Der Verein Afrika Workshop Organisation e.V., (afwo), wurde in dem Gebäude des Deutschen Paritätischen Wohlfahrtsverbandes am 10. Oktober 1998 in Stuttgart gegründet.

Zeitgleich fand die Nigerianische Arbeitstagung zum Thema: "Lebensfähige und aktive Demokratie" statt.
Mehrere AfrikanerInnen aus verschiedenen hauptsächlich politisch engagierten Vereinen fanden sich zusammen, um den Verein "Afrika Workshop Organisation e.V." zu gründen.

Die Gründung wurde beeinflusst durch eine Sehnsucht der AfrikanerInnen nach einem dynamischen, für die Belange des Kontinents empfänglichen Vereins, der diese energisch vertritt und ein Sprachrohr für AfrikanerInnen bildet, um die Strukturprobleme zu bekämpfen.

Der Verein ist ein unmittelbar, gemeinnütziger, humanitärer der ist hauptsächlich für die Förderung des Kontinent Afrikas.

Africa Workshop Organisation e.V. was launched at the Deutschen Paritätischen -Wohlfahrtsverband, Stuttgart on the 10^th of October, 1998. Its formation coincided with the Nigeria Working Conference on a viable and Participatory Democracy which attracted a lot of Africans of various nationalities. Its birth was witnessed by these multinational Africans thus heralding the coming on stream at this crucial period in north-south relations, a foremost politically and diplomatically motivated Organisation, a frank mouthpiece of the citizen of Africans in Germany and Europe

Objectives and Programmes

Stuttgart, 10^th October, 1998

Dr. Gabriel Lanre Adeola.

Coordinator/Secretary-General
 
 

§ 1 Name, Sitz

Der Verein Africa Workshop Organisation e.V. mit Sitz in Stuttgart,

verfolgt ausschließlich und unmittelbar – gemeinnützige in Sinne des Abschnitts „Steuerbegünstigte Zwecke" der Abgabenordnung.

§ 2 Zweck

Die Gründung wurde beeinflusst durch die Sehnsucht der AfrikanerInnen nach einem dynamischen, für die Belange des Kontinents empfänglichen Verein, der diesen energisch vertritt und ein Sprachrohr für AfrikanerInnen bildet, um die Strukturprobleme zu bekämpfen. Der Verein ist hauptsächlich ein afrikanischer „think-tank", eine humanitäre, und diplomatische lobbying group. die ausschließlich und unmittelbar gemeinnützige Ziele im Sinne des Abschnitts „Steuerbegünstigte Zwecke" der Abgabeordnung verfolgt.

2.(1) Unsere Aufgaben und Ziele :

§ 3 Der Verein ist selbstlos tätig; er verfolgt nicht in erster Linie eigenwirtschaftliche Zwecke.

§ 4 Mittel des Vereins dürfen nur für die satzungsmäßigen Zwecke verwendet werden. Die Mitglieder erhalten keine Zuwendungen aus Mitteln des Vereins.

§ 5 Es darf keine Person durch Ausgaben, die dem Zweck der Körperschaft fremd sind oder durch unverhältnismäßig hohe Vergütungen begünstigt werden.

§ 6 Eintritt von Mitgliedern

§ 7 Austritt von Mitgliedern

Ein Mitglied kann jederzeit durch schriftliche Erklärung gegenüber einem Mitglied des Vorstands aus dem Verein austreten.

§ 8 Ausschluss von Mitgliedern

Ein Mitglied kann aus dem Verein ausgeschlossen werden, wenn es schuldhaft in grober Weise die Interessen des Vereins verletzt. Über den Ausschluss beschließt die Mitgliederversammlung, wobei eine Mehrheit von drei Viertel der abgegebenen Stimmen erforderlich ist.

§ 9 Mitgliedsbeitrag

Der Mitgliedsbeitrag wird von der Mitgliederversammlung festgesetzt.

§ 10 Vorstand

Der Vorstand besteht aus dem Vorsitzenden und dem Stellvertretenden Vorsitzenden. Der Vorstand wird von der Mitgliederversammlung für die Dauer eines Jahres

gewählt; er bleibt jedoch auch nach Ablauf seiner Amtszeit bis zur Neuwahl im Amt. In der Übergangszeit für c. a zwei Jahre besteht der Vorstand aus einer Person, die auch gleichzeitig Schriftführer ist. Jedes Mitglied des Vorstands ist allein zur Vertretung des Vereins berechtigt.

§ 11 Mitgliederversammlungen

Die ordentliche Mitgliederversammlung findet jährlich statt. Außerordentliche Mitgliederversammlungen finden statt, wenn dies im Interesse des Vereins erforderlich ist, oder wenn die Einberufung einer derartigen Versammlung von einem Fünftel der Mitglieder schriftlich vom Vorstand verlangt wird; dabei sollen die Gründe angegeben werden.

§ 12 Einberufung von Mitgliederversammlungen

Mitgliederversammlungen werden vom Vorsitzenden, bei dessen Verhinderung vom Stellvertretenden Vorsitzenden durch einfachen Brief einberufen. Dabei ist die vom Vorstand festgelegte Tagesordnung mitzuteilen. Die Einberufungsfrist beträgt zwei Wochen. In der Übergangszeit ist die Einberufung von Mitgliederversammlungen die Aufgabe des Vorstandes/Schriftführer.

§ 13 Ablauf von Mitgliederversammlungen

Die Mitgliederversammlung wird vom Vorsitzenden, bei dessen Verhinderung vom Stellvertretenden Vorsitzenden geleitet; ist auch dieser verhindert, wählt die Mitgliederversammlung einen Versammlungsleiter. In den ersten zwei Jahren wird die Mitgliederversammlung vom dem Vorstand/Schriftführer geleitet.

Durch Beschluss der Mitgliederversammlung kann die vom Vorstand festgelegte Tagesordnung geändert und ergänzt werden. Über die Annahme von Beschlussanträgen entscheidet die Mitgliederversammlung mit der Mehrheit der abgegebenen gültigen Stimmen; Stimmenthaltungen gelten als ungültige Stimmen. Zum Ausschluss von Mitgliedern und zu Satzungsänderungen ist eine Mehrheit von drei Viertel, zu Änderungen des Vereinszwecks und zur Auflösung des Vereins eine solche von neun Zehntel der abgegebenen gültigen Stimmen erforderlich. Abstimmungen erfolgen grundsätzlich durch Handaufheben; wenn ein Drittel der erschienenen Mitglieder dies verlangt, muss schriftlich abgestimmt werden.

§ 14 „ Bei Auflösung des Vereins oder bei Wegfall steuerbegünstigter Zwecke ist das Vermögen zu steuerbegünstigten Zwecken zu verwenden.

Beschlüsse über die künftige Verwendung des Vermögens dürfen erst nach Einwilligung des Finanzamts ausgeführt werden."

§ 15 Protokollierung von Beschlüssen

Beschlüsse sind unter Angabe des Ortes und der Zeit der Versammlung, sowie des Abstimmungsergebnisses in einer Niederschrift festzuhalten; die Niederschrift ist von dem Schriftführer zu unterschreiben.
 
 

Stuttgart den 13. Dezember, 1998

Dr. Gabriel Lanre Adeola

Vorstand/Schriftführer 

This is an educational project which is aimed at equiping Nigeians with the latest information and media technology. The focus is to popularise the use of computer and the accompany software and log on to the internet.

The strategy we have designed is to build a computer village where at the beginning we would need from 100 to about 200 standard computers which as the project kicks off, shall be increased. Additionally, we are looking at the possibility of building a network with one of the newly established universities in the country. In other words, such a project would be intimately linked with such a university. Already, the university we are planning to work with is the Ondo State University located in Akungba, a remote village in Ondo State of Nigeria. The choice is informed by its newness and remoteness which fits perfectly into our national and continental strategy of opening up the regions for the millenial development. The other universities considered in our immediate programme are the Ado-Ekiti University situated in Ekiti state of Nigeria and the newly established university of Gambia located in Banjul. In respect to the two universities in Nigeria, we intend to work in cooperation with another Nigerian association, Ondo-Ekiti Future Foundation, operating in Aachen, Germany.

The practicability of the project is to make it open to interested sponsors and donors internationally. Then ofcourse, as a registered volontary orgnisation in Germany to work in concert with established organisations in the country and the ministry in charge of development assistance. In the meantime, while we continue to do the ground work, we are throwing this project open to interested organisations and donors within Germany and internationally for computer and software to promote this educational project to get in contact with us.

This is a project which under our Radio programme takes the title Africa Vision. In the educational exchange project, the same title has been adopted. The radio programme is beamed every Satudays in conjuction with Nigeria Monitor on Radio Wüste Welle FM 96,60 : It is a socio-political and economic platform to present Africa to the world. It is a forum where the issue of globalisation as it affects the continent of Africa takes a cetre stage. The Africa Vision is addressed to Africans from all over the world and friends of Africa. In this wise, the programme is moderated in different languages spoken on the continent so that many interested people can participate.

Equally, the educational programme is titled : Africa Vision: A strategical, political, economic and ecological in a globalising world.This programme is being run under exchange programme with Volks Hoch Schule (VHS), Stuttgart. The programme will run for 6 months beginning from the 13^th of March 2002 and to end on the 11^th of July, 2002. Other dates already programmed are 29^th of April, 16^th of May, 10^th of June and 1^st of July. 2002.

Our second Project is an integrated project for a cooperative engagement which could be simultaneously realised in Nigeria and Germany. Among the proposed projects are the following:

(a) Reduction of emission through conversion of petrol or diesel engine to gas engine. At the initial stage, it maybe possible for a car to use both petrol/diesel or gas.

(b) Engaging in the education of youths by creating awareness on environmental/ecological pollution. This awareness would be extended to the  communities.

(c) Recyling technology

(d) Sewerage and canalisation programme

(e) Road construction

(f) Telecommunication such as operating telephone shops or telephone call shops

(g) The establishment of Kaolin plant and another plant for the manufacture or processing of Tin Ore.
 
 

Presentation of Two of such Projects

The Establishment of Kaolin Manufacturing Plant

This is a project which is open to international sponsorship. The plant could well be located in the southern part of Nigeria where the mineral is found. First we would like to give the physical feature and specification of this mineral.

The Physical Feature:Kaolin is a soft white clay which is an essential ingredient in the manufacture of china porcelain. It is widely used in the making of paper, rubber, paint, pharmaceuticals, textiles, insecticides, ceramic, chalk and many other products.

The Physical Specification:Kaolin in its natural state is a white soft powder consisting principally of the mineral kaolinite, which under the electron microscope is made up of roughly hexagonal, platy crystals ranging in sizes from 0.1micrometer to 10 micrometers or even larger. It is also found in vernacular and booklite form.

Raw Kaolin is rich in varying amount of other minerals such as muscovite, quarz, feldspar and anatase. Additionally, unprocessed kaolin is frequently stained yellow by iron hydroxide pigments. It is necessary to bleach the clay chemically to remove the iron pigment and then wash it with water to remove the other minerals in order to prepare the kaolin for satisfactory commercial use. This is the process our plant is designed to undertake before kaolin is bagged in paper or sack bags in 50gm weight ready for the market.

The Market Value: The price for processed kaolin ranges between $200.00 to $700.00 US Dollars per ton FOB. The proposed plant is design to process all category of kaolin. Below is a laboratory analysis of our type of kaolin.

With the above presentation, we believe that its feasibility is not in doubt. The project is thus open to interested financiers all over the world to get in contact with the Africa Workshop Organisation
 
 

Like the Kaolin explained above, we intend to establish this Plant in the Southern part of Nigeria. However, for interested financiers to be able to assess its marketability, we provide below its chemical specification:

Specification:Tin-Ore is mainly found in the form of the OXIDE  (Casserite or Tin Stone) which is the main source of the metal. However, a small amount is also abtainable from Tin Sulphides. The most important of Tin minerals are:
OXIDE                          Casseterite (Sno2)
SULPHIDE                    Stammite or Tin Pyries (Cu2SnFeS4)

Cassiterite in its pure state contains 78.6% of Tin. The chemical formula for Tin is Sn.

Uses: Tin is mainly used in the manufacture of Tin-plate which is sheet iron coated with a very thin coating of Tin. As an example, Tin-plate is employed for the production of CANS. It is also used in the manufacture of a number of alloys, such as Pewter. various Soldier bearing metals, Type metal, Bronze, Gum-metal, Ball metal, Fusible metal and many others.

Additional Information:Refined Tin-Ore (Sea Worthy) is packaged at 40/60 Drum. The quality is 325 Mesh and as per sample and specification. While the price (USD) $5,241.00 per Metric Ton based on (FOB Lagos Sea Freight).
 
 

In the big economies of today, two industries remain the motor of economic development and employment generation. They are the petrochemical and the automobile industries. Both have been locomotive at sustaining democracy. The importance of these industries to strenghtening our fledging democracy actually spur me to divert my thinking on analysing the multiple investment opportunities in one of them. And ofcourse, the petrochemical is the one industry that Nigeria can be proud of, to have some expertise, an industry where the raw material are readily available and in substantial quantity.

If we look at the sub-theme of the conference itself it emphasizes an aspiration to advance the democratization of the economic and civil structures by attracting the required technological and investment capital to Nigeria. It is therefore clear the issue confronting us can be analysed in two ways; Fundamentally, why I shall try to pin my contribution to practical investment opportunities in the sector, the other side which will make this opportunities realisable and practicable is the capital to turn around the ventures and that would depend on our ingenuity to attract investors, industrialists and shareholders or individuals who possess the capital and the machinery to make them work.

In presenting this paper, I shall focus on direct investment opportunities in the upstream, which is the petrochemical industries such as the metallurgical industry, automotive, pharmaceutical, agricultural and the auxillary industry, then examine a range of end-user industries in the down stream operation such as the plastic and rubber manufacturing.

The Metallurgical industry and Household Utilities.
Present a wide range of household goods for investment. Beginning with the manufacture of polymers, two methods are commonly used. They are injection moulding and extrusion. Thus, depending on the number of variety of moulds will ensure diversification of products for household goods. As such, they present a wide range of investment opportunities for the manufacture of praying mats, toys, containers, chairs among others. However, the only limitation to the variety of products that can be manufactured is the adaptability of the mould to the press or the extruder die plate. But with the steel sector much progress has been achieved in such a way that it will take care of the manufacturing of various shapes of mould which can go ad infinitum. Certainly, this is a significant investment opportunity for the upcoming Nigerian investors.

The Automotive Industry.

The plastic industry is contributing an important part in the manufacture of car and that percntage will continue to multiply as this industry continue to undergo

new developments. Today, the following components: battery casting, upholstery, tyres, padding, insulation, grippes and a lots more are areas of investment opportunities

The Pharmaceutical Industry.
Attract immense investment opportunities in several areas. For instance, the chlorinated hydrocarbons and other petrochemicals which are used for large scale direct synthesis of drugs and the polyolefins which are employed for the manufacture of items such as syringes, medicinal container, plus various types of packaging materials are among inumerable other uses calling for investment.

The Agricultural and Agro-allied Industry

The availability of petrochemical will play a great role in the development and improvement of the nation‘s primary sector, the agricultural and agro-allied industry. Starting with the Polyvinyl Chloride (PVC), will help in land cultivation. Then, the PVC and Polyethylene (PE) films, rigid sheets and sillage shelters needed for mulching, green house covering and general crop protection as well as insecticides and fungicide for the control of weeds and pests are items essential in cultivation and enhanced productivity. In the food and packaging industries, petrochemical products such as plastic films, benzoic, sheets among others would be of great demand.

The Auxillary Industry.

In addition to the above stated investment opportunities in the upstream petrochemical sector, there is also the auxillary industry which has abundant opportunities for interested investors. For instance, in the production of carbon black, Potassium Nitrate is employed in determining the structure or grade of the black. Then, additives used in stabilising Polypropylene (PP) powder resin before pelletizing such as calcium stearate, synthetic hydrotalcite, Butylated Hydroxy Tolluene, are products of high demand. There are still other products used in quality control which are to be exploited such as common solvent like Chloroform, Benzene, Acetone, Methanol and Ethanol to mention but a few.
 
 

In the first part of this submission, we have explored the innumerable investment opportunities in the upstream sector. In this second part, we shall be down to earth practical since the objective of the conference in part is to show people industrial ventures that are open for investment in Nigeria. In this perspective, we shall articulate the various opportunities in the end-user industries such as the plastic and the rubber.

The first of such end-user industrial ventures we shall consider is the plastic- based one which is essentially polyethylene-bag manufacturing. It is no gainsaying the extensive use for which polyethylene bags can be put into. Infact, to protect goods, keep food fresh and safe from germs and dirt as well as make them sell better, polyethylene bags are readily the best material.

We shall now list such industries that require polyethylene bags in the packaging of their products. Such industries include among others: Super Markets and Groceries; Snack Food Producers; Medical Goods Producers; Bakeries; Groceries; Dry Food Producers; Gift Shops; Hospitals; Ice Cubes and Cream; Frozen Food; Laundries; Garbage Sacks; Garment Producers and Hotels.
 

We shall try to present all that it takes to set up a small poly-bags` plant, using as its basic raw material low density 0.92 film grade polythene resin obtainable from petrochemical industry. The plant in question will be capable of producing bags in the following categories:

The categories of bags stated above can be produced using the following equipments and machinery. At the same time, it is necessary to plan for space of about 600 to 1000sq. ft. ground floor with particular attention for ceiling of a minimum of 14 ft to house the 50mm Extruder. The other machinery do not need any special ceiling. Having said that, we shall only indicate the name of the equipments needed for the manufacture of our small plant while silent on the price as this can always be furnished by the manufacturer. The equipment required therefore are:
 

1 50mm Extrusion Plant
2 35mm Extrusion Plant
3 Automatic Bag Making Machine
4 Manual Bag Making Machine
5 Handles Fitting Machine
6 Punching Machine
 

Practically everybody in the world wears shoes at every moment throughout the year. Its demand will continue to rise as the world population increases on the one hand and on the other, is the fact that no matter what a shoe will always wears out or becomes tight for children as they grow older. In other words, the demand for shoe will always be in constant upward progression. And plastic shoe in particular is an all seasons item which will always be in great demand any where in the world. In this logic therefore, shoe is a very attractive sector where an investor can put his money.

I shall now give a list of the necessary machinery needed in its fabrication. They include:
* Direct injection moulding machine
* Mixer
* Crusher
* Shoe moulds

As for the raw materials they are not complicated. These are:
* Additives: i.e. the colouring agents which determine the colour of the shoe.
* PVC Powder or granules
* Foaming agent which change the PVC into a soft sponge-like substance, light in weight.
 

This is an article which is commonly used in garments and dresses of all kinds both as household use and for professional tailors, dress designers,confessionery and factories. As a result, there is always demand for it. Additionally, it exists in various sizes and colours. And as we shall discover, the raw materials are readily available.
 

Generally, moulded buttons are common. Thus, the raw material employed for its moulding is a plastic raw material called Urea Formaldehyde.

The following equipment among others are needed for their fabrication:
1.  Plastic Sheet cutting Machine
2.  Drill Machine with check
3.  Grinding Machine
4.  Hole Master Machine
5.  Designing cum slotting machine

Finally, let us consider to what use Waste Plastic Recycling can be put into. The waste plastic of various colour is thus the raw material for the plastic manufacturers. It is employed in the production of pharmaceutical packaging containers, plastic buckets, hair and body cream containers among others

Machinery
It is possible that the machinery can be fabricated locally. It includes:
(1)  A giant milling machine and
(1)  A stieving machine

As can be observed, there are lots of opportunities beaconing to investors in the industrial ventures we have examined such as plastic, rubber and agriculture whose major raw materials are petrochemical-based. In other words, the more the nation`s petrochemical is developed, the more basic and intermediate feedstocks for processing into end-use application Having said that it is instructive to take a look at the stage of Nigeria`s petrochemical industry.

It is concieved to be developed in three phases. The phase one is to be realised in Warri and Kaduna refineries and its by-products are to be used for the
production of plastics, fibres, carbon black tyres, detergents and solvents for
paints. The phase two of the petrochemical is to produce gas and other
petroleum products while the phase three of the petrochemical complex will produce such materials as highly sophisticated plastics, fine chemicals and fibres.

The two tables below show the products and quantities projected to be produced at each of the petrochemical phases.

It must be underlined that most of this figures are not actualised. It is possible that the quantity of each product has been augmented.

Finally, it now behoves interested investors to seize the opportunity in both the upstream and downstream petrochemical based industrial venture in Nigeria. It will be of great interest when foreign investors can go into partnership with Nigerians to set up any or multiple plants at the same time. Financiers are also called upon to ginger interest in financing the acquisition of machinery and equipments.*
 

Democracy as it is practised today in Nigeria can bring no dividend to the masses if Nigeria is not turned into an industrial haven where everybody will have a means of livelihood. Those who have had the opportunity to live in Europe will know that the engine of growth is embedded in the industrial sector and it is the virility of this sector that has been the pillar of making democracy work in these economies. While I salute the courage of some Governors and even the federal government to set up some crash employment programme in the cleaning sector, these are simply palliatives that can not be sustained for a long time and especially in the states where the next government can with a stroke of pen annul such „temporary" employment measures.

It is therefore imperative to open up the regions for industrial development. It is even more so with the emphasis being propelled from all quarters for a ressource-controlled states in a down-to-earth federal structure. This particular contribution will interest states whose soil are not rich in petroleum but in other mineral deposits In marshalling this paper, I shall take us round the mineral ressources distribution of the states of the federation.(Table Page 5). Based on that I shall write on some of the investment opportunities available to push Nigeria to an industrial nation in this millenium. The first on the list is bitumen, an oily tar sand.

The exploitation of Bitumen deposit is of particular interest to such states which are industrially starved, a great opportunity to open them up and bring hope to the people in a country why unemployment is daily driving her youths and experts abroad Although bitumen is found in four states of the federation, namely Ondo, Ogun Lagos and Edo states, the Ondo state deposit is the most abundant. It is infact found in three of its local government areas namely Odigbo, Irele and Okitipupa. And Agbabu town is the nucleus of deposit. It is a place where seepage of tar sand comes out of a fenced vault, in such a large quantity that it can be collected like water from the river.

Bitumen is an oily tar sand which in Ondo State alone is estimated at over 31 billion barrels. If we take into consideration the presence of a large deposit of heavy crude oil in the state, the recoverable bitumen reserve would be able to feed a plant with the planned capacity of that of Venezuela for over 250 years.

And if we consider the deposits in Ogun, Lagos and that of Edo states, then the generation on born would continue to enjoy it in the next millenium and beyond. Bitumen is also a source of raw material for fuel and energy. Another great opportunity for investors to source energy for local consumption.

The essential machinery would be similar to that of the petroleum industry and as the stages of development progresses, the needed machinery would be brought to the country. It is however likely that much study would still be made of the plant in Venezuela which is said to possess one of the best technology in the exploitation of bitumen in the world.

The Downstream Industries and The Potential Economic Advantage of Bitumen To the Nation`s Economy

The exploitation of bitumen will have a far-reaching economic advantage to the the nation. Fundamentally, the country would be spared the onerous and incomprehensible policy of importing the mineral at a staggering cost of about $400 million a year; Provide the much needed job to the teeming jobless Nigerian youths; professionals and experts in this sector. Enhance the horizon of Nigeria’s industrial development and technological advancement. Then apart from the upstream industry, the downstream and allied industries that would be depending directly on bitumen, not to talk of the service industries would be preponderant, an unquantifiable advantage to a state such as Ondo which is industrially starved. Additionally, the exploitation of bitumen would further open up the nation’s coastal water transportation system in such a way that not only would the port of Agbabu become businessike again but the movement of people in this coastal region would be facilitated.

The Urgent Need To Speed Up Work On The Bitumen Plant.
After the complacency of past federal governments to enhance the industrial transformation of the states and thus spare the nation of the embarrasement of joblessness and wastage of funds for unnecessary, and illogical import of goods that the nation has and can produce in abundance, atlast it is hope turned reality with the administration of President Olusegun Obasanjo. Infact, according to him, the economic development the country stopped with his first administration as a military and from then till he came back as a democrat, the country  was in dark age. The ball is now squarely in his court. He must now prove beyond doubt that he is out to turn things around for good.

The speeding up of work and the completion of the plant in a record time is what the nation is anxiously waiting to see. The project implementation becomes of great interest to the opening up of the states for the great industrial and technological push of the millenium. Infact once the plant start rolling, other states blessed with this mineral ressources would benefit adequately from the technology.

In consonance with the objective of this conference which is to attract the required technological and investment capital to Nigeria, the bitumen project is an industry that still has abundant opportunities for investment and novel technology especially in the upstream sector. And in respect of foreign investors, apart from British companies having interest, it would be of interest to see other companies from USA and Germany showing interest. At any rate, given the immense opportunities accruing to the nation from the completion of this plant and the number of interested bidders, now is the time for the federal government to do what is necessary to make the project a fait accompli.

Nota Bene: Please note that in respect of the Table on Page 4 below, the mineral ressources was distributed according to the states of Nigeria before the last military creation of 36 states. However, with the name of the towns of actual location, the corresponding states could easily be figured out.
 
 

No             Item                         Location/State                   Nearest Location
1.           Bitumen                       Ondo, Ogun  Lagos          Odigbo, Irele, Okitipupa
                                                      and Edo
2.     Gold, Quarry, Phosphote,
        Marble, Kaolin                             Oyo                   Ilesha, Igbeti, Ado-Iwaye
3      Phosphate, Salt, Mfamosing,
        Limestone, Clay, Quarry,             Ogun                              Otta, Abeokuta
4     Columbite, Kyanid, Graphite,
       Diamond, Viscous bitumen,
      Quarry, Phosphate, Petroleum,
      Ethanol, Quarts sand                      Ondo                        Agbabu, Igbokoda
5.   Iron ore, Coal, Columbite, Tin
      Kyanid, Graphite, Talc, Marble      Kwara                       Itakpe, Okene
6.  Kaolin, Petroleum, Marble, Salt,
    Limestone, Phosphate, Cement         Edo and                    Ogbareki, Sapele
                                                            Delta                        Akoko-Edo, Okpila
7.     Gold (Alluvial)                              Niger                          - -
8.    Limestone, Petroleum, Iron ore,
       Coal, Salt, Bauxite, Glass sand       Benue                         Bassa, Idah
9.    Gypsum, Tin, Coal                          Bauchi                           - -
10.  Bauxite, Bauxite clay                      Gongola                        - -
11. Kaolin, Asbestos,
     Petroleum, Kerosene                       Katsina                       Ngwa
12. Germstone                                      Kaduna                        Birmin Gwari
13  Phosphate, Gold, Lead, Silver,        Sokoto
      Zinc, Salt, Bauxite, Barytes,
      Clay, Kaolin, Feldspar,
      Asbestos, Talc, Gypseum
14. Petroleum, Coal, Zinc                     Anambra                      Nkalagu
15. Coal, Phosphate                              Imo                               - -
16 Petroleum                                         Rivers                           Sagbama
17 Petroleum                                        Cross River
18. Germstone, Tin, Gypsum
      Barytes, Uranium, Iron ore,
      Kaolin, Felspar, Quarz sand,
      Cooking coal, Clay                          Plateau                          Jos
19. - -                                                   Kano
20  Uranium                                          Borno
21  - -                                                   Akwa Ibom
22. Limestone, Tin, Lead,
      Iron ore                                          Federal Capital Territory
 
 

In my paper on "catalytic sector – investment opportunities in the petrochemical industry", I mentioned in the introduction that two industries remain the moteur of economic development and employment generation. They are the steel industry and the petrochemical. Infact, there can be no true industrialisation without a viable steel industry. While we have examined the petrochemical sector, the steel industry is a prodigious sector which I will take up in future conference and I hope that by then this presently dormant sector would have been revived. And since this paper is essentially on opening up the regions for multiple investment opportunities, I shall now digress to examine the abundant investment opportunities in the agricultural and agro-allied sector

Agricultural and agro-allied industry: the locomotive to transform the regions

The agricultural sector was the mainstay of Nigerian economy in the 70`s before the advent of crude oil and the country`s major revenue earner. However, over the years and through successive military dictatorships, the primary sector has been neglected causing mass exodus of youths from the rural areas to the urban agglomerations for a livelihood. This influx has caused an unprecedented number of unemployed in the history of that country. But the sector remains a pivotal one to the economy of the regions if the government can create adequate incentives to enhance its virility. While the present government has made some pronouncements towards the revitalisation of this sector, it is yet to be seen how such tirades are transformed into practice.

However, since the continuous decline in both agricultural food production and cash products remain a matter of concern for agricultural development, it is important for the government to undertake necessary incentives to transform this sector in all fronts be it in the downstream, upstream industries and agricultural sector proper.
 

(IV) * The Upstream Industries: These are concerned with the production of agro-inputs which are basically chemicals, mechanical or biological. They also produce specialised inputs to industries downstream and receive at times inputs from the agricultural sector.

(V) * The Agricultural sector: has a two way linkage with each of the Upstream industries and the Downstream industries.

(VI) The Downstream Industries: also called agro-industries specialise in the transformation of agricultrual produce such inputs coming from agricultural sector. At the same time they feed the agricultural sector with already transformed inputs such as soyabean cake for livestock feed and also exchange inputs with the industries upstream.
 

From the classification of upstream and the downstream above, there are undoubtedly innumerable opportunities in both the agricultural and agro-allied industries. From the cultivation of cacao, palm-produce to bread, cakes and the manufacture of tractors and equipments abound great opportunities for investors.

No matter what type of business an investor want to take up, there are raw materials in the agricultural sector as well as in the upstream.

Equipments: In recent times, have sprung up specialised companies focusing on agricultural equipments throughout the country in such a way that setting up factories would be inundated with accompanied equipments and technology. Some examples of agricultural and agro-allied industries equipments are tractor farm implements, poulry equipment, feed mill plant, storage silos, drying plant for cereals, incubators, mixers, compact flow mill, various poultry equipment such as the two tier California cages and the more sophisticated ten-tiers net free cages, agro-chemicals, fertilizers,

There is no question that the regions possess abundant ressources and potentials which need to be developed. It is therefore imperative for the present democratic government of President Obasanjo to evolve policies that will enhance the development of homegrown technology in all the sectors. The regions should be made the hub of economic activity where the citizens can contribute their best to the economic virility of the nation. Making democracy work in the present dispensation in Nigeria squarely fall on the present government to find a lasting solution so that economic growth can flourish and Nigerians can reap the dividend of a democratic dispensation.

I am exceedingly honoured and delighted for having this special opportunity to be here today to discuss with you about the opportunities and incentives for investment and technology in a democratic Nigeria.

Before I digress with my presentation, may I use this opportunity to express my absolute conviction that we can not conceive of a better chance, no better forum and no better idea than similar conferences and consultations like we are holding today to contribute, present and sell Nigeria to the world, regarding her economy, her future and ofcourse, her investment opportunities this very important task is the responsibility of every Nigerian any where in the world.

I have been asked to speak today on the Avenues and Incentives open to investors wishing to participate in the shaping of the present Nigerian Economy which has come a long way towards showing her willingness to be part of the global economy after a long period of economic isolation. I will speak in the context that some positive new developments have occurred since democracy was reenthroned in Nigeria. These developments are of such dimensions that they have re-established such irresistible fresh investment chances in the country, that we can now proudly and confidently invite Nigeria’s old and new friends to come back to participate in the reconstruction, re-orientaion and development process in Nigeria. One of the major steps taken by the present administration towards proving this willingness was the reactivating of the Nigerian Investment Promotion Commissin (NIPC). This commission is charged with the mandate to encourage, promote and coordinate all investment promotion activities in Nigeria. This mandate requires the commission to contribute extensively to the integration of Nigeria into the global economy where competitiveness is the order of the market, and guided by technology, globalisation as well as liberalisation are integral elements.

Avenues for Investors
Talking about the investment opportunities that exist in Nigeria, one can only proudly state that they appear rather limitless, in virtually all the known sectors. Permit me therefore to mention only a few of the more prominent ones in this speech. Indeed, whether you are considering telecommunication or agricultural and agro-allied industries, whether attention is drawn to energy and power supply or whether the area of interest is solid mineral, there are virtually inexhaustible investment opportunities that can hardly be resisted.

In Nigeria today, for example, it is reported out of the 700,000 installed capacity of the national network, only 400,000 lines have been subscribed to. When it is realised that Nigeria has a population of over 110 million people, which gives a Tele-density of approximately 0.4 as against the international Telecommunications Union (ITU) standard of 1 telephone line to 10 persons, it will then, be appreciated that Nigeria is one of the least serviced countries (telephone-wise) in the world.

In the agricultural sector, there is a crying need for food processing industries to curb the huge waste that often occur during seasons. More significantly, there is the need for investment in packaging for export such that food items and fruits which are usually produced in large quatities within Nigeria can be exported to other countries of the world. Deep-sea trawling and processing as well as coastal fishing and shrmping are also sectors of agriculture, which are far from being fully exploited.

In solid mineral, Nigeria is endowed with ressources such as coal, tin, columbite, talc, aquamarine, limestone and kaolin. Bitumen deposit in Ondo State of Nigeria is reported to be the second largest deposit in the whole world. So far, exploitation of all these minerals has been largely haphazard. There is therefore a crying need for modern technology for their full exploitation.

Nigeria is famous for its large quantity of petroleum deposit. But the truth is that crude oil and gas exploration and exploitation have large untapped capacity. There is therefore plenty of room for more and more investors to come into upstream and downstream activities.

In manufacturing, it is perhaps enough to simply state that the sky is the limit.

There are so many tourist attractions all over the country which could be properly developed for effect and which, if well managed, can serve as haven for tourists and as very profitable investment opportunities.
 

Within the past few years, the government has progressively introduced a number of incentives designed to promote investment, employment, product mix and various other aspects of industry.
These incentives encompass:
(a) Fiscal measures on taxation
(b) Effective protection of local industries with import tariff,
(c) Export promotion of Nigerian-made products; and
(d) Foreign currency facility for international trade.
Enterprises which fulfil the necessary criteria are free to apply for the following specific incentives:

100% tax free period for 5 years for pioneer industries that produce products declared as „pioneer products"under the Industrial Development (Income Tax Relief) Act NO. 22 of 1971 as amended in 1988, such other deserving enterprises as may be approved by the Council of the Nigerian Investment Promotion Commission- (NIPC).

30% tax concession for five years to industries that attain minimum local raw materials utilisation as follows:
Industrial Level Minimum Sector

Agricultural: 80%
Agro-allied: 70%
Engineering: 60%
Chemical: 60%
Petro-Chemical: 70%

1.5 per cent tax commission for five years.
The rate is graduated in such a way that can industry employing 1.000 persons or more will enjoy the 1.5 per cent tax concession while an industry employing 100 will enjoy only 5 per cent, while those employing 200 will enjoy 7 per cent and so on.
 

10% tax concession for five years.
This applies essentially to engineering industries, where some finished imported products serve as inputs. The concession is aimed at encouraging local fabrication rather than the mere assembly of completely knocked down parts.

2% tax concession for five years on the cost of facilities provided for training.

10% tax concession for five years. This concession will apply to industries that export not less than 60% of their products. The emphasis is on the encouragement at the pre-establishment stage of export-oriented enterprises.

20% of cost of providing basic infrastructure such as roads, water, electricity where they do not exist is tax deductible once and for all.

100% tax holiday for 7 years, additional 5 per cent depreciation allowance over and above the initial capital depreciation.

120% tax deductible expenses provided the research and development is carried out in Nigeria and 140% for R and D on local raw materials

In order to boost local industries, stimulate trade and reduce cost, government abolished most excise duties with effect from 1st January, 1998. However, in order to safeguard the health of our citizens, government has re-introduced Excise Duty on tobacco, cigarettes and spirits. Thus, with effect from 1st January, 1999, excise duties on these products are as follows:
Spirits and other spirituous alcohol 40%
Cigarettes, cigars, cheroots and cigarillos 40%

The incentives itemised here are in no way exhaustive and neither are the quantum or percentage of relief mentioned fixed for all times. The would be investors is therefore advised to ascertain the current operative figures at the time of making his investment. Other categories of incentives that would be of interest to foreign and local investors are referred to and examined in  NIPC publications.

Double Taxation Agreements are being negotiated and concluded with various coutries. The desired effect is to eliminate double taxation on investment income.

This incentives is granted to companies engaged in manufacturing which incur qualifying capital expenditure for the purpose of approved expansion. The incentive should be in form of a generous allowance on capital expenditure incurred by companies for the following:
Expansion of production capacity
Modernisation of production facilities; and
Diversification into related products
This scheme aims to encourage re-investment of profit.

Apart from the capital allowance currently in existence, consideration may be given to the introduction of investment tax allowance. Under this scheme, a company would enjoy generous tax allowanxe in respect of qualifying capital expenditure incurred within 5 years from the date of the approval of the project.

Without prejudice to government’s commitment to deregulation of the financial sector, banks have been enjoined to recognise differences in the gestation periods within each category of agricultural projects and observe the grace periods on agricultural loans as follows:

(1) 12-18 months for seasonal staple and cash crops e.g. cotton, groundnut and cassava; and loans for the construction of on-farm storage structures requiring small capital outlay and short period of construction.
(2) 5-7 years for tree crops including palm oil, cocoa, citrus, kolanut and other tree and fruit plants; and
(3) a minimum period of 7 years for rubber plantation.

2.2
Livestock
(1) 6 months for broilers (poultry)
(2) 24 months for layers (poultry)
(3) 24 months for swine breeding
(4) 24-30 months for sheep and goat breeding
(5) 6 months for sheep, goat and cattle fattening
(6)  12 months for rabbitry
(7) 7 years for cattle ranching/dairy production

(1) 8-10 years for short, long fibber pulpwood production and sawn timber production
(2) 8 years for fuel wood/firewood production
(3) 1-2 years for wild honey production
(4) 12 years for wild life domestication
For loans in respect of large-scale season corps, fish and poultry farming with extensive capital outlays, the grace period of five years has been recommended to the banks.

3. Export Incentives for Non-Oil Sector
To supplement its rich oil mineral ressources serious efforts are being made by Government to develop Nigeria’s non-oil exports.

Various legislations together account for the large package of incentives which are today available to persons wishing to export from Nigeria. Some of these incentives which range from cash grants to duty and tax reduction and cancellation are now considered.

Under this scheme an exporter of Nigerian commodities is obliged to open a foreign currency domicilary account (D/A) with an authorised bank of its choice in Nigeria into which 100% of the proceeds of such export may be credited in foreign currency.

The EDF is a special fund set up by the government to provide financial assistance to private sector exporting companies to cover a part of their initial expenses in respect of the following export promotion activities: Participating in training courses, symposia, seminars and workshops on all aspects of export promotion, export market research. Advertising and publicity campaigns in foreign markets including press/radio, television, catalogues, brochures,etc.
Product design and consultancy.
Participating in trade missions, buyer-oriented activities, overseas trade fairs, exhibitions and store promotion.
Organising of joint export groups and mutual export guarantee associations.

The conditions for eligibility for assistance from the Fund are as follows:
The exporting company which must be registered as an exporter with the Nigerian Export Promotion Council (NEPC) must be an exporter of any product of Nigerian origin with atleast 35% value added or 40% local raw material content or/ans of services e.g. engineering, consultancy, shipping. In addition to a satisfactory status report such a company must have its marketing control in Nigeria. All applications for EDF assistance have to be made on the authorised application forms from NEPC and accompanied with a detailed work plan of the project to be undertaken plus a detailed report of past activities.

This fund provides cash inducement for exporters that have exported a minimum of N50,000 worth of semi-manufactured products. The cash incentives is to enable such exporters to:
(i) increase the volume and value of export
(ii) diversify their export products and market coverage.

Since 1997, government approved a uniform rate of 4% of foreign exchange repatriated as basis for computation of export expansion grant. In addition, the autonomous exchange rate is applied in computing the export expansion grants (EEG) paid to beneficiary exporters. This fund is only available to exporters who have repatriated in full the proceeds from their export transaction. The repatriation must be  credited by the CBN to be eligible.

In addition to the retention of 100% of export proceeds by exporters, a Duty Draw-back/Suspension Scheme has recently been approved in order to further encourage manufacturing for the export market. Exporters/Producers can import raw materials and intermediate products for use in the manufacture of export products free of import duty and other indirect taxes and charges. The scheme covers a rebate of duties already paid on imported inputs and the suspension / exemption from the payment of such duties by exporters.

To qualify for duty draw-back payments, the actual exportation of the products which were produced with imported inputs must be completed within 18 months from the importation of the inputs Duty suspension becomes a permanent waiver of duty payment only when inputs imported under the suspension scheme are  used to produce export products and are exported within 12 months of the importation.

The Manufacture-in-Bond-Scheme will involve the importation of duty-free raw materials for production of exportable goods, on the basis of a bond issued by a first-class bank which guarantees that all the end-products will be exported. The performance bond will be discharged after evidence of exportation and repatriation of foreign exchange has been produced. Raw materials under import prohibition could be imported under this scheme.

An exporter wishing to benefit from Duty Drawback, Duty Suspension or Manufacture-in-Bond Scheme is to direct his application for participation to the Nigeria Export Promotion Council (NEPC).

This scheme serves as a supplementary export subsidy to compensate exporters for
(a) the high cost of local production arising mainly from infrastructural deficiencies and
(b) other negative factors beyond the control of the exporter.

The Nigerian Export Import Bank (NEXIM) was established as an export credit agency replacing the Nigerian Export Guarantee and Insurance Corporation.
NEXIM which commenced operations in January 1991 has statutory functions which includes:

Export credit guarantee and export credit insurance facilities

Credit in local currency in support of exports

Domestic credit insurance and reinsurance where such a facility is likely to assist exports.

Credit insurance in respect of external trade, transit trade

Investment guarantee and investment insurance facilities

The establishment and management of funds in the form of mutual export guarantee funds to support Nigerian exporters

Purchase and sale of foreign currency and transmission of funds to all countries.

Maintenance of a foreign exchange revolving fund for lending to exporters who need to import foreign inputs to facilitate export production

Maintenance of a trade information system in support of export business.

NEXIM facilities include trade finance, project finance, treasury operatioos, export advisory services, market information, exporter education, services and guarantees to enhance its functions. Exporters have access to these facilities only through commercial and merchant banks operating in the country. Advisory and market information services may be obtained directly by exporters from NEXIM.

NEXIM provides a rediscounting and refinancing facility (RRF) which is designed to assist banks  to provide pre-shipment finance in local currency in support of non-oil export. Sourcing of raw materials by exporters may also be made easier by NEXIM’s foreign input facility (FIF) and stock facility. FIF provides the export sector with immediate foreign exchange requirements needed for the importation of raw materials and capital equipment needed for the importation of raw materials and capital equipment needed for production of goods for export. Stock facility is made available in local currency to assist manufacturers of exportable goods to procure local raw materials.

This sheme provides for an exporter of any products to discount his bill of exchange and promissory notes with his bank.

This scheme was established in 1991 and allows interested persons to set up industries and businesses within demarcated zones (EPZs) principally with the objective of exporting the goods and services manufactured or produced within the zones. Calabar, in Cross River State, has been designated as the primary EPZ territory and the necessary infrastructure has been put in place.

The incentives that come to investors in the designated EPZ territories include:

Legislative provisions pertaining to taxes, levies, duties and foreign exchange would not apply within EPZs,
Repatriation of foreign capital investment in EPZs at any time with capital appreciation of the investment.
Unrestricted remittance of profits and dividends earned by foreign investors in EPZs
No import or export licences required.
Rent-free land during construction of factory premises;
Up to 100% foreign ownership of enterprises in EPZs;
Sale of up to 25% of production permitted in domestic market.
No quotas on products from Nigeria exported to the European Economic Community (EEC) and the United States of America;
Made-in-Nigeria goods are entitled to prefrential tariffs in the EEC.

The scheme when fully operational is intended to embrace industrial productions, offshore banking, insurance and re-insurance, international stock, commodities and mercantile exchanges, commercial industrial research, agriculture and Agro-allied industry, mineral processing, as well as international tourist resort development and operations.
The Nigerian Export Processing Zones Authority manages, controls and coordinates all activities within the  zones.

The provision of the Industrial Development (Income Tax Relief) Act with respect to Pioneer Status tax holidays applies to any manufacturing exporter who exports atleast 50% of his annual turnover.

Interest accruing from loans granted by banks in aid of export activities enjoy favourable tax treatment.

The law in Nigeria provides an additional annual depreciation allowance of 5% on plants and machinery to manufacturing exporters who export atleast 50% of their annual turnover provided that the product has at least 40% local raw material content or 35% value added.
For further and more detailed information and guide please do consult the respective Nigerian diplomatic missions nearest to you. The missions are Staffed with investment specialists who will alway be glad to direct you.

My personal advice to potential investors to Nigeria is that, they should avoid using the back door while engaging in Business activities with Nigeria since the official front door / way has been kept open by the Government.

Distinguished Ladies and Gentlemen, in conclusion it is my utmost hope that all present here today in light of all that is said, would go out to this arena with a renewed determination to extend a hand of cooperation and neighbourliness to one another in order to find local answers to global challenges towards the achievement of a better Nigeria for now and for the future.

I thank you all for your attention and wish you a pleasant day.

Dr. Uche Iro.
 

A geo-political, economic and strategic presentation of Africa vis-à-vis globalisation process in the new millenium.

The programme is being divided under the following headings:

Summary of the lectures, complimentarity and exchange of ideas as well as the goal of Africa. From the Directors of Programme: Dr. Gabriel Lanre Adeola and Mathias Hategekimana. Monday, 1^st July, 2002 Treffpunkt Rotebühlbau, Rotebühlplatz 28, Stuttgart, Mitte. Room A301 8.00 to 9.30. pm.