ABUJA (Federal Ministry of Industry, Trade & Investment Report) – The Minister of Industry, Trade & Investment, Olusegun Aganga has revealed that the Nigerian economy attracted $59bn pipeline local and foreign direct investments into the different sectors of the economy within three years.
Olusegun Aganga, who spoke during the 4th Annual Seminar for Industry, Trade and Investment Correspondents and Business Editors held in Abuja noted that the far-reaching industrial policies initiated by the Federal Ministry of Industry, Trade & Investment in line with the Transformation Agenda of President Goodluck Jonathan helped to make the country a destination of choice for investment and also diversify the nation’s economic base.
He also said that the report of the United Nations Conference on Trade and Development ranked Nigeria the number one destination for investment for two consecutive years with the country maintaining the top three position last year. “If you look at the pipeline investments that have come into the country within the last three years, we have a minimum of $59billion coming into the different sectors of the economy over the next five to eight years. This does not include the investments that are coming into the power sector. If you look at the value chain, we have about $60billion investments going into the power sector,” the Minister disclosed.
“Out of the $59billion that I mentioned, about $12bn is going into integrated petrochemical plant. This means that if that petrochemical plant comes on stream as planned by 2018, there will be no need for the country to import refined petroleum products and that will be a big boost towards economic diversification of the country. Also, a lot of investments are going into fertilizer and ethanol plants, agribusiness such as sugarcane, sugar, rice mills and cement, among others.”
While revealing that the Ministry has new investments going into the automobile sector due to the implementation of the Nigeria Automotive Industry Development Plan which is a major component of the Nigeria Industrial Revolution Plan, the Minister pointed out that the increased investment focus on Nigeria as well as sound policies across all sectors of the Nigerian economy had helped to create more employment and increase the capacity utilisation of key manufacturing sectors of the Nigerian economy.
According to him, unlike in the past when there was no comprehensive and coordinated industrial policy for the country, the Nigeria Industrial Revolution Plan has been developed as a major game changer. He added that President Goodluck Jonathan in February 2013 launched the Nigeria Industrial Revolution Plan as a major game-changer based on the principle that no nation has successfully moved from being a poor to a rich nation without a robust industrial and services sector. The Minister further explained that in 2011, the country had no comprehensive automotive policy on ground, but presently, over 22 companies in the automotive sector have signed technical commitments to manufacturing and the assemblage of cars in Nigeria.
Olusegun Aganga observed that the manufacturing capacity utilisation for the automotive sector has increased by 40 percent, while investment in sugarcane has risen from $100m in 2011 to N3.2billion now. Adding, in the cement sector, MITI under President Jonathan has made significant progress with installed capacity currently at 39.5million metric tonnes up from 16.5million metric tonnes per annum in 2011.
Aganga said: “In 2011, the installed capacity in the cement sector was 16.5 million metric tonnes per annum. Today, it is 39.5 million metric tonnes. When we came in, there was about $9 billion investment in the cement sector. But today, it is more than $15billion. In 2011, the direct and indirect jobs from the cement sector were less than 600. Today, the sector provides about 2.2 million direct and indirect jobs.”
“Unlike in the past when there was heavy importation of cement, from 2013, the administration of President Goodluck Jonathan has not issued any import licence. Our main focus for the cement sector, going forward is to improve the standard of cement and to bring the price down. Cement manufacturers must do it because we do not engage in price regulation.”
The Minister informed that there was an announcement a few days ago, indicating that one of the cement manufacturers is lowering the price of its 32.5kg by 40 percent from N1,700 per bag to N1,000 and the 42.5kg is lessening from N1,800 to about N1, 150 per bag.
He intensified that there have been complaints about what is happening in the sector, stating that Nigerians should not worry because Government has a motive as well as competition policy with keen interest in the application of the anti-trust law and the competition Bill about to be forwarded to the National Assembly. He promised that the Government will make sure that industrialists and investors across the country continue to have the confidence that everyone will work on a level playing ground.
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