Global partnerships and sustainable investments, BY CLEM IKANADE AGBA

I am pleased to be part of the 2023 Leaders Without Borders Annual Business Summit & International Honours in England, United Kingdom. I wish to commend the Governing Council of the Leaders Without Borders Development Centre for bringing together, eminent men and women across the globe who have made great contributions in the development of their countries. As it has been the case over the years, this event would again provide a veritable platform for global networking, cross-country collaboration and benchmarking towards strengthening partnerships and advancing investments.

2. I would further like to express my profound gratitude to Leaders Without Borders Development Centre Leadership Council, the Advisory Board Committee and the founder, Amb. Dr. Hillary Emoh for initiating and sustaining this Forum and counting me worthy to be here in a mantle of this rectitude. It is a great honour to be recognised in this way, and I am deeply grateful for the opportunity to serve as a Federal Minister and to contribute my quota towards the development of my dear Country Nigeria.

3. The Theme of this Year’s Summit: ‘Business Beyond Borders: Global Partnerships and Sustainable Investments is very apt, given the importance of cross border Sustainable investments and partnerships for enduring global economic growth and development.

4. Your Excellencies, Captain of Industries, Distinguished Guests, Ladies and Gentlemen, in discussing Business Beyond Borders: Global Partnerships and Sustainable Investments, I will like to take a view of it from the Nigerian perspective and the opportunities available for Investors.There is no gainsaying that Nigeria is by far the most attractive investment destination in Africa backed by strong economic fundamentals critical for businesses to thrive. The reasons include the following:

▪Nigeria is Africa’s largest economy, for the past seven years;

▪ It has a stable political landscape with about 24 years of unbroken civil rule and peaceful transition of power between democratic players;

▪ It is the most improved economy in Africa and rated as one of the top 10 improved economies in 2020 based on the World Bank Ease of Doing Business ranking;

▪It has a huge market size with a projected population size of 402 million and potential to become the 3rd most populated country by 2050;

▪It has large financial markets which is one of the largest in Africa, with market capitalization of over US$50 billion;

▪ It has high potential demographics i.e. energetic, tech-savvy and entrepreneurial population with over 60% aged 25 and below;

▪It possess diverse and abundant natural resources and geographical land mass larger than France and UK combined.

▪Long-time host to global brands such as Diageo, PZ Cussons, GSK, MTN etc; and

▪Nigeria continues to play prominent role in the global polity, including the Economic Community of West African States (ECOWAS), African Continental Free Trade Area (AfCFTA), UN Systems, International Peace Keeping Operations, World Trade Organization (WTO), as well as in bilateral and multilateral agreements.

5. To remain competitive, we have continued to work hard in all fronts. We have developed Long and Medium Term Development Plans that serve as a road map for economic and social transformation of the country. The Nigeria Agenda 2050 is the Perspective Plan designed to transform the country into an “Upper-Middle Income Country”, with a significant improvement in per capita income. The Plan aims to fully engage all resources, reduce poverty, achieve social and economic stability. It also targets developing a mechanism for achieving a sustainable environment consistent with global concerns about climate change. The Plan therefore, presents the road map for accelerated, sustained and broad-based growth and provides broad frameworks for reducing unemployment, poverty, inequality, and human deprivation. It will ensure linkage amongst the Perspective Plan, Medium-Term Plans and the Annual Budgets. The Nigeria Agenda 2050 will also integrate the Global & Regional Commitments namely: Addis Ababa Action Agenda (African Union), Sustainable Development Goals (United Nations), Paris Declaration on Climate Change etc. It will be implemented through six Medium Term Plans: the National Development Plan, 2021-2025 (already developed and published) and subsequent National Development Plans covering 2026 -2030, 2031 – 2035, 2036 – 2040, 2041 – 2045, and 2046 – 2050.

6. The first of the Medium Term Plan named National Development Plan 2021 – 2025, is to make Nigeria a country that has unlocked its potentials in all sectors of the economy for a sustainable, holistic and inclusive development. The Plan is designed to accelerate growth, deepen the initiatives for a concentric diversified growth, and foster sustainable development.

7. The country can achieve these targets through inclusive economic growth and development, leveraging our young workforce, enhancing implementation capacity at national and sub-national levels and sustaining the growth of Micro, Small and Medium Enterprises. The Plan also focuses on identifying and removing binding constraints to growth as well as mobilizing resources for sustainable development of the country.

8. Your Excellencies, Captain of Industries, Distinguished Guests, Ladies and Gentlemen, this Plan will facilitate sustainable growth and development for Nigeria largely through Private sector investments. The Nigerian Government has therefore, made concerted efforts in prioritizing the creation of a conducive investment climate to spur growth and job creation in all sectors of the economy with various positive results to show as attested to by Nigeria’s continuous rise in the Ease of Doing Business ranking and other International business climate rankings.

9. Suffice to say that, if the Plan is effectively implemented, it is expected to achieve average economic growth of 4.6 percent, lift at least 35 million people out of poverty and create 21 million full-time jobs. It is also expected to raise revenue to GDP ratio to 15 per-cent, as well as, improve the health and education of the Nigerian population by 2025, amongst others.

10. Unlike the previous Plans implemented in Nigeria, the current National Development Plan 2021 – 2025 is unique in many respects. It contains three volumes: Volume I contains the policies with targets and the required investment; Volume II has the costed priority programmes and projects; while Volume III addresses the issues of legal and legislative imperatives, including the enabling laws that need to be passed or amended for effective implementation of the Plan. Also, a robust citizens-based Monitoring & Evaluation WebApp (EYEMARK) has been developed to enhance participation of citizens and Civil Society Organisations (CSOs) in tracking progress and performance of Government’s interventions in this regard. The other new features include:

▪A mechanism to engage, empower and employ our teeming energetic youths to curb restiveness;

▪Inclusiveness by mainstreaming women, youth, vulnerable groups in all aspects of social, economic and political activities;

▪Financing Plan to increase revenue to 15 per-cent of GDP by 2025 and to decrease budget deficit;

▪Running Sports as a business;

▪ Integrated rural development and sub-national governments cooperation and collaboration; and

▪Strong implementation framework and a strengthened National Monitoring and Evaluation System for effectiveness of implementation. In this regard, a National Monitoring and Evaluation Policy has been approved by the Federal Executive Council, the highest decision making Executive Arm of the Federal Republic of Nigeria.

11. For effective delivery, the roles of Government are mainly in:

▪Regulatory reforms and the ease of doing business;

▪ Increased credit and market access;

▪Efficient financial Support/Partnership with the Private Sector system including support for Micro, Small and Medium Enterprises (MSMEs); and

▪ Amplification of Public-Private Partnership (PPP) and promoting the use of securitization to enhance massive infrastructure development.

12. The initiatives indicate greater willingness by Government to work with the Private Sector, providing an enabling environment for the Sector’s participation by increasing credit and market access, regulatory reforms and support, and having bold actions in areas such as education, health and public sector as part of creating and nurturing the environment for businesses to prosper. The Nigerian National Development Plan (2021-2025) also focuses on eradication of corruption and providing modern infrastructure.

13. Other key opportunities in the various sectors for Private investments are in the:

▪Digital Economy;

▪Green & Blue Economy e.g Waste Management etc;

▪Gender-balanced job opportunities;

▪ Full implementation of the Petroleum Industry Act;

▪Large-scale Mining Corporations and Artisanal Miners;

▪Reforms in the Culture, Creative, Tourism and Hospitality Sector;

▪ Improve infrastructure (Rail, Roads, Housing etc). Road construction & rehabilitation;

▪Enhanced production of cash crops, livestock, fisheries and forestry; Intensified linkages between agriculture and manufacturing, other sectors;

▪More investments in high-growth sectors such as agriculture and mining;

▪Conceptualization/implementation of a National Trade Policy Framework; and

▪Review and monitoring of land administration laws/real estate sector.

14. Historically, Nigeria has been one of the important destinations for Foreign Direct Investments (FDIs) in Africa. In 2020, it was the 4th host economy for FDI in the continent according to the World Investment Report 2021. FDI inflows to Nigeria totaled $2.4 billion, showing a 3.5% increase compared to $2.3 billion recorded in 2019. The 33% drop in the average price of crude oil in 2020 coupled with low demand and supply-side constraints restricted FDI inflows into the Country in the first half of 2020. Despite the pandemic, the long-term policy for diversification of FDI has been noted to have made some impact.

15. An important Greenfield Investment ($66 million) that is significant in the non-oil economy is the construction of a manufacturing facility in the Lekki Free Trade Zone by Ariel Foods (Kenya). There was also another investment by the China Communications Construction Company that provided an initial $221 million equity injection in the Lekki Deep Sea Port, out of a planned total investment by Multichoice Group (South Africa). A commendable milestone is the massive local investment by the Dangote Group in the development of a 3 – million metric tons of Urea Fertilizer Plant annually, the World’s largest Single Train Refinery and Petrochemical Complex with a capacity of 650,000 barrels of crude oil per day, besides other railway infrastructural projects across the country.

16. Your Excellencies, Captain of Industries, Distinguished Guests, Ladies and Gentlemen, permit me to highlight the huge investment requirement and potentials in the Transport sector, which has played a key role in contributing to our GDP. The estimated public investment of the sector outlined by the plan is N7.73 trillion (US$17.6 billion) with financing options available to the government through the: N100 billion (US$227.1 million) capital market Sukuk Bonds for roads; and about N40 billion (US$90.8 million) set aside by the Central Bank of Nigeria (CBN) Infrastructural Corporation of Nigeria (InfraCo) in collaboration with the Nigeria Sovereign Investment Authority (NSIA) for road infrastructure. Others include the Presidential Infrastructure Development Fund Portfolio with the sum of US$321 million for roads including the 2nd Niger Bridge and the Pension Fund.

17. Despite the above, there is no gainsaying the fact that the investment requirement is not limited to these sectors, as more areas with potentials for impressive returns abound in the economy. Though the Nigerian business environment has been affected by several challenges that made business operations costly and inefficient, the Nigerian Government is not leaving any stone unturned, as it has put in place mechanisms to check some of the challenges. Prominent amongst these efforts are: streamlined administrative processes; continuous improvement in security; access to land and finances; and the fight against corruption. Other efforts include reforms for an efficient judicial system, streamlining processes for access to foreign exchange; and improved drive for industrialization, through the National Integrated Infrastructure Master Plan (NIIMP) for a modernized infrastructure stock over the next 30 years.

18. Numerous incentives for Investors abound such as:

Ø Favourable Tax Regime: (a) holidays/breaks, reliefs, credits, exemptions, allowances etc (b) Low income tax rate at 20 – 30 per cent depending on the industry, (c) Low Value Added Tax (VAT) chargeable on goods and services is at 7.5%., and (d) The Capital Gains Tax rate is 10% etc.

Ø Remittances: Foreign investors are now free to bring in investment capital and repatriate both profits, income and capital proceeds on such capital.

Ø Special Incentives: Protection against nationalization and expropriation per Section 25 Nigerian Investment Promotion Commission (NIPC) Act, Recourse to international arbitration on dispute settlement per Section 26 NIPC Act.

Ø Free Trade Zones: There are over 40 free trade zones in Nigeria, with 14 operational ones aimed at diversifying export and achieving economic growth.

Ø Domestication of Africa Continental Free Trade Agreement (AfCFTA): This is the largest single trading block in the world. Full implementation of the Agreement is projected to drive investment in African countries.

Ø Visa Incentives: In addition to the Special Business Visas like the multiple entry F4C (Frequently Travelled Executives Visa) with 5-year validity, The Nigeria Visa Policy 2020 introduced investor visas for the first time including Permanent Residence Visas like N3A for Small Scale Enterprise Investors, N3B for Medium Scale Enterprise Investors, N3C for Large Scale Corporation Investors, N3D for Ultra Large Scale Corporation Investors, and N3E for Oil & Gas and Power Sector investors. These visa details are available under the Business / Investor Visa Section.

19. Let me take this opportunity to reassure prospective investors that the Government of the Outgoing President of the Federal Republic of Nigeria, His Excellency Muhammadu Buhari acknowledges the need to sustain and readily fine-tune policy initiatives towards tackling business constraints that will mobilize quality investments (both domestic and foreign) into the non-oil sector in line with the objectives for maximizing opportunities under African Continental Free Trade Agreement (AfCFTA). This is expected to be sustained by the incoming Administration.

20. In conclusion, it is important to highlight that the scale of funding and technical support required to implement Nigeria’s National Development Plan Stream 1 (2021 – 2025) is far beyond the scope of individual governments and multilateral funding agencies. Thus, Nigeria is using this unique Forum, to canvass for more Private Sector and Development Partners’ funding to fill the funding gap and to operationalize the policies and actions outlined in the Plan.

21. Once again, I appreciate the Governing Council of the Leaders without Borders Development Centre for inviting me and commend your effort in contributing to global development. I am confident that the outcome of this event will help build new partnerships and redirect investments to developing economies such as Nigeria, which is set to transit to another democratically elected government on May 29th, 2023.

22. I thank you for your kind attention.

● BEING KEYNOTE ADDRESS BY PRINCE CLEM IKANADE AGBA, HONOURABLE MINISTER OF STATE FOR BUDGET AND NATIONAL PLANNING
AT THE LEADERS WITHOUT BORDERS ANNUAL BUSINESS SUMMIT & INTERNATIONAL HONORS, LONDON 2023.