[SPECIAL REPORT]
government in 2013 announced a new national automotive
policy, the National Automotive Industry Development Plan
(NAIDP), which seeks to discourage vehicle importation and
stimulate local production. The National Automotive Design
and Development Council (NADDC) seek to ensure the well-
timed application of the provisions of the policy as part of its
mandate to rejuvenate the auto industry.
The investment incentives include Pioneer Status (tax
holiday) granted for 3 years and renewable for the next
two years, 100 percent repatriation of profi t net of taxes,
unrestricted Capital allowance granted in full (100 percent),
and Investment Promotion and Protection Agreement which
helps to guarantee the safety of investment of the contracting
parties in the event of war, revolution, expropriation, or
nationalisation.
Business Process Outsourcing
In January 2007, the Federal Government launched the
National Outsourcing Policy to promote an outstanding
orientation starting with on-shore outsourcing and progressing
through near shore to off -shore outsourcing by encouraging
stakeholders involvement in developing a vibrant outsourcing
sub-sector; to grow Nigeria’s image internationally as the
preferred outsourcing destination and ICT business hub by
developing a global competitive Information Technology
enabled services sector; and to facilitate the development of
appropriate ICT infrastructure to support capacity building
for quality service delivery in the outsourcing sector.
There are international and local opportunities for
investment in Business Process Outsourcing. Large companies
Incentives granted by the government in the Business
Process Outsourcing (BPO) sector include Pioneer Status,
Tax Relief for Research and Development, Minimum
Local Raw Material Utilization, Investment Promotion and
Protection Agreement (IPPA), Capital Allowance and Local
Value Added.
Presence of Indian Businesses in Nigeria
The consensual relationship between Nigeria and India was
established 60 years back starting with the trade relationships.
Since the refurbishment of democracy in Nigeria in 1998-99,
its trade with India has increased substantially — climbing
from $293.71 million in 1999-00 to $875 million in 2005-06.
As of 2007, the value of non-oil bilateral trade was estimated
between $6-7.9 billion, which soared to approximately $12
billion in 2016. Indian companies have invested profoundly
in Nigeria in manufacturing, pharmaceuticals, plastics,
engineering, information technology, and communications.
More than 100 companies, including some huge Indian set-
ups, are currently operating in Nigeria owing to the enormous
market scope. Some of the prominent names are Birla Cement
(as New Chline), Stallion Group, PARCO Indian Group,
Anand Dairy Farming, NIPCO, African Industries Group,
Shapoorji Pallonji, Jawa International Limited, Godrej
Nigeria Limited, Srei Infrastructure, Dabur, Bharti Airtel,
Tata Group, Bajaj Auto, New India Assurance, Kewalram
Group, Bhojwani Brothers Nig. Ltd., Bhojsons & Co.
Nig.Plc, Essar Group, State Bank of India (in form of 8.6
percent share in Sterling Bank), Skipper T&D Corp., Simba
Group, Ranbaxy, Churchgate Group, Enkay Indo-Nigeria
More than 100 companies, including some huge Indian
set-ups, are currently operating in Nigeria owing to the
enormous market scope.
in Europe and North America, across multiple sectors are
constantly seeking lower cost alternative solutions for their
business needs, which is estimated to be an approximately
$500 billion market.
Also, a number of companies in the public sector, fi nancial
sector, hospitality and travel, healthcare, telecommunications,
oil and gas, and retail in Nigeria have also begun to invest in
Business Process Outsourcing alternatives. Apart from that,
with the recent economic downturn, more fi rms in Nigeria,
especially in the oil sector, are trying to cut operating costs
by outsourcing some non-core business activities. The labour
cost in Nigeria is very low as compared to other countries with
a huge population of educated unemployed youth.
Ltd., Dr. Hassan’s Hospital, Pearl International, Primus
Super-speciality Hospital, Vedic Life Healthcare, NIIT
Nigeria Ltd., APTECH Software Technology Park Ltd., etc.
Several collective projects are also running in line for further
solidifi cation of Indo-Nigerian ties.
In conclusion, the business environment in the recent
years in Nigeria has been robust and promising with new
government policies to attract foreign investors. Nigeria-
India relations have strengthened owing to trade relation
between the two nations. With the multiplicity of linkages and
interactions between companies, and economic governance
institutions, the scope of fl ow of capital promises to continue
widening.
Nigeria-India• 2018 • 25