REPORT ON A THREE (3) DAY STAKEHOLDERS WORKSHOP -

Report on a three (3) day Stakeholders Workshop on Sensitization of the Federal-State Investment Promotion Strategy Initiative held on 21st - 23rd February, 2024 at Global Village Hotel and Suites, Mararaba, Nasarrawa State, Nigeria.

PREFACE

The Federal Ministry of Industry, Trade and Investment organized a three day stakeholders’ sensitization workshop for Federal – State Investment Promotion Agencies on Investment Promotion Strategy Initiative with the theme “Exploring Investment Opportunities in Morocco & Singapore.

The workshop was aimed at promoting Local Direct Investment (LDI) and attracting Foreign Direct Investment (FDI) are Responsible, Inclusive, Balanced and Sustainable (RIBS) in the Country.

Over Ten Investment Promotion Agencies were in attendance, Heads of Government Agencies and Parastatal, Consultants and Some private individual graced the event.

OBJECTIVES OF THE WORKSHOP

The main objectives of the workshop to sensitize the participant on the importance of synergy between the federal and state government on investment promotion strategy for an improved investment climate in Nigeria.

Other objectives of the workshop include but not limited to the following:

i. To create a platform and ensure periodic meetings amongst the Federal and State Government Investment promotion stakeholders.

ii. To sensitize the participant on the Investment Promotion and Protection Agreement (IPPA) Model for participating states to take advantage of.

- To also bring to the attention of the participants the IPPA between Nigeria and Singapore/Morocco so that state government explore opportunities vise a viz investment opportunities their respective states.

- To explore investment opportunities in Singapore and Morocco for businesses in Nigeria to take advantage of through joint venture, partnership, merger/acquisition etc.

To present to the participant’s investment opportunities in African Continental Free Trade Area (AFCTA).

STATE DELEGATION

The state delegation to the workshop comprised of two technical staff of the Niger State Investment Promotion Agency namely;

a) Hassan Auna Abdul Head Investors Relations
b) Emmanuel O. Nwogwug Head Investment Promotion & Research.

ATTENDANCE
The workshop was attended by, Honourable Commissioners, Permanent Secretary, Directors and Members of Staff of the Ministry of Industry, Trade and Investment, Director General, Abuja Investment Company, Director Generals of various State Investment Promotion Agencies Heads of Investment and Property Companies, Captain of Industry, representatives of Nigeria Investment Promotion Commission (NIPC), investors and business owners, legal practitioners etc.

PAPER PRESENTATIONS DAY 1 (FIRST TECHNICAL SESSION)

Presentation: Overview of the Nigeria 2016 Investment Promotion and Protection Agreement. The presentation focuses on two IPPA regimes (first generation and second generation IPPAS) below are some of the highlights of the presentation

1.Bilateral Investment Treaties (BITS) signed by Nigeria

2.Structure of First-Generation BITS

3. Structure of Second-Generation BITS

4. Overview of the 2016 Nigeria Investment Promotion and Protection Model

5. Concept of Attribution

DAY 1 (SECOND TECHNICAL SESSION)
IPPA BETEEN NIGERIA /SINGAPORE/MOROCCO:
This presentation discussed the aspects of the Investment Promotion and Protection Agreement and how Nigeria through the states Investment Promotion Agencies (IPAS) can benefit from it.

Challenges to effective investment promotion

Institutional credibility
Staff capability
Adequate resources
Adequate political support
TNC not willing to engage
Ensuring continuity while
Facing staff turnover
Policy driven not customer driven
Availability of proper ICT infrastructure
Getting partners to work together
Coordination among all involved

DAY 2 (FIRST TECNICAL SESSION)

Presentation: Building National Consensus on Investment Promotion /Facilitation.
This presentation focuses on the necessity to build strong synergy between the Federal Ministries/Agencies and those of the State for an improved investment climate and inflow of FDI and DDI.
Key points of the presentations include:

1. Investment promotion outlook

2. How Economic Development funded; External Borrowing, Foreign Aid, Internal Savings and Foreign Direct Investment.

3. FDI must benefit local economy – the ‘Ribs’ Model; Responsible, Inclusive, balanced and sustainable

4. Understanding The FDI Life Cycle; The life cycle represents a triangular investment process from beginning to end on both the investor side, the government and IPA side.

5. Nexus between Investment Promotion and Facilitation; There must be total harmony between what IPAS promote and what they can deliver. A gap between the two will hurt FDI in the long term and result in loss of country credibility. Link between promotion and facilitation.

DAY 2 (SECOND TECHNICAL SESSION)
Presentation: Investment Opportunities in Singapore/Morocco. The presentation highlighted major investment opportunities in Singapore/Morocco for Nigeria Investors to take Advantage of Some investment opportunities presented include;

1. Agriculture – particularly the cultivation of cereals, olives, and citrus fruits, plays a significant role in the rural economy

2. Tourism – is also crucial, with Morocco’s historic cities, Mediterranean and Atlantic beaches, and mountain ranges attracting millions of visitors annually.

3. Manufacturing sector – especially textiles, automotive, and aerospace, is expanding rapidly, driven by foreign investment and government initiatives.

4. Others Economic Drivers – including aerospace, pharmaceuticals, offshoring, renewable energy, green hydrogen and desalination are significant contributors to GDP.

DAY 2 (THIRD TECHNICAL SESSION) Presentation: Harnessing Investment Opportunities in AFCTA. The export opportunities that present lesser taxes, levies and tariffs enshrine in the AFCTA can be harnessed by Nigerian investors. Some key points of the presentation include;

1. 1st January 2021 marked the ‘start of trading’.

2. The Ministerial Directive on the Application of Provisional Schedules of Tariff Concessions (PSTC) for 90% of products (Category A).

3. 1st January 2021 marked the ‘start of trading The 3rd year of tariff reduction starts on 1 January 2023.

4. AFCTA Protocol include, trade in good, trade in services, rules and procedures in the settlement of dispute, intellectual property right, investment, competition policy, digital trade and women & youth.

BENEFIT OF THE WORKSOP TO THE STATE
i. An avenue for the state to take become aware of various IPPAS signed by Nigeria and to take advantage of them in attracting foreign direct investments

ii. The state would take advantage of the strong synergy to be created between the Federal and state government to attract foreign direct investment into the state.
iii. Inclusion of State Investment Promotion Agencies in Federal out-bound Missions (investment drive).

RESOLUTIONS
i. Bi-annual Stakeholders Workshop /Meeting to be held across each State IPAS

ii. Jigawa to host the next Bi-annual Stakeholders Workshop scheduled to hold in September

iii. A communique of all discussed should be developed and shared amongst participants

iv. All state IPAs are expected to be in the next meeting