Nigeria: Non-oil firms set to invest US$ 10 billion in Nigerian economy

Economy – About 166 non-oil indigenous companies have finalized plans to invest 1.5 trillion naira (about US$ 10 billion) in the Nigerian economy within the next 12 months, as a way of turning around the economic fortunes of the country, according to local media reports. “During our meeting with the organized private sector, we asked them to fill a survey form to indicate the sectors they want to invest in, and more importantly, the expected investment they intend to bring into that sector going forward, Guardian newspapers quote the Minister of Trade and Investment, Olusegun Aganga, as saying. “The objective was to know the level of investment we can get from the companies in Nigeria, before we
talk about Foreign Direct Investments. The result of that survey has just been released. It showed that the local companies will invest 1.52 trillion naira in the Nigerian economy within the next 12 months. And this is in the non-oil sector alone,’ the minister added.

Aganga said the investment figure, which was a conservative one because of the few companies captured, was arrived at after an analysis of the survey forms filled by the companies during the ministry’s maiden
meeting with the organized private sector and captains of industry.

Companies that have indicated interest included Dangote Group of Companies which will invest 900 billion
naira (about US$ 6 billion) in the production of fertilizer and petro-chemicals.

The Nigerian Bottling Company Plc pledged to invest 45 billion naira, Guinness Nigeria Plc US$ 225 million,
Odu’a Investment Company Limited – 37 billion naira; and Ikeja Hotels Plc, US$ 6million, among others.

According to the survey, the manufacturing, real estate, agro-allied and automotive sectors will get 1.06
trillion naira, 198.5 billion naira, 67. 8 billion naira and 45 billion naira investments respectively.

The tourism, trade and commerce, transport and others, will make up the balance.

Nigeria’s Vision 2020 document says the country needs to invest 34 trillion naira (US$ 2.3 trillion) in growth
areas in the next four years. Of this, the Federal Government should account for 10 trillion naira, state
governments – 9 trillion naira and the private sector – both local and international — 15 trillion naira.

The overall macroeconomic target for the medium term is for Nigeria to achieve a target Gross Domestic
Product of 50 trillion naira (about US$ 3.4 billion) by 2013, as well as growth in GDP per capita from US$
1,075 in 2009 to US$ 2,008.75 by the same target date.
“The Federal Government, through the Ministry of Trade and Investment, is fully committed to partnering
with these companies by removing any barrier that will impede the investment, which will be pro-growth and
pro-jobs,” Aganga assured.

He said the Federal Government was committed to providing the conducing environment to enable the
private sector to play a pivotal role in the transformation of the country’s economy.

Author: nmmin

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