The Nigerian government is coming up with a wide range of business reforms that includes up to 5 years tax holiday for ‘pioneer’ businesses as well as tax-free operations, President Muhammadu Buhari said on Wednesday in New York.
Other fiscal incentives being unveiled by the government include removal of restrictions on expatriate quotas in Free Trade Zones; and a low VAT regime of 5 percent, the President further disclosed at the Second United States-Africa Business Forum in the New York.
Priority investment sectors for Nigeria include improving infrastructure, industrial productivity, agriculture, mining and a digital economy, a statement by Presidential Spokesman Femi Adesina capturing the side event stated.
Nigeria, Africa’s now second largest economy, going through a recession is forced to consider more attractive ways of wooing new and weary investors to the country. Businesses in Nigeria are reported to be folding up while intending investors hold back referencing the harsh economic climate in the country.
Recent data from the National Bureau of Statistics showed that Foreign Direct Investment (FDI) as well as portfolio investments, dipped in the last one year.
FDI which stood at $717.72m as of the third quarter of 2015 dropped to $133.02m at the end of the second quarter of this year, while portfolio investment, which is made up of equity, bonds and money market instruments put at $1.09bn in the third quarter of last year dropped by $673.68m to $245.32m at the end of June this year.
However, speaking to a gathering of political and business leaders from the United States, Africa and other regions of the world at the Second United States-Africa Business Forum in the New York, organized by the United States Department of Commerce and Bloomberg Philanthropies, Buhari said the Presidential Enabling Business
Environment Council headed by Vice-President Yemi Osinbajo, is due to come up with reforms that will make Nigeria one of the most attractive investment destinations in the world.
According to him, the team will work come up wide-ranging business environment reforms on ports, visa-on-arrival, improving the speed and efficiency of land titling and business registrations in the country.
“We intend to make Nigeria one of the most attractive places to do business,” he stated adding that Nigeria remains the number one investment destination in Africa adding that this was the best time for anyone to invest in Nigeria.
“These are no doubt challenging times for the Nigerian economy. But let me use this opportunity to boldly affirm our conviction that there is no crisis without an accompanying opportunity. In our case, we see Nigeria’s ongoing economic challenges – occasioned mainly by the fall in oil prices – as an opportunity to set the economy firmly on the path of true diversification, sustainable economic growth and shared prosperity” the President added.
He said enormous potential exists for foreign investment and for the local economy, listed sectors which have barely been exploited to include Nigeria’s 180-million population and abundance of labour; arable land; forest waters; oil and gas; solid minerals; livestock and huge tourist potential.
Noting that his administration will continue to strengthen government institutions to address the concerns of investors and ease investments in the Nigerian economy the President said “We are weaning ourselves from a historical dependence on crude oil, diversifying our economy, and putting it on the path of sustainable and inclusive growth. To this end, we have embarked on policies aimed at establishing an open, rules-based and market-oriented economy. We will continue to actively engage with the private sector at the highest levels to listen to your concerns and to assure you of our commitment to creating enabling
policies in which your businesses can survive and thrive”.
He urged participants to “take advantage of this Forum to establish and strengthen business relationships, share valuable experience and collaborate for mutual benefits.”
Buhari announced the commencement of the US-Nigeria Commercial and Investment Dialogue with a focus on the infrastructure, agriculture, digital economy, investment and regulatory reform to be jointly led by the Nigerian Minister of Industry, Trade and Investment and his US counterpart.
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