Nigeria’s Economic and Investment Agenda:

Leveraging India

A Presentation to17th 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

• Main Items N2I: Crude, Plastics, Wood, Cocoa • Main Items I2N:Elect. Machinery & Equipment,

Pet Products, Vehicles, Pharma, Electronics, Steel, Metals, Chemicals

- 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

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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

5

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, Federal-ism, 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:

hc.abuja@mea.gov.in 8