NIGERIA Invest in 2012-13 - Newsdesk Media

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
oil, gas and minerals 103
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.” ■
invest in nigeria 2012-13