The Light Manufacturing sector is considered to be an ideal industry to drive Nigeria’s development due to the labor-intensive, export-focused nature of the business.
Manufacturing activity in Nigeria, Egypt, South Africa and Morocco account for two-thirds of the continent’s factory activity in nominal US dollar terms (Nigeria’s manufacturing sector is the largest in Africa).
Source: The Observatory of Economic Complexity and Trade Map
The Light Manufacturing presents a U$10.29 billion opportunity in import substitution. With over 182 million people of whom over 40 million are in the growing middle class, Nigeria represents a major potential opportunity for investments in this sector.
Nigeria’s labor force population increased to about 78.4 million in Q1 2016, with an average monthly wage of N41, 942 (US$120).
Main investment Opportunity
- Auto components (Auto parts and replacement accessories)
- Textile and Footwear (Embroidery, Synthetic Filament Yarn Woven Fabric, Non-Knit Men & Women’s Suit, Light Pure Woven Cotton, Knit T-Shirts, etc.)
- White Goods (Centrifuge, Refrigerator, Washing and Bottling Machines, Air-conditioners)
- ICT Equipment (Telephones, Computers, Broadcasting Equipment and Accessories)
- Electrical, Electronics (Electric Generating Sets, Video Displays, Electrical Transformers, Insulated Wire, Low Voltage Protection Equipment, Electrical Control Boards)
- Pioneer Status (tax holiday) granted for 3 years and renewed for the next two years
- 100 percent repatriation of profit net of taxes
- Capital allowance not restricted. Granted in full -100%
- Investment Promotion and Protection Agreement: The IPPA helps to guarantee the safety of investment of the contracting parties in the event of war, revolution, expropriation or nationalization.
Source: Nigeria Investment Promotion Commission
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