Doing Business in Nigeria
Nigeria has one of the largest markets in Africa. It also has the potentials to be the fastest growing market on the continent. Some of these investment opportunities are below.
Extensive opportunities exist for foreign investors in the areas of forestry and agriculture, particularly in cultivation of exportable crops like cassava, timber, pulp wood, rubber, groundnuts and soya beans.
Solid Minerals Industry
Government has already embarked on open competitive bidding rounds for bitumen, coal, barytes e.t.c. since the third quarter of the year 2000. Generous terms and incentives for attracting foreign investments in this sector are also available.
Gas Market Potentials Internal
An internal demand for 360 mmscf of gas daily exists. This was expected to exceed 1.2 billion cubic feet per day by 2003. Most of these internal gas demands are now being utilized in independent power generation as well as gas utilization plants. A quantum leap in liquefied petroleum gas (LPG) consumption as well as doing business in Nigeria occurred in the same period. The National Gas Trunk-line system is to be extended northwards to Abuja and Kaduna.
Gas demands for LNG exports stands at 700 million standard cubic feet per day which are utilized in the two train LNG plants at Bonny. Daily gas consumption rose to 1.05 billion cubic feet since the third train came on stream in November, 2002. A planned Trans-West African Gas Pipeline for 2003 is expected to deliver 120 million standard cubic feet per day to the Republics of Benin, Togo and Ghana. These gas utilization projects will require the construction system in industrial and estates.
Oil Industry Petroleum Products
West Africa is an obvious target for Nigerian manufactured petroleum products. Current installed refining capacity in Nigeria is 445,00 barrels per day, although effective performance is only 50% of the installed capacity. Tremendous opportunities for investment (in the privatization of Nigeria's refineries and petrochemical plants) therefore exist to meet the demand for petroleum products in both Nigeria and West Africa. There are also opportunities for the establishment of exports oriented refineries, petrochemical and LPG plants.
Investment opportunities exist in the establishment of manufacturing facilities to produce most of the inputs for oilfield operations e.g. oil well drilling clays, chemical and materials, pipesbolts and nuts, screw gaskets, valves and other accessories, pans and plastics including other components.
Opportunities also exist for engineering construction and contracting companies willing to establish locally to boost the Nigerian content in the operation, activities and growth of the oil and gas industry.
Government has totally divested her interests in both the commercial and merchant bank. The sector is totally open for overseas investment.
This industry is not well developed despite the rich culture and a long history of traditional hospitality. This could be commercialized as the tourist attractions are many and varied and are spread all over the country.
Details of how to commence operations in the industry are available at the Department of Petroleum Resource (DPR) for interested new entrants into one of the world's most prolific and petroleum play.