WED. 07 DEC, 2022-theGBJournal| Vice President Yemi Osinbajo, SAN, spent the second day of his official visit to Vietnam asserting the view that for foreign investors and businesses looking at Africa, Nigeria is the straightforward choice in the continent.
According to him, despite global tensions and COVID-induced disruptions negatively impacting economies across the world, Nigeria remains one of the best places to do business in Africa because of its market viability, creative and tech-savvy youth population and potential for growth.
Prof. Osinbajo stated this Tuesday in Hanoi during separate interactions with a cross-section of Vietnamese interests in agribusiness, tech & innovation, commerce and industry, as he continued his official visit to the Southeast Asian nation.
The VP – who had earlier met his Vietnamese counterpart and the Prime Minister at different meetings on Monday – first met with agricultural experts at the Vietnam Academy of Agricultural Sciences, and then proceeded to Hanoi-based FPT University and FPT Software Company, before addressing a gathering of the Vietnamese Chamber of Commerce and Industry (VCCI), also in Hanoi. At all three events, the central plank of his speeches and remarks was how Nigeria can collaborate with these Vietnamese institutions for economic development.
Speaking at the meeting with the Vietnamese business community under the auspices of the VCCI, the Vice President noted that “Nigeria remains, perhaps, the most intuitive place to do business in Africa. Despite the economic slowdown in the aftermath of the pandemic, GDP growth has been positive for the last seven quarters, and though it slowed to 2.3% on a year-to-year basis in the third quarter of this year, it was a 9.7% increase over the second quarter.
“Apart from being the most populous country in Africa, Nigeria also has the continent’s largest economy, accounting for over 20% of continental GDP. The Nigerian private sector has undertaken large path-breaking investments in the country in agriculture, manufacturing, petrochemicals, finance, telecommunications and the digital economy,” he added.
In terms of market viability, Prof. Osinbajo noted that Nigeria continues to rank very high. “Our people are renowned for being energetic and tech-savvy, with over 60% of the population below 25 years of age.”
In the tech space, the VP said “between 2015 and last year, six Nigerian tech-based companies have been certified as unicorns. These are companies valued at over a billion US dollars each.
“Nigeria is also now home to over 200 fintech standalone companies, plus a number of fintech solutions offered by banks and mobile network operators as part of their product portfolio. Between 2014 and 2019, Nigeria’s bustling fintech segment raised over $600 million in funding and attracted a quarter of the almost $500 million raised by African tech startups in 2019 alone.”
He stated further that “the creative sector, which employs over 4 million people and has potential to add 2.7 million by 2025, is ranked the second largest employer of labour after the agricultural sector.
“We are on course to become the 3rd largest national market, based on headcount, by the year 2050. We are already the largest financial market in Africa with market capitalization in excess of US$50 billion as at the end of last year.”
The Vice President also noted that “agriculture is an area in which Vietnam has also done well. We not only have a large number of successful commercial farms owned by individuals, but in addition farms owned by companies are also springing up almost on a daily basis.”
Prof. Osinbajo also informed about investments in the downstream of the oil and gas industry “such as the Nigeria Liquified Natural Gas limited (NLNG) which is building its 7th train, or the investments by the Dangote and BUA Groups in petroleum refining, and a little-known fact that it is a company from this region, the Tolaram Group that turned around the Eleme Petrochemical Company in Nigeria from which it is now a major exporter of Urea”
Speaking about government efforts to encourage foreign direct investments in Nigeria, the Vice President said “similar opportunities are available across all parts of the Nigerian economy and since we allow 100 per cent ownership by foreign investors, these opportunities are open to partners that wish to invest in our country.
“There is also the unconditional remittance of investment capital and profits, as well as tax and duty incentives for investors. Other incentives, including those that pertain to individual sectors, are well detailed in a ‘Compendium of Investment Incentives in Nigeria’ produced by the Nigerian Investment Promotion Commission and our tax authority, the Federal Inland Revenue Service.”
The Vice President also had an interaction with representatives of the Nigerian community in Vietnam.
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