsidies and a sharp 

increase in the price of electricity later 

this year. The hope is that the rigours of 

the free market will make it more 

efficient and ensure that investment is 

properly spent in the right areas. 

This is part of a wider move across 

the states of the Economic Community 

Minister for national planning Dr Shamsudeen Usman 

is central to achieving Nigeria’s Vision 2020 goals 

of West African States (ECOWAS) to 

liberalise and regulate electricity 

generation in West Africa under the 

auspices of the ECOWAS Regional 

Electricity Regulatory Authority (ERERA). 

According to Bolanle Onagoruwa, 

director general of the Bureau of Public 

Enterprises, privatisation should be 

completed by the end of 2012. 

In addition to a roll-out 

of hydroelectric power, especially 

for remote and off-grid generation, 

the government is hoping that 

when construction of coal-fired 

power stations is completed by 

2013, the country’s coal industry 

will be reignited. Nigeria is rich 

in low-sulphur coal – perfect for 

electricity generation. 

Nigeria already exports coal to the 

United Kingdom and Italy, but the 

potential is huge: the government has 

privatised nine of 10 development blocks 

that it had put out to tender, and the 

winning bidders will no doubt be looking 

for partners to help in exploiting the vast 

seams of coal in their blocks. 

A stable and reliable power 

industry will aid the development of 

Nigeria’s metals sector, especially for 

bauxite smelting and refining to make 

aluminium, which requires huge supplies 

of electricity. Today, UC Rusal-owned 

ALSCON’s plant in Akwa Ibom State 

produces some 42,000 tonnes of 

aluminium ingots from bauxite imported 

from Guinea, which it sells into Nigeria’s 

booming construction industry. 

Production momentum 

Aluminium production is most commonly 

associated with countries with plentiful 

hydroelectric resources, such as Russia, 

Canada and Norway. Nigeria’s strategy is 

to use cheap gas offtake from oil 

production to power its aluminium 

smelters. Any interruption in the

supply of electricity, though, will ruin 

production and, indeed, about half was 

lost in 2010 due to vandalism of the 

gas supply pipeline. 

More promising, perhaps, is iron 

ore, which is abundant in Kogi, Kaduna, 

Enugu, Nasarawa and Zamfara states. 

Until recently, the development of iron 

and steel-making has been hampered by 

the need to import coking coal. The 

recent discovery of suitable coal in 

Nigeria should speed up development of 

the country’s iron and steel industry. 

Rare-earth minerals 

Among the most promising minerals 

that Nigeria has to offer in the current 

climate are niobium and tantalum – 

rare-earth minerals that are invaluable 

to the modern electronics, nuclear and 

aerospace industries. Niobium is also 

used as an alloy in steel and superalloys 

for the construction industry, as well as 

oil and gas pipelines. 

The worldwide market for rare- 

earth minerals is dominated by China, 

which accounts for more than 95 per 

cent of global production. With the 

Chinese government restricting exports, 

manufacturers outside China require 

reliable alternative sources. 

Nigeria’s mining industry is being 

supported by grants from the World Bank, 

which are intended to help the country 

to develop its mining sector under the 

government’s Sustainable Management 

of Mineral Resources Project (SMMRP). 

These grants have funded training, 

infrastructure development and the 

equipping of the relevant institutions. 

For example, the Nigerian Institute of 

Mining and Geosciences in Jos was 

established with help from the World 

Bank-funded project. It has also 

invested in geophysical surveys to 

identify promising areas. 

The Nigerian government has done 

much to open up the country and put 

the infrastructure in place to lay the 

foundations for sustained growth. 

However, much still needs to be done, 

believes Igbu. Indeed, he has a long 

‘to-do list’ that he feels still needs to be 

completed. “Corruption is a cancer in 

the Nigerian economy and undermines 

every developmental effort. The 

government must muster the will to 

fight corruption,” he says. 

He adds: “It must pass the 

Petroleum Industry Bill and commence 

true deregulation of the oil industry. 

The government has to be more 


The government is hoping that the planned 

construction of coal-fired power stations 

will reignite Nigeria’s coal industry 

accountable and responsible – even 

more so after the recent protests in 

Nigeria and citizens’ growing awareness 

and demand for accountability, 

prudence and competence in the 

governance of the country.” 

In addition, he believes that the 

government must complete the reform of 

the power sector and other free-market 

reforms. Security also needs to be 

tackled so that economic prosperity can 

be spread from south to north. 

Reasons for optimism 

However, there is much to be positive 

about. Under the governorship of 

Charles Soludo, the Central Bank of 

Nigeria reformed the country’s banking 

system, helping to insulate it against the 

financial crisis and creating a banking 

system that is the envy of Africa. 

While it is clear that there is plenty 

of work to do, it’s also true that today is 

a time of opportunity in Nigeria – with 

such opportunities already being 

snapped up by the most ambitious 

Nigerian and multinational investors. � 

Graeme Burton is a business journalist, 

specialising in trade finance and is a 

former editor of Trade & Forfaiting Review 


72 

oil, gas and minerals 

Capitalising on 

Nigeria’s oil resources 

Major foreign firms have dominated the extraction 

of Nigerian oil, but proposed legislation will seek to 

bring greater involvement to indigenous companies 

invest in nigeria 2012-13

oil, gas and minerals 73 

Nigeria’s oil industry has traditionally been 

dominated by large foreign oil companies, 

although they now mainly operate offshore fields. 

The challenge is for local companies to develop 

onshore and shallow-water sites, and to boost 

refining capacity. Mark Dixon assesses progress in 

light of the Petroleum Industry Bill currently 

passing through the senate 

Nigeria’s oil industry is one of the most attractive 

in the world – the fact that companies are 

willing to suffer the unpredictable system under 

which it operates demonstrates how appealing it 

is to both foreign and domestic investors. 

Until a decade ago, the industry could be characterised 

as one in which mainly foreign companies came into the 

country and paid large sums of money to buy the rights to 

explore for oil and produce it, making enormous profits. 

The foreign oil companies work in joint ventures with the 

Nigerian National Petroleum Corp (NNPC), which holds a 

majority stake in these partnerships for onshore and 

shallow-water acreage. Theoretically, the NNPC should fund 

its share of any oil projects, and the returns are passed on to 

the government to be spent for the good of the country. 

However, the cash-starved company has rarely been able to pay 

its way and has fallen victim to red tape and poor accountability. 

The Petroleum Industry Bill and offshore 

Reform – and, by extension, investment – is being held up 

by a lack of political progress in passing the all-encompassing 

Petroleum Industry Bill (PIB), which was first drafted four 

years ago. The bill changes fiscal terms for oil developments, 

and oil companies are unwilling to spend until they know 

what the tax regime is likely to be. 

Foreign oil companies have been fighting a rearguard 

action in an attempt to improve the terms of the bill 

in their favour, and have been warning of dire consequences 

if their demands are not met. Shell’s former executive 

vice-president for sub-Saharan Africa, Ann Pickard, 

said that the PIB threatens to make a bad situation worse. 

She described the bill as “a cumbersome document 

that lacks insight into the very basics of our industry” 

and said the fiscal provisions of the proposed legislation 

were the “harshest in the world”. 

This may be partly because the current terms for the 

development of oilfields in the deepwaters are particularly 


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Apart from our generic courses in the areas 

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For decades, ILF Nigeria has been providing high-level 

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The decision of the major oil companies to focus on 

the deepwater has left a gap for others to look at smaller 

shallow-water fields and onshore fields 

good. It was to the deepwater that international oil 

companies were most attracted around the turn of the 

millennium, when some of the world’s biggest finds were 

made, because these oilfields were relatively secure and far 

from the potentially violent onshore environment. 

Analysts Wood Mackenzie found that the current terms of 

the bill were “favourable, compared to many other deepwater 

regimes, reflecting their vintage”. These terms were drawn up 

before the spate of successful finds, and the oil companies 

were favoured in return for their willingness to spend on what 

was then considered risky exploration. 

The NNPC claims that the government take stands at 

42 per cent, compared to a global average of 75 per cent. It 

says that West African rival Angola has a take of 78 per cent, 

while under the PIB it would be 70 per cent in Nigeria. 

Shallow-water and onshore opportunities 

The amnesty that has brought relative peace to the Niger 

Delta has seen a renewed interest in Nigerian onshore 

oil, although there is still lingering uncertainty until 

a new fiscal system is finalised. 

Nigeria’s minister of petroleum, Diezani Alison-Madueke, speaks 

at the Organisation of Petroleum Exporting Countries conference 

Years of widespread unrest and violence in the region 

largely came to an end in 2009, when the government decided 

that a military solution was not working and offered an 

amnesty that has been taken up by around 26,000 militants. 

Those who handed in their weapons were pardoned and 

offered vocational training in Nigeria or overseas. They are paid 

$410 per month until they find work – a large sum in a country 

where gross national average income was $95 per month 

in 2009, according to UNICEF. 

While there is a constant fear that violence could 

resume, the major oil companies that operate most of the 

onshore acreage have been able to restart oil production. 

This has seen national output rise back to around 2.2 million 

barrels a day (b/d) from as low as 1.6 million b/d as militant 

action forced shutdowns. 

However, the big oil firms are still extremely cautious 

about the onshore business. Their decision to focus on the 

deepwater has left a gap for others to look at smaller 

shallow-water fields and onshore fields. A host of domestic and 

foreign companies are very willing to put up with the fiscal 

uncertainty and the vagaries of the system in order to 

try to win the rights to any available acreage. 

With the government saying that Nigerian independent 

operators should be given first consideration in the 2010 

Nigerian Oil and Gas Industry Content Development Act 

(NOGICDA), joint ventures between indigenous companies 

backed by foreign investment are becoming more popular, 

although several large Nigerian companies – such as Oando 

and Conoil – are also at the forefront of the renewed vigour. 

Domestic firms seek to grow 

One company that has cleverly expanded in recent years, 

but decided that the prices were too high, was Nigeria’s 

Seven Energy. In 2010, it entered into a strategic alliance 

with NNPC exploration and production subsidiary 

Nigerian Petroleum Development Company (NPDC) 

to provide funding and technical services for the 

development of three blocks. 


78 


Workers on a Nigerian oil rig contribute to the national 

output of around 2.2 million barrels of oil each day 

UK-listed resources company Petrofac also thought 

that it was worth the risk, later buying a stake in Seven. 

Ayman Asfari, group chief executive of Petrofac, said: 

“Nigeria is a high-growth market, where we have been 

seeking commercial opportunities for some years. Seven 

Energy combines a very attractive market position with 

considerable development upside.” 

The joint ventures are very different from those seen in 

the past, when blocks were often awarded to friends of the 

incumbent government with little or no industry experience. 

Nowadays, the domestic firms usually have very strong 

credentials in their own right. 

A mini-licensing round held last year, in which Shell 

Petroleum Development Company (SPDC) tried to divest 

its interest in four blocks, attracted a host of bidders, with 

several Nigerian firms going it alone. These included Vertex, 

a company made up of around a dozen former officials from 

NNPC, backed purely by African banks. 

Prices in the bidding rose higher and higher, with 

several experienced companies withdrawing as they 

believed the competition had become too stiff. The bidding 

then hit a stumbling block as NNPC decided that it wanted 

to use a clause in the original joint-venture agreement 

with SPDC, allowing it to take over day-to-day operatorship 

of the blocks in the event of a sale. 

invest in nigeria 2012-13 

This caused some other experienced Nigerian companies 

to balk. Historically, NNPC has found it almost impossible to 

fund its share of joint ventures in any timely fashion, and the 

best Nigerian engineering staff are often attracted to work for 

foreign companies, leaving NNPC’s exploration and production 

section with a poor reputation. 

Some deals did go ahead, including the sale of 

OML 26 to First Hydrocarbon Nigeria, a joint venture 

between UK-listed oil company Afren and a number of 

Nigerian investors. The firm paid $148 million for the block, 

which it believes has gross recoverable and contingent 

resources of 320 million barrels of crude oil (bbl) and another 

615 million barrels of oil equivalent (boe) of unrisked 

prospective resources. 

If Nigeria remains committed to operating onshore 

acreage sold off by the majors this will remain a serious 

stumbling block, with a significant percentage of companies 

unwilling to risk this partnership. 

These deals pale into insignificance compared to an 

offer made back in 2009 by Chinese state-controlled oil 

giant CNOOC, which was scouring the continent for supplies 

to meet its growing energy demands. In meetings held with 

the office of then president Umaru Yar’Adua, it offered 

to buy a 49 per cent stake of 23 mostly onshore blocks 

for more than $30 billion.

Empowering 

Nigeria Seven Energy International 

is an independent Nigerian 

exploration and production 

company exclusively focused 

onshore in the resource rich 

Niger Delta. 

Our vision is to be a leading gas 

supplier to domestic industry and 

regional electricity generators and 

we achieve this by being dynamic 

and innovative across the gas 

supply chain from field to demand 

hub. We are successfully providing 

opportunities for our industrial 

partners and creating value for 

our shareholders and investors. 

To find out more visit 

www.sevenenergy.com

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West African Ventures – a reliable, 

100% Nigerian offshore contracting partner 

West African Ventures (WAV), 

established in 2000, is a 100% Nigerian 

company and a leading indigenous provider of 

offshore engineering, procurement, fabrication, 

installation and vessel charter services. 

With corporate headquarters in Lagos, 

a marine support base and shipyard in Warri, 

dry-dock and fabrication facilities in Onne 

Oil & Gas free zone, WAV continues to provide 

excellent offshore support services to the 

Nigerian Oil & Gas sector. 

WAV maintains a new and flexible fleet of 

DP-3 offshore construction vessels, all of which 

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typically combines the following characteristics: 

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• ability to install either rigid or 

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• high-capacity cranes, ranging from 

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• dynamic positioning Class 3. 

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Vincent Okeke, 

Commercial Director, 

West African Ventures 

Jascon 34, DP3 pipelay/construction vessel 

Heavy Lift and Decommissioning. Through 

its engineering and operational capabilities in 

Nigeria, WAV can offer the above services on 

a turnkey EPIC-contract basis. 

WAV also owns and operates a large and 

diversified fleet of marine support services 

vessels in West Africa that provides support 

to the oil and gas industry in the area. This 

fleet comprises 45 vessels ranging from 

AHT/AHTS vessels, crew/pilot boats, 

construction/accommodation barges and 

offshore cargo barges. 

WAV remains highly committed to the 

full implementation of the local content 

directives of the Nigerian Government by 

ensuring 100% compliance with the ‘Local 

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WAV’s 90,000m 2 Fabrication Yard at the 

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of local oil and gas infrastructure in Nigeria, 

WAV has continued to make significant 

investments to develop a world-class, 

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With two well-equipped and resourced 

training centres in Nigeria located at the 

Onne Oil and Gas Free Zone and Warri, WAV 

continues to build sustainable indigenous 

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personnel, while at the same time creating 

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the teeming population of young Nigerian 

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As part of its corporate social responsibility 

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contributing to sustainable rural development, 

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82 


The deal would have given CNOOC reserves of 

six billion boe – around one-sixth of Nigeria’s total 

reserves. The government said an initial offer was 

“unacceptable”, but added: “Your interest in all the listed 

blocks will be considered if your revised offer is favourable.” 

The Petroleum Industry Bill and onshore 

As mentioned above, the major disincentive to invest in 

Nigeria’s oil industry in recent times has been the long-delayed 

PIB, which includes a new tax framework for oil projects. The 

plans have been a particular deterrent to deepwater oil projects 

where the rates of return will drop sharply. 

It has had less effect in interest on onshore oil 

as the terms will be little changed and actually improved 

Nigeria’s four refineries have been 

running at an average of around 

40 per cent of capacity over the 

past decade, compared to a global 

expectation of around 90 per cent 

for smaller onshore oil projects. The government take 

for 100 million bbl fields is currently high and will remain 

very similar, but the take for a 20 million bbl onshore field will 

drop from around 95 per cent to 77 per cent. 

“Under current JV [joint venture] terms, the extremely 

high government share is among the highest in the world 

and is a significant disincentive to new investment. 

Under the PIB terms, the government share is progressive 

and generally lower from smaller fields and should 

enhance the economic viability of these fields,” said 

analysts Wood Mackenzie. 

However, after four years of debate, the PIB is still 

stalled as vested interests try to protect themselves 

from its changes. This has resulted in major investors 

being unwilling to commit money to Nigeria until 

a final solution is in place. 

“While most politicians publicly call for widespread 

industry reform, few have done more than pay lip service to the 


idea. Long accustomed to windfall profits and the discretionary 

allocation of assets, Nigeria’s politicians have continually 

placed personal interests ahead of reform, resulting in 

deliberate delays and obstruction,” analyst Ergo cautions. 

Exactly how the PIB will play out is almost impossible 

to forecast, while the future for Nigeria’s onshore oil fields 

looks much more assured. What is less assured is the future 

of the oil refineries. Nigeria may be one of the largest crude 

producers and exporters in the world, but it has to import 

the majority of its refined products. 

Boosting refineries’ output 

Nigeria’s four refineries have been running at an average of 

around 40 per cent of capacity over the past decade, 

compared to a global expectation of around 

90 per cent. According to data from NNPC, 

the worst-performing year was 2007, when 

they ran at a meagre 12 per cent. 

Theoretically, plans are under way for an 

additional 750,000 b/d to be added to the 

existing refining capacity of 455,000 b/d. 

China State Construction Engineering 

Corporation has said it will build three 

new refineries. A Memorandum of 

Understanding has been signed in 

a deal said to be worth $23 billion. 

However, there have been many similar 

promises in the past that have failed 

to turn into reality. 

While joint ventures are important in developing Nigeria’s 

own abilities, they are also significant in a country in which 

personal connections can be crucial. As alluded to earlier, the 

days when many of the most sought-after contracts were 

awarded more because of friendship and political necessity are 

hopefully retreating, but the Nigerian system is most easily 

manoeuvred with local knowledge and support. 

There is likely to be a swathe of new acreage up for sale 

once the PIB has been passed. Major oil companies, including 

Exxon and Chevron, are rumoured to be waiting to offer 

some of their own onshore interests, and the government is 

promising a new licensing round. 

Petrofac is only one of a series of oil and gas service 

companies now forging links with indigenous firms to meet 

local content requirements that were often given little 

consideration in the past, but are now becoming a necessity. 

It remains unclear exactly how stringently the 

NOGICDA will be implemented, as little heed has been

Crude oil exports 

by destination, 2010 

South Africa 

3% 

Spain 

5% 

Germany 

3% 

France 

3% 

Netherlands 

4% 

Other Europe 

5% 

Other Asia 

3% 

India 

14% 

Brazil 

8% 

Source: Global Trade Atlas, APEX (Lloyd’s), 

FACTS Global Energy, EIA) 

Other Africa 

3% 

Australia 

1% 

United States 

43% 

Canada 

2% 

Thousands barrels/day 

Oil exports, current prices in US$ 

120 

100 

80 

60 

40 

20 

0 

2000 

2001 

2002 

2003 

2004 

2005 

$84.17 

$23.092 

$18.93 $16.98 

$65 

$56.4 

$48.08 

$35.73 

$26.52 

2006 

2007 

2008 

Total production, barrel/day 

3000 

2500 

2000 

2,169.135 

2,261.416 

2000 

2001 

2002 

2003 

2004 

2,630.86 

2,331.696 

2,278.592 

2,123.323 

2005 

2009 

2,442.25 

2,352.756 

2006 

2007 

2008 

2010 


$108.21 

2009 

$54.78 

$71.64 

2011 

2,168.552 

2,211.423 

$91.84 

2012 

$106.14 

$100.9 

2013 

Predictions 

2014 

$96.58 

2015 

Source: IMF 

Source: US Energy Information 

Administration 


84 


Plans are in place to boost the 

capacity of Nigeria’s oil refineries 

paid to previous legislation. However, KPMG warned that 

some of its terms are so stringent that “a transitional 

arrangement would need to be developed, such that foreigners, 

who have over the years been encouraged to invest in the 

Nigerian economy, do not lose such investment”. 

Preference for indigenous companies 

The bill states that preference should be given to 

Nigerian indigenous service companies, with the bar for 

qualification set at 51 per cent Nigerian equity ownership. 

Some critics argue that this is moving towards 

nationalisation rather than the desired indigenisation, 

but it has not stopped foreign companies from trying to 

satisfy the requirement. 

The proposed act also asserts that, in bid evaluations, 

the awarding of contracts will not be based solely on the 

principle of lowest bidder. The emphasis will be on the 

capacity of an indigenous company to carry out the job – as 

long as the bids are within 10 per cent of one another. 

Service provider Subsea 7 created a joint venture 

with Nigerian yard-owner Jagal late last year. The new firm, 


NigerStar 7, will have two fabrication yards with a combined 

workforce of more than 3,000 people. 

Joint ventures 

Law firm McGrigors says this may be the first in a string of 

joint ventures as foreign companies attempt to tie up with 

good-quality partners, although the firm warns that legal 

issues around corporate governance and anti-bribery 

programmes are stalling the rush to sign deals. 

“The key for investors is to make sure that they retain 

sufficient influence within the corporate structure. They need 

to safeguard their own investment in the long term, but also 

ensure that they adhere to these new Nigerian content rules. 

Business practices that might seem commonplace in the local 

market could land joint-venture partners in trouble in their 

home market,” says Gemma Crawford, a senior solicitor 

at McGrigors, who worked on the deal. ■ 

Mark Dixon is a journalist specialising in energy and is a former 

editor of Africa Oil and Gas magazine. He has chaired numerous 

conferences, including Oil and Gas Offshore West Africa

The leading indigenous suppliers of casing, tubulars, 

line pipes and fittings to all major oil companies operating 

in Nigeria. Damagix represents some of the world’s 

biggest pipe manufacturers, whose total capacities are 

more than 20 million tons of pipes annually. 

Casing Induction bend Casing Line pipes 

DAMAGIX GROUP 

COMPANY PROFILE 

DAMAGIX NIGERIA LIMITED (DAMAGIX), incorporated in 1993, metamorphosed into DAMAGIX GROUP 

– made up of DAMAGIX NIGERIA LIMITED, now the leading Indigenous Pipes Supplier to the Nigerian 

Oil and Gas Industry, DAMAGIX OIL AND GAS NIGERIA LIMITED, which handles Pipeline Construction, 

and DAMAGIX ENGINEERING LIMITED, which handles Engineering Projects and Consultancy Services. 

DAMAGIX is managed by a set of core professionals who have gained a total of over 60 years’ working 

experience in the Nigerian Oil and Gas Industry. 

DAMAGIX represents dozens of Pipe Mills (in Nigeria) from all over the world, whose total Milling 

Capacity is over 20 million tons of pipes annually. 

DAMAGIX has executed numerous Pipes Supply Contracts for Multinational Oil Companies operating 

in Nigeria, such as Total, Shell, Agip, Chevron and Conoil Producing. 

ln addition to our proven track record, and in our determination to remain the Most Preferred Oil 

Services Company in the Nigerian Oil and Gas Industry, DAMAGIX has just achieved another Golden 

Milestone, in the biggest Pipes Supply Contact ever awarded by TOTAL to an indigenous Company in 

Nigeria, by the timely execution of a Major Contract for TOTAL’s OML 58 O.U.R. Pipeline Upgrade 

Project, for the Procurement, Fabrication, Coating and Supply of 25,000 tons, 46 km of 42” X65, 

3-layer PE coated Line Pipes Induction Bends. Following this successful completion, TOTAL awarded 

DAMAGIX another Contract to supply 75,000m of 24” Line Pipes to its NOPL Project, which DAMAGIX 

again successfully executed, in time! 

With the Local Content Bill now signed into Law in Nigeria, and with the collaboration of our Technical 

Partners, DAMAGIX has strategically accelerated its plans to immediately establish an LSAW Pipe Mill 

and a Threading Plant, which will be commissioned in the next two years. 

DAMAGIX has gone far in its determination to participate in the “Trans-Nigeria” and “Trans-Sahara” 

Gas Pipeline Projects. 

In order to improve its Management System, DAMAGIX has commenced the ISO 9001:2008 

Certification Processes, which will be concluded very soon. 

PRODUCTS AND SERVICES 

DAMAGIX stocks and supplies all sizes and grades of Casings, Tubulars (OCTG), Line Pipes and Fittings. 

In collaboration with our Technical Partners, we provide the following Supply Services: – 

1. Line Pipes and Bends/Accessories. 3. Stainless Steel Pipes. 

2. Casings Pipes and Tubulars (OCTG). 4. Piling Sheets/Piling Pipes. 

INTERNATIONAL EXPANSION PROGRAM 

With the increased Oil and Gas exploration activities in Ghana, DAMAGIX has already opened a 

Branch Office in Accra. 

SUPPLIER OF 42” 

AND 24” LINE PIPES 

TO TOTAL’S (NIGERIA) 

OML 58, O.U.R 

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RESPECTIVELY 

OUR CONTACTS 

Nigeria 

LAGOS 

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PORT HARCOURT 

312, Port Harcourt 

Aba Expressway 

Nigeria 

Ghana 

10, Pride Loop, 

Behind Voltic House, 

Dzorwulu 

Accra, Ghana 

Tel: +234 1 463 1395 

Website: www.damagix.net 

Email: info@damagix.net 

damagix1@yahoo.com

OTC Houston 2012: (above left) HCMS staff greet attendees at the Hobark stand; 

(above right) Group Managing Director Engr Obioha Okoroafor informs the visiting Nigerian 

Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, of Hobark’s activities 

Hobark International Limited (HIL) is the parent company of the Hobark Group 

operating in the Oil and Gas industry. The company was incorporated in 1998, starting 

as a staffing agency based in Port Harcourt. It has since diversified its activities 

via subsidiaries. 

Among its various commercial interests, the group has recently embarked on 

setting up a centre of excellence to provide hands-on training for Nigerians to enable 

them not only to gain the relevant technical and managerial experience needed to 

participate in the Nigerian Oil and Gas industry, but also to compete with the Oil & Gas 

workforce outside the country. 

The staffing arm of the group, Hobark Consultant Management Services (HCMS), delivers full-cycle 

recruitment solutions, from initial client brief to final offer to the candidate or project group for all 

segments of the Oil & Gas industry. Also included in its services are Mobilisation, Immigration, 

Payroll and Tax Administration, Medical Insurance and Evacuation, Demobilisation, Integrated Project 

Management and Training. 

HCMS is regularly retained to find Oil and Gas professionals by many leading operators, because 

they trust us to use our extensive database together with our global presence and alliances to locate 

the right candidates – with the exact sought-after background, skill set and experience. We are 

also able to mobilise professionals who are local to clients’ operational bases, thereby aligning with 

location-specific labour laws. 

We exhibit at most international shows to enable us to attract Nigerians in the diaspora with the 

expertise needed to help transform the energy sector. At the same time, we also recruit Nigerians to 

work outside Nigeria. 

OE Aberdeen 2011: (above left) HCMS staff are to welcome visitors to the Hobark stand; 

(above right) staff attend to visitors to the event

DrillPet International Limited (DIL) is the Drilling 

Services arm of HOBARK group focusing on Drilling 

and Measurement. In technical partnership with 

Schlumberger Nigeria Limited and Gyrodata Inc, 

it provides the following services: 

• 

• 

• 

• 

• 

• 

• 

Definitive Borehole Survey Services/ 

Monocable Wireline Services 

Directional Drilling Services 

Measurement While Drilling (MWD) and Logging 

While Drilling (LWD) Services 

Drilling Optimisation/Well Engineering 

Project Management/Survey Data Management 

Drilling Fluids, and Mud Loss Solutions 

Downhole Tool Rentals 

Contact us 

Lagos office: 

Hobark International Ltd 

14/15 Bishop Kale Close 

Off Kasumu Ekemode Street 

Victoria Island 

Nigeria 

Tel: + 1 832 295 9089 

Fax: +1 832 476 8745 

Houston office: 

Hobark International Inc 

Suite 340 

19855 Southwest Freeway 

Sugar Land, Houston, 

Texas 77479, USA 

Tel: +1 832 886 0404 

Fax: +1 281 207 1269 

Uniterm Nigeria Limited (UNL) is the 

arm of HOBARK group focused on the 

following services: 

• Onshore & Offshore Catering Services 

• Housekeeping and Laundry Services 

• Provision of Drilling and Workover Rigs 

• Provision of Downhole Speciality 

Tools Services 

• Supply of Oil Country Tubular Goods 

(OCTG) 

• Supply of Drilling Bits 

London office: 

Hobark International (UK) Ltd 

28 Bruton Street 

Mayfair 

London W1J 6QW 


Tel: +44 207 659 5424 

Fax: +44 207 659 5422 

www.hobarkintl.com 

Ultiproc Nigeria Limited (UPNL) is 

the arm of HOBARK group offering 

international procurement services 

to all sectors of the economy by 

providing one-stop-shop solutions 

for sourcing a vast range of products. 

Services include: 

• 

• 

• 

Sourcing manufacturers 

and suppliers 

Shipping merchandise 

Delivering merchandise to 

your choice of location 

Port Harcourt office: 

Hobark International Ltd 

Plot 46 Ordinance Road 

Off Trans Amadi Industrial Layout 

Port Harcourt, Rivers State 

Nigeria 

Tel: +234 844 648 23 

Fax: +234 844 648 24

Pan Ocean Oil Corporation Nigeria Limited was incorporated as an Exploration 

and Production company in 1973. In December 1975, OPL 70/71 was converted 

to Oil Mining Lease (OML) 98. 

Pan Ocean commenced crude oil production in August 1976 at the Ogharefe field 

of OML 98 which is situated in the northern fringe of the Niger Delta region of 

Nigeria. Pan Ocean has been in a Joint Venture with the Nigeria National Petroleum 

Company (NNPC) in respect of OML 98. As a Joint Venture (JV) partner, the NNPC 

has 60 percent working interest in OML 98 while Pan Ocean has 40 percent. 

Pan Ocean commenced crude oil production at the Ogharefe field (OML 98) in 

1976. Through strategic planning, aggressive exploration and production activities 

and tenacity, Pan Ocean acquired the Oil Prospecting License 275 during the 

2007 bid round. In 2009, Pan Ocean signed a Production Sharing Contract (PSC) 

with the NNPC on Oil Prospecting License (OPL) 275. 

In December 2009, Pan Ocean’s gas utilization policy attained the Federal 

Government’s mandate requiring flares-out by all exploration and production 

companies operating in the country. Pan Ocean’s Ovade-Ogharefe Gas Plant in 

the Niger Delta, became operational in July of 2010 and blazed the trail when it 

supplied lean gas to the NIPP Power Plant sited at Ihobbor, Edo State. 

The Ovade-Ogharefe gas plant stands unrivalled in its pace setting achievements 

as the largest Carbon Emission Reduction Project in West Africa to date.

Step on the gas 

The Nigerian Gas Master Plan is an attempt to 

maximise the value of the country’s gas 

reserves. Cherry Reynard looks at the Plan 

and proposals to upgrade gas infrastructure 

in order to export more of the resource 

Nigeria’s economic dependence on oil has 

long exercised policymakers. Part of the 

country’s drive to diversify its economy 

and solve its internal energy problems 

has been to exploit fully its abundant 

natural-gas resources. In this, the government has 

been forced to start from scratch – a position where 

almost all natural gas was flared (burnt off) and there 

was little or no infrastructure to support its distribution. 

The Nigerian Gas Master Plan (GMP) has been an 

OIL, GAS AND MINERALS 89 

In order to distribute gas, domestically and to 

international markets, ambitious plans are in 

place to increase the number of pipelines 

important plank in the government’s efforts to maximise 

the potential of its gas reserves. 

President Umaru Yar’Adua implemented the plan in 

February 2008 in an effort to tackle the dire gas wastage in 

Nigeria’s oil fields and meet international environmental 

standards, which required an end to all gas flaring by the end 

of that year. Demand for natural gas was also rising, with the 

price peaking at record highs in July 2008. Prior to the plan, 

there simply wasn’t the demand or the infrastructure to 

incentivise firms to exploit the associated gas from the region’s 

oil fields. Where it was used, it tended to be exported. There had 

been some improvement from 2005, with flaring reducing and 

some infrastructure development, but it remained piecemeal. 

The Nigerian GMP had three main objectives. Put in 

place by the Petroleum Products Pricing Regulatory Agency 

(PPPRA), it sought to build a domestic market for natural gas, 

optimise Nigeria’s market share and competitiveness in export 

INvESt IN NIGERIA 2012-13

90 

OIL, GAS AND MINERALS 

The Gas Master Plan seeks to reduce flaring 

and grow the domestic gas market 

Gas flaring in Nigeria 

Gas Flaring (BCM) 

35 

30 

25 

20 

15 

10 

5 

0 

1994 

1996 

Country boundaries 

Offshore EEZ boundaries 

Vector polygons drawn on the identified gas flares 

INvESt IN NIGERIA 2012-13 

1998 

2000 

2002 

2004 

2006 

The diagram above details gas flaring in the country by billions of cubic 

metres. The map below shows flaring in Nigerian territory in 1992 

(represented by blue dots), 2000 (green dots) and 2008 (red dots) 

source: NOAA’s National Geophysical Data Center 

2008 

markets and assure long-term gas security for the country. It 

set out to create a fully liberalised market within five years. 

It identified five constraints to the growth in supply of 

the Nigerian gas market: availability, the affordability of 

supply, deliverability, the legal and regulatory framework, and 

funding. It also recognised the need to establish a separate 

fiscal regime for gas (NAGFRA) and a downstream commercial 

regulatory framework (DGA). 

Policymakers had a hill to climb. The incumbent oil and 

gas companies had little interest in selling gas to an unproven 

domestic market and the gas market had oligopolistic features: 

the government-owned NNPC/NGC controlled the downstream 

sector and a Shell-operated joint venture the upstream. Equally, 

the infrastructure continued to be a challenge. Treatment 

facilities were poor and had no capacity for full LNG (liquefied 

natural gas) extraction. There was no mechanism to allow 

third-party participation in the development of infrastructure. 

But the potential was significant. There are substantial 

gas reserves in Nigeria, estimated to be the seventh largest in 

the world. The region not only has associated gas – gas that 

emerges as a by-product of oil exploration – but also pure gas 

fields. There was also significant demand in the pipeline. 

Countries such as Ghana were waiting on Nigerian gas to help 

solve their energy problems. 

Even domestically, the potential seemed substantial. The 

problems in the gas sector were a contributory factor in 

Nigeria’s acute electricity shortage. Almost two-thirds of its 

electricity capacity was in gas-fired plants. These suffered 

frequent supply disruptions, which had a knock-on effect on 

other parts of the economy. The domestic market remains, 

potentially, huge – with a population of 150 million, Nigeria is 

the second largest economy in Africa after South Africa. 

What has been the impact of the GMP? Flaring does 

seem to have reduced. This has been both carrot and stick. The 

Nigerian Senate passed a bill stating that from January 2011 

oil companies operating in the country will have to pay market 

prices for any gas flared. Firms already had to pay around 

$3.50 per 1,000 cubic feet (mcf) of gas flared, but this could 

double under the new regulations. The Nigerian government 

estimates that flaring is around half the level it was four 

years ago. This is supported by research from Global Insight, 

which suggests that the amount of gas flared has fallen from 

70 per cent in 2000 to around 30-35 per cent today. 

Companies have been playing their part. For example, 

in May 2010, Royal Dutch Shell said it planned to spend 

$2 billion upgrading and replacing its gas-gathering facilities 

across Nigeria with the aim of reducing gas wastage. It had

The original GMP proposed a gas infrastructure 

blueprint, covering pipelines, central processing 

facilities, LPG storage and supply infrastructure 

already spent more than $3 billion in building associated 

gas-gathering infrastructure across the country. Chevron is 

investing $2 billion in a plant in the Niger Delta, which will 

convert gas from its Escravos field into diesel fuels. 

Reducing wastage is one difficulty, but distributing the 

gas is a more entrenched problem. The original GMP proposed 

a gas infrastructure blueprint, covering pipelines, central 

processing facilities, LPG storage and supply infrastructure. 

Progress has been made, but the plan is far from fully realised. 

Martijn Proos, senior investment adviser, Frontier 

Markets Fund Managers, says: “At the moment, it is only the 

Delta region. There is a pipeline going to the Lagos area. There 

is also the West African gas pipeline, which runs from Nigeria 

to Ghana and beyond.” He adds that there is now good 

legislation in place to enable private-sector investment in 

infrastructure: “It used to be the government that created this, 

but they have handed some of this over to the private sector.” 

At the moment, private companies put gas in bottles so it can 

be distributed. There are a lot of logistical bottlenecks – from 

the poor quality of the Nigerian roads to problems with 

sabotage of pipelines – but it is an improvement. 

There has also been an improvement in the infrastructure 

for exports. There are plans to expand the LNG facilities at 

Bonny Island in 2012, to increase the volume of exports to the 

North American market. There are new projects in Olokola and 

Bayelsa. The ambitious trans-Saharan pipeline to Algeria – 

which would export gas to Europe – is currently on hold. 

Getting the price right 

The government is also trying to address the issue of pricing 

– a major sticking point. International companies saw little 

reason to build infrastructure to sell natural gas to domestic 

investors at a fraction of the cost that could be achieved in 

international markets. Diezani Alison-Madueke, the minister of 

petroleum resources, introduced a phased rise in gas prices in 

2010 to $2 per mcf to boost supply, and said the price would 

reach $3 per mcf by the end of 2013. This was designed to 

divert power to the country’s struggling manufacturers. 


There are substantial gas reserves 

in Nigeria, estimated to be the 

seventh largest in the world 

Subsidies had bridged the gap for the country’s poorest 

citizens. However, this contribution is now consuming up to 

25 per cent of government outlays. Incumbent president 

Goodluck Jonathan tried to remove the subsidies, more than 

doubling the cost of gas to domestic users. This caused 

widespread social unrest in January 2012 and they have now 

been partially reinstalled. The removal of the subsidy had been 

intended to free up money to fund investment in the 

downstream sector of the petroleum industry and make it more 

competitive. It may still go ahead, at least in a modified form. 

Proos concludes: “Nigeria has good resources and so the 

policies are up to standard. It has a long history in oil and gas 

and its regulations are almost up to international standards.” 

The Nigerian Gas Master Plan was ambitious and was never 

likely to yield instant results. It is some way from a fully 

liberalised market and pricing may continue to be a sticking 

point for policymakers, but there is progress on capturing and 

distributing Nigeria’s abundant gas reserves. ■ 

Cherry Reynard is a freelance financial journalist and author of 

Investing in Emerging Markets (The BRIC Economies and Beyond) 

for the Securities Institute 


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94 


Local players 

The Nigerian Content Act aims to create jobs 

for local workers in the oil and gas industry 


To encourage the participation of local 

companies in Nigerian oil and gas the 

government has set up a minimum local 

content target of 75 per cent for all contracts 

undertaken in the industry. Cherry Reynard 

assesses the progress that has been made in 

terms of meeting this target 

Oil has brought wealth to Nigeria, but to date 

relatively little of this has filtered down to the 

wider population. Income inequality is still 

significant and the presence of international oil 

companies has not produced a commensurate 

rise in local skills and employment. However, the government 

is now taking steps to address this imbalance, in particular 

with its ambitious new legislation on local content. 

Historically, the oil and gas industry in Nigeria has been 

dominated by international companies operating under joint 

venture agreements. For example, a joint venture operated by 

Shell accounts for around half of Nigeria’s total oil production. 

These global companies have generally relied on international 

rather than domestic workers and there have been accusations 

of discrimination against local labour. 

This has been both cause and effect. There has been a 

skills shortage in Nigeria and studies suggest that the country’s 

educational standards have been falling for some time. A 

recent research paper from the Department of Educational 

Administration and Policy Studies, Delta State University, 

Abraka, Nigeria found that: “Standards in education are falling 

at all levels as a result of inadequate acquisition of skills due 

mainly to poor implementation of school curricula.” However, 

many people have laid some responsibility at the door of the 

oil and gas companies operating in Nigeria who have been 

unwilling to train local people and transfer their skills. 

Importing labour is more expensive and a number of 

business people in Nigeria have been vocal, according to 

Chukwuma Henry Okolo, vice-chairman and chief executive of 

oil servicing company Dorman Long Engineering. He says that 

the current situation puts the country 10 years behind in the 

development of technical skills and increases the human 

resource costs of any project by as much as 100 per cent. 

The first attempt by the government to tackle the 

problem came in 2009 as part of the far-reaching Petroleum 

Industry Bill. One of its five main tenets was encouraging local 

participation in the oil and gas sector. It required increased 

‘local content’ as a condition for the award of oil licences. It 


stated that the federal government should at all times promote 

the use of domestic companies, workers and services. 

There were specific as well as general clauses. For 

example, the bill sought to encourage the development of 

small fields by local entrepreneurs with low tax rates. It 

addressed some of the favourable tax deductions that had 

existed for international companies. It also, controversially, 

renegotiated some contracts that it said had been awarded 

improperly, which dented Nigeria’s standing among some 

international investors. However, perhaps most importantly, it 

also deregulated the downstream sector, which opened it up to 

competition and therefore local participation. 

Legislating for local content 

The reforms were generally effective, reversing years of 

declining output in the oil and gas sector and shoring up GDP 

growth in Nigeria. However, the provisions of the bill were 

extended by the Nigerian Oil and Gas Industry Content 

Development Bill, which became the Nigerian Content Act, in 

April 2010. Unlike previous incarnations of the bill, the 2010 

version defined ‘local content’ not by the shareholders owning 

a company. This was important because this definition had 

made previous regulations relatively easy to bypass. Instead, 

local content is defined as “the quantum of composite value 

added to or created in the Nigerian economy by a systematic 

development of capacity and capabilities through the 

deliberate utilisation of Nigerian human, material resources 

and services in the Nigerian oil and gas industry”. 

In other words, the Act aims to give those companies 

with high ‘Nigerian content’ preference over those with lower 

content. The Act also created the Nigerian Content 

Development and Monitoring Board (the Board) to execute its 

provisions, plus the Nigerian Content Consultative Forum, 

which is intended to be a platform for information-sharing. The 

Act set out some ambitious targets for the next four years, 

including 17 individual milestones. It aims to redeploy 

$20 billion into the Nigerian economy and create 30,000 

jobs, largely by encouraging international companies to use 

domestic ancillary services and employ local labour. 

The bidding process 

Criticisms of the Act have tended to focus on the introduction 

of more administrative hurdles in an already onerous contract 

award process, and certainly the rules do place additional 

burdens on companies operating in Nigeria. Specifically, 

companies must submit a Nigerian Content Plan as part of the 

bidding process for any licence, permit or interest in the oil 


96 


Groups such as PETAN have been formed for mutual 

support and skills-sharing, and to promote Nigerian 

technology in the oil and gas industry 

Nigeria’s minister of petroleum, 

Diezani Alison-Madueke 

and gas industry. It should demonstrate how ‘first 

consideration’ has been given to Nigerian independent 

operators or the employment of Nigerian staff. They then 

need to provide periodic updates to the Board. 

It requires that bids are not decided solely on the basis 

of cost, with preference generally given to the bid with the 

highest Nigerian content. The bidder is required to pay one per 

cent of the contract value to the Board and hold 10 per cent of 

revenues in a Nigeria-domiciled bank account. The latter 

holding is designed to provide a pool of funds that can be 

loaned by the banks to local operators in the oil and gas sector. 

Transferring skills 

In order to facilitate the transfer of skills, the Act also requires 

that a programme of initiatives, aimed at promoting the 

transfer of intellectual property from oil and gas operators to 

Nigerian individuals, needs to be submitted as part of the 

contract process. The Act also provides for the creation of a 

skills database – the Joint Qualification System. If there is 

inadequate Nigerian provision in a certain area, companies 

have three years in which to comply with the Act. Consulting 


firm KPMG says these targets may be unrealistic: “In our view, 

the infrastructural base (such as regular electricity supply) 

necessary for the development of the manufacturing and 

fabrication industry is still largely undeveloped. It is unlikely that 

the country would be ready in three years for all items required 

for use in the oil and gas industry to be produced locally.” 

Success stories 

However, the Act has seen some early successes. The Nigerian 

Content Development and Monitoring Board reports that Shell 

awarded $947 million of contracts to Nigerian local companies 

in 2010 alone – 96 per cent of all contracts awarded. 

Chevron’s senior management has given strong commitment to 

building its local contact. Equally, oil services companies such 

as Nigeria’s Nigerdock and SCC are taking on larger projects as 

a result of the Act. SCC made history in March 2011 as it laid 

the first ever Nigerian-made steel pipes in ExxonMobil’s 

Edop-Idoho offshore field. Groups such as PETAN have been 

formed for mutual support and skills-sharing, and to promote 

Nigerian technology in the oil and gas industry. 

Similar successes are being seen in the gas sector, 

with local firms increasingly participating in the bottling 

and distribution of liquefied natural gas since the market 

opened up to competition. 

The Nigerian Content Development and Monitoring Board 

is keen that Nigerian content should become embedded in the 

philosophy of companies, rather than simply being a tick-box 

exercise. KPMG concludes: “The Act has the potential to 

facilitate the participation of Nigerians in the oil and gas 

sector, and stimulate the development of other sectors of the 

economy, especially the manufacturing sector. However, a 

transitional arrangement would need to be developed, such 

that foreigners, who have over the years been encouraged to 

invest in the Nigerian economy, do not lose such investment.” 

The Nigerian Content Act has the potential to transform 

the Nigerian economy, but policymakers will have to ensure 

that they do not alienate those foreign companies that have 

supported the country in its growth. ■

NEITI: the Nigerian 

Extractive Industries 

Transparency Initiative 

NEITI was set up to overcome governance 

abuses in the resources industry. Ben Poole 

observes how the initiative is now providing 

mutual benefit to extractive companies 

operating in Nigeria and the local population 

Nigeria is rich in natural resources, particularly in 

terms of oil reserves. The country is the largest 

oil producer in Africa and globally it ranks in 

the top 10. Nigeria’s oilfields can produce 

900 million barrels a year, while estimates put 

its recoverable oil reserves at around 34 billion barrels. With 

such resources, it should come as no surprise that the oil 

industry is a major player in the national economy, and this is 

backed up by statistics – the sector has come to make up more 

than 40 per cent of national GDP and a huge 95 per cent of 

export receipts. The industry also dominates government 

revenue, providing more than 80 per cent of the total income. 

Six of the world’s top oil companies operate in Nigeria: 

Agip, Chevron, Elf, Mobil, Shell and Texaco. In partnership 

with the Nigerian government, these companies participate in 

the operations that provide some of the staggering statistics 

above. But with such large sums, how can the government 

demonstrate that the industry is providing benefit to Nigerian 

society, as well as profit to the companies involved, for 

mutually beneficial growth? This is where the Nigerian 

Extractive Industries Transparency Initiative (NEITI) comes in. 

The history of NEITI 

NEITI is the Nigerian version of a global initiative that promotes 

transparency in payments by companies in the extractive 

industries to government bodies, with the aim of removing 

governance abuses from the resources industry. Globally, the 


President Obasanjo and finance minister 

Ngozi Okonjo-Iweala in conversation with 

Dr Peter Eigen, chairman of the board of EITI 

EITI standard requires companies to disclose taxes and other 

payments they have made to governments and, in turn, 

governments must disclose what they received from companies. 

An independent administrator compares the two sets of 

figures, which are then published in an EITI report. The 

process, on a national level, is overseen by representatives 

from the companies active in the extractive industry, 

government and civil society in a multi-stakeholder group. 

Nigeria played a key role in the establishment of the 

EITI standard. When EITI was originally being discussed, some 

countries were uneasy with the step towards transparency, with 

many threatening legal action to prevent the disclosure of what 

they saw as confidential information. But the chairman of 

the board of EITI, Dr Peter Eigen, cites the Nigerian president 

of the time, Olusegun Obasanjo, as being the first leader to 

stand up and say that he would make it mandatory for 

companies working in Nigeria to publish their payment 

information, while he also promised to make public what he 

received from these companies. This was the big breakthrough 

that the process needed, and EITI was born. 


98 


In Nigeria, NEITI was inaugurated in February 2004 

when President Obasanjo launched the National Stakeholders 

Working Group (NSWG) under the leadership of government 

minister Obiageli Ezekwesili. The NSWG oversees the activities 

of NEITI and works with stakeholders to build consensus on 

the need for extractive revenue transparency in Nigeria. 

Leading the way 

The NEITI Bill was passed by the National Assembly and 

signed into law by President Obasanjo in 2007, and with this 

legal backing, Nigeria became the first EITI-implementing 

country. The EITI Board designated Nigeria as EITI compliant 

last year, the final part of the process. 

NEITI requires companies in the extractive industries to 

regularly publish accounts of all major payments made to the 

government, while also requiring the government to publish 

accounts of all revenues it has received from the sector. Both 

sets of accounts need to be available and easily accessible to 

the public, and provide a comprehensive description of the 

payments and revenues. 

Many companies will already 

carry out such checks, but in 

cases where they do not, an 

independent audit of 

payments and revenues takes 

place. The international 

standards that are applied 

ensure that the opinion of the 

auditor is published following 

the reconciliation of payments and revenues, with any 

differences noted. This is the case for state-owned companies, 

as well as private corporations. 

It is important that civil society is also a key player in all 

stages of the NEITI process, and public debate is one way to 

achieve this. With that in mind, the inaugural NEITI National 

Conference took place in Abuja in February 2012. 

The conference was attended by representatives of the 

Nigerian government, civil society, business leaders and the 

oil industry, and reaffirmed the values of NEITI to partner 

with all stakeholders in the extractive sector to achieve true 

transparency. Speaking at the closing ceremony, NEITI’s 

executive secretary, Zainab Ahmed, announced that NEITI will 

soon start to sanction any body, on either the government or 

commercial side of the extractive industry, which is not 

publishing the information required of them under the NEITI 

Act. This, together with the rewards that NEITI can provide, 

will deliver the benefit of fairness to all in the industry. 


Stability is reliant on good 

governance, and this is 

what NEITI provides 

When looking at NEITI from a corporate perspective, the 

advantages of such transparency may not be clear immediately, 

and in some cases can appear different to long-established 

ways of doing business. However, NEITI is good for companies 

that are looking to invest in the extractive industries in Nigeria. 

The initiative allows for a consensus-building system of 

development, which helps to create a stable and coherent 

environment for the future. Transparency builds trust, which 

creates good governance and thus boosts the stability of a 

country. This allows companies to plan and operate efficiently, 

which, in turn, drives profits. This is good news for the 

company and its stakeholders, but also for the country in 

which the company is operating. Stability is reliant on good 

governance, and this is what NEITI provides. 

Today, corporate and social responsibility (CSR) plays a 

major part, both politically and in the business world. In this 

context, transparency makes sense for all sides. Companies 

want to enter a country that is committed to ethical business 

practices and transparency. This is what NEITI gives firms in 

the extractive industry that 

are operating in Nigeria or 

are interested in doing so. 

By enshrining in law 

the accountable and 

transparent use of resources, 

NEITI demonstrates how 

Nigeria’s assets are benefiting 

the people, in a way in 

which the companies in the 

extractive industry are committed. The money that NEITI 

saves provides the government with additional resources that 

can be spent across areas of social development. 

Nigeria took a lead in bringing transparency to the 

extractive industry and, today, 35 resource-rich countries 

have also implemented the EITI standard. This is not limited 

to certain countries or areas in the world, rather the ultimate 

standard for global best practice. In September 2011, US 

president Barack Obama announced his country’s commitment 

to implementing EITI. As other countries begin to implement 

the standard, Nigeria has a head start in many ways. New 

initiatives, such as the NEITI National Conference, stand 

the country in good stead ahead of its revalidation from the 

EITI Board in 2016. ■ 

Ben Poole is a writer and editor, specialising in corporate 

treasury and finance, and transaction banking. He is also 

former editor of World Coal magazine

Cakasa (Nigeria) Company Limited 

State-of-the-art white products, storage and truck-loading depot (left), LPG Terminal, Apapa, Lagos – Gas Master Plan 

About our business 

Incorporated in 1974 to provide 

Engineering, Procurement and Construction 

(EPC) services to Nigerian oil, gas and 

industrial infrastructural clients, Cakasa has 

become a company of reference in its sector. 

Cakasa’s vision is to be a world-class 

engineering solutions company of choice. 

Cakasa’s mission statement is to passionately 

provide engineering solutions that exceed 

customers’ expectations. 

Wholly indigenous, Cakasa is one of the first 

companies in its industry to be ISO 9001:2000 

certified and has currently introduced ISO 1400 

requirements into all of its processes. 

Using a flexible approach in driving 

values and meeting the diverse needs of each 

client, Cakasa is well known for providing 

a disciplined, client-focused framework 

that encourages and empowers both 

management and workforce to come up 

with innovative solutions. 

Cakasa’s vast knowledge base is built on 

over 38 years of expertise in: 

• Engineering design 

• Procurement 

• Fabrication and construction services 

• Civil & infrastructure development 

• Maintenance, certification and 

commissioning services 

• Projects management 

Foreign companies 

have in Cakasa a 

strong partner with 

local content that can 

offer the best service 

in the business 

The company’s approach is aimed at promoting 

collaboration and providing a systematic way 

to capture, share and reuse information to 

provide cost-effective, intelligent solutions in 

a timely manner. 

Cakasa owns a state-of-the-art engineering 

facility in Ikoyi, which is considered first class 

amongst equals with awards from the likes of 

Mobil Producing Nigeria and Chevron in the 

delivery of quality Engineering Design works. 

Perhaps one of the best examples of the 

positivity coming out of the Local Content Act, 

Cakasa is actively involved in the development 

of local engineers with over 230 engineers 

across all sectors of its business. This fact alone 

makes a very bold statement about the health 

of the companies operating under the Local 

Content Act principle and the Act itself. 

Our involvement in the downstream sector 

of the oil and gas industry in Nigeria cannot be 

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overemphasised. Cakasa has constructed over 

80 per cent of all tank farm (white products and 

LPG terminals) in Nigeria over the years and is 

also playing a key role in the Gas Master Plan 

of the federal government of Nigeria. 

While praise is heaped on Cakasa, the 

company’s Ahmadu Bello University-educated 

CEO, Yaro P Balami, heaps praise on the Act 

and for his leadership of the firm, which is now 

a leading indigenous company in its industry. 

Now looking to diversify its business model, 

Cakasa is keen to get its message across that 

in Nigeria foreign companies have in them a 

strong partner with local content that can offer 

the best service in the business. “I am inviting 

international investors to come and join us in 

Nigeria. We have good companies like Cakasa 

that can work with them,” says the CEO. 

Cakasa (Nigeria) Company Limited 

For more information, visit our website: 

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Head Office: 96, Palm Avenue, Mushin, Lagos 

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Email: yaro@cakasa.com

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The government has ambitious plans 

to develop the petrochemicals sector 

following years of underinvestment 

A petrochemicals 

industry emerges 

For a country with such vast natural resources, 

it is a surprise to many how underdeveloped the 

Nigerian petrochemicals industry has been. But 

an influx of major investors prepared to back 

the development of large plants could have a 

transformational effect, says Alex Hawkes 

Nigeria has the largest proven oil and gas 

reserves in Africa; yet it has a relatively small 

downstream petrochemicals industry. Despite 

its vast oil wealth, the country remains a 

major importer of refined petrochemicals. 

President Goodluck Jonathan has made clear his 

ambitions for growth in the area and, with a string of foreign 

investors lining up with ambitious plans for plants in Nigeria, 


it has the potential for huge expansion over the next decade as 

the industry emerges and develops. 

Nigeria’s oil wealth is plain. According to the BP 

Statistical Review of World Energy in June 2011, it has proven 

oil reserves of 37.2 billion barrels. The country possesses the 

11th largest oil reserves in the world, 99 per cent of West 

Africa’s proven oil reserves and the seventh largest natural gas 

reserves in the world. 

Underinvestment in refining 

Despite its oil wealth, Nigeria imports 85 per cent of its refined 

petroleum needs. Analysis group Business Monitor International 

(BMI) says Nigeria is only the world’s 39th largest producer of 

ethylene. “The petrochemicals industry in Nigeria has been 

significantly underinvested for a number of years,” says Andy 

Gibbins of petrochemicals consultancy GLAS. 


102 


Eleme Petrochemicals, bought in 2006 from the 

state-controlled Nigerian National Petroleum Corporation 

(NNPC) by Indonesian group Indorama, runs the only major 

petrochemicals plant in Nigeria, in Port Harcourt. That plant 

produces 300,000 tonnes per annum (tpa) of ethylene, 

125,000 tpa of propylene, 80,000 tpa of polypropylene and 

240,000 tpa of linear low-density polyethylene. 

Nigeria’s total ethylene capacity of 550,000 tpa 

represents just 0.4 per cent of global ethylene capacity, 

according to figures from GLAS. As well as those core 

petrochemical products, the country has a similarly small 

position in the global urea market, a key fertiliser ingredient. 

Nigeria has one million tpa of urea capacity, half of 

which is provided by a relatively new plant set up in 2009 by 

Notore Chemicals in its complex at Onne in Rivers State. That, 

again, makes up a relatively small portion of global demand, 

estimated at 185 million tpa. 

Political support 

In his speech on the 51st anniversary of Nigerian 

independence in October 2011, President Jonathan 

highlighted that growth in the area of petrochemicals would 

be a key aim of his administration, saying that he wanted the 

“There’s huge potential in Nigeria 

– it could be the petrochemicals 

producer for the whole of Africa” 

country to become a “regional hub” for value-added petroleum 

and petrochemical products. The plans as outlined were 

ambitious, with the president talking of becoming a regional 

hub as early as 2014. 

Part of that push comes from a political initiative to 

deregulate the Nigerian petroleum sector - under the auspices 

of the Petroleum Industry Bill, which President Jonathan is 

piloting. The delayed bill aims to reduce the power of the 

Nigerian National Petroleum Corporation, the state-owned oil 

company that owns the country’s four oil refineries, the 

providers of feedstock to Eleme. 

BMI describes the Nigerian downstream environment as 

“chaotic”: “Despite having four refineries with a combined 

nameplate capacity of 450,000 barrels per day (b/d), 


problems including mismanagement, sabotage, fire and lack of 

regular maintenance contribute to a low current throughput of 

less than 300,000 b/d.” 

International oil giants such as ExxonMobil, Chevron and 

Shell have all expressed an interest in setting up 

petrochemical ventures, and likewise there is no shortage of 

investment plans. President Goodluck Jonathan has talked of 

realising $25 billion worth of investments in gas processing, 

transmission and downstream gas utilisation projects. 

Eleme is working to revamp its Port Harcourt ethylene 

plant to enhance its reliability (despite its capacity of 550,00 

tpa, it only turns out just over half of that). 

Viva Methanol, owned by Eurochem Technologies, is 

planning to build a 2.5 million tpa methanol plant at the 

Lekki industrial site on the Nigerian coast, which will 

cost $2.5 billion. 

Sister company Axinova Polyolefins plans to build a 

cracker complex alongside, to produce 400,000 tpa of 

ethylene and propylene from the ethanol produced on the site. 

If completed, it would be the world’s largest single-line 

methanol facility. There are also plans to use the country’s gas 

for fertiliser production. 

“Nigeria has significant potential to use associated gas, 

much of which is currently flared, to produce 

petrochemicals,” says Gibbins. Government rules 

require oil companies to make a percentage of gas 

production available for use in the manufacture of 

fertilisers. 

Parent company Indorama has announced 

plans to establish a $2.5 billion fertiliser complex 

at Eleme, which it is anticipated will produce three 

million tpa of urea, making it also one of the 

largest fertiliser complexes in the world. Indian 

group Nagarjuna Fertilizers and Chemicals, alongside Saudi 

group Xenel, is also planning a fertiliser complex with capacity 

of 730,000 tpa, as well as 1.25 million tpa of urea. 

Nigerian group Dangote, meanwhile, wants to build a 

fertiliser plant with combined urea capacity of 2.8 million tpa 

and ammonia capacity of 800,000 tpa. As a result of those 

initiatives, BMI predicts that Nigeria could become a net 

exporter of fertiliser within four years: “By 2016, [we] forecast 

total urea capacity of 6.05 million tpa, more than six times the 

level in 2011. It will make Nigeria self-sufficient in fertiliser 

and a net exporter.” 

Despite plenty of plans for investment, petrochemicals 

analysts remain sceptical about whether those ambitions will 

be realised over the next five years.

Potential for growth 

The Nigerian government has been trying to attract investors 

into petrochemicals since 1977, when it launched a master 

plan for the industry. The more attractive political climate may 

mean that more recent efforts have greater success. Gibbins 

suggests that Nigeria’s potential is significant, but says it 

would need some deregulation, investment worth several 

billion dollars, an attractive climate for foreign investors and 

“three to five years minimum”. 

“There’s huge potential in Nigeria – it could be the 

petrochemicals producer for the whole of Africa. But it needs 

to get its act together first,” he says. BMI analysts admit that 

they are sceptical, too, about some of the promised projects. 

Eleme’s plan to build one of the world’s largest fertiliser 

complexes has seen its timescale slip by two years already. 

“The fertiliser complex planned by India’s Nagarjuna is 


Despite plenty of plans for investment, petrochemicals 

analysts remain sceptical about whether those 

ambitions will be realised over the next five years 

scheduled to come onstream in 2014-15, but [we] believe that 

project delays are inevitable, and do not envisage completion 

until 2016 at the earliest,” the analysis group says. 

Economic benefits 

Nigerian companies spend around $1 billion a year importing 

petrochemicals products such as solvents, polymer granules 

and so on, according to BMI, so there would be a key 

economic benefit in Nigeria developing and sustaining a 

stronger petrochemicals sector. 

BMI also suggests, nevertheless, that there is an 

important role for foreign investors: “Nigeria’s petrochemicals 

industry cannot be resurrected by governmental efforts 

alone. Strong private sector participation is required in 

addition to long-term commitment and planning for 

developing the industry.” ■ 


WGPSN WGPSN Nigeria Nigeria 

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development.

Oil and the Niger Delta 

Nigeria’s oil sector endured an exigent start to 

2012 with rows over fuel subsidies and 

protracted regulations. But the controversial 

reforms are central to the government’s goal of 

securing the long-term economic future of the 

country, says Antony Collins 

When you have a situation where 

85 per cent of a country’s export revenues 

come from oil, it is fair to say that the 

sector is an essential aspect of the 

economy. This statistic relates to Nigeria, 

one of the world’s largest oil export markets shifting over two 

million gallons of oil per day. 

Such a high percentage also denotes an over-reliance on 

oil. This was made starkly obvious to Nigerian citizens on 


Government reforms are a vital step 

in ensuring Nigeria’s oil sector 

remains internationally competitive 

1 January 2012, when the government made the tough 

decision to remove its generous oil subsidy, which had kept 

petroleum prices artificially low for years. 

This move divided opinion. Supporters claimed the 

savings would provide billions of dollars of investment for 

ailing infrastructure, while opponents were angered at 

being unable to afford to buy petrol after prices more than 

doubled overnight. The nature of the removal – a sudden, 

single slash rather than a phased reduction – has been 

hard for many to accept and absorb, but experts such as 

Patrick Mgbenwelu, director and head of project and 

structured finance at FBN Capital, the asset management 

business of the First Bank Group, believe that the benefits 

will become apparent in the long term. 

“The eventual removal of fuel subsidies will 

open up major investments in the Nigerian oil and gas 

sector – in particular the refineries and petrochemical sectors 


106 


The government has made eradicating political problems a 

priority, aiming to implement new regulations to make the 

oil sector much more transparent, stable and attractive 

– because investors will have clear sight of the price, which 

will be market driven and at which their end products will 

be sold,” says Mgbenwelu. 

The subsidy row is a pertinent example of the divisive 

nature of the Nigerian oil market: complex, controversial 

yet crucial. The Niger Delta – the region responsible for 

three quarters of Nigeria’s oil supply during the last three 

decades – has attracted investment from players like 

Royal Dutch Shell, Total and Eni, as well as anger from 

militants, who believe that not enough of the profits are 

going back into the local economy. 

The Movement for the Emancipation of the Niger Delta 

(MEND) is perhaps the most notorious organisation. It 

has conducted a spate of violent attacks on oil projects 

and, following an ‘amnesty’ in 2009, recently claimed to have 

targeted a pipeline owned by Eni. 

Government reform 

Oil companies have continued to develop in Nigeria despite 

the disruptions, disputes and violence – such action tends to 

occur once a project is operational, so the risk can be factored 

into a deal. While attacks can cause delays and logistical 

problems, the biggest hurdle in Nigeria remains obtaining 

approval in the first place because of political inability and 

instability. Corrupt officials and a non-transparent process have 

dissuaded some investors from local deals. 

The government has made eradicating political problems 

a priority, aiming to implement new regulations to make the oil 

sector much more transparent, stable and attractive. It has 

been attempting to introduce sweeping reforms under the 

long-running Petroleum Industry Bill (PIB), which was first 

floated in 2008 but has yet to be enshrined in law. 

PIB will consolidate Nigeria’s various petroleum rules 

under a single structure by establishing official guidelines 

for the operation of oil production, and will confirm Nigeria 

has sovereign ownership of all petroleum within its territories. 

Any organisation would be allowed to apply for a licence 

for exploration and production, although Nigeria would 


receive a bigger portion of revenues. PIB also aspires to 

improve the market by honouring international health 

and safety and environmental obligations, encouraging 

social development and promoting the employment of 

Nigerian workers. The legislation is viewed as vital in 

developing the country’s oil sector. 

“We have to have complete deregulation in which 

government gets out of the business of product importation,” 

says Oluseyi Bickersteth, national senior partner at KPMG. 

“The market should be open and left to private operators 

with prices determined by supply and demand. The 

government role will then become an oversight role focused on 

consumer protection. It is only when this is done that we will 

determine the real oil and gas market in Nigeria.” 

The feeling is that the legislation will have a positive 

effect once the reforms are presented to the National 

Assembly, which is expected to happen by the middle of 

2012. If the package is implemented properly, observers 

claim, the bill will revamp the oil industry and enhance 

Nigeria’s international competitiveness. 

“Our position will certainly only reduce if no major 

investments take place, and this is certainly not what the 

government wants or plans to do,” says Mgbenwelu. “The 

passing of the PIB will also open up additional avenues for local 

and international investor participation in the Nigerian market.” 

Forthcoming projects 

International competitiveness is one of Nigeria’s biggest 

strengths and potential challenges. Neighbouring countries - 

such as Angola, Equatorial Guinea and the Republic of Congo, 

plus ambitious emerging markets like Mozambique - are 

focusing on developing their oil industry, so it is imperative 

that Nigeria remains competitive. 

The abundance of existing investments in the Niger 

Delta and the pipeline of deals will bolster confidence. Royal 

Dutch Shell, for example, has been selling a number of its 

onshore and offshore assets, worth millions of dollars, to 

peers like Nestoil, Kulczyk Oil Ventures, Elcrest and NNPC.

Shell estimates it has an additional $40 billion of deepwater 

schemes lined up in Nigeria. 

Other deals include Nigeria Liquefied Natural Gas 

Company’s $1 billion-plus purchase of six LNG carrier ships, 

while Total and Afren both announced new oil discoveries in 

the latter part of 2011. Perhaps the biggest test, however, 

is NNPC’s mammoth $8 billion Brass LNG project. The 

NNPC-led scheme enjoys strong international backing from 

ConocoPhillips, Eni, Total, LNG Japan, Bayelsa State 

Government, ITOCHU and Sempra Sahara LNG and has a draft 

financing structure in place. Japanese agencies JBIC and NEXI 

are reported to be involved in the project, which boosts the 

likelihood of attracting further international investment. 

Landmark deals 

A second landmark deal is the proposed $20 billion 

trans-Saharan pipeline, led by NNPC and Sonatrach. 

The project – which is in assessment phase – is for a 

4,127-kilometre pipeline running from Nigeria potentially 


Nigeria’s Liquefied Natural Gas Company 

has purchased six new LNG carrier ships 

to Spain, for which Nigerian president Goodluck Jonathan has 

already proposed private investment. 

Even so, the government is keen to diversify its revenue 

stream and extend beyond the reliance on oil. For example, 

there is the Nigeria Gas Master Plan reform package, intended 

to encourage investment in gas, as well as programmes to 

revive other historic exports, such as agricultural products, 

rubber, palm oil and coal. The key point is that this will 

not come at the expense of oil. 

“Oil remains a very important sector in Nigeria and will 

continue to be given attention, however the oil sector will only 

reduce in importance once other sectors reach relatively 

advanced stages in terms of their contributions towards 

employment, GDP and economic growth,” says Mgbenwelu. 

Although the Nigerian oil industry may be going 

through a tempestuous period, once the subsidy issue 

has abated and new regulations are in place the sector 

will enhance and sustain its importance to the long-term 

prosperity of the country. ■ 


Energizing Nigeria 

AES is a power company with 30 years of experience providing safe, reliable, and sustainable 

energy while promoting community development in 27 countries on 5 continents. Through our 

distribution businesses and a diverse portfolio of thermal and renewable fuel sources we have 

the capacity to serve 100 million people. Our workforce of 27,000 people is committed to meet 

the world's changing power needs. Combining deep local insights, regional perspective, and a 

relentless commitment to operational excellence and values, we help communities and 

countries grow through reliable and responsible electric power. 

At AES we understand that access to affordable and reliable power is necessary for societies to 

advance and for economies to grow. From running factories to improving transportation, to 

heating a home or powering hospitals and medical clinics, reliable power is critical to economic 

growth, social inclusion, and community development. 

Since 2001 we have invested in the energy sector in Nigeria, contributing to the development of 

the country. AES Ebute is a 294MW natural gas-fired power plant of nine power barges located 

near Ijede, a fishing village 60 kilometers from Lagos. The plant was the first Independent Power 

Producer (IPP) to start power generation operations in order to support the economic 

development of the country and is currently the third largest IPP in Nigeria. AES Ebute generates 

approximately eight percent of Nigeria’s electricity, is one of the most reliable power plants in 

the country and currently has OSHA18001 and ISO14001 certifications. 

Managed by local people, AES Ebute is one of the largest employers in the community. AES 

Ebute invests in the development of the local people and provides internship and skill building 

programs to develop technical expertise, and creates direct and indirect jobs for a local 

employee workforce. 

Also, AES Ebute has contributed to the surrounding communities renovating and building of 

schools classrooms, providing hospital equipments for the local clinic, providing bore holes and 

water tanks as well as fishing equipments, among others.

High Voltage transmission sending 

station on the Alsthom barges 

One of 3 desalination vessels in the 

Water Treatment Plant 

Jetty walkway adjacent to 

the power barges 

Improving lives by providing 

safe, reliable and sustainable energy solutions 

in every market we serve 

AES Ebute Power Plant

110 


Non-oil and 

solid minerals 

Nigeria’s government aims to 

boost mining from one per cent 

of GDP to 20 per cent 


Despite being rich in natural resources, Nigeria 

has been slow to recognise the full value of 

these assets. Michael Dynes assesses the efforts 

that are now being made to exploit the 

country’s mining and mineral industry, 

alongside other non-oil sectors 

Nigeria stands on the cusp of attracting a wave 

of foreign investment in its long-neglected 

non-oil sector as President Goodluck Jonathan 

focuses attention on turning the page on 

decades of lost opportunities in the mining, 

agriculture and manufacturing sectors, unlocking the West 

African giant’s real hidden wealth. 

Decades of over-reliance on oil exports have gone hand in 

hand with the relentless decline of more traditional sources of 

economic activity, leading to the creation of a mono-economy 

that has not served Nigerians well. Few remember it now, but 

prior to the onset of the 1970s oil boom, Nigeria was the 

world’s sixth largest tin exporter, it accounted for 60 per cent 

of the global supply of palm oil, and was host to a vibrant and 

expanding manufacturing sector. 

Growth in the non-oil sector 

Yet despite decades of official neglect, the non-oil economy 

has stubbornly refused to die. For much of the past 10 years, 

the non-oil sector – driven largely by agriculture – has been 

growing at a steady seven per cent a year. That phenomenon 

has forced government ministers and private-sector investors 

to look again at the underlying motors of Nigeria’s economic 

development, and redraft their economic policies and 

investment strategies accordingly. 

Goodluck Jonathan’s ‘Transformation Agenda’ 

encapsulates that new strategy. The president’s plan sets 

itself the ambitious target of turning Nigeria’s economic 

decline around. At its heart lies the attempt to reboot the 

mining or solid minerals sector, attain food self-sufficiency by 

reviving agriculture, and harness the country’s immense 

natural gas reserves to kick-start the birth of a new 

petrochemical and fertiliser industry. 

According to Roberts Orya, chief executive of the 

Nigerian Export-Import Bank, foreign investor interest 

in the country as a ‘next frontier market’ has been greatly 

boosted by the success of the 2011 presidential and 

legislative elections, together with the Jonathan 

administration’s single-minded determination to tackle 


Nigeria’s accumulated infrastructure deficit – especially 

electricity generation. Mining, agriculture and manufacturing 

“are all areas that excite potential investors,” Orya says, “and 

a lot of people are now interested in coming in.” 

Nigeria’s mineral endowment remains vast and largely 

untapped. The country has more than 30 categories of solid 

minerals of high value and available in commercial quantities, 

including estimated reserves of 2.7 billion tonnes of coal, 

three billion tonnes of iron ore, and some 27 billion barrels of 

bitumen deposits. Ironically, mining currently accounts for less 

than one per cent of gross domestic product – but ministers 

believe that it has the potential to contribute up to 20 per cent. 

Since the return to civilian rule in 1999, a series of 

reforms has seen the federal government of Nigeria retreat 

from its former status as mining sector owner-operator to that 

of administrator-regulator, in an effort to attract a new wave of 

private-sector investment. It is still early days, but the new 

policy is already beginning to show results. 

Investments are now beginning to flow into the gold, coal 

and iron ore sub-sectors. Britain’s Savannah Gold is one of the 

new miners seeking to tap the potential for the precious metal 

in Nigeria – a country bordering on several West African 

neighbours with well-established gold sectors. 

Savannah passed up the opportunity to mine for gold in 

Ghana, Mali and Burkina Faso, in favour of new exploration 

opportunities in Nigeria. “Finding first-mover advantage, 

finding greenfield exploration in these countries is extremely 

difficult,” said the company, adding, “That is why Nigeria is 

such an attractive venue.” Miners from Canada, Australia, the 

US and China are now following suit. 

Reviving sectors 

The president’s pledge to revive agriculture rests at the centre 

of the government’s efforts to diversify the economy away from 

oil. The goal is to generate large-scale job creation in the 

labour-intensive agricultural production and processing 

industries, while at the same time reducing growing food 

insecurity in a new era of high food prices. 

Agriculture currently accounts for around 40 per cent 

of gross domestic product – down from 70 per cent before 

the oil export boom. It is the source of 60 per cent of all 

employment, but only one per cent of total exports. 

According to the Central Bank of Nigeria (CBN), more than 

90 per cent of agricultural output comes from subsistence 

farmers, few of whom have access to finance or fertiliser, 

and most of whom survive on an income of little more than 

naira (N) 150-300 ($1-2) a day. 


112 


The new Lekki Free Trade Zone has already attracted more 

than a hundred foreign and domestic investors 

The CBN estimates that Nigeria is host to more than 

40 million hectares of arable land, but less than 60 per cent 

of it is cultivated. Moreover, fertiliser use per hectare stands 

at around 10 kilogrammes, compared to a global average of 

150 kilogrammes. Despite such vast agricultural potential, 

Nigeria’s food import bill stood at N25 trillion ($154 billion) 

in 2010 – N356 billion ($2 billion) of which was spent on 

importing rice. Decades of neglect has condemned the 

country to the status of a net food importer, when it should 

be Africa’s biggest net food exporter. 

Investments in agriculture 

Nigeria’s food self-sufficiency drive, which began under former 

president Olusegun Obasanjo, has accelerated markedly under 

Jonathan, and is now witnessing substantial new investments 

in agricultural extension, increased fertiliser production, a 

significant expansion in rice-milling facilities, and the 

development of new agro-processing industries. 

The development of free 

trade zones will benefit 

manufacturing output 


In addition, the CBN has also earmarked $500 million 

in new lending to the agricultural sector, aimed at helping to 

unlock more than $3 billion in new private-sector lending 

to agriculture over the next decade. Lending to agriculture 

currently accounts for two per cent of total lending – 

compared to six per cent in Kenya. The CBN wants that figure 

to more than triple to seven per cent by 2020. At present, 

Nigeria boasts a mere 30,000 tractors to work more than 

40 million hectares of land. No other statistic captures the 

scale of the sector’s past neglect – or the opportunity that now 

exists to radically transform the country’s agricultural potential. 

Like most other emerging markets, Nigeria has 

attempted to augment its manufacturing output through the 

development of free trade zones – of which there are some 24 

currently in operation, admittedly with mixed success. More 

recently, however, it has succeeded in attracting the attention 

of China, Saudi Arabia and India, who are spearheading 

substantial investment into two new free trade zones designed 

to boost Nigeria’s manufacturing output. 

Nigeria and China are currently developing the new Lekki 

Free Trade Zone on the eastern edge of Nigeria’s commercial 

capital, Lagos. The $5 billion, 3,000-hectare, first phase of 

the development – which seeks to reduce the country’s 

dependence on imported products – has already attracted 

more than 100 foreign and domestic investors, including 

Chinese electronics, pharmaceutical and heavy machinery 

firms, which are eager to build production and assembly 

facilities in the zone. 

The proposed new Koko Free Trade Zone in Delta State, 

which is backed by a joint venture between the Nigerian 

National Petroleum Corporation and Saudi Arabia’s Xenel 

to build a new petrochemical plant, along with plans by 

India’s Nagarjuna Chemicals to build three new fertiliser 

plants, represents a significant break with the past. The 

Lekki and Koko projects are major investments that seek 

to reverse decades of decline in manufacturing. They are 

indeed ambitious. But they also represent a mark of 

confidence in Nigeria’s long-term future by industry 

leaders who have a proven track record in developing 

effective free trade zones. ■

HEAD OFFICE 

POWER GENERATION 

TRANSMISSION AND 

DISTRIBUTION 

WATER TREATMENT 

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(MEP) 

INDUSTRIAL 

KNOW-HOW 

Abuja 

Plot 699, Aminu Kano Crescent, 

Wuse II, FCT Abuja, Nigeria 

Tel.: +234 (0)9 461 1362 

Fax: +234 (0)9 461 1364 

Lagos 

269B Kofo Abayomi Street, 

Victoria Island, Lagos, Nigeria 

Tel.: +234 (0)1 271 4167 

Fax: +234 (0)1 271 4168 

BUILDINGS 

CONSTRUCTION 

energo@hyperia.com 

www.energonigeria.com

EnErgy boost for nigEria: 

PHCn and naPtin PavE tHE way 

As a young country with a fast-growing population, Nigeria has two urgent priorities, namely educational 

provision and a reliable energy supply. To meet both demands, the government took the decision in 

2009 to set up the National Power Training Institute of Nigeria (NAPTIN) within the structure of the 

Power Holding Company of Nigeria (PHCN). The Deutsche Gesellschaft für Internationale Zusammenarbeit 

(GIZ) and Lucas-Nülle, the world’s leading manufacturer of technical training systems, were involved 

from day one. 

Nigeria is working to further develop a sustainable power 

supply. In order to achieve this, the government has decided to 

privatise the state power company, PHCN. The target that has 

been set for the future private energy provider is to increase 

output tenfold by 2020 to at least 40,000 megawatts. 

“A road map for this high aim was launched in 2010 and the 

government follows it rigorously. Training of the workforce is a 

critical mass in realising this government’s vision. The power 

industry of Nigeria is affected by skills shortage, which causes a 

huge gap in efficient operation of the power system. The government 

is poised to address this by establishing NAPTIN to be a 

centre for capacity building and to coordinate all training 

activities of the sector,” says NAPTIN director Reuben Okeke. 

Dr. Dere Awosika, Permanent Secretary, Ministry of Power, His Royal 

Highness Alh. Haliru Dantoro Kitoro III (con), Emir of Borgu Kingdom, 

Niger State, Engr. Reuben Okeke, director general of NAPTIN 

In order to bring a professional approach to the establishment 

of this prestigious institute, long experience in the planning and 

implementation of educational technical labs was required. 

By late 2009, Okeke and Stefan Welp, Sales Director responsible 

for Nigeria at Lucas-Nülle, were developing their initial ideas 

for the new educational institution, and they continued to 

fine-tune them in the months that followed. They worked closely 

together to analyse what the facility would have to provide in the 

future in order to offer high-quality training. They drew up plans 

for laboratories in which teaching timetables would be so 

organised as to make optimum use of all the rooms. Consultants 

from Lucas-Nülle and Reuben Okeke’s project team jointly 

developed the curriculum, always in compliance with current 

industry standards. When this was in place, appropriate training 

systems were identified for procurement. 

In 2010, a delegation from NAPTIN visited Lucas-Nuelle’s 

headquarters in Germany and after a thorough examination of the 

training systems on offer, opted for the electrical and energy 

engineering package in its entirety. For NAPTIN, the focus has 

always been on practical experience, Original Equipment 

Manufacturer (OEM) components and their integration into 

educational experiments based on real practice. The ‘blended 

learning’ approach that underlies all training systems from 

Lucas-Nülle was also an important criterion in the decision. 

Another criterion was the comprehensive service offered by 

Lucas-Nülle – before, during and after delivery of the systems. 

So that the training systems could be used immediately, 

employees of Lucas-Nülle not only travelled to Africa to oversee 

the installation but also trained teachers in their use. Lucas-Nülle 

consulted university professors and teachers with many years’ 

experience of working abroad in devising the specialised 

preparatory seminars. Five of the future instructors at NAPTIN 

came to Germany for initial training by Professor Hans Laufer in 

the classrooms of Lucas-Nülle. In the course of this seminar, the

former university academic addressed not only the issue of how 

to convey technical knowledge but also the teaching methods to 

be employed. Professor Laufer’s field of expertise while he was at 

the University of Magdeburg included the training of vocational 

teachers. In the German education system, vocational teachers 

play a crucial role in ensuring that skilled workers and engineers 

attain the requisite standard before entering the jobs market. 

Lucas-Nülle is responsible for exporting this quality standard to 

the whole world through the sustainable training it provides as 

part of the projects it manages. 

“A well-trained and productive workforce is the 

only way to address the power-sector challenges 

in our country.” (Reuben Okeke, commissioning RTC Kainji, on the 

17 of May 2012) 

At the end of the seminar, Professor Laufer flew out with the 

engineers to Nigeria to take receipt of the teaching systems, 

install them and continue the training on site. After installation 

was complete and the official handover of the project had taken 

place, Professor Laufer and other experts have carried on 

supporting the local staff, answering any technology and 

methodology queries that arise from their teaching activities. 

“For the first time in the Nigerian Power Sector a total of about 

a thousand fresh graduates in Electrical Electronics and Mechanical 

Engineering will commence the skills acquisition program. 

NAPTIN had the impetus to embark upon this because of the 

training equipment and courses acquired from the company 

Lucas-Nülle,” explains Reuben Okeke. 

Stefan Welp, who has supervised the project, made several 

journeys to Kainji in Nigeria to oversee the installation of the 

teaching systems. He explains why this service is so important: 

“Our systems are state of the art; they challenge learners not only 

to observe processes but to understand and even control them. 

Consequently, teachers have to be very good in their specialist 

area as well as in the use of laboratory equipment. That’s why we 

give them thorough ongoing training. The concept has success- 

fully proven itself over the past thirty years, during which time 

we have equipped educational institutes in all five continents with 

technical training systems ranging from electrical engineering to 

communication and process management technology. And that is 

also the case here in Nigeria, where they have set up the largest 

training centre for energy technology and renewable energy 

supplies in the whole of Africa.” 

Following the two-year planning and implementation phase of 

the project and a five-week service period with Lucas-Nülle staff 

on site, NAPTIN held the official opening ceremony for RTC 

Kainji on 17 May 2012. Among the guests of honour were the 

Emir of Borgu, the Deputy Minister for Energy, the Secretary of 

State for Energy, the Director of NAPTIN and a host of local 

dignitaries plus an employee of GIZ (Deutsche Gesellschaft für 

Internationale Zusammenarbeit) representing the Embassy of the 

Federal Republic of Germany. 

The Secretary of State for Energy spoke in glowing terms of 

the offer by Lucas-Nülle to collaborate on meeting future 

challenges in the construction of a modern energy supply 

network. 

Lucas-Nülle GmbH 

Mr Stefan Welp 

Tel.: +49 (0) 2273 567-48 

stefan.welp@lucas-nuelle.com 

www.lucas-nuelle.com

116 

ENERGY 

Powering up 

Boosting electricity supply will cut 

the public’s reliance on generators 

INvEst IN NIGERIA 2012-13

Although efforts to bring electricity to the 

whole of Nigeria have been slow to materialise 

so far, the sheer force of development looks set 

to change things. As Robin Pagnamenta finds 

out, the benefits of successfully creating a 

national grid could be enormous 

Nigeria’s plentiful supplies of oil and gas 

have made it Africa’s energy superpower, with 

an economy set to outpace India and Brazil 

this year with growth of more than 

eight per cent. But dreams of a brighter 

future for the country, which has the world’s seventh largest 

gas reserves and is one of the biggest emerging markets 

globally, remain hobbled by a striking irony. 

Nigeria’s chronic lack of electricity is an obstacle to more 

balanced growth and an understandable source of concern 

among investors. “Almost nobody gets continuous supply from 

the grid,” says Chris Pooley, an energy consultant at 

engineering group Ramboll, who is advising Nigeria’s 

government on how to improve the situation. Decades of 

underinvestment have left more than 60 per cent of the 

nation’s 167 million people without a grid connection. 

During the last 20 years of the 20th century, the 

country’s nationalised power company built no new power 

stations at all, while maintaining what is left – a mixture of 

rusting gas and hydroelectric power stations, many of which 

were built 40 or more years ago – has become a daily struggle. 

In 2010, the Nigerian system collapsed almost weekly, each 

time taking one to two days to restore full supply. 

Issues and opportunities 

But even for those households and businesses lucky enough to 

have a connection, power supplies are at best erratic, with 

shortages 60 per cent of the time. In total, Africa’s most 

populous nation currently produces 4,000 megawatts of 

electricity – ten times less than South Africa, a country with 

one third as many people, and roughly equivalent to the amount 

of energy used by the area around Tokyo’s Narita airport. 

This lack of reliable power has become the source 

of a variety of problems, sharply pushing up the cost 

of doing business in the country and acting as a drag 

on inward investment. 

About 60 million Nigerians are forced to rely on 

generators and fork out $13 billion a year refuelling them with 

costly diesel. “It’s bad for business and bad for the country. 

ENERGY 117 

Every hotel, every significant business has a generator – it’s 

essential,” says Liz Donnelly, who runs the Nigeria programme 

at London-based foreign-affairs think tank Chatham House. 

She points to Nigeria’s tiny manufacturing sector – just 

four per cent of GDP – as one consequence of the situation. 

“Bigger companies can afford it, but for small business it 

makes life very difficult.” 

Donnelly believes that overhauling the power industry is 

one of the biggest national priorities, but also thinks it 

represents an opportunity to catapult Nigeria’s economy into a 

different league. “Power-sector reform is absolutely crucial,” 

she says. “Reliable power would enable small businesses to 

develop and increase economic activity... It really could be 

transformational for Nigeria’s economy.” 

But it’s not just businesses that are suffering. In a 

country where the majority of citizens live on less than $2 a 

day, the shortages also prevent many of Nigeria’s poorest 

people from improving their own lives – by using electric light 

to read or study at night. Access to water pumps, mobile 

phones and the internet is also restricted. 

“In terms of security, energy is very important, too. 

There is a huge youth bulge in Nigeria and a need to 

create jobs,” adds Donnelly. 

So it comes as no surprise that President Goodluck 

Jonathan’s government has made tackling Nigeria’s energy 

problems a major national priority. 

Ambitious plans 

This year, the administration will try to breathe new life into 

the industry by completing the break-up of Nigeria’s state 

electricity company – Power Holding Company of Nigeria 

(PHCN). In an ambitious programme that is hoped to pump 

cash into the industry on an unprecedented scale, six power 

stations and 11 electricity distribution firms will be spun off to 

private companies in the next few months. 

They will operate them independently under the 

oversight of a transmission company and a bulk trader, which 

will remain in state control. 

Under the plans, first unveiled in 2010 and which are 

being supported by the World Bank, the government hopes to 

boost Nigeria’s generating capacity to 5,000 megawatts by the 

end of this year and 6,000 megawatts by 2013. 

To truly meet the needs of its 150 million people, 

the nation’s generating capacity will ultimately have to 

increase tenfold – to 40,000 megawatts – a level that 

will require massive investment of an estimated 

$100 billion over the next decade. 


118 

ENERGY 

President Jonathan’s government has made tackling 

Nigeria’s energy problems a major national priority 

“The network has been starved of adequate investment 

for many years,” says Chris Pooley. He says the money, which 

promises to deliver a big boost to the economy on its own, will 

be spent on a total overhaul of the network – repairing existing 

equipment and building new gas, oil and hydroelectric power 

stations, high-voltage transmission lines and substations. 

Improving infrastructure 

In many areas, brand-new infrastructure will also be required, 

especially to feed electricity to Nigeria’s northern provinces, 

which have always been underserved in terms of power. “There 

is a very large need for capital investment,” says Pooley. 

“Nigeria needs large-scale replacement of existing 

infrastructure and a major extension of the current networks. 

It’s pretty essential for Nigeria to realise its wider economic 

aspirations.” The fact that the assets have already attracted 

intense interest from around the world demonstrates a vote of 

confidence in the process. 

Among over 200 shortlisted 

bidders are companies like 

Canada’s Manitoba Hydro, India’s 

Tata and Jindal Power and 

America’s Honeywell, as well as 

Powertek Berhad of Malaysia, 

POSCO of South Korea, China 

Southern Power Grid and Israel 

Electric Corporation. 

There is a lot at stake, says 

Kole Shettima, Africa director of 

the John D and Catherine T 

MacArthur Foundation in Abuja. 

If the government gets it right, a 

successful power privatisation 

programme could boost Nigeria’s 

GDP to as high as 10-12 per 

cent per year and put the country 

on a sturdy road to development. 

For decades, Nigeria’s 

economy has been heavily reliant 

on oil and gas – an industry 

INvEst IN NIGERIA 2012-13 

40,000 

megawatts to meet 

the needs of 150 

million people 

6,000 

megawatts by 2013 

5,000 

megawatts by 2012 

which has tended to build and develop its own power supplies 

and which has left other areas of the economy neglected. 

“There is enormous commercial potential within 

Nigeria but to date a lot of that has been concentrated 

in just one area,” says Pooley. “Other sectors of the 

economy have been neglected.” 

With more reliable power supplies, Nigeria could develop 

its other rich deposits of mineral wealth, such as coal and 

metals. Its once vibrant textile industry in the north-west, 

which has been devastated by power shortages, could also 

be reborn. “The lack of power has certainly undermined 

economic activity by adding to the cost of production… 

It would help to reduce costs and improve the business 

environment,” claims Pooley. 

Success would also serve as a model for other African 

countries, many of which are facing similar challenges and 

which have historically struggled to attract inward investment. 

Of course, nobody expects privatisation to be easy. 

Popular mistrust of the drive has 

been fuelled by concern at the 

higher prices consumers fear 

they may have to pay for 

electricity and by the threat of 

corruption. Employees of the 

national power company are also 

concerned about lay-offs and 

changes to their welfare benefits. 

But the potential rewards 

for the wider economy are 

undeniable, says Liz Donnelly. 

“It’s a huge and very complex 

reform but it really could be a 

very big win.” ■ 

Robin Pagnamenta is a business 

journalist working on The Times 

(London) who has specialised in 

the energy sector and was 

previously deputy business editor 

of the Sunday Express

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120 

ENERGY 

Alternative and 

renewable energy 

Renewables not only form a key part of 

Nigeria’s energy strategy, but they will also 

spearhead the electrification of the country’s 

rural interior. Graeme Burton examines the 

various sources of sustainable energy, which 

include hydropower, wind farms and 

solar-powered resources 

When protests against the withdrawal of 

fuel subsidies across Nigeria erupted 

at the beginning of the year, it 

crystallised a dilemma that many 

fast-developing, oil-producing nations 

face. On the one hand, many people feel that the subsidies 

are the only tangible benefit they receive from their 

country’s oil wealth. On the other, as a country develops, 

the cost of those subsidies can soar. 

In Nigeria, the issue is more acute in view of its 

underdeveloped power sector. Sixty per cent of the country is 

not even connected to the power grid. For the parts that are, 


Renewable energy resources, such as solar 

power, have the potential to provide electricity 

to areas the grid does not currently reach 

the supply can be unreliable. As a result, it is one of the 

biggest markets in the world for diesel power generators, which 

help keep homes, offices and factories running. 

Furthermore, Nigerians without access to electric 

power – predominantly in rural areas – depend on ‘fuelwood’ 

for both cooking and heating. However, with more than 

50 million tonnes burned annually, that resource is being 

depleted faster than it can be replenished, causing 

deforestation and desertification. 

It was in response to such challenges that Nigeria’s 

Renewable Energy Masterplan was devised in 2006, supported 

by the United Nations Development Programme (UNDP). 

“The absence of a reliable energy supply has not only left 

the rural populace socially backward, but has left their 

economic potential untapped. Fortunately, Nigeria is blessed 

with abundant renewable energy resources, such as solar, 

wind, biomass and small hydropower potential,” says 

Professor Abubakar S Sambo, director general of the Energy 

Commission of Nigeria. 

Nigeria’s federal government already plans to build 

a number of conventional power plants, including a trio

of one gigawatt coal-fired power plants in the states of Enugu 

in the south-east, Kogi in the central region, and Gombe in 

the north of the country. But it is renewable energy sources 

that have the potential to provide electricity to regions 

and communities where the grid either does not stretch, 

or remains underdeveloped. 

Water world 

Nigeria’s Renewable Energy Masterplan puts hydroelectric 

power at its centre. It aims to produce 5,930 megawatts (MW) 

from large hydro schemes in the medium term – by 

approximately 2015 – and 48,000 MW by about 2030, when 

19,000 MW will also be generated from small hydroelectric 

schemes to take electricity to smaller communities. 

By then, the total power output target is 192,000 MW, 

according to the Energy Commission’s targets, with renewables 

contributing more than one third of that total. 

However, in order to deliver more than just one twentieth 

of that output, the country will need to invest heavily in its 

power transmission and distribution network. When power 

output was increased to 3,800 MW 

in August last year, the network struggled to handle even that 

modest load. The system also suffers from high energy losses, 

says Sambo, due to physical deterioration of transmission and 

distribution facilities, an inadequate metering system, and the 

loss of electricity – and revenues – as a 

result of power theft via illegal connections. 

That is partly why Nigeria is 

deregulating and privatising its electricity 

industry: in order to attract and facilitate 

private-sector and foreign expertise and 

investment across its whole 

power-generation industry. 

At the same time, organisations such 

as the Council for Renewable Energy in 

Nigeria (CREN) are encouraging the adoption of small-scale 

schemes, such as solar thermal and photovoltaic (PV) systems, 

for offices and homes. CREN has led by example by installing 

PV solar in its Cross River State chapter offices to demonstrate 

how solar can provide power off-grid, and demand for 

microgeneration has encouraged the establishment of a 

plethora of solar-power installation companies across Nigeria. 

Financing options 

One of the major advantages of investment across the whole 

power sector – not just renewables – is the financing available. 

National export credit agencies (ECAs) are especially keen to 

finance whole projects, not just the hardware, such as 

turbines. The Export-Import Bank of the United States 

(US Ex-Im Bank), for example, has pledged backing for 

$1.5 billion of US goods and services across the whole 

Nigerian energy sector in a memorandum of understanding 

signed in October 2011. 

“$1.5 billion is just the start. We want to deploy this 

financing as quickly as possible to help meet President 

Goodluck Jonathan’s goals for growing the Nigerian 

economy by greatly expanding the availability of power in 

the country,” said US Ex-Im Bank chairman and president 

Fred P Hochberg. He added: “We are also interested in 

financing US exports in support of Nigeria’s other 

infrastructure needs, which we understand may total 

over $220 billion between 2012 and 2016.” 

ENERGY 121 

Renewable energy 

Nigeria is not just attracting US support. Canadian 

construction companies have also expressed an interest in 

partnering on the proposed Mambilla and Gurara hydroelectric 

power projects, a move welcomed by Professor Bart Nnaji, the 

minister of power. Those two schemes are expected to jointly 

produce some 3,300 MW of electricity. 

In addition to support from ECAs, investors can 

also secure funding from the United Nations’ Clean 

One of the major advantages of 

investment across the whole power 

sector is the financing available 

Development Mechanism (CDM). This channels finance 

from developed countries’ carbon-emitting industries 

into clean energy and development programmes 

across the emerging markets. 

That is partly how entrepreneur Obasiohia Benneth 

Obinna hopes to finance ambitious plans for an 

energy-from-waste business. The aim is to help deal with some 

of the estimated 9,000 tonnes of waste generated every day in 

Nigeria by burning it to produce power for Nigerian city 

neighbourhoods. A waste-management expert trained in the 

UK, Obinna is currently seeking investors to back the business, 

which will be the first in Nigeria. 


122 

ENERGY 

Targets for electricity generation (MW) – medium and long term 

Biomass 

92.3% 

increase 

Investment in renewables – including waste-to-energy 

– was given a further push in December 2011 when Nigeria’s 

national ECA, The Nigerian Export–Import Bank (NEXIM), 

united with the Bank of Industry and the UNDP to pledge 

investment finance of N 108 billion ($665 million) for 

forthcoming renewable energy projects. 

Many of these are focused on biofuels. They include 

a $510 million project with commodities company 

Confluence Sugar, which will promote the cultivation of 

sugar cane for producing sugar, while ‘bagasse’, a by-product 

produced from sugar-cane processing, will be used to 

produce biofuel for energy cogeneration. 

Threshold Biofuel Energy, meanwhile, is leading a 

$12 million project to produce biodiesel from Jatropha 

curcas, a semi-evergreen shrub that can be processed 

to produce high-quality biofuel. 

IPP model 

Global Biofuel is investing $56 million in a refinery to produce 

90,000 litres per day of fuel-grade ethanol from sorghum 

feedstock, a 100,000 litres per day biodiesel refinery and 

a 7.5 MW power plant utilising farm waste. 

“The project is already approved by the Nigerian National 

Petroleum Corporation (NNPC) under the new National Biofuel 

Policy and has been endorsed by the country’s Clean 

Development Mechanism, Designated National Authority 

(DNA), a unit of the federal ministry of environment, for 


Hydro (large) Solar PV 

1,300MW 

120MW 

47.3% 


5,930MW 11,250MW 

120MW 36,750MW 

Wind 

20MW 

50MW 

99% 


60% 


Source: Energy Commission of Nigeria 

execution as a CDM project that would earn Certified Emission 

Reduction (CER),” says Dr Emmanuel Moore Abolo, 

chief risk officer of NEXIM. 

Bank of Industry, UNDP and NEXIM have also pledged to 

invest $4.8 million to finance renewable energy projects in the 

micro, small and medium-sized business sectors. 

Investing in Nigeria’s power grid 

However, many of these projects will come to nothing unless 

Nigeria invests heavily in its power grid, says Norman B 

Ndaba, director for power and utilities in Africa at consultants 

Ernst & Young. Indeed, the independent power producer (IPP) 

model by which private-sector investments in power production 

are facilitated across the world requires a well-functioning 

power grid. “The factors and conditions that make IPPs 

feasible are not present in Nigeria yet,” says Ndaba. 

The opportunities, though, remain immense. South 

Africa, for example, has a capacity of 40,000 MW for a 

population of about 47 million. Nigeria, in contrast, has a 

much larger population of more than 150 million, but a 

power grid that can take no more than 3,800 MW. 

However, the country’s government has ambitious plans 

to make Nigeria one of the world’s top-20 economies by 

2020, which can only be achieved with a modern and 

diversified power network as a prerequisite. “But when 

Nigeria ‘breaks through’, it will be the biggest thing since 

sliced bread,” says Ndaba. ■

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dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission. 

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124 

INDUSTRIAL INFRASTRUCTURE 

Travel and transport 

improvements 

Improved services on the country’s 

railway systems are needed to boost 

passenger and freight numbers 

INvEST IN NIGERIA 2012-13

The National Economic Development Policy 

is an ambitious plan to update the country’s 

road network while the government is also 

privatising the Nigerian Railway Corporation. 

Malcolm Wheatley assesses these issues, 

as well as partial port privatisation and 

developments in the aviation sector 

From an inward investment perspective, the appeal 

of Nigeria isn’t difficult to discern. The seventh 

most populous country in the world, its economy 

– the second largest in sub-Saharan Africa – has 

quadrupled in size since 2000. 

Powering that growth has been an increasingly affluent 

middle class, a burgeoning agricultural sector and – of course 

– a healthy demand for Nigeria’s oil exports. Not for nothing is 

Nigeria increasingly numbered among the ‘Next 11’: a group 

of rapidly industrialising countries reckoned to become the 

next BRIC economies. 

Yet it’s undeniable that this economic growth would have 

been even greater had the nation’s transport infrastructure 

been better, as a glance at the country’s congested ports and 

overcrowded roads quickly confirms. 

As a report from Nigeria’s government-backed 

Transport National Technical Working Group put it: “It is 

government’s social responsibility to ensure that there is an 

efficient and effective transport system serving its citizenry. 

An efficient transport network will allow manufacturers 

or producers to obtain raw materials or supply national or 

international markets at minimum cost and with minimum 

delay, and allow them to access the widest possible 

number of suppliers or workers.” 

And, until recently, ‘efficient’ was rarely the word that 

came to mind when describing Nigeria’s transport network, 

as the report readily concedes: lengthy delays at ports, 

a dilapidated railway system and a significant proportion 

of Nigerian consumers in northern cities, such as Kano, 

dependent on goods arriving on roads that it can take 

trucks several days to traverse. 

The good news: change is afoot – and has been for 

some years. Under the aegis of Nigeria’s National Planning 

Commission (NNPC), sweeping reforms have started to alter 

the country’s transport landscape. Deregulation, foreign 

inward investment, partial privatisation: combined with 

reinvested oil revenues and a rejuvenated private sector, 

improvements are genuinely visible. 

INDUSTRIAL INFRASTRUCTURE 125 

Take, for instance, Tin Can Island Port, which serves 

western Nigeria and Lagos – itself the fastest-growing city in 

Africa, and the seventh fastest-growing city in the world. 

As well as being one of Nigeria’s premier container 

traffic ports, Tin Can Island’s ‘roll on, roll off’ (ro-ro) facility 

not only handles imported motor cars, but also – via ships 

docked at Berth Number Nine, which has special ro-ro 

ramps to accommodate them – incoming construction 

equipment, such as cranes, excavators, dumper trucks 

and backhoes. By volume, though, cars comprise the 

greatest throughput of ro-ro traffic, and the port includes 

five vehicle parks for international car-shipping services, 

each able to accommodate 6,000 cars at a time. 

“As a vehicle market, the country is moving away from 

the cheapest second-hand cars, and towards vehicles where – 

from a logistics perspective – security, safety and damage 

matter far more,” notes Paul Donaldson, an expert on 

international vehicle shipping. 

It should be noted that Tin Can Island has its own 

electricity supply power station with seven substations 

throughout the port, five transit sheds and three warehouses 

offering a combined covered storage area of 54,000sqm, and 

an open storage area of 125,000sqm. 

Underpinning such investments has been a recognition 

by the Nigerian government that Public Private Partnerships 

– part-privatisations, in effect – are the way forward, overseen 

by Nigeria’s Infrastructure Concession Regulatory Commission. 

These took place in early 2006, leading to significant new 

investment, as well as improvements in management. 

In the case of Tin Can Island, for instance, it’s a 

consortium of investors including France’s Bolloré Africa 

Logistics and China’s China Merchants that is responsible 

for the gleaming new ro-ro terminal. The adjacent port of 

Apapa, meanwhile – Nigeria’s busiest container port – has 

benefited from a $200 million investment by APM Terminals, 

part of Denmark’s AP Møller Maersk shipping and port 

management group. According to a report in the Financial 

Times, Maersk Line – the world’s biggest container-shipping 

line – believes that trade with China now accounts for half 

of the freight it carries to Nigeria. 

Since the inception of the Public Private Partnerships in 

2006, much has been done to improve Nigeria’s port 

infrastructure, free its maritime waterways of wrecks, dredge 

its channels and put in place regimes of maritime regulation 

and oversight that meet international standards. 

At the port of Onne, for instance, a new 376-metre 

quay wall has been completed, as well as the construction 


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Vehicle imports General cargo Container traffic 

23% increase 

(231,000 units) 

of a new berth. Also at Onne, the Federal Ocean Terminal 

has been extended with a new 570-metre jetty, contributing 

to a total quay length of 750 metres. Construction work 

has commenced on the remaining three berths to bring 

the total quay length to 1,500 metres. 

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 per cent foreign repatriation of capital and profit, 

100 per cent foreign ownership, free pre-shipment inspection 

for imported goods, free expatriate quota and the possibility to 

sell products and services in the West African subregion. 

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), fertiliser plant (NAFCON), 

aluminium smelter plant (ALSCON) and the West African Gas 

Pipeline (Escravos – Ghana). 

The main investment opportunities are: 

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 ro-ro terminal and a centre 

with trans-shipment facilities for the West African 

subregion and neighbouring landlocked countries; 

3. Lagos specialised trans-shipment terminal – this 

will provide a breakaway from the usually congested 

Apapa and Tin Can Island ports, serving both 

the manufacturing and trading sectors. 

Taken together, the Nigerian Ports Authority now has 

13 major ports under eight separate port managements, 11 

oil terminals, 128 private jetties, 102 hard-quay berths and 

62 buoys – collectively contributing to a total cargo-handling 

46.8% increase 

(13 million tonnes) 

INDUSTRIAL INFRASTRUCTURE 127 

22.2% increase 

(817,246 TEUs) 

capacity of some 35 million tonnes. In addition, notes 

MK Ajayi, general manager for public affairs at the Nigerian 

Ports Authority, two further deep-sea ports are scheduled to 

come on stream soon – one at Lekki in Lagos state and one at 

Ibaka in Akwa Ibom state in Nigeria’s extreme southeast. 

And trade volumes are undeniably growing. Figures 

released in February by the Nigerian Ports Authority 

highlighted a 23.0 per cent increase in vehicle imports 

during 2011, taking traffic to 231,000 units; a 46.8 per cent 

increase in general cargo to 13 million tonnes; and a 

22.2 per cent increase in container traffic to 817,246 

twenty-foot equivalent units (TEUs). 

“With the wreck removal campaign nearing completion, 

and with capital and maintenance dredging ongoing, 

Nigeria’s ports will witness a further increase in freight 

volumes in 2012,” predicts Ajayi. 

For inland waterways, the following opportunities are 

available to investors: 

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. 

Elsewhere in Nigeria’s transport infrastructure, though, 

the hard work that is being put in to improve the country’s 

ports serves to highlight the scale of the task remaining. 

Nigeria’s 3,505-kilometre rail network, for instance, 

has seen declining volumes of passenger numbers and 

freight, and is estimated by the country’s government-backed 

Transport National Technical Working Group to account 

for no more than one per cent of Nigeria’s land transport. 

Worse, complains the working group, none of Nigeria’s 

ports are connected to it. 

Yet change is afoot, with the government of Nigerian 

president Goodluck Jonathan pressurising the Nigeria Railway 


128 


“Investment opportunities in our airports for both local 

and foreign investors are nearly inexhaustible” 

Corporation with talk of privatisation and demands for 

improved services. 2001, for instance, saw the purchase of 

25 new railway locomotives from America’s General Electric, 

together with the launch of new and revived routes. 

In late October, for example, a newly launched weekly 

Iddo Ibadan Ilorin express service was expected to haul 

600 tonnes of goods as well as six coaches of passengers, 

prompting railway district manager Rasheed Gbadamosi 

to describe the journey as “another milestone in the revival 

of the rail system in the country”. 

“The Nigeria Railway Corporation will not rest on its 

oars until a full resumption of freight and passenger services 

are restored on all our routes throughout the length and 

breadth of the country,” he insisted. 

Main investment opportunities in the railway sector are: 

1. Conversion of wagon bearings to roller bearings; 

2. Conversion of train-braking system from vacuum 

to air; 

3. Conversion of AB coupler to a more effective system; 

4. Modernisation of track maintenance; 

5. Improvement of ticketing system; 

6. Manpower development and training. 

As with the Nigeria Railway Corporation, the Federal 

Airports Authority of Nigeria (FAAN) – which runs the country’s 

nationally owned 21 international and domestic airports – 

is under pressure to raise standards. Nigeria’s airports are 

not considered to be facilities befitting a fast-growing 

economy. With that in mind Princess Stella Oduah, Minister 

of Aviation, has embarked on a radical programme to improve 

the country’s airports, starting with the four international 

terminals at Abuja, Lagos, Port Harcourt and Kano. 

FAAN’s mission statement is to develop and profitably 

manage customer-centric airport facilities for the safe, secure 

and efficient carriage of passengers and goods at world-class 

standards. FAAN recently said: “The development of our 

airport infrastructure is not just an economic necessity but is 

central to our strategic objectives. Achieving these goals will 

not only help our domestic airlines but also foreign carriers to 

develop and enhance our image and economic interests.” 

INvEST IN NIGERIA 2012-13 

So far N19 billion ($118 million) has been set aside for 

remodelling 12 airports, which is viewed in many quarters as 

inadequate. There is, therefore, a pressing need for foreign 

investment to develop these airports. 

George Uriesi, managing director of FAAN, says: 

“Investment opportunities in our airports for both local and 

foreign investors are nearly inexhaustible. Investors can build 

and manage terminal buildings, construct and manage 

helipads, hangars, avio-bridges, duty-free shops, holiday inns 

and resort centres.” Other investment opportunities include 

maintaining an aircraft-engine workshop for Nigeria Airways, 

provision of catering equipment and infrastructure to meet the 

needs of the airline industry and establishment of a modern 

aircraft-training facility; 

For the road network, the following opportunities are 

available for foreign investors: 

1. Modern buses fitted with good communications 

systems; 

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. Computerisation of services to enhance efficiency 

and control of operations; 

7. Commercialisation of terminal facilities; 

8. Central terminals in various urban and rural locations 

in the country with service facilities. 

For foreign investors, the message is clear. Nigeria is, in 

short, open for business. The country has a logistics 

infrastructure that is steadily improving and a government 

equal to the challenges ahead. ■ 

Malcolm Wheatley is a freelance business journalist who has 

written for the Financial Times and Management Today, and 

has held management positions in the manufacturing industry 

and within consulting firms

Engineering & 

Construction 

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Supporting 

the IT sector 

The increasing use of ICT across the country 

has prompted the government to develop 

strategies to boost the struggling IT industry 


The information and communications 

technology industry has been hailed as the 

next big growth area in Nigeria. But as 

Martyn Cornell discovers, much could depend 

on the level of foreign investment in the sector, 

and whether this would encourage native-born 

IT talent to come back home 

hard-working, entrepreneurial in nature and 

hungry for technology. If given the chance 

and the enabling environment to develop 

their inherent skills, they will not only 

thrive but will make Nigerians and Africans proud.” With 

these words, the Minister of Communication Technology, 

Mrs Omobola Johnson, announced at the end of January 

2012 plans to build an initial four software-incubation 

centres in Nigeria to help the country’s software developers, 

part of a booming Information Communication Technology 

(ICT) sector, tap into the multibillion dollar worldwide 

applications-development market. 

The Youth Empowerment and ICT 

Foundation programme, sponsored by the 

“The youth of Nigeria are dynamic, 

Jim Ovia Foundation, includes as its strategic 

partners some of the biggest names in global 

IT – Google, IBM and Microsoft – as well as 

local companies, including the Nigerian 

telecoms firm Visafone and the Lagos-based 

website designer TLC Solutions. 

A committee has been set up with 

figures from both the private and public 

sectors to develop a framework for the establishment 

of more technology incubation centres across the country, 

Johnson said at the time. The initial effort includes a 

“world-class” software training programme being run by 

the Jim Ovia Foundation for 350 youths in Lagos and pilot 

technology business incubation centres in Abuja, Lagos, 

Calabar, Kano and Port Harcourt. 

It is part of a strategy to boost the Nigerian IT sector, 

using local talent partnered with overseas expertise and 

support. It also includes the founding of a professionally 

managed IT innovation venture-capital fund with initial seed 

capital provided by the Nigerian government, together with 

contributions from the private sector; support for start-up 

concerns in the form of business services; a strong mentoring 

framework involving successful business entrepreneurs offering 

INDUSTRIAL INFRASTRUCTURE 133 

advice, guidance and support; and a “transparent and 

credible” process to select the initial start-up “incubates”. 

Johnson admitted that in the past, Nigeria’s software 

developers had complained that the government had failed to 

give the IT industry enough support, either by providing the 

proper infrastructure for innovation to blossom, or through 

policies such as tax breaks, tariffs and levies designed to boost 

and protect Nigerian IT companies. Nigerian software 

companies also complained that local venture capitalists shied 

away from funding start-ups in technology sectors that seem 

“complicated”, and in the past there has been a lack of 

funding bodies focused on information technology. The result 

has been that Nigeria has lost an estimated N18.9 billion 

($117 million) in the past five years in money that has gone 

abroad because of the purchase of foreign software that could 

have been developed at home, said Johnson. 

“We in the Ministry understand these issues well, and 

there is clarity about the role that government can and should 

play,” Johnson said. The new IT framework has been designed 

to tackle the problems software developers in Nigeria have 

been facing, and build a thriving software industry, she added. 

“Everything is being done in strong partnership and 

Encouraging private operators to 

rollout a nationwide high-speed 

internet infrastructure is a priority 

collaboration with the private sector and industry stakeholders. 

We hope that business entrepreneurs, state governments, 

unilateral bodies and even like-minded groups of youths 

will adopt this framework.” 

The announcement of the training and incubation 

initiative, called ‘Developing Nigeria’s Next Generation of ICT 

Entrepreneurs’, came just weeks after the unveiling of a new 

ICT policy by the Ministry of Communication Technology that 

is designed to be the overarching guide and platform for the 

development of Nigeria’s ICT industry, with the aim of creating 

a digital, knowledge-based economy in the country. The 

ambition is to push the contribution of ICT to Nigeria’s GDP up 

from its current figure of four per cent to six per cent by 2015. 

One of the priorities of Nigeria’s new IT strategy is to 

encourage private operators to roll-out a nationwide high-speed 




One of NIgeria’s priorities is to encourage 

private operators to roll out a nationwide 

high-speed internet infrastructure 

internet infrastructure, using fibre-optic networks, along 

with microwave wireless and satellite broadband services, to 

reach otherwise hard-to-serve rural areas. Existing government 

buildings, including post offices, schools and libraries, would 

be used as platforms for extending ICT to rural communities. 

The aim, the Ministry of Communication Technology says, 

is to increase the number of internet users in the country 

from 33 million to 70 million. 

At the unveiling of the new policy, Johnson said that for 

Nigeria to participate properly in the information age the 

numerous challenges plaguing the country’s ICT development 

– including inadequate infrastructure, an inadequate legal and 

regulatory framework, a lack of universal access to ICT, and 

insufficient local content – “must be effectively addressed”. 

Addressing those challenges, of course, will be made 

much easier with the help of foreign investors, which is 

exactly why the Youth Empowerment and ICT Foundation 

programme includes companies such as Google, Microsoft 

and IBM among its sponsors. Back in September 2011, 

Nigeria announced as one of the strands of its ICT policy 

the creation of frameworks for establishing collaboration 

and partnerships between Nigeria and countries with 

developed IT industries. The Nigerian government also 

wants to see multinationals increase the priority of the 

Nigerian market within their organisations, and deepen 

the experience of their Nigerian subsidiaries. 

One pioneer in this area is Samsung Electronics, the 

Korean IT giant, whose Nigerian subsidiary is in talks with the 


government of Osun state in the southwest of the country for a 

partnership that will see, among other initiatives, nine of 

Samsung’s Life Academies in the state, and training schemes 

for young people to learn how to repair high-tech devices. 

Nigeria has a number of strengths as a target for foreign 

direct investment (FDI), as proclaimed by a conference on 

attracting more FDI into the country, organised by the Ministry 

of Communication Technology in November 2011. These 

include the existence of a large and attractive domestic market 

with high unmet demand for basic goods and services; an 

increasingly sophisticated and growing middle class; good 

labour market efficiency, with a high degree of flexibility; 

increasing business sophistication and plenty of local suppliers 

engaged in a range of activities along value chains. 

The problems, however, include the continuing existence 

of trade barriers such as high tariffs and burdensome customs 

procedures; a sometimes inefficient use of labour and a need 

not only for improvements in the quality of goods and services 

from local suppliers, but also in the basics of the quality of 

education and the quality of entrants into the workforce. 

Other difficulties that officials and politicians admit to 

include problems in enforcing property rights and intellectual 

property; the need for more efficient government spending, 

improved accountability and auditing and reporting standards; 

and the need to arrest a declining security situation. Significant 

improvements in the availability and quality of physical 

infrastructure are also required, not just in the ICT area but 

also in basics such as transportation, power and ports. If it 

wants to attract more FDI, the ministry said, Nigeria also 

needs big improvements in its healthcare set-up; the impact of 

health issues on businesses is “significant”, it revealed. 

There is no doubt that Nigeria has the talent to become 

a power in the world of ICT: sadly, at the moment, much of 

that talent is going abroad. According to the United States 

census, in the US alone there are 174,000 IT specialists 

of Nigerian descent, working in telecommunications, 

programming, software project management and application 

development. One hope of the Nigerian government is that 

by making Nigeria’s own IT industry more vibrant and 

attractive, with the help of FDI, at least some of that 

“brain drain” can be reversed, and the native-born IT talent 

can be encouraged to come back home. ■ 

Martyn Cornell is a business journalist whose work has featured 

in The Times, Sunday Times, Guardian, Observer and Daily 

Telegraph, The National in the UAE and the South China Morning 

Post in Hong Kong

Andrew Esiebo 

Ringing the changes 

in the mobile market 

Mobile phone usage in Nigeria has seen a 

massive increase in the last decade, but it’s not 

the only area of enormous change in the 

country’s wireless market. Wendy Atkins sees 

huge developments in internet usage and a 

major roll-out of biometric technology 

The wireless revolution is well under way in 

Nigeria, with explosive growth in mobile use and 

rapid penetration of internet technologies. 

But this isn’t simply about the success of 

various technologies, it’s about how a simple 

mobile phone – or an internet connection – can have an 

impact at every level of society, transforming the country’s 

economy and the way its people live. 

President Goodluck Jonathan is banking on the latest 

technologies to drive development. In a speech in Kebbi 

state last April, he said: “For the next four years we will 

SOCIAL INFRASTRUCTURE 135 

Easy access to mobile phone 

technology is transforming 

Nigerian society 

emphasise science and technology because we have no choice; 

without that we are just dreaming.” 

Statistically speaking 

The country’s statistics make positive reading. According to the 

International Telecommunications Union (ITU), the number of 

people using the internet in Nigeria soared from 200,000 (0.1 

per cent of the population) in 2000 to 23,982,200 (16.1 per 

cent) in 2009. There’s also been rapid growth in the use of 

mobile phones, driven in part by the shortcomings in Nigeria’s 

fixed-line system. According to figures from mobile technology 

association GSMA in 2011, it had more than 93 million 

mobile phone subscriptions, the highest number in Africa and 

16 per cent of the continent’s total. 

While internet usage is expanding in general, one area 

with extra potential is the mobile broadband market. According 

to GSMA, if the Nigerian government supports the roll-out of 

the technology across the country, it could unlock a potential 

GDP growth of N 862 billion ($5.55 billion) by 2015. 



SOCIAL INFRASTRUCTURE 

Population with access to 

broadband technology 

1.45% 2.46% 

0.59% 

2010 

2011 

Speaking in 2011, Ross Bateson, GSMA special government 

advisor, said: “It is essential that the Nigerian government acts 

quickly to support mobile broadband expansion, as failure to 

do so could hinder the country’s social and economic growth. 

Not only could the country realise as much as N862 billion 

($5.55 billion) of incremental GDP, but people of all ages and 

livelihoods would benefit from the vast amount of information 

and opportunities it can unlock.” 

Opportunities for entrepreneurs? 

As the whole of Nigeria gets online, the challenge now 

is to create wealth and generate high-salary jobs from 

home-grown software and hardware. 

This has the potential to create real opportunities for 

entrepreneurs. “The proliferation of internet and mobile 

technologies has provided huge opportunities for computer, 

smartphone and accessories suppliers,” says Alim Abubakre, 

founding director of social responsibility think tank 

These Young Minds. 

“Also, internet service providers have taken the 

opportunity to provide access via mobile modems, 

while bloggers’ websites such as nairaland.com and 

bellanaija.com, which are owned by young entrepreneurs, 

have taken advantage of people’s access to the internet 

by attracting advertisers to their free, well-subscribed, 

open-source websites.” 

But there is still some way to go in the country, as 

Abubakre points out: “The challenge for entrepreneurs 

harnessing the huge opportunities of the internet is that 

the population has limited access to credit and debit 

cards. Furthermore, the unreliability of online financial 

transactions in Nigeria has limited their ability to 

maximise this huge business opportunity.” 




5.78% 6.96% 

3.53% 4.63% 

2014 

2015 

2016 

10.79% 

8.19% 9.47% 

2017 

2018 

2019 

12.16% 

by 2012 

2020 

Mobile phone market penetration 

53.62% 

57.75% 

2010 

2011 

63.17% 

68.09% 



73.09% 

78.18% 

2014 

2015 

83.33% 

88.55% 

93.86% 

99.27% 

One example of the opportunities for people wanting to 

start up their own business is the flourishing Ikeja Computer 

Village in Lagos. Now used by small firms and end users, the 

Village’s growth has reflected the increasing popularity of both 

internet and GSM-based technologies in the country over the 

past decade. Described as the largest IT market in West Africa, 

it is home to the major mobile phone, computer and 

accessories dealers, giving customers the opportunity to 

purchase good-quality products at affordable prices. 

Banking and payments 

Wireless technologies are making a significant impact on many 

industries. In particular, the growth in mobile phone and 

internet use is transforming the banking and payments sectors, 

opening up new opportunities for the unbanked. 

“Mobile networks extend to even the most remote 

areas, and almost every Nigerian now has access to a 

handset,” says Aletha Ling, chief operating officer of mobile 

financial services platform provider Fundamo, a subsidiary 

of card giant Visa. “Mobile provides the opportunity to 

leapfrog traditional approaches to financial-service delivery, 

without compromising any of the security and reliability 

principles of traditional financial services.” 

One of the most recent advances in this sector is the 

Mobile Money service, a joint venture between Guaranty Trust 

Bank and MTN Group. Launched at the end of 2011 it enables 

subscribers with or without bank accounts to use their mobile 

handsets to send and receive money, pay bills and buy airtime. 

The venture was one of 11 to be awarded a mobile money 

licence in 2012 by the Central Bank of Nigeria. 

However, although Nigeria is making rapid progress 

in rolling out both technological and banking/payments 

initiatives, critics argue that it is behind the curve when 

2016 

2017 

2018 

2019 

2020 

104.2% 

by 2012 

Frederick S Pardee Center for International Futures

User age distribution on Facebook 

18-24 

25-34 

35-44 

65+ 

16-17 

45-54 

13-15 

55-64 

Socialbakers 

10% 

7% 

5% 

34% 

4% 2% 1% 

37% 

18-24 

compared with its African neighbours. “Nigeria has only 

recently provided the regulatory environment required for 

these services to be launched,” says Ling. “It has, however, 

taken a different approach by releasing a number of mobile 

money licences with the aim of stimulating competition 

and driving rapid growth. For Nigeria, the primary aim now 

is to accelerate service delivery to the Nigerian consumer. 

This can be best achieved by enabling major market players 

to use their significant resources.” 

Social media 

The technology revolution is also having a major impact 

on Nigerian society, resulting in the ‘electronification’ of 

millions of its population. Social media such as Facebook 

and Twitter have taken off, with President Jonathan one of the 

most enthusiastic supporters of both networks. Nicknamed 

the Facebook President, he even announced his candidacy 

on the popular social networking site, and he has more 

than 5,000 followers on Twitter. 

“Facebook and social media have revolutionised the 

way people communicate in Nigeria. Many people log onto 

Facebook via their mobile phone and find it more cost 

effective and easier to communicate. It means they can 

carry out business transactions without having to travel or 

make more expensive calls,” says Abubakre. 

Like many emerging economies, Nigeria is taking a 

technological leap straight to some of the most high-tech 

solutions on the market. It has given the thumbs up to 

biometric technologies, showing an appetite for devices 

targeted at both the public and private sectors. Its Joint 

Admissions and Matriculation Board (JAMB) deployed 

fingerprint technology in a bid to tackle fraud during last year’s 

Unified Tertiary Matriculation Examinations (UTMEs). The 

Male/female user ratio on Facebook 

32% female 


68% male 

5,051,440 

Facebook users 

fingerprint devices it uses are designed to ensure proper 

identification and prevent examination malpractice. 

First Bank of Nigeria, one of the country’s leading 

financial institutions, has rolled out biometric-based 

cash machines. These use fingerprint technology for ID, 

giving cardholders an alternative to PINs as part of the 

transaction approval process. This is a vital facility in 

a country where a fair proportion of customers may 

have difficulties reading or writing. 

The technology is also being extended into other areas 

including, for example, how citizens interact with the 

government, providing real opportunities for both economic 

and societal development. Like many of its African 

counterparts, Nigeria is implementing biometric and 

smart-card technologies for its national ID card. Swedish firm 

Precise Biometrics and its Nigerian partner, Interswitch, are 

among the firms delivering the card technology. The cards 

can be used as both national ID and for banking; they can 

also be used to access public services such as healthcare, 

pensions and other social services. 

“The coming Nigerian ID card is intended to remove and 

reduce comprehensive fraud and ID theft,” says Thomas 

Marschall, president and CEO of Precise Biometrics. “The 

inclusion of fingerprint biometrics is central to this ambition as 

this functionality will prevent people from using other people’s 

ID cards for fraudulent activities. As such, it is hoped that 

significant amounts of money will be saved every year, and that 

the threshold for fraud has been set higher.” ■ 

Wendy Atkins is a journalist and commentator in the global 

business sector. She is contributing editor of This is Africa, 

fDi Magazine and The Banker, specialising in emerging markets, 

technologies and investment 




Tackling education 

and vocational training 

The Nigerian Government is placing emphasis on boosting 

education and skills in ICT to drive further economic development 



Education is critical and highly valued in 

Nigeria. Wendy Atkins looks at plans to 

develop the educational system and improve 

equality in schools and universities. She also 

considers attempts to raise the level of 

vocational skills in the country 

Nigeria has taken great strides in recent years 

as its government has sought to move the 

country’s economy away from its reliance 

on oil by beefing up the service and 

agricultural sectors. But while diversification 

is key, what underpins economic development and the 

alleviation of poverty in any country is a robust and 

forward-looking educational system. This is something 

that is vital to building the skills needed to capitalise 

on opportunities in the new economy. So how is Nigeria 

matching up to this challenge? 

Education and learning are highly valued in the country. 

Many Nigerians cite as a true source of inspiration 

President Goodluck Jonathan’s rise to power from humble 

beginnings. In a much-quoted speech he declared: “In my 

early days in school I had no shoes, no school bags. I carried 

my books in my hands but never despaired, no car to take me 

to school, but I never despaired. There were days I had only 

one meal, but I never despaired. I walked miles and crossed 

rivers to school every day, but I never despaired… In spite of 

these, I finished secondary school, attended the University of 

Port Harcourt and now hold a doctorate degree. Fellow 

Nigerians, if I could make it, you too can make it!” 

When democratic government was restored in 1999, one 

of its first acts was to introduce a policy of nine years of 

basic education for all children. This spurred a push at 

federal and state levels to improve the nation’s schools 

network. Today, the Federal Ministry of Education (FME) 

is responsible for defining and shaping the structure 

of Nigeria’s education system. 

Primary education focuses on a range of key 

subjects, which include mathematics, English language, 

indigenous languages, Nigerian history, geography and 

science. Pupils attending private schools may also study 

computing, French and art. To move up to the secondary 

federal and state schools, they have to pass a Common 

Entrance Exam. Once they have overcome this hurdle, 

pupils spend three years at Junior Secondary School (JSS) 

and then three years at Senior Secondary School (SSS) with 


140 


the chance to take GCE ‘O’ Levels. Students who progress 

to higher education can study at traditional universities as 

well as the federal and state-owned polytechnics and 

colleges, which were established to train technical, 

middle-level students. 

Government efforts 

It is a system that sounds familiar to citizens of many 

countries. In spite of all the groundwork done by the Nigerian 

authorities, however, critics argue that the nation lags behind 

its competitors when it comes to education and skills 

development. According to figures from UNESCO’s Institute of 

Statistics, Nigeria’s adult literacy rate was 61 per cent in 

2009. For females aged 

15-24, it was 65 per cent, 

while among males in the 

same age group it was 78 per 

cent. These figures compared 

favourably with its West 

African neighbour, Benin, 

which had an adult literacy rate of 42 per cent. But it did not 

fare so well alongside Cameroon’s 71 per cent adult literacy 

rate and Ghana’s 67 per cent. 

Despite all of the government’s efforts, Nigeria’s 

educational system still has some way to go. 

“At the moment we do not see any improvement in the skills 

and education being provided within the Nigerian education 

system,” says Phil Wharton, deputy chairman, Costain, West 

Africa. “In fact, we see it declining, with constant disruption 

to education by tutor strikes and corrupt exam results.” 

According to Mr Wharton, most talent is found in 

Nigerians schooled overseas. He says: “The big benefit we 

see is from the increasing number of Nigerians who are 

Literacy rates in Nigeria 

Females aged 15-24 Males aged 15-24 


65% 78% 

Education is vital in the 

alleviation of poverty 

educated or trained abroad who are bringing their skills back 

here; they see opportunities within Nigeria and pay levels that 

are increasingly on a par with other countries. As a business, 

we have gradually replaced nearly all our expatriate staff 

with repatriated Nigerians who understand the culture 

better, enabling us to save on employee costs.” 

Soni Daniel, deputy editor of Nigerian daily newspaper 

Leadership, agrees: “Although skills centres have sprung up in 

many places, the products are still not good enough to support 

a virile economy. What most serious going concerns have done 

to bridge the skills gap is to recruit and train in the relevant 

areas the people they need for their operations.” 

The race is now on to improve education and skills 

training, to ensure the 

country can meet growing 

demands for a high-quality 

workforce able to drive 

further economic 

development. Particular 

emphasis is being put on 

boosting skills in areas such as oil and gas, ICT, agriculture, 

construction, film and multimedia. 

The World Bank is involved in a range of educational and 

related projects in Nigeria. These include a number of state 

schemes managed by the organisation’s education team. For 

example, the $65 million State Education Sector Project 

(SESP) aims to improve basic education, while the target of 

the $95 million Lagos Secondary Education Project is to 

upgrade all public schools in the state. There are also federal 

schemes, such as the $180 million Science and Technology 

Education Post-Basic (STEP-B) project, which aims to produce 

more and better-qualified science and technology graduates. 

Dr Olatunde Adekola, senior education specialist, 

World Bank Country Office, Abuja, says: “Another project 

being prepared is the $150 million State Education 

Programmatic Investment Project in the states of Ekiti, 

Bauchi and Anambra. Edo may also be included.” 

He adds: “Efforts are being intensified to reform 

examination system policies and to boost the incentives for 

school-based activities to improve the quality of education.” 

Improving quality in higher education 

In higher education there are efforts to improve quality. The 

government, through the National Universities Commission, 

aims to improve regulation of the university education system. 

At the heart of these efforts is a push for proper accreditation 

of courses in various universities, especially private ones.

Programmes are also in place to improve equality in education. 

The federal government says it recognises that greater access 

to higher education will enable citizens to gain high-level 

skills. Better access will also boost the country’s economic, 

scientific and technical development. The government says 

it has set up the Federal Government Scholarship Policy to 

make higher education more accessible to qualified Nigerian 

students and help home students, including those who are 

disabled, to further their studies. 

Addressing the gender imbalance 

Projects backed by the World Bank also aim to address the 

gender imbalance. “All projects put more emphasis on 

inclusion, especially for girls, in terms of operations and 

management,” says Dr Adekola. “This is illustrated by projects 

such as the STEP-B scheme, which focuses on increasing the 

number of female science and technology graduates. The 

SESP Conditional Cash Transfer (CCT) Programs Pilot in Kano 

State targeted about 12,000 girls to persuade them to go to 

school and keep attending. Preliminary findings show that CCT 

has already had a big impact and boosted the enrolment and 

attendance of girls in orthern Nigeria.” 

Efforts have also been made to close the gap between 

the number of male and female teachers. According to the 

SOCIAL INFRASTRUCTURE 141 

Efforts to redress the balance between the 

number of male and female teachers have seen a 

large increase in women entering the profession 

2008 Teachers Registration Council of Nigeria (TRCN) figures, 

the country’s secondary schools had 110,923 male teachers 

to 94,365 female ones. By 2009, the ranks of female teachers 

had grown to 125,801, surpassing the male total of 121,750. 

With greater opportunities for technology investment in 

the economy, it’s no surprise that technical training is 

becoming an important factor in the education system. 

In particular, many organisations are focusing on eLearning 

as a way of driving skills development. “Schemes such as 

the New Economy Skills for Africa Program (NESAP) ICT 

and ongoing World Bank-assisted projects are helping to 

improve the quality of teaching and learning and, of course, 

research output,” says Dr Adekola. 

Commitment to future skills development remains 

strong. But how the country delivers it remains open to 

question. “The education system needs to de-emphasise 

certificates for white-collar jobs and emphasise practical 

work for industry,” says Daniel. 

“We believe a national training scheme for skills 

acquisition needs to be set up, but it should exist through 

using external providers, otherwise use of funds will be 

suspect,” says Wharton. “National education needs to 

be tackled at all levels to achieve a credible system that 

is accepted internationally.” ■ 


142 


Healthcare: a 

growing market 

Patients receive treatment in a 

maternity hospital renovated by oil 

company Royal Dutch Shell plc 


With improved national health as a 

key plank in reform, opportunities 

are opening up for private-sector 

involvement. Peter Guest talks 

to two investors confident about 

the future of healthcare in Nigeria 

As Nigeria’s professional class 

expands in step with the 

country’s economic growth, the 

demand for a higher standard 

of healthcare could create 

significant opportunities for investors. A 2008 

McKinsey study for the International Finance 

Corporation found that, despite the 

widespread perception that healthcare across 

the continent is delivered by the international 

public sector, the reality is that for-profit 

businesses are already responsible for 

providing 50 per cent of healthcare services. 

Across the region, the total healthcare 

market is expected to rise to $35 billion by 

2016, the study predicted. With sub-Saharan 

Africa’s second largest economy and largest 

population, Nigeria is poised to see a 

significant proportion of that growth. 

The rise of a large middle class in the 

country, driven by Nigeria’s economic growth 

and the presence of large corporate entities 

– both domestic and international – has 

created investment opportunities in consumer 

goods, telecoms and financial services. 

Those sectors have seen much wealth 

created, and investors have achieved 

significant returns as companies are 

expanding across the entire continent. 

However, the healthcare sector remains 

fragmented and dominated by small, 

independently owned operators. 

This situation leaves the sector ripe for 

investment, analysts said, with the 

increasingly wealthy middle class demanding 

a higher quality of care. More businesses are 

now offering health insurance as part of their 

employment packages, which is creating a 

ready-made market for investors. 


Peter Botha, chief executive of African 

Medical Investments (AMI), took over the 

company last summer and is looking to 

expand the business out of its core 

markets in Southern and East Africa by taking 

a stake in a private hospital in Lagos. 

AMI currently runs hospitals in Tanzania, 

Mozambique and Zimbabwe, and is on the 

verge of a deal in Angola. Botha believes that 

the model – providing access to high-quality 

service for a narrow range of common 

problems – can be transplanted to Nigeria. 

“There are private hospitals in Lagos. 

They are all doing well. What we have found is 

that they are all doctor-owned, and the 

doctors have reached the limits in terms of 

capitalising on the growth,” Botha said. “I 

think there’s an opportunity to go in, get a 

good brand in a good location, invest capital 

and then to refurbish and put in equipment.” 

The key to making Botha’s model 

work is an active health insurance industry. 

Botha himself ran two health insurance 

businesses in Nigeria’s commercial capital. 

While still in its early stages, the market is 

strong enough and growing fast enough to 

warrant an investment, he says. 

“It’s early stages, but it’s growing. If you 

take the relativity of the size of the population 

and its economy, it’s quite a big insurance 

market. Over the past few years that insurance 

market has grown dramatically, and it will 

support a private hospital.” 

Rather than seeking to develop 

capability to handle the most complex cases 

– such as cardiovascular illnesses – AMI’s 

model works by focusing on treating the 

most common requirements of company 

employees and their families. These include 

obstetrics and gynaecology, paediatric 

medicine, trauma care and basic surgery. 

“In general, people who are working for 

a local company in a place like Lagos are 

demanding private hospital care for delivering 

their babies, looking after their children, 

treating their trauma and their casualties and 

their accidents first,” Botha says. 


144 


Obstetrics, paediatric medicine 

and trauma care are the services 

most often sought by patients 

The Nigerian healthcare sector remains fragmented, 

leaving it ripe for investment with an increasingly wealthy 

middle class demanding a higher quality of care 

“If you set up the hospital to focus on making it a 

centre of excellence for those types of cases, you scale up 

quite quickly. If you get clever and start investing in 

technology like MRI scans or CAT scans or endoscopic type 

procedures, I think that initially you would struggle to get a 

return on that and get to scale. It’s quite a fine balance. 

You need to start where you service the demand from the 

community, which in general is just emergencies.” 

While there remain constraints on the number of doctors 

and other medical professionals on the continent, the presence 

of international staff – from Eastern Europe, Latin America and 

India, coupled with a growing cohort of returnees from the 

diaspora – means that there is talent available, Botha said. 

“We find that in countries like Nigeria and Ghana 

you tend to come across more educated medical staff, 


and people who have been working abroad want to return 

from the US or the UK,” he explained. “The quality is much 

better in West Africa.” 

The return on investment, he said, should be firmly 

in double figures: “The important thing is not to go and 

establish a 200-bed hospital there, because you’re going 

to struggle. But if you’re smart and if you build a 50-bed 

hospital and you invest only in what the market is demanding 

at the present time, then you can put the process in place to 

get the productivity and efficiency, you can get a 20 per cent 

margin. I’m pretty confident of that.” 

Zain Latif, managing director of Duet Private Equity and 

principal at TLG Capital, has invested in the continent’s 

healthcare sector for several years, and recently helped to 

close an investment in Nigeria’s medical insurance industry.

Latif said that it will be difficult to match the 

commoditised healthcare industry that has built up in India, 

which has come to dominate a global medical tourism market 

by offering “first world care at third world prices”. 

For more complicated cardiovascular problems, as 

well as cancer and other serious illnesses, it is likely 

that the current model, of individuals seeking care 

overseas, will persist, he says. 

In Nigeria, as well as in other sub-Saharan markets, 

the key challenge for insurers and for service providers is 

building trust, emphasises Latif. A lack of experience 

with insurance services means that people often do not 

believe that they will be properly covered in the event of 

an accident or emergency. That will change and trust will 

be gained – so long as insurers build their presence 

alongside a reliable reputation, and do not focus on finding 

reasons not to pay out, he adds. 

The lack of consistency in service provision is also a 

concern – people’s experience of dealing with individual 

doctors or companies varies significantly. Word of mouth 

is an important consideration, and putting in place new 

standards would speed up the sector’s growth. That, Latif 

says, has to be driven from within the industry. When those 

issues are resolved, the market will be in place. 


Testing blood samples at an HIV 

conference - Nigeria has the third 

highest number of AIDS sufferers 

“There is that middle class,” Latif said. “That’s one 

of the reasons why we’re in this game. We like to think we’re 

near a tipping point in Africa.” 

Once a few companies start to see the upside, he added, 

there could be a demonstration effect. The huge returns 

generated from investments in telecoms and financial services 

saw others crowd in to those sectors. 

“My view is that the reason you don’t see much 

investment in healthcare in Africa… is that nobody has been 

seen to make money in healthcare. You’ve got those people 

who have made money in oil and gas, and you’ve got the 

people who’ve made money in financial institutions and 

telecoms, obviously. Those are the big plays that people read 

about in the Economist,” Latif says. 

“There is a rising middle class that is going to demand 

better healthcare, and I think with telecoms, financial services, 

oil and gas having been played, I think people are looking to 

see what they can do that’s defensive but also high growth. I 

think if you get the model right, healthcare is an ideal space.” ■ 

Peter Guest is an editor and journalist focusing on emerging and 

frontier markets and has written for Africa Report, Forbes Africa, 

Financial Times, The Wall Street Journal. In 2008, he was the 

launch editor of the Financial Times’s This is Africa magazine 


146 

agriculture and water 

Growing the 

agriculture sector 

The government intends agriculture to 

become as important a driver in the 

economy as the oil industry is currently 


Despite decades of neglect that 

have left it lagging behind the 

energy sector, things are about to 

change for agriculture. Peter Guest 

notes a determination by the 

Nigerian government to increase 

investment in farming, exploiting 

an ideal environment and a wider 

market across West Africa 

For the past half-decade, Nigeria’s 

runaway growth rates have seen 

it enter more frequently into 

international investors’ 

discussions. As a major oil 

exporter with an expanding, youthful 

population of around 170 million, the 

country has seen investors flocking to its 

financial services, telecoms and hydrocarbon 

sectors. However, those are only part of the 

country’s economic story. 

While Nigeria’s foreign exchange 

earnings mainly come from the oil industry, a 

large proportion of its domestic economy is 

rural. Agriculture has not kept up with the 

country’s development or demographic 

trends, leaving it heavily reliant on imports. 

However, with a new political drive and 

renewed private-sector interest, the sector 

could be on the verge of a resurgence. 

Until the early 1960s, Nigeria was a 

net food exporter. However, as the oil 

industry began to dominate the domestic 

and international agenda, the sector fell 

into relative decline. Public- and 

private-sector capital for investment dried 

up, and infrastructure targeting agricultural 

areas was neglected. 

Since then, Nigeria has become reliant 

on expensive imported grain, and now ships 

in more than 3.5 million tonnes per year, 

mostly from the US. Volatility in global prices 

for food – caused by unusual weather 

conditions – have also left the country, 

like many others, exposed to the vagaries 

of international markets. High and rising 

AGRICULTURE AND WATER 147 

prices, too, have contributed to inflationary 

pressures, reducing the positive impacts of 

economic growth in Nigeria. 

It has long been accepted that Nigeria 

needs to diversify its economy in order to 

unlock itself from its current dependency 

on international oil markets whose 

fluctuations in the past few years of global 

uncertainty have caused difficulties across 

exporting nations. The combination of this 

imperative to find new sources of revenue 

and employment, as well as the demographic 

necessity – and opportunity – is driving a new 

focus on agriculture in the country. 

Nigeria’s population is urbanising and 

becoming more wealthy. The country’s 

economy has been growing uninterrupted for 

a decade, driven in large part by the oil 

industry, although financial services, 

telecoms and technology, and construction 

have all begun to develop. 

Richer societies 

The commercial capital of Lagos is fast 

becoming one of the continent’s mega-cities, 

growing in size and population. Richer urban 

societies consume more, and their diets 

typically change to include more protein, in 

turn requiring far greater production of 

agricultural commodities as feed for livestock. 

Jacques Taylor, director of agricultural 

banking at Standard Bank, recently relocated 

to Nigeria from South Africa in order to 

spearhead the bank’s drive into West African 

agribusiness. In pure output terms, Nigeria 

is already the largest agricultural producer 

in sub-Saharan Africa, Taylor notes. While 

there are serious gaps in the country’s 

infrastructure, and the fragmented nature 

of the industry makes the challenges acute, 

the decline is not terminal. “It is important to 

acknowledge that Nigeria has pockets of 

well-structured and viable businesses in the 

agricultural sector – where entrepreneurs and 

corporates manage to establish and grow their 

businesses despite infrastructure challenges 

and inefficient value chains,” Taylor says. 

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Increasing the individual outputs of farmers even by a 

marginal amount would have transformative effects 

Standard Bank expects sector growth in the short- to 

medium-term, as underdeveloped parts of the agricultural 

value chain attract investment and gain in efficiency. 

The financial constraints for agribusiness should also 

be easing. The Central Bank of Nigeria (CBN) has taken steps 

to unblock the flow of capital to the sector, offering incentives 

for domestic commercial banks to lend to the agricultural 

system. Working on the basis that increasing incentives for 

domestic production would help to trim inflation, the bank 

introduced a series of measures under the N200 billion 

($1.2 billion) Commercial Agriculture Credit Scheme, which 

included a credit facility allowing large-scale producers to 

borrow at interest rates of nine per cent or below. 

As Taylor says, the prerequisites for attracting 

investment into the agricultural sector are a stable 

macroeconomic environment, public infrastructure, 

access to land and water and a supportive government. 

That latter point is becoming increasingly central. The 

appointment of Akinwumi Adesina, the former vice president 

of the Gates Foundation-funded Alliance for a Green 

Revolution in Africa (AGRA), as minister for agriculture and 

rural affairs has put a development heavyweight and 

experienced agricultural economist in the driving seat. Adesina 

will be hoping for more top-level support from the newly 

returned finance minister, Ngozi Okongo-Iweala, until recently a 

Sub-Saharan Africa is expected to be 

hardest hit by global warming, as its 

agriculture is almost entirely rain-fed 


vice president at the World Bank and responsible for a renewed 

focus on agriculture and food security at that institution. 

Speaking at a conference in Geneva in February, Adesina 

told delegates that he wanted agriculture to supersede oil as 

the country’s biggest industry and driver of growth. 

“The potential is there, but you can’t eat it,” Adesina 

told the conference. “Agriculture is not a social sector. 

Agriculture is a business, and we must begin to take 

agriculture in Africa as a business. 

“We are thinking of agriculture in Nigeria today as a 

replacement of oil. Think of agriculture as an investment. 

We see this as government enabled. The private sector 

is going to have to lead it. We want Nigeria to be an 

agricultural and industrialised economy.” 

Increasing output 

While this may seem to be an ambitious target, the sector 

already accounts for around 35 per cent of Nigeria’s gross 

domestic product (GDP). Perhaps more compellingly, the 

sector also accounts for 70 per cent of the total employment 

in the country. From a development perspective, this shows 

the reach of a broad-based lifting of the sector. From an 

investment perspective, however, it shows that there is a 

massive amount of upside in the sector. 

Increasing the individual outputs of farmers even by a 

marginal amount would have transformative effects both 

financially and developmentally, meaning that there are 

incentives for both the private and public sectors to work 

together. Currently the Nigerian government allocates only 

three per cent of its annual budget to the sector, but that is 

now expected to rise to above 10 per cent, in line with the 

levels agreed in 2003 by the African Union in its 

Comprehensive Africa Agriculture Development Plan. 

Mukul Mathur, country head at Olam Nigeria, presides 

over an expanding agribusiness company with investments 

across the region. Earlier this year the company agreed on a 

further expansion to its activities in the country. 

“We started out in Nigeria 22 years ago sourcing cashew, 

but today Olam is a leading importer and distributor of rice 

into Nigeria. It is also the leading exporter of cocoa, cotton, 


150 


sesame and cashew,” Mathur said. “We are closely aligned 

with the Nigerian government’s efforts to develop local 

content and capacity in rice production and milling, and 

in particular to address the growing level of imports to help 

tackle issues of food security.” 

The relative underdevelopment of the country’s 

agricultural resources and the fragmentation of its producers 

meant that the company, listed in Singapore, saw that 

investment in the right areas would reap returns. 

“Nigeria is endowed with natural resources like fertile 

soil, perennial water supply through various rivers and climatic 

conditions that are suitable for a range of tropical crops, yet 

the yield of most crops is significantly below global averages 

and could be doubled in output before they even reach the 

average global productivity levels – so there is high potential 

for improvement,” Mathur says. 

“Olam’s business is built on sustainable supply chains, 

one crucial aspect of which is developing close relationships 

with farmers. These relationships enable us to identify areas 

where we can contribute towards improving yields, while 

making the farming more sustainable. Therefore, investing in 

Nigeria is a good strategic fit.” 

2000 

2001 

2002 

2003 

2004 

2005 

2006 

2007 

2008 

2009 

2010 

source: World Bank 


1,171.4 

1,233.5 

1,255.2 

1,308.8 

1,372.8 

1,421.6 

1,507.4 

1,399.8 

1,598.4 

1,528 

1,413 

The company is working with research institutes, 

including the International Institute of Tropical Agriculture 

(IITA) and with international development agencies, including 

the United States Agency for International Development 

(USAID) and the UK’s Department for International 

Development (DFID), in order to offer smaller farmers 

extension services, training and seeds at concessionary rates 

to help to increase their outputs. 

Nigeria’s physical size means that it straddles a number 

of climatic zones, and has the potential to develop cash 

crops currently dominated by its regional neighbours. 

Cote d’Ivoire remains one of the world’s largest producers 

of cocoa for the international market and, along with 

Guinea, exports significant volumes of cashew nuts, while 

Ghana has a thriving fruit sector. 

The river deltas, synonymous with the oil industry, are 

fertile ground for rice production. Rice consumption is growing 

in the region, and with investments in milling facilities 

creating processing hubs, the potential to supply West Africa 

with grain is huge. The country produces around 3.5-4.5 

million tonnes of rice per year in its current unstructured state, 

importing as much as 500,000 tonnes annually to meet the 

33.02% 

Arable land 

Nigeria’s cereal yield (kg per hectare) 

910,768 sq km 

Total land 

3.14% 

Permanent crops land 

63.84% 

Other 

As of 2005, source: CIA Factbook

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demand. The country is one of the world’s largest importers, 

and spends millions on the crop. 

As the population grows and their diets change, the 

consumption of rice is expected to rise strongly, by as much 

as seven per cent per year, according to government 

forecasts. The Nigerian Government wants to meet this 

increase with domestic production, and it also wants to 

substitute existing imports, meaning that the industry may 

need to grow at close to double-digit rates to keep up in 

the short term. As a disincentive to import, high tariffs are 

set to be put in place. 

“For the past six years, Olam has been involved in 

rice milling and running a farmer outgrower program that 

reaches 10,000 farmers across three states,” Mathur 

says. “The learning and experience from these 

activities has led Olam to embark on a 

greenfield integrated rice farming and 

milling project in Nasarawa state, which 

will need an investment of $50 million over 

a three-year period. 

“Covering an area of about 10,000 

hectares, it would be Africa’s largest rice 

farm, providing employment to thousands of 

workers. Olam believes there is an opportunity 

to transform growth in local production of rice 

if private-sector investment is supported with 

an enlightened policy framework.” 

Nigeria’s minister of agriculture, 

Dr Akinwunmi Ayo Adesina 


As Nigeria’s population becomes increasingly 

urbanised, demand for food is on the rise 

West Africa as a whole is experiencing a resurgence in 

palm-oil development, with emerging market players, 

especially from East Asia, growing out of their home regions 

to take advantage of the massive demographic opportunity 

in the region. Wheat production is very small by comparison, 

estimated at less than 100,000 tonnes per year. 

Developing food security 

The development of other staple foods, while potentially a 

harder sell for international investors who are used to looking 

for crops with global export potential, could also be a source 

of both food security and economic upside. Traditional staples, 

such as cassava, are widely grown across the continent but, 

again, typically at smaller scales. 

Cassava can be milled into bread, used 

as feedstock for animals and can replace 

maize and wheat in a variety of products. 

Currently, wheat imports cost the country 

nearly $4 billion each year, and substituting 

this for cassava could have the combined 

effect of reducing imported inflation and 

stimulating a resurgence in the domestic 

industry. Wheat, like rice, will soon attract a 

100 per cent import duty, while imports of 

cassava will be banned. Bakers who use a 

mix made up of 40 per cent of the crop will 

also be given tax rebates. 


154 


The development of staple foods could be a 

source of food security and economic upside 

The president himself, Goodluck Jonathan, broke cassava 

bread and served it to his cabinet earlier this year in an 

attempt to highlight the potential of the crop – although it 

must be noted that previous efforts to legislate to force local 

producers to use the grain have not yielded great results. 

Beyond import duties and tax measures, there are clearly 

still major investments needed in other areas – notably 

infrastructure – to jump-start the industry. Nigeria’s perennial 

infrastructure gap is gradually being addressed. Trunk and 

rural roads, as well as railways, are important pieces of the 

puzzle. Beyond this, storage facilities, silos and other parts of 

the value chain will also be needed. For investors, these 

present various challenges and opportunities. However, the 

prize is more than just success in Nigeria. 

On top of Nigeria’s 160 million people, the regional 

grouping – the Economic Community of West African States 

(ECOWAS) – holds a further 90 million. While there is 

some way to go before the grouping has a fully functioning 

common market completely connected by efficient 

infrastructure, that is the direction of travel. 

Cultivating a range of crops 

Over 60 per cent of Nigeria’s land mass is within the Niger 

River Basin, and population density along the river is higher 

than elsewhere in the country. Flowing from the edge of the 

Sahara in the north, the river is the lifeblood of agricultural 

growth in the country, allowing the cultivation of a range of 

crops, from cassava and yam further north, to rice in the south. 

Agriculture, which accounts for the majority of 

employment in the region, is mainly rain-fed, leaving its 


economy vulnerable to climatic variations. As a recent 

research paper led by Andrew Ogilvie from the Institut de 

Recherche pour le Développement in Montpellier, France, 

notes, dramatic shifts in rainfall caused devastating drought 

across West Africa during the 1970s and 1980s. It is 

extreme variations, rather than a lack of water, that 

principally cause problems for farmers in the region, he says. 

Only around 85,000 hectares are under irrigation 

in Nigeria, according to the Niger Basin Authority, 

although further investment in larger scale farming, 

as well as in a multitude of smaller projects around 

the country, are set to increase this total. 

However, with population growth adding to the local 

burden, as well as to the country’s wider need to increase its 

agricultural productivity, the strain on water resources is likely 

to increase. There are, Ogilvie notes, ways to reduce the risks 

in existing rain-fed systems, including encouraging mixed-use 

systems, developing infrastructure, adapting the timing and 

positioning of crops to the changes in the water supply, and 

introducing drought-resistant varieties. 

Necessities of agricultural development 

“Farmers need to be linked to input and output markets and 

financial services, with access to training and storage, but also 

with secure access to land and water, possibly through 

communal land tenure arrangements. Mitigation strategies 

such as early-warning systems and storage options are required 

to help reduce the impact of extreme events,” he says. 

“Transparent, participatory governance is required to 

ensure water resources are developed in an equitable, 

participatory and sustainable way.” 

The fact that the majority of the farmers in the Niger 

Basin are subsistence-level smallholders complicates the 

issue, but Adesina, who focused on smallholders as part of his 

work at AGRA and at the Rockefeller Foundation in Nairobi, 

has made giving better land tenure, inputs and information to 

this group a cornerstone of his plans for a nationwide revival. 

Getting water management right has knock-on effects for 

development and the wider economy – provided a balance can 

be found. Less than 25 per cent of the hydroelectric resources 

of the Niger are in use, meaning that a huge potential 

clean-energy source is there to be exploited – although to do 

so could have implications again for agriculture. Improved 

water infrastructure, coupled with rising economic growth and 

incomes are also correlated with improvements in basic 

healthcare. They also have a correlation with reductions in 

mortality and morbidity from waterborne diseases. ■

AGCO invests in African agriculture 

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AGCO, which has the widest experience in all 

sectors - from emerging small-scale farmers 

right through to the largest projects. 

As a world-leading farm-machinery 

manufacturer, AGCO has unrivalled expertise 

in African agriculture, with Massey Ferguson, 

the region’s leader, now complemented by 

Challenger-tracked tractors and equipment, 

Valtra tractors for specialist applications as 

well as GSI post-harvest technology for grain 

handling and storage. 

Together these top brands offer a 

diverse range of equipment developed and 

built specifically for African conditions. 

AGCO’s unparalleled expertise and local 

knowledge, which has been amassed over 

many generations, puts it in prime position to 

develop every area of African agriculture. 

It always pays to pick a strong partner 

and with an $8.8 billion turnover in 2011, 

AGCO is the largest specialist, full-line 

agricultural manufacturer, which sells 

machinery in 140 countries. 

A truly global corporation, AGCO has the 

power, equipment and support structure to 

make an immediate impact. 

AGCO delivers on its commitment 

AGCO is investing more than $100 million 

to boost African agriculture and is currently 

developing a wide range of new facilities across 

the continent to provide the highest quality 

farm mechanisation and training as well as 

technical and spare-parts support. 

In Zambia AGCO has just launched a new 

150 ha (371 acre) model farm and learning 

centre near Lusaka. “The AGCO Global 

Learning Centre will empower farmers in 

Africa to improve food production levels,” said 

Nuradin Osman, AGCO’s Director Africa 

& Middle East. “Small to medium scale 

farmers with limited access to modern 

farming will benefit from training courses 

ranging from basic agronomy through 

to general mechanisation.” 

At the Centre large-scale commercial 

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on high-specification tractors and harvesting 

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techniques. Recognising the importance of 

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will also provide specific advice on the latest 

grain handling and storage technology from 

AGCO’s GSI product range. 

New developments for the market 

In South Africa, AGCO has also recently 

celebrated a ‘ground breaking’ ceremony for 

its African Master Parts Distribution Centre, 

together with its South African Distribution 

Partner, Barloworld in Johannesburg. 

At this event Martin Richenhagen, 

Chairman, President and CEO of AGCO, said: 

“AGCO is committed to growing its presence 

within Africa by investing in distribution 

infrastructure and new training sites. Our new 

warehouse will allow us to better serve our 

customers in Sub-Saharan Africa.” 

At the same time new regional offices are 

being set up to bring AGCO even closer to the 

market. Planned local assembly plants will not 

only provide machines made in Africa, but also 

create a wide range of new jobs. 

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156 

media, tourism aNd culture 

A rich cultural diversity 

The annual Abuja Carnival, 

showcasing Nigeria’s diverse 

cultures, is now a major event 

iNvest iN NiGeria 2012-13

From a rich tradition of storytelling that 

has produced some of the world’s most 

famous writers to a fast-growing broadcast 

industry, Nigeria’s vast cultural mix is coming 

to the fore. Beth Holmes looks at how the 

country is showcasing its cultural strengths 

to growing numbers of tourists 

Tourism can have a profound impact on the 

society, economy and environment of a country. 

It creates employment and, when developed in 

a sustainable way, can help protect natural 

environments and preserve historical 

and archaeological monuments, while bringing to life and 

safeguarding the practice of local cultures, traditions, 

arts and crafts, and cuisine. 

Economically, tourism helps to generate foreign 

revenue that can be pumped back into the economy for 

the benefit of the wider population. 

As far as Nigeria is concerned, its poor record in tourism 

is just one of the reasons its development lags behind many 

other African nations. But with a new government in place 

comes a new commitment to make Nigeria the destination of 

choice for global travellers who want to experience Nigeria’s 

rich culture for themselves – and what a culture it boasts. 

It is shaped by the nation’s many ethnic groups. More 

than 250 ethnic tribes call present-day Nigeria home. The 

three largest and most dominant groups are the Hausa, who 

are predominant in the north, the Yoruba, who are predominant 

in the southwest and the Igbo, who are predominant in the 

southeast. The Niger and Benue Rivers come together in the 

centre of the country, creating a ‘Y’ that splits Nigeria into 

these three separate sections and marks the boundaries of the 

three major ethnic groups. Other smaller groups include the 

Ijaw, Kanuri, Ibibio, Tiv and Edo. 

From an environmental point of view, Nigeria has three 

main regions: savannah, tropical forests, and coastal wetlands. 

The conditions of each region have a direct correlation with 

the cultures of those living in them. 

The dry, open grasslands of the savannah make cereal 

farming and herding a natural lifestyle choice for the Hausa. 

The wet tropical forests to the south provide perfect 

conditions for growing fruits and vegetables, hence these 

are the main income producers for the Yoruba and the Igbo. 

Meanwhile, small ethnic groups living along the coast, 

such as the Ijaw, rely on fishing and the salt trade. 

MEDIA, TOURISM AND CULTURE 157 

It is impossible to write about Nigeria’s cultural 

history as a single, identifiable entity because with each 

ethnic group comes a separate and distinct cultural past. 

Furthermore, a succession of leaders from different 

ethnicities have taken control of the country since its 

independence from British colonial rule in 1960 and it has 

suffered from civil war and severe internal ethnic conflicts. 

This, too, has had a major impact on present-day efforts to 

build a credible tourist industry. 

The Nigerian culture, therefore, is a melting pot 

of different traditions, beliefs, art, music, food, 

languages and social etiquette. 

In a country with over 250 tribal languages, English is 

the only one common to almost all and is the official language 

of Nigeria. Pidgin, a mix of African languages and English, is 

also a lingua franca common throughout Nigeria. Its origins lie 

in the need for British sailors to communicate with local 

people but it is widely used in the present day. 

Religious practices 

The most widely practised religions in Nigeria are Christianity 

and Islam. The northern region is mostly Muslim, while the 

south-eastern and southern states are almost entirely 

Christian. The south-western and middle-belt regions are 

broadly divided between the two religions, while across the 

country there are also many people who practise other 

traditional religious beliefs. 

Nigerian food varies from region to region, though 

there are a few staples that permeate cuisine across the 

country. In the south, crops such as corn, yams and sweet 

potatoes form the base of the diet. In the north, grains 

such as millet, sorghum and corn are boiled into a 

porridge-like dish that forms the basis of the diet. 

Fruits such as papaya, pineapples, coconuts, oranges, 

mangoes and bananas are prevalent in the tropical south. 

Alcohol is consumed in the south, but less so in the 

predominantly Islamic north. 

Historically, art served a social or religious purpose 

in Nigeria, but it is now seen as an important cultural 

influence in its own right and the country has launched 

the careers of some internationally renowned artists, 

such as Igbo painter and sculptor Ben Enwonwu. 

The country also has a long and incredibly rich literary 

history. Nigerians are traditionally storytellers, handing down 

tales from generation to generation. With colonisation, 

storytelling evolved into more sophisticated literary media and 

Nigeria has given the world some of its most famous writers. 


158 

media, tourism aNd culture 

The traditional architectural style of 

ancient Kano is just one of many 

tourist attractions Nigeria has to offer 

These include the most widely translated African writer of all 

time, Chinua Achebe, whose 1958 book Things Fall Apart has 

been translated into more than 50 languages; 1986 Nobel 

Laureate Wole Soyinka; 1991 Booker Prize winner Ben Okri; 

and 2007 Orange Prize winner Chimamanda Adichie. 

Also, in art, Ben Enwonwu, world-renowned sculptor and 

artist has a crater on planet Mercury named in his honour. 

The country’s media industry 

is a vibrant and growing example 

of its cultural development 

Since the 1990s the Nigerian movie industry, known as 

Nollywood, has emerged as a fast-growing cultural force. Last 

year, during a meeting with stakeholders in the industry, 

President Jonathan announced a donation of $200 million to 

the entertainment sector. He described this as a direct 

intervention lifeline for the exclusive purpose of supporting 

artists and developing the entertainment business. 

The country’s media industry is a vibrant and growing 

example of its cultural development. Radio is the most popular 

iNvest iN NiGeria 2012-13 

source of information. According to the broadcasting regulator, 

there are 100 radio stations and 147 terrestrial TV stations in 

the country, as well as cable and direct-to-home satellite 

offerings. Television is popular in urban areas although there 

are limits placed on the amount of foreign programming that 

stations can show, and outlets cannot air foreign news, 

according to the BBC’s African service. 

At the end of 2011, 44 million Nigerians 

were online – around 28 per cent of the 

population – and 4.5 million Nigerians were 

on Facebook, highlighting the increasing 

influence of technology on the culture. 

Strategic development 

This, then, is the land to which the Nigerian 

government wants to attract visitors and, 

against a backdrop of severe global economic 

challenges, it is not the only country embarking on 

strengthening its tourism potential to attract investment. 

The strategic development of Nigeria’s tourism industry 

is overseen by The Federal Ministry of Tourism, Culture and 

National Orientation. The overriding hope of President 

Jonathan’s administration is that the tourism industry will 

become a credible alternative to the oil industry as far as 

bringing revenue into the country is concerned. Due in no 

small part to security issues and continuing civil unrest,

One of the aims of the National Tourism 

Master Plan is to encourage local 

participation in the burgeoning industry 

Nigeria remains some distance behind a number of its 

African counterparts in this respect. 

However, several initiatives have been introduced under 

a more coherent tourism strategy that has been evolving since 

the turn of the century. For instance, the launch of the Abuja 

Carnival in 2005 gave organisers the chance “to showcase 

Abuja as a meeting place of cultures and crystallisation of the 

creative spirit and cultural diversity of the Nigerian people”. 

Now entering its seventh year, the carnival has established 

itself as a major international calendar event. 

In 2009, the Ministry initiated and developed 

six Cultural Industry Centres in Taraba, Enugu, Benue, 

Ogun, Ondo and Sokoto, with a view to harnessing local 

talents and generating employment. In 2009, the Ministry 

also established the Nigerian Cultural House in Salvador, 

Brazil, to boost Nigeria’s image internationally. 

The announcement in 2005 of a National Tourism 

Master Plan was seen as a step in the right direction, although 

critics have bemoaned the time that implementation is taking. 

The objective of the project is to promote the sustainable 

development of the tourism industry as well as development at 

the community level by encouraging local participation in, and 

ownership and management of, the tourism sector. 

The plan also provides strategic recommendations in the 

areas of tourism policy, governance, development of tourism 

products, marketing, international and domestic transportation, 


hospitality, education and training, and legislation. In particular, 

it earmarks the nation’s tourist attractions for development, 

such as Tinapa Business, Leisure and Conference Resort in 

Cross River State, the Farin Ruwa Waterfalls in Nasarawa State 

and the Olokola Cultural Resort in Ondo State. 

Edem Duke, minister of tourism, culture and national 

orientation, admitted at the end of 2011 that the master plan 

had stalled in recent years but said: “I think the greatest 

challenge is to find leadership that has courage and 

commitment in order to move that initiative forward.” 

Duke also said the federal government is engaged in 

simplifying the visa process to encourage more investors into 

the country, stressing that many had complained about 

bottlenecks associated with issuance of Nigerian visas abroad. 

The Ministry has also overseen a radical improvement 

in the physical infrastructure, with the refurbishment of 

museums and theatres and the construction of craft 

centres and tourist resorts. 

With continued funding from both the private and public 

sectors, an aggressive marketing strategy and coordinated 

implementation of the master plan, there is every chance that 

the country will be better equipped to develop, manage and 

sustain its tourism industry. This would spread the benefits of 

tourism to all parts of the country and all layers of society, 

thereby greatly contributing to the eradication of poverty and 

the economic regeneration of Nigeria. ■ 


160 

MEDIA, TOURISM AND CULTURE 

A cinematic experience 

Filming gets under way on movie 

Covenant of the Ancestors, about the 

politics of oil in the Niger Delta 


The dramatic growth of the 

Nigerian film industry to become 

the second largest in the world has 

had a profound effect on the 

country. Martyn Cornell considers 

the wider impact of the 

phenomenon that is ‘Nollywood’ 

The single most visible mark of 

success for the Nigerian 

film industry, according to 

John Ugbe, managing director 

of digital satellite television 

operator Multichoice Nigeria, is “when you 

land in Kenya or any other African country, 

and the first guy you see says, ‘Oga’” – the 

Nigerian slang word meaning ‘boss’. 

The fact that much of Africa now knows 

what ‘oga’ means is a tribute to what has 

inevitably been dubbed ‘Nollywood’ – and to 

Nigeria’s incredible output, 

currently running at around 

900 films a year. Nigeria was 

hailed by UNESCO, the 

United Nations Educational, 

Scientific and Cultural 

Organisation, in 2009 as the 

home of the second-biggest 

film industry on the planet in 

terms of sheer output, just 

behind India’s ‘Bollywood’ 

and far ahead of Hollywood 

itself, at around 480 films a year. 

A report by UNESCO on the world film 

industry found that while some 56 per cent 

of Nollywood films are made in local 

languages, the rest are in English. This is 

an important factor in Nigeria’s success 

in exporting its films to the rest of Africa, and 

its potential for further growth as a supplier of 

films not just to Africa but to the world. 

The rise of Nollywood has been 

explosive, from a standing start in the early 

1990s to an industry worth upwards of 

N25 billion ($157 million) a year and 

reckoned, depending on which source you 


read, to be Nigeria’s second-largest employer 

after either the federal government or the oil 

industry. As the British-Nigerian actor Maynard 

Eziashi told Nigeria’s Vanguard magazine in 

January 2012, “If we compare the first 10 to 

20 years of Hollywood with that of Nollywood 

you would realise Nollywood is doing fabulously 

well.” There is even a Centre for Nollywood 

Studies, part of the School of Media and 

Communication at the Pan-African University 

in Lagos, which opened in July 2011. 

Paradoxically, this success has come in 

a country with virtually no formal cinemas – 

99 per cent of screenings take place in 

informal settings, such as home cinemas. Far 

from being a threat to the Nigerian film 

industry, the lack of a formal network of mass 

cinema outlets has been an opportunity: 

Nigeria’s film-makers have been able to film 

straight to video, massively reducing their 

costs. A single film might be shot in as little 

A film might be shot in as 

little as two weeks or a 

month, using cheap digital 

cameras and locals as extras 

as two weeks or a month, much of it out on 

the streets, using cheap digital cameras 

and locals as extras (their ‘pay’ a promise of 

a copy of the finished DVD) and for a total 

cost of no more than N5 million ($31,506). 

Hundreds of thousands of DVD copies are 

then sold back on those same streets at 

around N250 ($1.58) a time. 

Although the history of film-making 

in Nigeria goes back at least as far as 1935, 

when parts of the Zoltan Korda film, 

Sanders of the River, were shot on location 

in the country, the first major Nollywood 

film is reckoned, by common consent, to be 


162 

MEDIA, TOURISM AND CULTURE 

Top five countries with major 

film production in 2009 

India 

17.8% 

Nigeria 

13.6% 

United States* 

10.1% 

China 

6.5% 

Japan 

6% 

Languages of film production 

* Break in data series due to a change in methodology; not comparable with previous 

data series. 

Source: UNESCO Institute for Statistics, January 2012 


World production 

7,233 

Although data on language are missing for key countries, 

including Brazil and China, information was collected for 

4,856 feature films in 2009 

1,201 

English 

540 

Yoruba 

11% 

of films were 

made in the 

language of 

Nigerian 

productions 

367 300 253 235 

Spanish 

French 

Russian 

Hindu 

Living in Bondage, made in 1992 (supposedly by a trader 

who had a huge number of blank video tapes imported from 

Taiwan that he could not sell, who decided they might sell 

better if he put a film on them). It covered many of the 

common Nollywood themes: the search for wealth, voodoo, 

betrayal, remorse and redemption. The subsequent success 

of Living in Bondage inspired an industry. 

Huge audience potential 

With 150 million Nigerians eager for Nollywood’s tales of love, 

honour, adventure, witchcraft, the tensions between tradition 

and modernity, and the triumph of good over evil – and another 

650 million in sub-Saharan Africa also increasingly hooked on 

films coming out of Nigeria – the potential is huge. Nigerian 

film director Zeb Ejiro told The Times in 2010: “Western 

productions, slick as they are, do not gel with people – their 

everyday experiences are too different. For Africans, those 

films are fantasies. What is unique is that we tell our African 

story our own way: we are telling our own story and they, the 

audience, can see themselves in it and relate. People see it 

and say, ‘Yeah, that’s how my grandfather said it’.” That, Ejiro 

said, “is true across the continent. The differences between 

African states are nothing like as big as they are with the 

United States or Western Europe.” 

Nollywood films are, inevitably, popular with the large 

Nigerian diaspora. Just as the spread of that diaspora has 

meant, for example, Nigerian-brewed Guinness being available 

on the shelves of British supermarkets, so Nigerian-made films 

are now for sale in the United States, Germany, Britain and 

other countries where Nigerians have settled. The UK even has 

its own dedicated Nollywood satellite channel, and there is a 

globally available advertising-funded YouTube service, 

Nollywood Love, for Nigerians everywhere. 

But Nigerian film-makers’ international ambitions lie 

beyond the expat market: they want to see a Nollywood film 

win an Oscar. The country has yet to make its own District 9, 

the low-budget South African science-fiction film from 2009 

that shot the country’s film industry into the international 

spotlight, taking more than $200 million at the box office 

and achieving four Academy Awards nominations. 

(Ironically, District 9 was banned in Nigeria for its 

extremely unflattering portrayal of Nigerians as the film’s 

main villains.) But it really must be only a matter of time 

before a Nollywood film does as well or better. 

That is not to say that Nollywood does not have its 

problems. Piracy is one of the biggest. Digital technology 

may have made producing and distributing films vastly easier

and cheaper, but it has, of course, made illegal copying of 

films much easier as well. A report in The Economist in 2010 

estimated that it took the pirates just two weeks to copy a 

new film and have their pirated DVDs distributed across 

Africa. The Nigerian industry has been clamouring for 

the federal government to get much tougher on piracy. 

Making an impact in the world’s cinemas 

Another problem that needs to ber tackled is funding: 

Nollywood’s cheap-and-cheerful production values may not 

be important to an African audience that is more thrilled by 

how well the films’ plots speak to their own lives and 

aspirations, but to make a real impact in the world’s cinemas, 

the industry needs to be able to raise its game, and that 

requires money. Film-makers have been concerned since at 

least 2008 that neither the banks nor the federal government 

are putting enough into the industry to help it with its 

ambitions to succeed globally. 

Despite efforts by the Commonwealth Business Council 

to encourage investment in the industry, and a promise just 

before the 2011 presidential election from President Goodluck 

Jonathan of a $150 million loan fund for the use of people in 

the ‘creative industry’, which is to be managed by the Bank of 

Industry, Nollywood is still short of cash. 


Broadcaster and media consultant DJ Abass 

with a poster for Last Flight to Abuja, an 

action movie directed by Obi Emelonye 

One answer might be ‘crowdsourcing’: film-makers have 

been pitching their ideas via the internet and asking for a 

contribution from investors of as little as $1 to get the film 

made. But as the French film journalist Sylvain Beletre 

remarked, “sending off money to someone you’ve 

never heard of to finance a film sounds like the perfect 

Nigerian 419 scam”. 

A third problem is rooted in the very popularity that 

makes Nollywood such a potential international success. Elites 

in some other African nations fear Nigeria’s rising power and 

the growth of Nollywood abroad has seen, for example, attempts 

in the Democratic Republic of the Congo to ban Nigerian films 

completely. Ghana, which is trying to build up its own 

indigenous film industry to rival Nollywood, now imposes stiff 

fees on Nigerian film-makers working within its borders. 

All the same, with a strong base at home and an 

enthusiastic audience outside of Nigeria’s borders, the 

future is looking bright for Nollywood. As the then 

director-general of UNESCO, Koichiro Matsuura, said in 

2009: “Film and video production are shining examples 

of how cultural industries, as vehicles of identity, values 

and meanings, can open the door to dialogue and 

understanding between peoples, but also to economic 

growth and development.” ■ 


164 

DIRECTORY 

Government ministries 

Public administration departments in Nigeria 

Federal Ministry 

of Finance 

and Economic 

Development 

Plots 745 & 746 Ahmadu Bello Way 

Central Area, PMB 14 Garki, 

Abuja 

Tel: +2349 234 0946 

Fax: +2349 234 0512 

Website: www.fmf.gov.ng 

Email: enquiries@fmf.gov.ng 


of Power and Steel 

New Federal Secretariat Complex 

Shehu Shagari Way 

3rd/4th Floors, Annex B 

Tel: +2349 523 7064 

Fax: +2349 234 3563 

Federal Ministry of 

Petroleum Resources 

Federal Secretariat 

Shehu Shagari Way, 

Abuja 

Tel: +2349 523 3536-8 

Website: www.dprnigeria.com 


of Justice 


10th Floor, Federal Secretariat 

Wing 1B (1001-1099) 

Block 1, Shehu Shagari Way, 

Abuja 

Tel: +2349 523 5194 


of Science 

and Technology 

9th Floor, New Federal Government 

Secretariat (opposite New Parade 

Ground), Shehu Shagari Way, Abuja 

Tel: +2349 523 3397 

Fax: +2349 523 4390, 523 3903 

Website: www.fmst.gov.ng 

InvEsT In nIGERIA 2012-13 


Foreign Affairs 


Abuja, Nigeria 

Tel: +2349 523 0186 

Email: info@mfa.gov.ng 


of Commerce 

and Tourism 

Old Secretariat, Area 1, Block G & H 

PMB 88, Garki, Abuja 

Tel: +2349 234 1689 

Fax: +2349 234 1541 


of Transport 

2nd Floor, Annex 3 


Shehu Shagari Way, Central Area 

PMB 1136, Abuja, FCT 

Tel: +2349 523 7054 


Communications 

2nd & 3rd Floors, 

Federal Secretariat, Abuja 

Tel: +2349 523 7183 

Website: www.commtech.gov.ng 

Email: roundtable@commtech.gov.ng 


of Industries 

PMB 85, Garki Post Office 

Old Federal Secretariat 

Area 1, Garki, Block C, Abuja 

Tel: +2349 234 1387 


Water Resources and 

Rural Development 

PMB 159, Block A 

Old Secretariat Area 1, 

Garki, Abuja 

Tel: +2349 234 0206; 

+2349 234 2684 

Website: www.stoveco.com/afriweb 


of Defence 

Defence Headquarters 

Opposite Agura Hotels 

PMB 196, Area 7, Garki, Abuja, 

Tel: +2349 234 0532, 

+2349 234 0533 


of Solid Minerals 

Development 

5th Floor, Annex 3 



Central Area, Abuja, FCT 

Tel: +2349 523 3536, 

+2349 523 6452 

Website: www.mmsd.gov.ng 

Email: info@mmsd.gov.ng 

National Planning 

Commission 

4th Floor, New Federal Secretariat 

Shehu Shagari Way, Abuja 

Tel: +2349 523 6626 

Fax: +2349 523 6625 

Website: www.npc.gov.ng 


of Agriculture 

and Natural 

Resources 

Federal Capital Territory Office, 

Complex Block A, Area 11 

PMB 135, Garki, Abuja, FCT 

Tel: +2349 234 1931 


Works and Housing 

Radio House, 

Herbert Macaulay Way (South) 


(Opposite the International 

Conference Centre) 

Tel: +2349 234 1932; 

+2349 234 6073 


of Aviation 



Tel: +2349 523 2132 

Website: www.aviation.gov.ng 

Email: info@www.aviation.gov.ng 


of Federal 

Capital Territory 

Area 11, Garki, Abuja 

PMB 25 Garki, Abuja 

Tel: +2349 234 1195; 

+2349 234 1525; 

+2349 234 1019; 

+2349 234 1549 

Website: www.fct.gov.ng 

Email: info@fct.gov.ng 

Nigerian National 

Petroleum Corporation 

Corporate Headquarters 

NNPC Towers, Central Business District, 

Herbert Macaulay Way, 

PMB. 190, Garki, Abuja 

Website: www.nnpcgroup.com 

Email: contactus@nnpcgroup.com 

International office 

NNPC London Office 

159 Hammersmith Road, 

London W6 8BS 

Tel: 020 8735 9600 

Purchase of Nigerian Crude Oil 

All enquiries to be directed to: 

Group General Manager (GGM) 

Crude Oil Marketing Division (COMD), 

Nigerian National Petroleum 

Corporation (NNPC) 

NNPC Towers 

Central Area Abuja, Nigeria. 

Tel: +2349 460 82500 


of Education and 

Youth Development 

Federal Secretariat, Phase 2 (3rd Floor), 


Tel: +2349 523 2800


of Environment 

Federal Secretariat Complex, 

9th Floor, 



Tel: +2349 523 4014; 

+2349 413 6309; 

+2349 523 6309 


of Health and 

Social Services 

Block 4A (301-309), 3rd Floor, 

New Fed. Secretariat Complex, 


PMB 83 

(Garki Post Office), Abuja 

Tel: +2349 523 4590 

Embassies and High Commissions 

Offices of Nigerian embassies and High Commissions around the world 

Algeria (Algiers) 

Embassy of Nigeria 

B.P. 629, Alger-Gare, 

Algiers 1600 

ALGERIA 

Tel: 69 32 78, 69 37 26 

Angola (Luanda) 

Embassy of the Fed. Rep. of Nigeria 

Houan Boumedienne, No. 120, 

Caixa Postal 479, 

Luanda 

REPUBLIC OF ANGOLA 

Tel: 345985; 

340084-5 

Argentina 

(Buenos Aires) 


11, De Septiembre 839, 

1426 Buenos Aires, 

ARGENTINA 

Tel: 7716541, 7729447 


of Information 

and Culture 

Radio House, PMB 247, 

2nd/3rd/6th Floors, 

Herbert Macaulay Road, Garki 

(opp. Int’l Conference Centre), Abuja 

Tel: +2349 234 4107; 

+2349 234 4106 


of Internal Affairs 

Block ‘F’ Old Secretariat, Area 1, Garki, 

Abuja, PMB 0016, 

Garki Post Office 

Tel: +2349 234 1602; 

+2349 234 1525; 

+2349 234 1935; 

+2349 234 1936 

Australia (Canberra) 

Nigerian High Commission 

27, State Circle, Deakin, ACT 2600 

P.O. Box 241 

Civic Square, Canberra, 

AUSTRALIA 

Tel: 062-2866426, 2861322, 

2861966, 2861044 

Fax: 2865332 

Austria (Vienna) 


Rennweg 25, 

103 Vienna 

P.O. Box 262, Vienna 

AUSTRIA 

Tel: 43 1712 6685 

Belgium (Brussels) 


Avenue De Tervuren 228, 

1150 Brussels, 

BELGIUM 

Tel: 7625260, 7629831, 7629832, 

7629847 


Labour and Productivity 

2nd Floor (257-237), Block 4A, 

New Federal Secretariat Complex, 


Central Area, Abuja 

Tel: +2349 523 1694 


of Special Duties 

First Floor, Phase II, New Federal 

Secretariat, Shehu Shagari Way, Abuja 

Tel: +2349 523 3397 

Fax: +2349 523 5853 


Women Affairs and 

Social Development 

2nd Floor (201-224), Annex 3, 


Benin (Cotonou) 


Avenue De France, Marina, 

B.P. 2019, Cotonou, 

REPUBLIC OF BENIN 

Tel: 301503, 301142, 304487 

Botswana (Gaborone) 


P.O. Box 274, Gaborone, 

BOTSWANA 

Tel: 313561, 313838 

Brazil (Brasilia De) 


Sen-Avenida das Nacoes, Lote 5, 

CEP: 70: 473, Brasilia De, 

BRAZIL 

Tel: 226-5616, 226-1717, 226-2572 

Burkina Faso 

(Ouagadougou) 


36 Hospital Rd. 


PMB 229, Central Area, 

Abuja, FCT 

Tel: +2349 523 7115 


Works and Housing 

Radio House, 

Herbert Macaulay Way (South), 

PMB 111, Garki, Abuja, 

(opp. Int’l Conference Centre) 

Tel: +2349 234 1932; 

+2349 234 6073 


of Youth 

and Sport 


Maitama, Sule, Garki, Abuja 

Tel: +2349 523 5902-7 

B.P. 132, Ouagadougou, 

BURKINA FASO 

Tel: 30 66 67, 30 66 68, 31 52 01 

Cameroon (Buea) 

Consulate-General of Nigeria, 

Bokwango, PMB. 30, 

Buea, 

CAMEROON 

Tel: 32 25 28, 32 35 37 

Cameroon (Yaounde) 


(Opposite Renault Automobile), 

P.O. Box 448, Yaounde, 

CAMEROON 

Tel: 22 34 55, 23 19 04 

Canada (Ontario) 

Nigerian High Commission, 

295 Met Caife Str, 

Ottawa 

Ontario, K2P 1R9, 

CANADA 

DIRECTORY 165 

InvEsT In nIGERIA 2012-13

166 

DIRECTORY 

Tel: 236 0521, 236 0522, 236 0523, 236 

0527, 236 0529 

Email: chancery@nigeriahcottawa.com 

Central African 

Republic (Bangui) 


B.P. 1010, Bangui 

CENTRAL AFRICAN REPUBLIC 

Tel: 610744, 611800 

Chad (N’Djamena) 


B.P. 752, Ave. 

Charles De Gaulle 

N’Djamena, 

CHAD. 

Tel: 512498, 512647 

China (Beijing) 


2 Tung wu Jie, 

San Li Tun, 

Beijing, 

CHINA 

Tel: 532363, 5322108 

Cote d’Ivoire (Abidjan) 


35 Boulevard De La Republique, 

O.I.B.P. 1906, 

Abidjan, 

COTE D’VOIRE 

Tel: 21 19 82, 21 23 28, 22 30 82 

Cuba (Havana) 


5th Ave. No. 1401, 

P.O. Box 6232, Havana, 

CUBA 

Tel: 332091, 332898 

Czech/Slovak States 

(Prague) 


Pred Baturiemi 18, 

16201 Prague 616, 

CZECH/SLOVAK STATES 

Tel: 24312065, 24312104, 24312108 

Egypt (Cairo) 


13 Sharia Gabalaye Zamaiek, 


Cairo, U.A.R., 

EGYPT 

Tel: 3420389, 3417894 

Equatorial Guinea 

(Malabo) 

Embassy of the Rep. of Nigeria 

4 Passo De Los Cocoteros, 

Malabo, 

EQUATORIAL GUINEA 

Tel: 2386 3520 

Ethiopia (Addis Ababa) 


P.O. Box 1019, Addis Ababa, 

ETHIOPIA 

Tel: 550644 

PBX: 552308 

France (Paris) 


173 Ave. Victor Hugo, 

Paris 16E, FRANCE 

Tel: 47046165, 47048497, 47046865 

(Ext. 224) 

The Gambia (Banjul) 


Garba Jahumpa Avenue, 

New Town Road, Bukau, 

P.O. Box 630, Banjul, 

THE GAMBIA 

Tel: 95217, 95804 

Germany (Berlin) 

Embassy of the Fed. Rep. 

of Nigeria 

Plantanenstrasse 1100, 

Berlin, 98A 

GERMANY 

Tel: 4828322, 4772300-1 

Ghana (Accra) 


Joseph Broz Tito Avenue, 

Behind Police Headquarters, 

P.O. Box 154, 

Accra, 

GHANA 

Tel: 776158-9 

Guinea (Conakry) 


B.P. 54, Conakry, 

REPUBLIC OF GUINEA 

Tel: 461314, 469400, 461409 

Guinea Bissau (Bissau) 


B.P. 199, Bissau, 

GUINEA BISSAU 

Tel: 211876-7, 211022 

Hong Kong 

Commission of the Fed. Rep. 

of Nigeria, 

25th Floor, 

Tung Wai Commercial Building 

109/111 Gloucester Rd., 

G.P.O. Box 5670, 

HONG KONG 

Tel: 852-8278860, 852-8278813 

India (New Delhi) 


21, Olof Paime Marg. 

Vasant Vihar, New Delhi 

INDIA 

Tel: 6876228, 6876558 

Indonesia (Jakarta) 


34 Jalan Aipon Coro, 

P.O. Box 3649, 

Jakarta 

INDONESIA 

Tel: 62-2 1326686, 3404903 

Iran (Tehran) 


31st Street, 

9, Khaled IstAmbul Avenue, 

P.O. Box 2736, 

Tehran, 

IRAN 

Tel: 684935, 684936, 684921 

Iraq (Baghdad) 


Area 603, Lane 3, 

House 2, 

AI-Mutanabi District, 

Mansour, 

P.O. Box 5933, 

Baghdad, 

IRAQ 

Tel: 5421750 

Ireland (Dublin) 


56 Leesen Park, Dublin 6, 

IRELAND 

Tel: 682652, 604366, 604051, 604605 

Italy (Rome) 


Via Orazio, 16/18 

00193-Rome, 

ITALY 

Tel: 6878450, 6876720, 6897048 

Japan (Tokyo) 


19-7, Vchora 2-Chome, 

Shibuya-Ku, Tokyo, 

JAPAN 

Tel: 468-5531-3 

Kenya (Nairobi) 


Lenana Road, 

P.O. Box 30516 

Nairobi, 

KENYA 

Tel: 565743, 564116/8 

Kuwait (Hawally) 


Area No. 1 St. 14, 

Plot 166, Surra. 

P.O. Box 6432, 

32039 Hawally, 

KUWAIT 

Tel: 5320794, 5320795, 5320831 

Liberia (Monrovia) 


Tubman Boulevard, 

Sinkor, 

P.O. Box 366, 

Monrovia, 

LIBERIA 

Tel: 261148, 261020, 224478 

Libya (Tripoli) 


Sharra Basir El-lbrahim Garden City, 

P.O. Box 4417, 

Tripoli, 

LIBYA 

Tel: 00210-21-43033, 80-43035, 43036, 

44-43035-6, 44-43038

Mali (Bamako) 


Badlabougou East, 

P.O. Box 57, 

Bamako, 

REPUBLIC OF MALI 

Tel: 225771, 227368 

Mauritania 

(Nouakchott) 


B.P. 367, 

Nouakchott, 

MAURITANIA 

Tel: 52314, 52304, 52346 

Morocco (Agdat Rabat) 


70 Ave. Omar. lbn EI. Khattab 

Agdat Rabat, 

MOROCCO 

Tel: 71856/71857 

Mozambique (Maputo) 


22 Ave. Kenneth Kaunda 

P.O. Box 4693, 

Maputo, 

MOZAMBIQUE 

Tel: 490574, 492457 

Namibia (Windhoek) 


P.O. Box 23547, 

Windhoek, 

NAMIBIA 

Tel: 232103/5 

Netherlands 

(The Hague) 


Wage Neaareg 5, 

The Hague, 

NETHERLANDS 

Tel: 07-3501703, 3548579 

Email: nigembassy@nigerianembassy.nl 

Niger (Niamey) 


Quarter Niamey Bas, 

B.P. 11-130, 

Niamey, 

NIGER REPUBLIC 

Tel: 732207, 732410, 732795 

North Korea 

(Pyongyang) 


P.O. Box 535, 

Pyongyang, 

NORTH KOREA 

Tel: 747748, 817286, 817558 

Pakistan (Islamabad) 

High Commission of Nigeria 

House 6, 

St. 22 Sector F.6/2 

P.O. Box 1075, Islamabad 

PAKISTAN 

Tel: 822466, 212465-6 

Philippines (Manila) 


211 Paraico Street, 

Dasmarinas Village, MCC, 

P.O. Box 2170, Makati, 

Metro Manila, 

PHILIPPINES 

Tel: 8173851/2, 8173837 

Email: embassy@nigeriamanila.org 

Poland (Warsaw) 


Ul Chocimska 18, 

00791 Warsaw 

POLAND 

Tel: 0048.22-486944, 485308, 485309 

Portugal (Lisbon) 


Rua Femao Mendes Pinto 50, 

Restelo, 1400, Lisbon 

PORTUGAL 

Tel: 3016191, 3016189, 3016439 

Qatar (Doha) 


Doha, QATAR 

Tel: 732479 

Democratic Republic of 

the Congo (Brazzaville) 


11 Avenue lyavcey 

B.P. 790, Brazzaville 

DEMOCRATIC REPUBLIC OF THE CONGO 

Tel: 833846, 831316, 832749 

Romania (Bucharest) 


Strada Orlando MR 9, 

P.O. Box 37, 

Bucharest, 

ROMANIA 

Tel: 504180-8, 502465 

Russia (Moscow) 

Embassy of the Rep. of Nigeria 

Ul Kachalova 13, Moscow, 

RUSSIA 

Tel: 2903785-7, 2001246 

Email: nigeriamosco@glaw.apc.org 

Saudi Arabia (Jeddah) 

Consulate-General of Nigeria 

19 AI-Oroubah Street, 

46, Mushrefan District 6, 

P.O. Box 655, Jeddah, 

SAUDI ARABIA 

Tel: 9662-6727662, 6716865, 6702886 

Saudi Arabia (Riyadh) 


Riyadh 11893, Sulaimagjyah 

District Riyadh, 

SAUDI ARABIA 

Tel: 4823024, 4823982, 4655411 

Senegal (Dakar) 


Point FC. Rue 1 & F9 

B.P. 3129, Dakar, 

SENEGAL 

Tel: 24.69.22, 21.43.97 

Sierra Leone (Freetown) 


37 Siaka Stevens Street, 

PMB. 291, Freetown, 

SIERRA LEONE 

Tel: 24202, 24219, 22474, 22074, 22234 

Somalia (Mogadishu) 


Kilometre 5, 

P.O. Box 980, Mogadishu, 

SOMALIA 

Tel: (252) 2489, 3621 

Spain (Madrid) 


Cale Seare 23, 

Madrid 28002, 

SPAIN 

Tel: 5633144, 5630911, 5630971 

Sweden (Stockholm) 


Tyrgatan 8, 

P.O. Box 628, 

11427, Stockholm, 

SWEDEN 

Tel: 08-246390, 204575 

DIRECTORY 167 

Switzerland (Geneva) 

Embassy of the Fed. Rep. of Nigeria, 

1 Rue Richard Wagner, 1211 

Geneva 2, 

SWITZERLAND 

Tel: 022-7342140, 7342149 

Tanzania 

(Dar-es-Salaam) 


Liberation Office, 

3 Bagamayo Road, 

P.O. Box 9214, B.P. 1767, 

Dar-es-Salaam, 

TANZANIA 

Tel: 34493, 34440, 34923, 66600/1 

Togo (Lome) 


311 Boulevard Coreculaire, 

B.P. 1189, Lome, 

TOGO 

Tel: 21 34 55, 21 60 25 

Trinidad & Tobago 

(Port of Spain) 


3 Maxwell-Philip Str., St. Clair, 

PMB. 140, Newtown, 

Port of Spain 

TRINIDAD & TOBAGO 

Tel: 6282806, 6224002, 6226834 


(London) 


9 Northumberland Avenue 

London WC2N 5BX, 

UNITED KINGDOM 

Tel: 020 7839 1244, 7839 2037, 

7839 6190 

Email: hc@nigeriahc.org.uk 


168 

DIRECTORY 

United States 

of America 

(New York) 

Permanent Mission of 

Nigeria to the United Nations, 

828 Second Ave., 

New York, 

NY 10017, 

UNITED STATES OF 

AMERICA 

Tel: 212-9539130, 

5577465 

Trade organisations 

Official trade organisations and industry groups operating in Nigeria 

Nigerian British 

Chamber of Commerce 

Olubunmi Owa Street, 

Off Admiralty Way, Lekki Phase 1, Lagos 

Tel: +234 1 8209173-4 

Website:www.nbccng.net 

E-mail: nbcofc@yahoo.com 

Nigeria-USA 

Chamber of Commerce 

4 Ikot-Ekpene Close, Area II 

Off Emeka Anyoku Street, 

Gariki, Abuja, Nigeria 

Tourist attractions and cultural festivals 

Awe-inspiring beaches, gushing springs and an array of impressive wildlife makes Nigeria 

an essential place to visit for nature enthusiasts and relaxation-seekers alike 

Obudu 

Mountain Resort 

Address: Obudu Mountain Resort, 

Obanliku Local Government Area, 

Cross River State, Nigeria 

Tel: +234 708 923 1815 

The Obudu Mountain Resort in Cross 

River State is 5,200 feet above sea level, 

nestled in the Oshie Ridge of the 


United States 

of America 

(Washington DC) 


2201 M. Street, 

NW Washington DC 

20037, 

UNITED STATES OF AMERICA 

Tel: 202-8221500, 8221513, 7751385/6 

Website: www.nigeriaembassyusa.org 

Email: info@nigeriaembassyusa.org 

Tel: +234 80 33138471 

Website: www.nusacc.us 

Email: info@nusacc.us 

The Nigerian-German 

Business Association 

and the Delegation of 

German Industry and 

Commerce in Nigeria 

148 Younis Bashorun Street 

(Off Ajose Adeogun St), 

Victoria Island Extension 


Sankwala Mountains, and boasts Africa’s 

longest cable car. Situated in an area 

brimming with natural beauty, the resort 

offers unique accomodation in the form 

of African round huts and mountain 

chalets, and comprises canopy forest 

walks, a water park and a golf course. 

It is located near Agbokim waterfalls 

and Kwa rapids, and Nollywood Studios 

are also close by. 

Venezuela (Caracas) 


Av Chivacoa, Qta Blanca Luz, 

San Roman, Caracas, 

VENEZUELA 

Tel: 2684936, 2634816 

Serbia (Belgrade) 


Gersi CEVA 14A, P.O. Box 1021, 1100, 

Belgrade, SERBIA 

Tel: 413-329, 413-411 

Tel:: +234 1 2701548, +234 1 2701549 

Website: www.ngba-africa.org 

Email: info@ngba-africa.org 

International Chamber 

of Commerce Nigeria 

NECA House, 1st Floor, 

A2 Hakeem Balogun Way 

Central Business District Alausa, 

Ikeja, Lagos, Nigeria 

Tel: +234 1 7742734, 7746352 

Website: www.iccng.org 

Email: bunmi@iccng.org 

Yankari Game Reserve 

Address: Wikki Camp, Yankari, 

Bauchi, Bauchi, Nigeria 

Tel: +234 7743 674 

The Yankari Game Reserve in Bauchi 

State covers an area of 2,244 sq km and 

is home to an impressive array of wildlife. 

As well as more than 50 species of 

animals, the Wikki Warm Springs are 

Zambia (Lusaka) 

Nigerian High Commission, 17 Broads 

Road, Fairview, P.O. Box 32598, Lusaka, 

ZAMBIA 

Tel: 229860-2, 253177 

Fax: 223791 

Zimbabwe (Harare) 

Nigerian High Commission, 

36 Samora Machel Avenue, Harare, 

ZIMBABWE 

Tel: 790761, 790763, 790765-9 

Chair: Babatunde Abayomi Savage 

Vice Chairs: Raymond Ihyembe, 

Martin Woolnough 

Secretary General: Olubunmi Osuntuyi 

National airline 

Air Nigeria 

Tel: +234 1 271 1111 

Website: www.myairnigeria.com 

Domestic destinations: 

Abuja Kano Sokoto 

Enugu Owerri 

Port-Harcourt 

found here – a collection of four natural 

warm-water springs heated by 

underground geothermal activity. There is 

also a “Wikki Camp” where tourists can 

stay in chalets located near to the 

springs. The Game Reserve boasts the 

largest elephant population in West 

Africa, although catching a glimpse can 

be a challenge due to the dense 

vegetation. With almost 60 caves and

Kalban Hill – where from the top visitors 

can observe the whole park – the reserve 

is a popular destination for explorers and 

wildlife enthusiasts. 

Cross River 

National Park 

Address: PO Box 149, Calabar, 

Cross River, Nigeria 

Tel: +234 8722 1694 

The Cross River National Park is 4,000 

sq km of sprawling tropical rainforest 

and mangrove swamps. Containing the 

last remaining rainforest in Nigeria, 

which is being preserved with the help 

of the Nigerian Conservation Foundation, 

the park is a biodiversity hotspot that 

is home to several rare species of 

primate and, among other animal 

species, elephants, lowland gorillas, 

buffalo and leopards. 

Lake Kainji 

National Park 

Address: PMB. 1372, New Bussa, 

Niger, Nigeria 

Tel: +234 3167 0036 

The Lake Kainji National Park is the 

largest in West Africa, incorporating the 

Borgu Game Reserve and the Zugurma 

Game Reserve. Lake Kainji itself is 

136km long, and tours of the Kainji dam 

Facts and figures 

Useful information about Nigeria 

Capital: Abuja 

Largest city: Lagos 

Official language: English 

Recognised national languages: Hausa, Igbo, Yoruba 

Currency: Naira (₦) (NGN) 

Time zone: WAT (UTC+1); summer (DST) (UTC+1) 

Drives on the right 

Calling code: +234 

Population 2012 estimate: 170,123,740 

GDP (2011 estimate): Total: $413,402 billion 

Per capita: $2,578 

are available. Open December until 

June, the park boasts a wealth of 

wildlife and birdlife, with many tourists 

coming with the hope of spotting the 

elusive ‘Big Five’. 

Ikogosi Warm Springs 

Address: Ikogosi Ekiti, Ado Ekiti, 

Bkiti, Nigeria 

Tel: +234 0132 1563-4 

Ikogosi Warm Springs in Ekiti State 

are said to be a geological wonder. 

From the same rock formation flow two 

springs – one warm and one cold. This 

spring is one of just eight of its kind in 

the world, and the surrounding area 

has been left untouched, allowing it to 

retain its natural beauty and aiding 

the mythical stories around the 

spring’s formation. 

Coconut Beach, Tarkwa 

Bay and Calabar Beach 

These waterside locations in Lagos State 

are places of astounding tranquillity and 

beauty, encouraging relaxation in tropical 

surroundings. Nigeria has more than 

700km of sandy beaches, meaning that 

many offer privacy and peace. Coconut 

Beach gets its name from the coconut 

trees that encircle the sand, while Tarkwa 

Bay offers a livlier atmosphere with a 

younger crowd. Calabar Beach in Cross 

River State is virtually uninhabited, and 

this isolation in an awe-inspiring setting 

allows visitors luxury and privacy at the 

mouth of the Calabar River. 

Durbar festival 

The annual Durbar festival in Kano State 

is celebrated during the religious periods 

of Eid al-Mubarak and Eid al-Fitr Salah. 

Prayers are followed by an impressive 

parade of the Emir Alhaji Ado Bayero and 

his horses – a tradition that dates back 

more than 150 years. The five-day 

festival fills the air with a cacophony of 

beating drums, wailing pipes and the 

rhythmic footsteps of hundreds of 

dancers in a cultural celebration of 

religion and an homage to the Emir. 

Argungu 

Fishing Festival 

The Argungu Fishing Festival in Kebbi 

State draws visitors from far and wide 

who flock to watch the four-day cultural 

event in the north-west of Nigeria – one 

that is truly unique and that many testify 

needs to be witnessed at first hand. On 

the final day of the festival, and at the 

sound of a gun, thousands of fisherman 

leap into the Matan Fada river in an hourlong 

competition to catch the biggest 

fish. The winner often walks away with a 

substantial cash prize, having caught the 

Major public holidays in Nigeria 

On special occasions, the federal government may declare public holidays: 

New Year’s Day 

Eid al-Fitr 

Eid al-Kabir 

Hajire (New Year) 

Good Friday 

Easter Monday 

DIRECTORY 169 

winning fish using traditional fishing 

tools, although many of the competitors 

prefer to catch the fish by hand to 

showcase their hunting capabilities. The 

festival marks the state of peace between 

the former Sokoto Caliphate and the 

Kebbi Kingdom, who fought for centuries 

prior to the arrival of the British. 

Eyo Festival 

The Eyo Festival in Lagos State is only 

held once every four to eight years, yet it 

is widely believed that the atmosphere 

rivals that of Rio Carnival. On Eyo day, 

the people pay homage to the Oba of 

Lagos whenever the occasion demands, 

although the festival is usually 

held as the final burial rites. 

Dancers and musicians depict 

the history and culture of Lagos State’s 

indigenous people in a celebration that 

has come to be internationally acclaimed. 

New Yam Festival 

The New Yam Festival, which takes place 

at the end of the rainy season across the 

entire Eastern Region, is an annual 

harvest festival. Symbolic of the 

abundance of yams, on the day of the 

festival only dishes of yam are served. 

Folk dances, parades and masquerades 

are some of the festivities used to 

celebrate the season of cultivation. 

Workers’ Day 

Children’s Day 

Id-El-Maulud 

National Day (1 October) 

Christmas Day 

Boxing Day 


170 

Index of advertisers 

Aero .....................................................................126, 172 

AES..............................................................................108 

AGCO .......................................................................4, 155 

Ahmadu Bello University ..................................................18 

Airtel ..............................................................................10 

Arik Air .........................................................................171 

Boskel Nigeria Ltd ...........................................................20 

British Airways ..............................................................129 

British American Tobacco .................................................34 

Cakasa (Nigeria) Company Ltd ..........................................99 

Chevron ........................................................................100 

Cordros Capital Ltd ..........................................................59 

Courtville Business Solutions plc .......................................14 

Damagix Group ................................................................85 

Dee Jones Petroleum & Gas Ltd ........................................47 

Dizengoff W.A. (Nigeria) Ltd............................................151 

Energo Nigeria Ltd .........................................................113 

Energyst .......................................................................123 

Hobark International Ltd ..................................................86 

ILF Engineers Nigeria Ltd .........................................76, 119 

Innoson ..........................................................................37 


Lilleker .........................................................................148 

Lucas-Nüelle GmbH .......................................................114 

Monitise .........................................................................60 

Mubadala..........................................................................2 

Murphy Shipping .............................................................50 

National Electricity Liability Management Ltd.......................8 

NEXIM Bank .....................................................................6 

Nigerian Institute of International Affairs ...........................26 

Nigerian Inter-Bank Settlement System plc (NIBSS) ...........54 

Nosak Group ...................................................................30 

Oriental Energy Resources Ltd ..........................................92 

Pan Ocean ......................................................................88 

Seven Energy ..................................................................79 

Siat Group ....................................................................152 

Sirius Group ....................................................................22 

Standard Group of Companies Ltd .....................................74 

Stemco .........................................................................130 

Travelex ..........................................................................12 

West African Ventures ......................................................80 

Wood Group PSN ...........................................................104 

Zenith Bank plc ...............................................................65

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