The Nigerian government economic policy favors and places priority on greater investment in agricultural production, food processing, solid minerals development, manufacturing and exports of production with abundantly skilled and versatile human resources and access to Africa’s largest economy and local market of over 180 million people.
The Nigeria government has made it a priority to diversify its revenue base from oil to non-oil and has embarked on radical industrial revolution plan to position the country as manufacturing hub in the Africa region. The country is desired to drive a process of intense industrialization, based on sectors of comparative advantage – such as the agro-allied sectors; metals & solid minerals related sectors; oil & gas related industries; as well as construction, light manufacturing and services.
The manufacturing revolution in Nigeria is tailored towards accelerating industrial capacity utilization and increasing manufacturing’s contribution to GDP as contained in the Industrialization Plan. The Federal Government of Nigeria target is to generate an additional US$20 billion to US$30 billion in manufacturing revenues over the next 3 to 5 years and create jobs, generate wealth, diversify the economy from oil & gas, substitute imports and diversify exports.
AREAS OF FOCUS
Foreign investors are welcome to take part wholly or jointly in the following manufacturing or industrial projects:
- Food processing
- Fruits, vegetable oils, oil seeds, roots and tubers processing
- Cereal and grain milling;
- Sugar production
- Confectionaries and beverages
- Gemstones cutting and polishing
- Gold processing
- Multi-mineral plant for gypsum, talc, kaolin, marble/dolornite, barite, etc.
- Mining of industrial minerals; bitumen etc.
- Bricks, ceramic and glass production.
TAX CREDITS AND INCENTIVES
The Nigeria government has ambitious targets for the manufacturing sector and the sector enjoys Pioneer Status with attendant tax exemption to companies. There are large investment incentives bagged by enabling laws and supported through the Ministry of Trade and Investments and the Nigerian Investment Promotion Commission. For a complete list of the incentives available in the manufacturing sector, please click here.
Some transnational maunfacturing companies doing business in Nigeria include Unilever, Dangote, Nestle, UAC (Tiger Brands), Honeywell, Cadbury, Guiness.