News and Press Release

ALUMINUM AND STEEL CONSUMPTION; CRITICAL TO NIGERIA’S ECONOMIC DEVELOPMENT.

The metals sector in Nigeria today is yet to reach its full potential particularly in the development and consumption of key metallic products as Iron, Steel, Copper, Aluminium, Tin, Lead, Zinc and in exploitation of key noble metals such as gold and silver. With the nation’s capacity, potential and resource base, all these products can readily be developed and used to jumpstart industrialization and economic growth of the economy.

The consumption rate of Steel and other metals products is regarded as a major index of industrialization of a nation. By that yardstick, when compared with even some developing nations, Nigeria is lagging far behind in industrial development.

By the current estimate, the annual per capita consumption of Steel and Aluminium in Nigeria are about 10kg and 0.3kg respectively while the corresponding world average in respect of the two metals are 130kg and 5kg respectively.

In Apparent steel consumption (ASC), Nigeria is lagging behind when compared with even countries like Algeria with 42kg/capita, Egypt with 36 38kg/capita, and Zimbabwe with 25kg/capita. This is an indication that Nigeria with an estimated population of over 165 million has a large room and huge potential domestic market that can sustain rapid growth in the metals and related product sector.

The new metals policy is predicated upon the need to develop a vibrant metals sector where Government will play the role of administrator-regulator with the private sector as owner-operator. When properly implemented, this policy would enable Nigeria become a major regional and global producer of aluminum and steel products with a production target of 500,000 tonnes per year of primary aluminum and 12 million tonnes per year of steel products targeted by the year 2020.

Given the versatility of aluminum and steel as an industrial material, it has high potential link effects in Nigeria’s economy.

While the export orientation of Aluminum Smelter Company of Nigeria (ALSCON) is very relevant, it is recognized that the long-term viability would largely depend upon accelerated and orderly growth of domestic consumption of its products.

In fact from the point of view of value addition, the downstream industries that should be encouraged to export their products, after satisfying domestic market, so as to enhance the foreign exchange earning of the Country.

By Anaekwe Everistus Nnamdi

Editor’s Viewpoint
Investing in Nigeria Magazine
July,2013 Edition

USING LEGISLATION TO AID BUSINESS GROWTH AND DEVELOPMENT IN NIGERIA

It is well documented fact that Nigeria, a country of well over 165,000,000 people with a population growth of 5.7% per annum represent the largest market for any product and services meant for the African continent.

This market guarantees an expanding and sustainable demand for product and services in the Power/Energy, Oil & Gas (extractive and non-extractive), Agriculture & Agro Allied, Waste Management, Maritime, Shipping and Ports, Solid Minerals, Banking & Financial services, Tourism / Hospitality, Pharmaceuticals and Health services, Information & Communication Technology (ICT) and Manufacturing sectors of the Nigeria economy.

It is instruction to note that Nigeria has one the highest return on investment (RoI) in Africa and is one of leading destinations of Foreign Direct Investment {FDI} on the Africa continent mainly in the petroleum and telecommunication sector.

The Nigerian Investment Promotion Commission Act 16 of 1995; Investment Protection Guarantees Non-expropriation of Investment: The NIPC Act No. 16 of 1995 guarantee that ‘No enterprise shall be nationalized or expropriated by any government of the federation 100% ownership of investment in any sector (except ones listed in the ‘negative list’) irrespective of nationality, Guarantee of unconditional transferability/repatriation of funds through an authorized dealer, in freely convertible currency .

Also under the Foreign Exchange (Monitoring & Miscellaneous Provisions) Act 17 of 1995, investors are free to repatriate their profits and dividends net of taxes through any authorized dealer in freely convertible currency.

Full text of the following investment related laws can be found on our online business forum at www.nigeriabusinessplace.com .

1. PUBLIC PROCUREMENTACT, 2007
2. INFRASTRUCTURE CONCESSION REGULATORY COMMISSION (ESTABLISHMENT, ETC) ACT, 2005
3. Banks and other Financial Institutions Decree 1991
4. REVISED GUIDELINE ON BUSINESS PERMIT AND QUOTA
5. Bills of Exchange Act 1990
6. Environmental Impact Assessment Decree 1992
7. Nigerian Oil and Gas Industry Content Development Bill 2010
8. National Minerals and Metals Policy
9. Coastal and Inland Shipping (Cabotage) Act 2003

These legislations should assign supportive roles to the government, while investments should be left to the private sector.

By Anaekwe Everistus Nnamdi

Editor’s Viewpoint
Investing in Nigeria Magazine
August,2013 Edition

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