Download Nigeria`s Economic and Investment Agenda: Leveraging India

Nigeria’s Economic and
Investment Agenda:
Leveraging India
A Presentation to
17th Nigerian Economic Summit by
Indian High Commissioner Mahesh Sachdev
(Hilton Abuja November 11 2011)
A Snapshot of India
• Population: 1.21 Billion (2nd Largest) on 1.3.2011
• Area: 3.2 mn sq kms (7th Largest)
• Polity: Parliamentary Democracy under 1950 Constitution with
electoral college of over 714 mn; 15 General Elections in 60 years.
• Media: ~70,000 Publications, 1,400 TV Stations, 100 m on Internet
• GDP: PPP: $4.04 Tn (World’s 4th Largest); Nominal: $1.7 Tn (10th)
• Composition: Services:58%, Ind.:28%, Agric.:14%
• GDP Growth: 10.4% in 2010; 7.7% in 2011 (Latest IMF Data)
• Trade/GDP: 40%; Exports: $250 bn; Imports $327 bn (2010-11)
• Fixed Investment/GDP: 32.2%
• Market Cap/GDP: 150% Approx. Fiscal Deficit: 4.7% of GDP
• Cumulative Foreign Investments on 31.12.10: $198 bn (FDI);
$172 Bn (FII); $ 89 bn (Investments Abroad)
• Mixed Economy under Independent Regulators
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Nigeria-India: Current Picture
• Nigeria’s 2nd Largest Trading Partner ($13.0 bn
in 2010-11)
• Largest Investor in Nigeria in 2010 ($ 5 bn)
• Indian Cos are Nigeria’s 2nd Largest Employer
• Pole Spot in IT, Health, Steel, Power X-mission
• Growing Medical Tourism, Education & Training
• Incoming Projects: Power, Petro-Chem, Health
• Growing P2P Contacts: 23,669 Visas in 2010
• ~35,000 Indians in Nigeria (<0.2% of Population)
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Nigeria-India Trade
-
Y07
Y08
Y09
Y10
Y11
Nigeria to India
7027
7612 (+9%)
8900(+17%)
7288 (-18%)
10788 (+48%)
India to Nigeria
903
1085 (+20%)
1529(+41%)
1408 (-8%)
2259 (+60%)
Total Trade
7930
8697
10429
8696
13047
Trade Growth
-
9.6%
20%
-16.6%
50.0%
Trade Balance
-6124
-6527
-7371
-5880
-8529
• Main Items N2I: Crude, Plastics, Wood, Cocoa
• Main Items I2N:Elect. Machinery & Equipment,
Pet Products, Vehicles, Pharma, Electronics,
Steel, Metals, Chemicals
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Nigeria-India Business Ties
• 120 Years of Indian Business in Nigeria began with
Trade & Textiles. It has gradually expanded to IT,
Telecom, HRD, Pharma, Agric., E&P, Mfr-ing, Steel,
Transport, Services, Distribution & Retailing, etc
• Key Drivers: Similarities & Complementarities,
Mutual Familiarity, Compatible & Cost-Effective
Solutions, Appropriate & Proven Technology,
Easy Sustainability & Up-Scaling, Professionals
• Challenges: Better Connectivity, Stereotypes,
Enabling Framework, Financial Constraints
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India in Nigeria’s Economic Agenda
• Existing Collaboration: Jt Commission,
Capacity Building through ITEC, AIFS-II
&Other Means; Experts’ Visits, Line of
Credit
• Potential: Leveraging Relevant Indian
Experience in Planning & Reforms, Job
Creation, MDGs, e-Governance, Federalism, Strengthening Regulators, etc.
• Methodology: To Be Driven by Nigeria
India in Nigeria’s Investment Agenda
• Current Status: Biggest Investor in 2010; Over
100 Indian Cos; 2nd Largest Job Provider, Investt
Compatible with GoN Priorities: Health, Agric,
HRD, IT, Power, Oil, etc.
• In Pipeline: Petro-Chem, Infra, Power
• Potential: Hydrocarbons, Railways, Services,
Mining, Consumer Goods, Vocational Training,
• Wish List: P2P Engaging Indians, BIPPA,
DTAA, Transparency, Regulatory Regime,
Labour Laws, Visa, Ensuring Level Playing Field
Bilateral Opportunities
[ India to Nigeria / Nigeria to India ]
• More of Current Trade Power Equipment, Refined Products,
Vehicles, Pharma, Steel, Metals, Chemicals, Textiles, IT,
Hydrocarbons, Wood, Cocoa, etc.
• Potential Areas: Foodstuff, Commodities, Consumer Goods,
Engineering Goods & Services; Palm Oil, Solid Minerals, Cashew,
Handicrafts, Herbs, etc.
• More of Current Investments: IT, Telecom, Pharma, Agric., E&P,
Mfr-ing, Steel, Transport, Distribution & Retailing, etc.
• Potential Areas: Petro-Chem, E&P, Infrastructure, Farming & Food
Processing, Power, Education, Healthcare, Vocational Training, etc.
Thank You !
Comments & Questions are Welcome: [email protected]
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