Kaduna State International Trade Fair


The Kaduna State International Trade Fair organized by the Kaduna Chamber of Commerce and Industry is scheduled to hold on 24th February to 6th March, 2018.

The forum will feature various international businesses ranging from manufacturers, retailers, suppliers and distributors.

Interested participants are warmly welcome.

Registration can be done through the organizers @

Email: kadccima@gmail.com or mail@kadccima.org.ng

Telephone: +234 (0) 803 001 OR +234 (0) 803 370 8144

 

INVESTMENTS


There are over 2000 industrial establishments in the country. Among these are a giant oil industry, Iron complexes, steel rolling, pharmaceutical industries, food processing, car assembling and the up-coming Export Processing Zone (EPZ).

Government economic policy favors and places priority on greater investment in agricultural production and manufacturing and exports of production, abundantly skilled and versatile human resources and access to a vast local market of over 100 million people and beyond in the sub-region. Sectoral highlights are addressed in the following sections:


There are four Industrial Sectors which are considered priority areas of development because of their linkage effects on the other sectors and potential catalytic role in the overall growth of the industrial sectors. These priority areas which are most favored in the administration of government industrial incentives are:

  •  Metallurgical/Engineering Industries
  • Metallurgical/Engineering Industries
  • chemical/Petrochemical Sector
  • Construction Sector

 

Specifically the industrial projects desired from these sectors are:

  •  Foundries and Forges;
  • Metal Fabrication/Machine Tools;
  • Pharmaceuticals;
  • Rubber and Plastic;
  • Leather and Leather products;
  • Cement;
  • Other non-metallic material building materials; bricks, ceramic glass;
  • Food Processing;
  • Sugar,
  • confectionaries and Beverages
  • Cereal and Grain Milling;  Fruits, Vegetables, Vegetable Oils, Oil Seeds, Roots and Tubers.

 

Others

In addition to the twelve identified priority areas mentioned above, investors are welcome to also take part wholly or jointly with Nigerians in the following specific projects:

  1. Gemstones cutting and polishing;
  2. Gold processing;
  3. Mini-sugar production plants;
  4. Multi-mineral plant for gypsum, talc, kaolin, marble/dolornite, baryte etc;
  5. Cement production (700- 1000 metric tonne per day) 6) Lead and zinc project
  6. Processing of salt from sea water;
  7. Sodium triphosphate production
  8. Small medium scale plant for sheet metal reduction
  9. Mining of industrial minerals; bitumen etc;
  10. Stone cutting/polishing;
  11. Fabrication of spare parts;
  12. Exploitation of coal with known reserve of 293 140 000 tonnes in Enugu, Kogi and Adamawa States  timber/wood processing

 

The agricultural potential of Nigeria is barely being tapped and this explains the inability of the country to meet the ever-increasing demand for agricultural produce.

Although the agricultural sector remains a dominant employer of labour, serious investment is needed across the board to enhance production and increase the contribution of the sector to GDP. Investment is required in the following priority activities:

 

  1. Crop production to achieve food security and to provide industrial raw materials. Potentials exist for the following crops:Cereals: Maize, rice, sorghum, corn, millet, wheat.
    Root crops: Cassava, yam, ginger, potato, coco yam.
    Legumes: Soya beans, groundnuts, cowpeas.
    Fruits: Mango, banana, oranges, guava, papaw, pineapple.
    Vegetables: Cabbage, green pepper, carrots, lettuce, spice, onions, melons.
    Tree crops: Oil palm, cocoa, rubber, coconut, kola nut, coffee, she nuts, beniseed, cotton, cashew nut, sugar cane.
    Others: apples, grape vines and pears have been successfully established in the high plateau regions.
  2. Food processing and preservation involving industries that will use agricultural produce as raw materials.
  3. Livestock and Fisheries production which have great potentials for development. Grazing lands are abundant, facilities for animal feed production are plentiful, and the in-land rivers, lakes and coastal creeks are enough to augment ocean fishery resources.
  4. Agricultural inputs supplies and machinery, water resources development especially for flood control infrastructure and irrigation.
  5. Commodity trading and transportation.
  6. Development and fabrication of right small-scale mechanized technologies for on-farm processing and secondary processing of agricultural produce.
  7. Exploitation of timber and wood processing activities. A wide range of wood resources abound.


Foreign and domestic investors are being encouraged through improved fiscal incentives in the Nigeria oil and gas sector. In the Upstream and Downstream sectors, the following are some of the areas where there are pressing needs for investors.

Upstream Activities

  1. Petroleum Exploration and Exploitation.
  2. Search for development of local substitute for such items as Medium pressure valve, pumps, shallow drilling equipment, Drilling mud, bits fittings, drilling cements etc.
  3. Manufacturing of consumable materials in exploration such as explosives, detonators, steel castings, magnetic tapes etc.
  4. Other areas in the services sector of the upstream are:
  • Construction and Installation
  • Maintenance
  • Pipelining
  • Well Services and
  • Transportation Support Services.

 

Downstream Activities

  1. Domestic Production and marketing of Liquefied Petroleum Gas (LPG)
  2. Manufacturing of LPG cylinders, valves and regulators, installation of filing plants, Retail distribution and development of simple, flexible and much less expensive gas burner to encourage the use of gas instead of wood and other fuels.
  3. Establishment of processing plants and industries for:
    The production of refined mineral oil, petroleum jelly and grease.
    The manufacture of bituminous based water/damp-proof building materials such as roofing sheets, floor tiles, rubber products, tarpaulin. Building of asphalt storage, packaging and blending plants to handle the product for export.
  4. Establishment of chemical industries such as distillation units for the production of naphtha and other special boiling point solvents used in plant and other food processing industries.
  5. Establishment of industries for processing Linear Alkyl Benzene, Carbon Black and Polypropylene.
  6. Development of Phase II (Phase III to join later) of Nigeria¡¯s Petrochemical Programmed.
  7. Participation in all phases of the Nigeria Gas Industry development programmed from exploration, gathering, production and processing to transmission.
  8. Establishment of small-scale industries to produce chemicals and Solvents, such as Chlorinated methane, Formaldehyde, Acetylene, etc., from natural gas.
  9. Refining: One condition for purchasing Nigerian Crude Oil is the ownership of an efficient refinery. The shelter which the domestic petroleum products market enjoys, almost completely seals the prospects and viability of privately financed refinery for locally consumed petroleum products.

However, opportunities exist for the construction of a refinery in bonded premises with adequate export facilities for dedication to the export market. Companies with the technological know-how can undertake turn-around maintenance of refineries.

Refineries consume a lot of chemicals and utilize a broad range of spare parts. There is tremendous scope for small-scale joint venture manufacturing concerns with foreign technical partners. Such ventures can start warehousing arrangements that will ensure continuity of supply at competitive prices. Other investment opportunities contingent upon refining and Ancillary activities are the manufacture of special products such as:

  1.  Industrial and food grade solvents
  2. Insecticides
  3. Cosmetics
  4. Mineral Oil, petroleum jelly grease
  5. Bituminous-based water/damp-proof building materials such as floor tiles, rubber products, tarpaulin, etc., and
  6. Asphalt storage, packaging and blending plants to handle products for export and local use. Export of refined products surplus also exists as an opportunity in refining.

Products Marketing: Petroleum Product Marketing would seem sealed with hardly any opportunity except by way of establishing an independent marketing outfit or aspiring to establish dealership with the marketers.

While indeed those opportunities remain viable, far more challenging opportunities may be explored in the areas of product transportation, by road and coastal tankers.

Associated with products distribution and marketing is a chain of manufacturing and maintenance business such as lubricating oil reprocessing, LPG bottles and accessories, oil cans reconditioning, etc.

The nations pipeline and depot network consists of 3,001km of pipeline of varying sizes as well as sixteen (16) storage depots. These pipelines and networks traverse the length and breath of the country. The system must be maintained in a healthy state for effective and efficient distribution of products.  

 


Plans by the Ministry to revitalize the steel sector are underway. As a first step to reviving the sector, technical audit and cost estimate for completion of Ajaokuta Steel Project are being contemplated.

The Ministry is also planning to rehabilitate the Delta Steel Company and three in-land Steel Rolling Mills in the country to making them function effectively.

Staff training and development is also being given attention because local skilled workforce availability can motivate an investor into the industry. These are for putting the sector in a state of readiness for foreign investment.

In consonance with the nation’s technical and economic co-operation policies for this sector, some areas of joint co-operation have been identified, and investors will be encouraged to invest in the sector.

Discussions will center on joint venture commercial operation of the completed units of the Ajaokuta Steel Project. Investors will be encouraged in the following areas:

  1. Iron Making Plant with capacity to produce 1.35 metric tonnes of billets;
  2. Billet Mill with capacity to produce 795,000 tonnes of billets per annum;
  3. Light Section Mill with capacity to produce 400,000 tonnes of bars per annum;
  4. Medium Section Mill with capacity to produce 130,000 tonnes of wire coils per annum; and
  5. Engineering Workshops comprising: – The Power Equipment Repair Shop, – Forge Fabrication and Rubberising Shop with capacity to produce 4,200 tonnes of fabricated structures.


Local Manufacture of Equipment

The telecommunications industry in Nigeria is far from being developed. There is a dearth infrastructural facilities and this has placed a constraint on the provision of services to existing and potential customers.
There is an urgent need to expand the infrastructures in this sector if it is to effectively play its role in the economic, social, political, cultural and in fact overall development of the Nigerian society and properly integrate it into the international community.
Such desired expansion can not be achieved under the present dispensation where the needed equipment are usually imported with attendant problems of foreign exchange procurement, freighting cost, long delivery period etc. There is therefore no other realistic option than the local manufacture of these equipment and spares.

    1. Switching and Transmissions EquipmentLocal manufacture of switching and transmission equipment is required since no single company exists in Nigeria or even neighboring countries for this purpose. Hence any company that goes into the venture will have its market beyond the frontiers of Nigeria.
    2. CablesIn Nigeria, there are three companies engaged in the production of telecommunication cables using imported copper and other local resources like poly vinyl chloride materials for insulation. There is no company that is cuurently producing fibre optic cables in the country.
      The copper cable producing companies are producing only low pair capacity of 50, 100, 200 pairs. There is need for a plant that will produce high pair capacity cables that will enhance massive provision of lines to the teaming population.

Facilities and Service Provisions
With Nigeria¡¯s population that is over 108 million people, an installed telephone capacity of about 700,000 lines and a telephone penetration of 0.65 lines to 100 persons, it is abundantly clear that telephone service to the populace is grossly inadequate.
Even with the Government introduction of competition in the sector and the later licensing of Private Telecommunications Operators. (PTOs), the market has not experienced any noticeable change. Although some of the PTO¡¯s have commenced operation for over two years, they have not been able to collectively introduce up to 100,000 telephone lines into the country’s telecommunications network.
Hence, the sector is still a virgin land for investors wishing to give and run private network links employing cable, radio communications, data services, INTERNET Business and Satellite communication, Payphone services and Cellular radio phone services.
Joint Venture Funding of Investments
Apart from the absence of local manufacture of equipment and inadequate services, another major problem that has seriously affected the growth of the industry is insufficient financial resources. The industry is a capital-intensive one and the banks in the country seem no to have strong financial muscle to handle massive investment in the sector.
The industry has not also attracted individuals¡¯ cooperative initiative probably as a result of the low-level of income per capita in the economy. Hence joint venture partnership between foreign investors and Nigerians will be a veritable source of investment capital for the sector.
At present there is no joint venture enterprise in the sector. The Nigeria-Turkey joint venture for the local manufacture of telecomms equipment initiated over five years ago was not concluded as a result of the political climate during this period. It is hoped that with the return of democracy in Nigeria, negotiation will once more commence on this issue.



Aluminum Sector
The aluminum Smelter Company of Nigeria, ALSCON, is a joint venture project in which Nigeria owns 70% of the equity shares, while the remaining 30% is shared between AG Ferrostaal of Germany with 20% shares and Reynolds Inc. Of US with 10% shares.
The present administration is making efforts to ensure that the aluminum smelter plant is properly funded. It has given invitation to private investors to invest in the company and /or take part of Nigeria¡¯s 70% shares.
The plant is one of the best and biggest in the world with the most modern technology. A number of countries have signed or are negotiating trade and economic cooperation agreements with Nigeria.
Since the essence of these bilateral agreements is to foster unity: boost economic growth and technological co-operation, foreign investors should take advantage of existing bilateral ties and harken to the call to invest in the ALSCON project as in other projects in the power and steel sectors.

Communications Sector
The deregulation of the telecommunications sector in 1992 through Decree 75 was to allow for private sector participation in the sector and expand the nation’s communication facilities. The Nigeria Communications Commission (NCC) was established so to regulate the performance of the sector.
The liberalization thrust was further strengthened by the Nigeria Communications Commission (Amendment) Decree No. 30 of 1998 which deleted those provisions in the first decree that inhibited competition in the sector thus enhancing the expected role of private sector enterprises.
The functions of Nigerian Communications Commission include:

      1. Regulating the privatized sector of the telecommunications industry.
      2. Facilitating entry into the telecommunications market by private entrepreneurs.
      3. Creating a regulatory environment for the supply of telecommunications equipment and facilities.
        Issuing of telecommunications licenses.
      4. Promoting fair competition and efficient market conduct among all players in the telecommunications industry.
      5. Arbitrating disputes between participants in the telecommunications industry and protecting consumers against unfair practices.