1. Made in Nigeria
WHITER THE ROUTE FOR NIGERIA?
By Bolaji Okusaga

2. Content
No Subject Slides
1. In the Beginning 3 - 8
2. The Reality 9 - 13
3. Recreating the Reality 14 -20

3. 1. In the Beginning
WHITER THE ROUTE FOR NIGERIA?

4. Made in Nigeria - The Objective
GLOBAL REALITY
• World over,
manufacturing and
productive activities play
a major role in the
improvement of a
nations economic
fortunes
THE BENCHMARK
• Following the examples
of the Asian Tigers
Nigeria intends to
initiate an active
campaign towards
driving in In-bound
Manufacturing
opportunities
GETTING THERE…
• The Nigeria Made in
Nigeria Show is therefore
one of the tactical
imperatives for achieving
the target objective.

5. Nigeria’s Competitive Edge
Large indigenous
consumer market
Abundant natural
resources
Strong agricultural
base
Hardworking and
resourceful labor
force
Central location in
Africa
Pros: Largest market in Africa
Young Population
Cheaper Labour
Cons: Red-tape
Unclear Policies
Tough Operating Environment

6. Nigeria Has a Large Market
Over 190 million people
70% population under 45
Nigeria has a large indigenous consumer market…
Strong pent-up demand for quality products
◦ Foreign branded goods
◦ Franchised foreign retailing
◦ Automobiles
◦ Consumer financial services

7. Nigeria Has Abundant Natural Resources
Large Petroleum and Large natural gas reserves
◦ Sixth Largest Crude Oil Producer in the World
A huge variety of natural resources:
COAL
South East (Enugu)
GOLD
South West and parts of North- Central
COLUMBITE AND TANTALITE
North Central especially around
Plateau and Nasarawa States
BITUMEN
South West and Edo State
IRON ORE
North-Central, around Ajaokuta
URANIUM
Cross River State, Adamawa State,
Taraba State, Plateau State,
Bauchi State, and Kano State

8. Nigeria Has a Large Arable Land and Agricultural Base
Nigeria has ecosystems, arable lands and yield gaps that can be
exploited:
Well over two-third
of the land is
cultivable: 30,850
thousand hectares
of Arable Land
Rainfall supports
rain-fed agriculture
in the whole of
Nigeria
Northern, irrigated
agriculture
predominates in
the area around
the Lake T-Chad
Basin

9. 2. The Reality
WHITER THE ROUTE FOR NIGERIA?

10. Implications of Building Foreign Earnings on a Wasting Asset
The Need to raise Industrial
capacity in the Economy
• Agriculture accounts for over 60%
employment, but weak
infrastructure and a lack of a
value chain approach to sector
development militates against
growth
• Petroleum Industry’s rating is
poor given the fact that the
down-stream sector remains
largely undeveloped
• Mining is basically absent on the
radar because of a lack of policy
and regulatory environment to
harness this great potential
Crude Oil is a Wasting Asset
• It is projected by 2048 Nigeria’s
Oil Reserves will dry up
• The invention of Electric Cars,
Shale Oil and mainstreaming of
alternative energy sources also
spell doom for Crude Oil
Commodities will not mean much
except it is backed with value
addition
• Without secondary industries
that add value to Agricultural
output, poverty and
underdevelopment will continue
to plague the Nation

11. 11
The Development
Plans under the
Military
NEEDS
Seven-Point
Agenda
Economic
Recovery and
Growth Plan ERGP
Development Policies Examined:
The broad goals are :
Lowering of domestic
cost structure
especially
infrastructure cost
Strong promotion of
exports
Harmonization of
tariffs across ECOWAS
to create the common
external tariff (CET);
Use of systemic
import restrictions in
particular in particular
sectors to quicken
local capacity
The restructuring of
institutions
responsible for trade
facilitation

12. Little has been achieved
in terms of
rebalancing the Economy
by diversifying its
productive base.
The Reality…

13. The Challenge – The Oil Doom of 2014 - 2017
Removal of
41 Items
from Official
Forex
Allocation
Sourcing of imported materials was negatively impacted
by the ban on 41 items from forex
Local sourcing of materials was extremely high on pricing
in comparison to importation of raw materials
Drop in oil price:
Largest contributor to
Nigeria’s FX earnings
and government
revenue
Declining reserves:
FX reserves declined to
USD30.3bn (November
2015) from USD34.6bn
at the beginning of the
year due to significantly
lower oil revenues.
Devaluation of
naira:
In Feb 2015 with the
closure of the
WDAS/RDAS window.
Tightened FX
market:
Restrictions on forex
transactions: “41 items
introduced”.
Demand / supply
disparity:
Corporate demand
rationed with an
estimated backlog of
around USD3.0bn.
The Reaction
Source: Standard Bank

14. 3. Recreating the Reality
WHITER THE ROUTE FOR NIGERIA?

15. Porter’s five forces – Diamond Model
Substitute
Products
RivalryCustomers
New
Entrants
Suppliers
• Michael Porter believes that the competitiveness of a businesses is related to the
performance of other businesses - Business Clusters
• He identifies five forces which shape competitiveness:
• Michael Porter uses the concept of clusters of identical product groups in which there is considerable
competitive pressure.
• Businesses within clusters usually stimulate each other to increase productivity, foster innovation and
improve business results.

16. Porters Diamond Model Explained
• Learn to be More
Innovation
• Learn to be More
Productivity
Competition
Pressure
• Search for new
markets
• Pressure to out play
Cluster Competitor
Need for Market
Expansion • Able to withstand
international
competitive pressure
given the high
Innovation and
Productivity already
ingrained in their
operationsTransnational
Success
• Given their experiences in local competitive clusters such companies are able to survive and out-
perform peers in foreign markets. Examples of large clusters are the Swiss watch industry and the
Hollywood film industry. The German and Japanese Car Market, etc.
Translating national advantages into international advantages.

17. Factor Conditions
Location – Ports, Major markets
Labor – High concentration of skilled Labour
Government – policies for trade, education
Strategy and Structure
What is the strategic push of Nigerian local
businesses
Demand Conditions
What is the disposable income of the
Average Nigerian
Porter Diamond theory of National Advantage
Related/Supported Industries
Where are the Primary Producers
•Where are the Cottage Industries

18. The Role of Trade
TRADE AS
PLATFORM
The need for cooperation
with other African and
developing countries to
ensure that the WTO
trade negotiations
address the concerns and
interests of Nigeria
including the negotiation
of Economic Partnership
Agreements (EPAs);
We have seen the
recent attempts by
Morrocco to join
ECOWAS and the
push by European
Union to push its
trade agenda

19. The Role of Investments
FDI is a means to
development, not an end
in itself
Complementary domestic
policies are needed to
facilitate spillovers,
growth and environmental
protection
Trade and financial
agreements must
preserve the ‘policy space’
for complementary efforts
on a national scale
• FDI is Good, but real development comes from domesticating our
advantages first

20. Critical Success Factor – Growing an Home Advantage
A holistic approach, where Nigeria would tie into the on going reforms of the Federal
Government, by lending a voice to the call on Nigerians in Diaspora to come back
home, and in so doing, begin a decision towards taking an economic stake in Nigeria
Subtly projecting the advantages of taking an economic stake in Nigeria, while bringing
out the benefits of Nigeria Manufacturing opportunity
Attempt a comparative analysis of
Manufacturing opportunities and the
offer from Nigeria
Ensure ease of accessibility to
Manufacturing opportunity, convenient
and affordable structure and process

21. Thank You