Business Opportunities in Nigeria

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Business Opportunities in Nigeria

• Larry Farris
• Commercial Counselor
• US Embassy, Nigeria
• February 20, 2009

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Nigeria

• Land mass 923,768 square kilometers (twice size
  of California)
• GDP per capita of 439
• Most populous Nation in Africa, 144.7 million
  (48 under 15 years old)
• One of most ethnically diverse countries over
  250 ethnic groups
• Three largest ethnic/linguistic groups
  Hausa/Fulani (29) Yoruba (21) Ibo (18)

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Nigerian Economy

• GDP -- US 294.8 Billion (2007 est.)
• GDP Growth 6 (2008 est.) 9.6 non-oil
• Inflation 8.5 (2008 est., recently 14)
• Employment
• Agriculture 70
• Industry 10
• Services 20

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Nigerias Oil Economy

• Oil accounts for 20 of GDP, 95 foreign exchange
  earnings, 80 budget revenues.
• Africas largest petroleum producer. In top 10
  globally.
• 36 billion barrels reserves, 187 trillion
  standard cubic feet gas reserves.
• Petroleum sector crowding out other sectors.

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2007 Oil Revenues (Billions US)
Data Source Energy Information Agency
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2007 Oil Revenues Per Capita (US)
Data Source Energy Information Agency
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Barrels of Crude Oil Per Capita (P1 Reserves)
Data Source Energy Information Agency, CIA World
Factbook, BP Statistical Review, Oil and Gas
Journal
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Challenges to Economic Growth

• Electricity average generation 2,800MW
• Transportation Infrastructure roads, rail,
  ports, airports
• Agricultural Sector formerly large food
  exporter, now major food importer
• Petroleum sector investment lagging
• Effects of global financial crisis Naira
  devaluation, federal budget, stock market, FDI
  flows, potential impact on banking sector

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Challenges to Economic Growth

• Education 68 literacy
• Corruption 2008 Transparency International rank
  121 (2007 rank 147)
• 419 scams/yahoo boys
• Security Niger Delta
• Trade barriers and smuggling

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US Trade With Nigeria

• Total US-Nigerian trade in 2007 was 35 billion.
• Nigeria ranks 20 trade partner with US.
• 2008 Jan-Sept up 31
• Primary US exports Oil and Gas equip,
  machinery, grains (24), vehicles, aircraft,
  construction equip.
• Primary Nigerian exports to US petroleum prods.
  (99.8 ), organic chemicals, Rubber, cocoa.

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Opportunities for US Exporters

• Oil Gas
• upstream machinery and services
• Modular refineries, petroleum distribution
  equipment
• Natural gas market development
• Electrical Energy
• IPP, thermal generation, transmission
• Aircraft/aviation/ground support equipment

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Opportunities

• Safety and Security
• Residential and commercial alarm systems
• Transportation and logistics security
• Telecommunications
• Broadband technologies, services and equipment
• Agricultural Equipment and supplies
• Tractors/implements
• Storage, poultry industry, irrigation

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Opportunities

• Healthcare Services and Medical Equipment
• Medicines, clinical equipment and supplies
• Preventative care early diagnosis
• Vehicles cars, trucks and buses
• Marine vessels work boats, fishing vessels,
  dredges
• Construction equipment

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Tips for Successful Business in Nigeria

• Scams galore, but also solid, lucrative business
  opportunities
• Due Diligence
• NUSA Program
• International Company Profile
• Payment in full before shipping anything
• When in doubt, check it out

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Upcoming IBP Events

• International Franchise Expo March 20-22,
  Washington, DC
• International Security Conference (ISC West)
  April 1-3, Las Vegas
• OTC May 4-7, Houston
• Waste Expo June 8-10, Las Vegas
• Great American Trucking Show Aug 20-22, Dallas
• International Workboat Show Nov 28-30, New
  Orleans
• Power Gen Dec 6-8, Orlando

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UPCOMING EVENTS

• May 2-15 Nigerian American Chamber of Commerce
  trade mission to Washington/Baltimore, Chicago
  and Miami
• May 4-7 Off Shore Technology Conference
  (Nigerian seminar and matchmaking session),
  Houston
• May 11-13 CTO Seminar and Exhibition (ITC
  technologies), Lagos
• September 22-24 Agricultural Equipment and
  Technology Trade Mission to Nigeria

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Useful Links

• www.export.gov
• www.buyusa.gov/nigeria
• www.nigerian-americanchamber.org
• www.africacncl.org
• http//nigeria.usembassy.gov/
• www.agoa.gov http//fas.usda.gov

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Contact Us

• US Consulate General - FCS
• 2 Walter Carrington Crescent
• Victoria Island
• Lagos, Nigeria
• Tel [phone]
• Fax [phone]
• www.buyusa.gov/nigeria
• Larry Farris, Commercial Counselor
• larry.farris_at_mail.doc.gov