NIGERIA OFFERS 100% REPATRIATION OF PROFITS TO FOREIGN INVESTORS
The Federal Government of Nigeria has rolled out robust incentives for foreign investors who are willing to invest in the country, according to the country’s Vice President Namadi Sambo.
Breaking the news Thursday 23rd May, 2013, Vice President Namani Sambo revealed that other incentives aimed at attracting foreign direct investment (FDI) include 100 percent repatriation of profits, 140 percent capital allowance in research development, 20 percent capital allowances for five years on local raw materials utilization as well as 30 percent tax relief and expenditure on public infrastructure.
In a related development, the Federal Capital Territory Administration (FCTA) has unveiled plans to attract over $1.8 billion foreign direct investment (FDI) over the next four years through the Abuja Industrial Park.
Vice President Namadi Sambo who performed the ground breaking ceremony of Idu Industrial Park, in Abuja, further noted that “the establishment of industrial park is our national implementation plan to meet vision 20:20 of Mr. President is determine to create a vibrant private sector that could create competing advantages in the place of globalization.
“We are made to plan and ensure to boost the GDP from the present condition to substantially programme. The FG is providing numerous incentives to attract investment into the country.
Sambo noted that the Abuja Industrial Park project was direct fallout of the state visit of President Goodluck Ebele Jonathan to the Republic of Turkey in 2011 in the course of his economic diplomacy tour of selected countries.
“The outcome of these negotiations is an arrangement whereby FCTA is expected to provide enabling environment for Nigerian, Turkish and other foreign businessmen and women to establish small and medium scale industries within the Industrial zone through Zeberced Limited,” the Vice President said.
He therefore directed all relevant agencies including Nigeria Investment Promotion Councils (NIPC), Nigerian Export Promotion Council (NEPC) and Nigerian Free Trade Zone to provide necessary support for Zeberced, the investor engaged by FCTA to develop the Abuja Industrial Park.
Under the arrangement, the FCTA provided 250 hectares of land while Zeberced is to construct 177 factories and 14 commercial Areas as well as major components of infrastructure including 24km road network, 10.4km of clean water network, 8.6 of electrical network, 9.6km of sewage network, 9.7km of pain water drains and 29km telecommunication network.
Others include training & research unit; cold storage & warehouses facilities; shopping mall, hotels, parking spaces & helipad as well as public and religious facilities including Police Station, Custom area, bank hall, fire station, filling station, clinic amongst others.
In his remarks, Bala Mohanmmed, FCT Minister explained that the administration during the conceptualization of the project put into focus the primary policy objective of manufacturing sectors.
He reiterated that “with the view to significantly drive the economy for increased productivity, expansion of value addition, enhanced competitiveness of finished goods and production of surplus for export. We are hopeful that Abuja industrial park will assist in ensuring a shift from a low technology based production system to more modern production processes.”
The Minister observed that the company will provide integrated infrastructure to the tune of $200 million, attract competent industrialists and manufacturers into the industrial park as well as ensure optimum management and maintenance of the facility.
“The project is anticipated to attract Foreign Direct Investment (FDI) amounting to over $1.8 billion within the next four years and also create employment for over 40,000 skilled and unskilled workers.”