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JIGAWA STATE
INVESTORS HANDBOOK | 2013

A GUIDE TO BUSINESS AND INVESTMENT IN JIGAWA STATE

JIGAWA
Investing Today to Secure Tomorrow

Prepared Under the Auspices of


Ministry of Commerce, Jigawa State
March, 2013

Contents
FOREWORD BY THE GOVERNOR

QUICK FACTS

INVESTING IN NIGERIA
An Overview of the Nigerian Economy
Overview of the Jigawa Economy

8
11

JIGAWA STATE INVESTMENT POLICY


Strategic Policy Focus
A Sense of the Business & Investment Climate

13
13
14

NATIONAL INVESTMENT LEGISLATION AND


REGULATION FRAMEWORKS
Nigerian Investment Promotion Commission Act
Foreign Exchange Act
Corporate Taxation
Transaction Taxes
Personal Income Tax
Visas and Entry of Foreign Workers
Business Visas
Work and Residence Permits
Starting a Business n Jigawa
Investment Incentives in Nigeria

16
16
17
18
18
19
20
20
20
22
23

SECTORAL INVESTMENT OPPORTUNITIES IN JIGAWA


Dutse and Investment Opportunities
Agriculture Sector
Real Estate Development
Power Sector
Commerce and Industry
Export Processing Zones
The Maigatari Export Processing Zone
Other Policies for the Promotion of Commerce
Solid Minerals
Tourism Development
ICT and Galaxy ITT in Jigawa

26
27
29
34
36
38
38
39
40
42
44
47

KEY CONTACTS

49

Foreword by the Governor | 1

His Excellency
Alhaji (Dr.) Sule Lamido CON
Governor, Jigawa State

FOREWORD by His Excellency, the Governor

his Investor Handbook provides a


broad overview of Jigawa State to
facilitate understanding of its vast
resource potentials among interested
private investors. It outlines the policy
and regulatory environment as well as
the incentive regime we have created
in support of both local and foreign
investors when doing business in the
State.

potential for real and sustained growth


is not in doubt. Jigawa has in the last
seven years developed a conducive and
progressive regulatory environment for
business and was appropriately rated
by WB DB Reports as a strong
performer in terms of regulatory
procedures. Our State ranks not only
best in Nigeria, but also competes well
globally.

Our vision for Jigawa is to build a


broad-based, dynamic and competitive
economy that ensures the prosperity
and well-being of its citizens and
secures the future of its children.
Given its varied natural resource, its

Jigawa has good road infrastructure


that will improve enterprises ability to
access regional markets in northern
Nigeria, and is investing in the
development of an airport. Low levels
of crime give Jigawa an edge over other

JIGAWA STATE INVESTORS HANDBOOK | 2013

Foreword by the Governor | 2

States in the Country. Above all we


have over the years developed a
reputation for good governance and
demonstrated the political will to carry
out far reaching economic and
institutional reforms to reposition our
State.
We are not oblivious of the formidable
constraints and challenges in
attracting domestic and foreign
investment. Jigawa is acutely affected
by Nigerias business environment
constraints including electricity
shortages, limited access to and high
cost of investable funds. Although
many of these are outside the States
ability to address, we shall remain
committed to policies and programmes
that create an enabling space for
private sector development.
We believe that our prosperity depends
on the extent to which private
individuals as well as private
enterprises drive economic growth and
continuously create wealth more
abundantly. As a government our role
will remain that of facilitators in sharp
contrast with the philosophy of
previous governments that had sought
to promote development through
direct investment in industrial
enterprises.

The recent privatization of State-run


Birnin Kudu Dairy Processing Plant,
Kazaure Tomato and Citrus Processing
Factory, Gumel Flour Mill, the Rice
Milling Plant and Sugar Processing
factory at Hadejia is a demonstration
of Government's commitment to
facilitate private sector development
in the state.
Re f o r m s i n g o v e r n a n c e a n d
strengthening of institutions that
guarantee the protection of
investments and human rights will
continue in earnest. We remain ever
ready to engage and collaborate with
new partners and expand all frontiers
in our relationship with the existing
ones. We are open and supportive to
any ideas and investment in any of our
economic sectors for our mutual
benefit.
While we continue in our stride toward
lasting improvement of the lives of the
people of Jigawa State, we call on all
potential partners and investors to join
and share with us this new opportunity
of prosperity that Jigawa State offers.
His Excellency
Alhaji (Dr.) Sule Lamido CON
Governor, Jigawa State
May 2013

JIGAWA STATE INVESTORS HANDBOOK | 2013

Jigawa State Quick Facts | 3

JIGAWA STATE:
Quick Facts

DEVELOPMENT ISSUES

GENERAL

Vision: 'to be a secure and just society


full of opportunities, where the people
are sufficiently empowered to
participate in decisions and processes
that affect their lives with an enabling
environment for sustainable growth
and development'

?
Created on Tuesday, 27 August, 1991

Mission: to provide a sustainable and


socio-economically developed state
through exemplary and transparent
leadership, provision of social service
through strong and functional
institutions, and the development of
physical infrastructure based on broad
participation by the people'
Strategic Development Objective:
pursuit of pro-poor economic growth
strategies which will put the state on
the track of achieving MDGs

?
The 'New World' is bordered by Kano

and Katsina States to the west,


Bauchi State to the east and Yobe
State to the northeast.
?
To the north, the State shares an

international border with the


Republic of Niger, providing unique
opportunities for cross border and
international trade.
?
Jigawa State comprises of 27 Local

Government Councils divided into 30


State Constituencies, 11 Federal
Constituencies and 3 Senatorial
Districts.
?
Jigawa has a five-emirate structure:

Hadejia, Gumel, Kazaure, Dutse and


Ringim Emirates each headed by an
Emir. The Emirates comprise of

JIGAWA STATE INVESTORS HANDBOOK | 2013

Jigawa State Quick Facts | 4

Districts (headed by District Heads or


Hakimi), Villages (headed by Village
Head or Dagaci) and Wards (headed
by Ward Head or Mai Unguwa)

population of 4,361,002 [2006


population census] of which 50.4% is
male and 49.6% female
?
There is a young agile population in

?
The State Capital Dutse acts as the

central commercial, administrative


and residential hub of the state
POPULATION DYNAMICS

Jigawa State: almost 50% of


population are of economically
active ages [15-59 years], 42.2% are
below 15 years and only 8.8% are
above 60 years

?
Jigawa is 8th most populous State in

the Federation with an estimated

ECONOMY
?
Jigawa State ranks as the 10th

largest non-oil and gas economy in


Nigeria with a Gross State Product of
N759,120 billion

JIGAWA STATE INVESTORS HANDBOOK | 2013

Jigawa State Quick Facts | 5

?
It is a key constituent of the Northern
Nigeria economy and society being
the 5th most populous and 7th
largest in terms of Gross State
Product.
?
Economy

driven largely by
agriculture: it is 7th largest crop
producer in Nigeria with value of
crops estimated at N644.41 billion.

?
Crops cultivation including millet,

sorghum, cowpea, beans,


groundnuts, sesame, rice, maize,
sweet potatoes, Bambara nuts,
water melon, cassava, cotton, okra,
Roselle and water melon

50% [1,637,237] of the informal


sector workers are women.
?
Jigawa state has deposits of over ten

different kinds of solid minerals in


commercial quantities, including:
gold, tantalite, columbite, kaolin,
feldspar, clay, mica, quartzite,
limestone, trona and silica sand. The
State's potential for solid minerals
and rare earth elements
development has not been
exploited.
?
A border free zone was licensed in

such as sesame, rice, gum Arabic,


and wheat, Jigawa State is ranked
among the top three in the nation

2000 by NEPZA and is envisaged to


cover a total of 6.5 square
kilometers with robust and modern
infrastructures to support and
sustain light, medium and heavy
manufacturing industries targeting
the export market.

?
The State has a total landmass of

?
Industry is mostly limited to small

almost 25,000 square kilometres:


80% is certified as arable and
cultivated during the short raining
season. Nearly 14% solely composed
of irrigable wet lands suitable for allyear-round agriculture. Currently
there are approx. 54,000 hectares
put under irrigation

and medium scale agro-enterprises


that deal in agricultural produce,
livestock, fisheries, food and
beverages. Other informal sector
activities include blacksmithing,
leatherworks, tailoring services,
auto repairs, metal works,
carpentry, tanning and block
making.

?
For a number of agricultural produce

?
Commerce and Industry consist of

small and medium scale agroenterprises dealing in agricultural


produce, livestock, food and
beverages and other household
consumer goods: Value of whole sale
and retail trade approximately N8
billion
?
Informal sector strong and diverse:

80-90% of output and employment


emanating from the sector. Jigawa
has the third highest employment of
informal sector workers
[approximately 3.3 m] after Kano
[3.5m] and Rivers [3.3]. More than

?
Tourism is a small and developing

sector in Jigawa but there are a


number of sites with tourism
potential. The foremost site is the
Baturiya Birds Sanctuary, which is
home to 378 migratory birds and is
proposed for a UNESCO World
Heritage site. Other potential sites
areWawan Rafi Lake in Kazaure and
ancient rock paintings in Birnin
Kudu. Dutse is also home to the Royal
Gold Course and planned botanical
gardens.
?
Rate of unemployment is estimated

JIGAWA STATE INVESTORS HANDBOOK | 2013

Jigawa State Quick Facts | 6

at 28.6% compared to a national


average of 21.1%. Female
unemployment rate is high at 42.2%
[national average 24.9%]. Male
unemployment rate is 18.8%
[national average 17.7%]

steps to deal with construction


permits: 10, with a global ranking of
9/183. Nigeria ranks 101/183]

?
68.7% household heads are self-

employed, 70% relying on


subsistence agriculture as main
occupation
?
The distribution of people engaged

in some economic
[1,535,660] is

activity:

?
Jigawa

has modern road


infrastructure that will improve
firms' ability to access regional
markets in northern Nigeria, and is
investing in the development of an
airport. There are over 2000 km of
tarred road traversing all of state.
While there is roads linkages with all
neighboring states, virtually all the
27 Local Governments Headquarters
and several other small towns are
well-connected by high-quality allseason road networks.

?
Jigawa has

a conducive and
progressive regulatory environment
for business which has been
recognized by the World Bank in the
2010 Doing Business performance
indicators:

Rank
1
2
7
8
24

World Bank ease of Doing Business


2010
Jigawa
Gombe
Katsina
Kano
Lagos

?
Simplified land administration
system: it is fairly easy for investors
to acquire a Certificate of
Occupancy (title) for land and obtain
building permits [days to deal with
construction permits: 47, with a
global ranking of 6/183, compared to
Nigeria overall of 350 days and
167/183 rank; number of procedural

?
The construction of a modern airport
suitable for both cargo and
passenger transportation is
underway, due to be completed in
2013.
?
A railway track from Kano passes

through the State to Nguru in Yobe


State cutting through seven Local
Government Areas

JIGAWA STATE INVESTORS HANDBOOK | 2013

Jigawa State Quick Facts | 7

?
Internet connectivity powered by

Galaxy ITT via a broadband network


also provides enormous potentials
for effective communication and
information management which are
essential for both public and private
sector operations.

BUDGET Estimates: Jigawa has


developed a reputation for realistic
budgets

?
Public water supply in the state is
excellent with over 90% access to
safe drinking water. Surface and
Underground Water is similarly
excellent.
Indicative Resource Allocation: Top 5
Sectors

FINANCIAL RESOURCES
?
Main source

of revenues: the
Federation Account [Statutory
Allocation plus VAT proceeds].
Internally Generated Revenues
constitute less than 10% of recurrent
revenue.

JIGAWA STATE INVESTORS HANDBOOK | 2013

Investing in Nigeria | 8

INVESTING IN NIGERIA
Over view of the
Nigerian Economy
Nigeria is one of the fastest growing
economies in the world, averaging
7% for the past 10 years. It is Africa's
third largest economy [GDP US$
238.9 billion] after South Africa [GDP
US$ 390.9 billion] and Egypt [GDP
US$ 252.5 billion] and accounts for
at least 40% of West Africa region's
GDP. Currently 40th largest economy
in global ranking, with vision to be
among the 20 biggest economies in
the world by 2020.
Nigeria is Africas most populous
nation, estimated at 170 million
(2012 CIA World Factbook) with
about 2.8% annual growth. It
constitutes about half of West
Africa's and 2% of world population.
Over 75% of the population is under
35 years; more than 50% are 18 years
and below. This implies the

Youthfulness of Nigerias population


with huge potentials for market,
labour supply, vigour and skills.
Nigeria is a dual economy a
traditional agricultural economy
where about 70% of the population
belong with GDP contribution of 40%,
overlaid by a modern segment
dependent on oil revenues. The
country has approximately 30
million ha of arable land-land, nearly
40% of its land area, 12 million ha of
fresh water sources, a 900 Km
coastline and significant ecological
diversity which enables the country
to produce a variety of crops,
livestock, forestry and fisheries
products. Cash crops include cocoa,
rubber, sesame, coffee, cotton and
palm kernels. Subsistence crops
include sorghum, maize, cassava,
yams, millet, rice, etc. Leather,
cocoa, sesame and some rubber
products are being exported.

JIGAWA STATE INVESTORS HANDBOOK | 2013

Investing in Nigeria | 9

Livestock farming of cattle and small


ruminants is important, and poultry
farming is rapidly increasing. Grains
like rice and corn, and cassava and
palm plantations, sometimes owned
b y, o r i n p a r t n e r s h i p w i t h ,
multinational corporations, are
gaining ground in producing raw
materials for company use (e.g.
grain for breweries, raw skins for ta
nneries).
A recovering though still weak
industrial sector which contributed
only 4.8% of the countrys GDP in
1998 and employed just 8 % of the
workforce. Presently emphasis is
shifted towards more low-cost,
integrated, high value-added
industries which rely on local rather
than imported raw materials and
capital goods, and on shifting
production away from Lagos.
L e a t h e r, b e v e r a g e s , t e x t i l e s ,
cigarettes, food processing and
soaps continue to account for over
60 % of total manufacturing output.
Industry has benefited lately from
stable exchange rates. Reforms
toward improving the business and
investment climate hold a lot of
promise in filling the existing
performance gap and benefitting
from the huge West African market
in which Nigeria predominates.
Historically one of the largest
producers of tin in the world in the
1950s and 60s, with production
based around the highland district of
Jos. Production collapsed from an
average of 10,000 tonnes per year in
the 1970s to 300 tonnes by 1995 and
even lower as of date. Deposits of
uranium, lead, zinc, tungsten and
gold are not yet exploited. Solid
minerals including gems and
precious stones are reported to be
abundant but equally unexploited.

There are 65 sites in Nigeria where


gold has been located. By mid-1999,
field appraisals had recommended
nine as being ready for exploitation.
The petroleum sector is the
m a i n s t a y o f t h e e c o n o m y,
contributing 36% to annual GDP, 75%
to government revenues and
accounting for virtually all foreign
exchange earnings. Nigeria ranks as
the sixth largest producer in the
Organization of Petroleum Exporting
Countries (OPEC) and by far the
largest in Africa. Proven and
probable reserves of natural gas
stood at 3.5 trillion cu metres (124
trillion cu feet) as at end-1998. The
US$4bn Nigeria Liquefied Natural
Gas Scheme, Africa's single biggest
engineering project, started
producing liquefied natural gas at
the plant at Bonny Island, near Port
Harcourt, in 1999. Civil unrest in the
Niger Delta region interrupted
production for a while, but it has
now resumed following an Amnesty
Agreement between Government
and the restive youths of the region.

Fiscal Policy and Reform


Attempts at diversifying the
economy are still ongoing through
several national development plans,
starting with the First National
Development Plan (NDP) 1962
1968; then the Second NDP 1970
1974; then the Third NDP 1975
1980; and the Fourth NDP 1981
1985. Despite these plans, structural
distortions largely predicated by
government domination of the
economy were experienced. To
address these, a Structural
Adjustment Programme (SAP) was
introduced in 1986. SAP was to
restructure and diversify the

JIGAWA STATE INVESTORS HANDBOOK | 2013

Jigawa State Quick Facts | 10

productive base of the economy in


order to lessen its dependence on
the oil sector and on imports, to
achieve fiscal and balance of
payments viability over time, lay the
basis for sustainable non oil sector
with minimum inflationary growth
among others. Three-year rolling
plans were also introduced starting
in 1990 1995 and subsequently to
1998 under guided economic deregulation and exchange-rate
management.
With the return of civil rule in 1999,
the two-tier exchange rate system
was abolished and a bill was passed
to pave the way for the privatization
of major utilities as prelude to many
other major reforms. The first was a
5-year comprehensive economic
strategy the National Economic
Empowerment and Development
Strategy (NEEDS) covering 2003 2007. As a home-grown strategy, the
objectives of NEEDS included wealth
creation, employment generation,
poverty reduction and value reorientation. These goals were to be
achieved through four key
strategies, namely; Good
governance through public sector
reform and institutions
strengthening, creating resilient and
c o m p e t i t i v e p r i v a t e s e c t o r,
economic empowerment and
technical support to the small and
medium sized enterprises,
mainstreaming the informal sector
by easing the processes and
procedures of establishing and
operating formal businesses.

encouraged the quick adoption of its


state and local government
counterparts in the forms of SEEDS
a n d L E E D S r e s p e c t i v e l y. I n
furtherance to a market-oriented
economy, NEEDS inspired the Nigeria
Vision 20:2020 which was developed
for the transformation of the
Nigerian economy to the status of
20th best economy of the world by
the year 2020. This is being
implemented through medium term
National Implementation Plans
(NIPs) the first of which is spanning
through 2010 2013. The
Transformation Agenda has also been
developed for the implementation of
the Federal governments economic
agenda 2011 2015. Outcomes from
the implementation of the 1st NIP
and the Transformation Agenda so
far include improved sectoral
performance(s) based on better
domestic business environment
resulting from improved policy
formulation, implementation and
coordination; better fiscal
management and discipline using
budgetary benchmarks and
Sovereign Wealth Fund (SWF);
enhanced local content and
participation in public and corporate
procurement; etc.

The adoption of NEEDS produced


some improvement in some key
economic indicators like external
debt profile, improved non-oil
exports, a more market-based
economy, etc. Early results of NEEDS
JIGAWA STATE INVESTORS HANDBOOK | 2013

The Jigawa Economy | 11

THE
JIGAWA
ECONOMY

The Jigawa Economy


Jigawa State is the 10th largest non-oil
and gas economy in Nigeria with an
estimated Gross State Product of
N759.120 billion. The most prominent
feature of the economy is the
dominance of agriculture and other
informal sector activities including
agricultural produce & livestock
merchandize, small and micro business
enterprises, wholesale and retail and
other artisanal trades. According to
official estimates the agricultural
sector contributes the bulk of GSP and
engages directly and indirectly more
than 70% of the population. Crop
production is the dominant agricultural
activity and Jigawa State is Nigerias
7th largest crop producer.
Major rain fed crops grown in Jigawa
State include millet, sorghum, cowpea,
groundnuts, sesame, rice, maize,

Sweet potatoes, Bambara nuts, water


melon, cassava and cotton with a
combined annual yield in excess of 2
million MT. Dry season crops cultivated
are tomatoes, pepper, onions, wheat,
sugarcane, carrots, cabbage, lettuce,
maize and a host of other leafy
vegetables.
Many farmers also engage in rearing of
livestock. Popular livestock species in
the state include goats, sheep, poultry
and cattle with estimated populations
of 2.3 million, 1.8 million, 4.2 million
and 1.1 million respectively (JARDA
1993/94 LSR).
Out of the 2.24 million hectares total
land area of the State, about 1.6
million hectares are estimated to be
cultivatable during the rainy season
while about 308,000 hectares of the
land mass is cultivable during the dry
season through irrigation. Based on
this, over 80% of the States total

JIGAWA STATE INVESTORS HANDBOOK | 2013

The Jigawa Economy | 12

landmass is considered arable, which


makes it one of the most agriculturally
endowed States in Nigeria.
The modern industrial sector is still at
an infant stage. The attempt to fast
track industrial development in the
State led to the establishment of three
agro-allied Industries in the mid-1990s.
These are Dairy Processing Plant at
B/Kudu, Tomato and Citrus Processing
Plant at Kazaure and Flour Mill at
Hadejia. These were established
through a joint venture partnership
with Hungarian Technical Partners.
Being pioneer industrial
establishments, it was expected that
these industries would lay the
foundation for industrial development
in the state. The attempt was not
successful.
The Export Processing Zone (EPZ) at
the border town of Maigatari presents
huge opportunities for the
development of small- and mediumscale enterprises and cross-border
trade in all goods including light
manufactures and value-added
agricultural commodities. Licensed in
2000 by NEPZA, the EPZ is envisaged to
cover a total of 6.5 square kilometers
with robust and modern infrastructures
to support and sustain both light,
medium and heavy manufacturing
industries targeting the export market.
The informal sector is vibrant and
diverse, with an estimated 600
businesses across all economic
activities, engaging more than 3 million
people and contributing approximately
70-80% of output. The dominant
economic activities are agro-allied:
including grains and food processing,
livestock merchandizing, tanning &
leather works. Other informal sector
activities include blacksmithing,
tailoring services, auto repairs, metal

works, carpentry, dyeing, masonry,


quarrying and block-making,
Jigawa has a vibrant domestic trade
sector which is predominantly
informal, consisting of thousands of
subsistence enterprises but with huge
contributions to the state economy. In
addition to the hundreds of regular
markets spread across towns and
villages in the state, Jigawa has a
number of specialized markets at
SARA, GUJUNGU, MAIGATARI, KUPSA
and HADEJIA dealing in large scale
agricultural commodities and livestock
merchandizing. Jigawa has links with
Niger Republic which provides
opportunities for cross border trade.
The formal wholesale and retail trade
sector remains largely untapped.
The State has an attractive Business
and Investment Climate in terms,
e s p e c i a l l y, o f t h e r e q u i s i t e
infrastructure for economic
development such as roads, electricity,
and information and communication
technology. There are over 2000 km of
tarred road traversing all the nooks and
crannies of the state. This improves
firms access to neighboring states in
the north of Nigeria. A railway track
from Kano passes through the State to
Nguru in Yobe State, making Jigawa a
key link between the Northwest and
Northeast of Nigeria. Internet
connectivity powered by Galaxy ITT via
a broadband network also provides
enormous potentials for effective
communication and information
management which are essential for
both public and private sector
operations.

JIGAWA STATE INVESTORS HANDBOOK | 2013

Jigawa State Investment Policy | 13

JIGAWA STATE
INVESTMENT POLICY

1- Strategic Policy Focus


Generally, the Government is pursuing
pro-poor economic growth policies in
which also there is an overarching
concern for providing a favourable
business and investment climate for
private sector development
particularly small and medium scale
enterprises. In line with states
comparative and competitive
advantage in the agricultural sector,
the strategy involves the promotion of
small and medium scale enterprises
that has strong linkage with the
agricultural sector. This also includes
the promotion of production and
distribution of goods and services
through Small and Medium Scale
Enterprises and development of
Cooperatives & Entrepreneurship.
This is viewed as viable option for the
gradual industrialization of the state
with huge potentials for jobs and
Wealth creation. Other specific
strategies include:

?
Establishment

of an Export
Processing Zone for the promotion of
cross-border trade;

?
Development of skilled and semi-

skilled labor through the skills


acquisition centers;
?
Pr o m o t i o n

of trade-based
cooperative groups;

?
Financial intermediation Services to

facilitate access to credit


?
Provision of incentives for private

sector participation in the industrial


development of the State. These
include, among others, provision of
free industrial plots, exemption of
all land development charges and
other tax concessions, preparation
of industrial profiles and feasibility
studies, etc;
?
Pr o m o t i o n

of

Development;

JIGAWA STATE INVESTORS HANDBOOK | 2013

Re s e a r c h

and

Jigawa State Investment Policy | 14

2 - A Sense of the Business &


Investment Climate
One of the main findings of the World
Banks Doing Business in Nigeria 2010
Report was that it is " easiest to start
and operate a business in Jigawa"
compared to all the other 36 States in
Nigeria.

1st

World Bank ease of Doing


Business 2010
Jigawa

2nd

Gombe

7th

Kastina

Rank

8th

Kano

24th

Lagos

Since the 2010 Doing Business in Nigeria


Report, the State has continued to take
conscious and proactive measures in
continuously improving the business
environment and investment climate in
the state. While on the one hand,
physical infrastructure was developed
to support socioeconomic
transformation, on the other hand,
governance processes were
continuously reformed to facilitate the
establishment and growth of private
investments on whatever scale.
Already the liberalised business

environment and the privatization of


the four pioneer agro-allied industries
in the state have begun to attract
Foreign Direct Investment (FDI) in to
the state. A total of estimated N3.5
billion new investment including the
De-Pacific Concrete Poles Factory and
the three PVC Plastic(Injection
Slippers) factories transferred to
Kijawal by the Lee Group of
Companies.
Indeed, given the States varied natural
resources, demography, a large
number of well trained and highly
talented professionals and skilled
labour force, the potentials for real
and sustained growth are enormous.
The state has in the years
demonstrated a strong political will
and good governance stance which
provides conducive and progressive
regulatory environment for business
with good investment climate
providing
enabling conditions for
private enterprise and business
c o m p e t i t i v e n e s s . T h e p o l i c y,
regulatory, legal and institutional
frameworks in the state provides
strong incentives for private
enterprise. The Table below gives a
sense of the business environment and
investment climate in the state:

JIGAWA STATE INVESTORS HANDBOOK | 2013

Jigawa State Investment Policy | 15

S/N

Assessment
Parameters

Assessment

Economic Assesment
1

Transport

Over 2000 kilometers of tarred road networks traversing nooks &


corners of the State; 518.5 kilometers of feeder roads linking rural
areas with major State / Federal Roads; and railway line from
Nguru (Yobe State) through seven major urban towns in Jigawa State
linking to Kano. An Airport currently under construction in Dutse with
a provision of dry-port.

Energy

National Electricity Grid traversing the State with several sub-stations


in all part; and average of 10 Hrs power supply by Power Holding
Company of Nigeria (PHCN). Most private enterprises use private
sources of power supply to supplement PHCN Power supply. There is
however availability of petroleum products with over 80% of the sale
having the products all the time.

Water
Resources /
Supply

Even as the State Water Policy allows for self-provision of water


supply, public water supply in the state is excellent with over 90%
access to safe drinking water. Surface and Underground Water is very
excellent.

Access to
Information

There is total mobile-phone coverage in the State; A state-owned


Radio Station and 10no. of Community Radio Stations with limited
Coverage. There is also a state-owned Website: jigawastate.gov.ng

Regulatory / Legal Framework


5

Tax
Administration

A simplified tax administrative system

Land Regulation

Takes less than three months to obtain a Certificate of Occupancy;


Computerized Land Management Information System; ,Governor's
consent for transfer of Rights of Ownership within two weeks;

Business
Registration

There is a functional Corporate Affairs Office in Dutse, the State


Capital; with on-line real-time access; State Agencies with
responsibilities for Business Registration Formalities [including
Ministry of Commerce & Industry, Ministry of Lands and Due Process
& Project Monitoring Bureau] takes less than five [5] working days to
process and concludes such requests;

Business Support
8

Entrepreneurship
& Investment
Promotion,
Access to
Finance and
Public - Private
Partnerships

The State' policy on entrepreneurship development provides for


measures to promote entrepreneurship promotion. Access to finance
by Business Enterprises is facilitated through the existence of
branches of all financial institutions in the country including a number
of development banks. The State Government also actively supports
the State Chamber of Commerce in undertaking Investment
Promotion Activities. An Export Processing Zone was also established
at the Border Town of Maigatari to support industrial clusters and
public-private partnership. Provided in the EPZ includes proto-type
industries, security outposts, customs and immigration services,
financial institutions, etc.

JIGAWA STATE INVESTORS HANDBOOK | 2013

National Investment & Regulation Frameworks | 16

that no law can force any investor to

surrender
his interest;
C - NATIONAL INVESTMENT
LEGISLATION
AND REGULATION FRAMEWORKS

1 - Nigerian Investment
Promotion Commission Act
The Federal Government of Nigeria has
in 1988 enacted the "The Nigerian
Investment Promotion Commission
(NIPC) Act" as the principal investment
law. Among others, it governs entry of
foreign direct investment into the
country. The Act also established the
N i g e r i a I n v e s t m e n t Pr o m o t i o n
Commission as an agency of the Federal
Government of Nigeria charged with
the responsibility to encourage,
promote, and coordinate investments
in Nigeria.
Key provisions of the NIPC Act include:

?
That while Government may acquire

property under circumstances of


national interest, however even
under circumstances, the Law
ensured that the investor is entitled
to "fair, adequate and prompt
compensation" and recourse to the
courts if necessary;
?
In cases where a dispute between

ownership of
companies in all but the petroleum
sector;

the State and a foreign investor are


not settled amicably, recourse to
arbitration can take place either via
the settlement mechanism of the
bilateral or multilateral investment
protection agreement of which they
are parties or via other national or
international dispute settlement
mechanisms, as mutually agreed.

?
No enterprise shall be nationalized

?
Foreign companies are required to

by any Government of the


Federation at whatever level and

incorporate local subsidiaries or


branches

?
100% foreign

JIGAWA STATE INVESTORS HANDBOOK | 2013

National Investment & Regulation Frameworks | 17

?
Transparency in Financial Dealings

including preparation of Annual


Financial statements which shall be
filed with the Corporate Affairs
Commission (CAC).

commercial bank through which the


investor is importing the capital, and
the investor is required to submit the
following documentation:
?
A formal

2 - Foreign Exchange Act


An extant law on Foreign Exchange
Dealings is the Foreign Exchange
[(Monitoring and Miscellaneous]
Provisions Act of 1995 which
guarantees an investor the free
importation and convertibility of
foreign exchange into Nigeria. The Act
also provides for unconditional
transferability of the following:
?
Net dividends or profits attributed to

letter of application
explaining that the funds remitted to
Nigeria represent the foreign
investors capital contribution to the
equity of the company

?
A board resolution of the company of

the investor authorizing the foreign


investment
?
A copy

of the certificate of
incorporation of the company

?
A copy of the SWIFT message from

the remitting bank

an investment

of proceeds
resulting from the sale or liquidation
of an investment

The commercial bank will issue the


Certificate of Importation within 24
hours of the importation of capital
(conditional upon receipt of the
required documentation as detailed
above

Equity share capital must be brought


into Nigeria through authorized dealers
(banks). The remittance of dividends is
permitted provided the share equity
was imported. There are no restrictions
on the percentage of profits that may
be distributed as dividends. The
remittance of interest, royalties and
technical fees is permitted, provided
the royalty contracts and technical
fees have been approved by the
National Office for Technology,
A c q u i s i t i o n a n d Pr o m o t i o n . A
Certificate of Capital Importation is
required to undertake these
transactions. The Central Bank
guarantees unconditional
transferability and repatriation of
funds for Certificate of Capital
Importation holders. Certificates of
Capital Importation are issued by the

Even though the Fiscal Federalism as


practiced in Nigeria has allowed for the
allocation of taxation to each of the
three tiers of Government (i.e. the
Federal, State and Local Government
levels), the operation of the Joint Tax
Board provided by the Federal Income
Tax Act has ensure that incidence of
multiple taxation do not happen across
the various tiers. Corporate income
and withholding taxes, oil and gas
production taxes, value added tax
(VAT) and import duties are exclusively
within the Jurisdiction of the Federal
Government while Personal Income
Tax, Capital Gains Tax, Stamp Duties,
Business Registration and Road and
Gaming Taxes are collected by State
Governments. Local Government
collects social and commercial permit
fees.

?
Debt service payment on foreign

loans
?
The remittance

JIGAWA STATE INVESTORS HANDBOOK | 2013

National Investment & Regulation Frameworks | 18

?
Education tax rate of 2% is payable

3 - Corporate Taxation
Taxation of corporations is provided for
under the Companies Income Tax Act.
While Nigerian companies are taxed on
their worldwide income, foreign
companies are liable only as regards
the portion of their profits attributable
to businesses carried on in Nigeria. The
corporate income tax rate in Nigeria
for non-oil and gas companies is 30%,
with the following allowances:
?
Annual capital allowances (10% on

buildings, 25% on plant, 20% on


furniture and fittings) supplemented
by substantial initial year
allowances, with agriculture and
mining activities having especially
favourable initial tear allowances.
The deduction of capital allowances
is capped at two thirds of annual
assessable profits (with the
exception of agricultural activities)
and the total allowance is limited to
95% of the asset cost.
?
Additional

investment allowances
(reconstruction investment
allowance) of 10% are allowable on
all plant and equipment.

4 - Transaction Taxes
The range of transaction taxes that
apply to business enterprises in Nigeria
are as follows:
?
Value Added Tax [VAT] of 5% is

by all resident companies;


?
The Petroleum Profits Tax (PPTA) Act

of 2007 also provides for the taxation


of companies involved in the
exploration and extraction of
petroleum. Under the Act, the tax
regime for exploration and
production companies is set at 85%, a
lower rate of 67.75% is applicable
until the amortization of preproduction expenses and a rate of
50% is applied to Production Sharing
Contracts (PSCs);
?
Capital Gains Tax of 10% is levied on

the disposal of property, while the


sale of shares and stocks are exempt.
Non-residents are subject to the
capital gains in Nigeria only on the
disposal of fixed property, held
directly or indirectly, located in
Nigeria;
?
Stamp Duties are charged by both

Federal and State Governments on


various commercial and legal
documents, such as transfers of
deeds, insurance policies and bills of
exchange;
?
Withholding Tax is applicable on

specified transactions and at


specific rates depending on the
beneficiary of the payment. The
table below gives some details.
Whole or partial exemptions from
withholding tax exist on foreign
loans depending on the tenor.

charged as a consumption tax on the


supply of goods and services. Exempt
goods and services include basic
foodstuffs, medicines, medical
devices and medical services,
educational materials, and exported
goods and services. Some items are
zero-rated;
JIGAWA STATE INVESTORS HANDBOOK | 2013

National Investment & Regulation Frameworks | 19

Applicable Withholding Tax by Transaction Types


S/N Type of Payments
1
2
3
4

5
6
7
8
9

Dividend, Interest, Rent


Royalties
All aspects of building, construction
related services
All types of contract and agency arrangements
other than outright sale and purchase of goods
and property
Consultancy and Professional Services
Management Services
Commissions
Technical Services
Directors Fees

5 - Personal Income Tax


Liability to Personal Income Tax does
not depend on the domicile or
nationality of the tax payer. Income
arising from a trade, business or
profession inside or outside Nigeria is
liable for income tax in Nigeria if the
tax payer is a Nigeria citizen. Foreign
residents are equally liable in Nigeria if
their Income originates from activities
in Nigeria. The applicable rates are as
follows:
?
Personal

Income Tax rates are


progressive up to 24%.

?
1% of annual payroll to be paid to the

Industrial Training Fund (with 60%


reimbursable upon verification of
performance in staff training)
?
For social security, an employee

must contribute a minimum of 7.5%


of earnings, while the employer must
make a pension contribution at a
minimum of 7.5% of the employees
b a s i c s a l a r y, t r a n s p o r t a n d
accommodation allowance.
Law No. 5 of 2010 which establishes the
Jigawa State Board of Internal Revenue
empowers the State Internal Revenue

Rate for
Companies
10%
15%
5%

Rate for NonCorporate


10%
15%
5%

5%

5%

10%
10%
10%
10%
10%

5%
5%
5%
5%
10%

Service to be responsible for the


collection and administration of
personal income tax in the State.
Generally, reforms in Nigeria on
taxation are tending towards
increasing indirect taxes and at the
same time reducing direct taxes for
better efficiencies. Even though the
State Government is taking proactive
measures to increase the efficiency of
its internal revenue generation
mechanisms as well as raise the level of
the collection, this is being done within
the context of extant Federal Laws and
the purview of the Joint Tax Board
which generally regulates tax matters.
For instance, due recognition is given
of "Double Taxation Agreement (DTAs)
which Nigeria is signatory to with such
countries as Nigeria has signed DTAs
with Belgium, Canada, France,
Pakistan and the UK. Agreements with
China, South African and Sweden are
awaiting ratification
6 - Visas and Entry of Foreign Workers
All Immigration issues are handled by
the Nigerian Immigration Service in the
Federal Ministry of Internal Affairs.
While Immigration Act of 1963 is the
main piece of legislation governing the
entry of foreigners into Nigeria, other
international protocols and bilateral

JIGAWA STATE INVESTORS HANDBOOK | 2013

National Investment & Regulation Frameworks | 20

agreements also apply as in the case of


ECOWAS where nationals are not
subject to the residence permit
processes. The Act provides for both
short-term business visas and longer
term work and residence permits for
foreigners provided certain preconditions are met.

Temporary work permits are not valid


for more than 90 days.
Foreign investors can also apply for
longer-term work permits (for up to
three years) under the Expatriate
Quota (EQ) scheme. Under the EQ
scheme a foreign investor can apply to

6.1 - Business Visas


Business visitors to Nigeria must preapply for a business visa. Applications
for business visas can be submitted at
the local Nigerian mission in the
visitors home country. To secure a
business visa the applicant must
provide evidence of the following:
?
Sufficient

funds to
themselves in Nigeria

sustain

hire expatriate workers to designated


positions.
EQ applications can be
submitted at the Ministry of Internal
Affairs or through the NIPC and the
following are the key requirements:
?
The foreign investor first secures a

Business Permit (BP) and then


applies for the right to hire
expatriate workers for designated
positions, the EQ

?
A valid return ticket
?
The applicant completes Form 1
?
A letter of invitation from a business

organization in Nigeria stating the


reason for travel and accepting
immigration responsibilities of the
applicant (i.e. accommodation,
sustenance, transportation and
repatriation costs, if required)
Business visas can be secured for
between 90 days and 6 months and are
n ot va l i d for e m p l oy m e n t or
remuneration.

6.2 - Work and Residence Permits


Visitors to Nigeria providing specialized
services can apply for temporary work
permits. The requirements are the
same for the business visa, with the
exception of the evidence of sufficient
funds. Application for temporary work
permits are submitted at the office of
the Comptroller General of the
Nigerian Immigration Service in Abuja.

which requires them to list the posts


for which expatriates are required,
their qualifications and details of
training schemes for Nigerian
understudies (the EQ scheme
requires that two Nigerian
understudies be nominated for each
designated position and that they be
trained with a view to take over
within three years)
?
The completed Form 1 must be

submitted with a receipt of payment


of the form fees; the applicants
Certificate of Incorporation; joint
venture agreement (where
applicable); tax clearance
certificate; lease agreement for
operating premises; evidence of
imported machinery (form M, pro
forma invoice, shipping documents,
pre-shipments inspection
documents) and details of the
proposed annual salaries to be paid
to expatriates.

JIGAWA STATE INVESTORS HANDBOOK | 2013

National Investment & Regulation Frameworks | 21

Upon approval of the EQ application


the applicant then applies for a Subject
to Regularization (STR) visa for the
expatriate staff they are hiring.
Applications for the STF visa can be
submitted at the local Nigerian mission
in the expatriates home country.
Upon arrival in Nigeria, the STR visa
holder is eligible to obtain a work and
residence permit known as the
Combined Expatriate Residence Permit
and Aliens Card (CERPAC), which is
valid for two years. ECOWAS nationals
and Free Zones are not subject to the
EQ and residence permit processes.

?
Political

/ policy direction of
Government;

?
Companys area of business to fall

within priority sectors of the


economy;
?
Evidence that PUR would guarantee

Technology transfer; and


?
Company should have large quota

portfolio and Corresponding share


holding as an added qualification;

Foreigners can also apply for


Permanent Until Reviewed (PUR)
status.
The main reason for the
granting of PUR for which a Certificate
would be issued, is to enable the
foreigner(s) adequately protect their
interest and to give them a sense of
greater commitment. The criteria and
documents required for PUR are:
?
Minimum share capital should be

=N10 Million;
?
Appreciable net profit of which not

less than =N2 million has been paid


as Corporate Tax;
?
Certified

and Detailed Audited


Account and Certificate of
Incorporation

?
Monthly Returns of Expatriate Quota
?
Company Organizational Structure;
?
Individual

Income tax Clearance


Certificate of the expatriates
(original to be presented for
sighting).

Other factors that would also be


considered when considering PUR
request include:
JIGAWA STATE INVESTORS HANDBOOK | 2013

National Investment & Regulation Frameworks | 22

7 - Starting a Business n Jigawa


Jigawa State performs reasonably well in the World Bank Subnational Doing
Business Indicators, ranked 17 out of 36 in 2010.

Starting a business in Jigawa simply involves the following steps:

JIGAWA STATE INVESTORS HANDBOOK | 2013

National Investment & Regulation Frameworks | 23

The final registration with CAC the


following document/forms:

Investment Incentives in
Nigeria

Stamped memorandum and


articles of association (2 copies);

As a matter of policy both the Federal


Government of Nigeria and Jigawa
State Government have both instituted
a range of investment or fiscal
incentives which prospective investors
could take advantage of. These include
import concessions, tax exemption for
exported products, tax holidays and
tax reductions for qualifying
companies, tax deductions for research
and development expenses, access to
free land, serviced industrial clusters,
etc. Some of the specific incentives
provided as a matter of Federal policy
includes:

Form CAC 3, Notice of registered


address;

Form CAC 7, Particulars of


directors;

Form CAC 4, Declaration of


compliance and the prescribed
registration fees;

Copy of the reservation of


company name approval;

Form CAC 2, Statement of share


capital and return of allotment of
shares

JIGAWA STATE INVESTORS HANDBOOK | 2013

National Investment & Regulation Frameworks | 24

allowance;

Pioneer Status
?
Local manufacturers of spare parts,

Pioneer status is a profits and dividends


tax holiday of up to five years granted
to designated pioneer industries.
There are currently 69 designated
pioneers industries within the
agriculture, mining, manufacturing,
tourism, property development and
utilities sectors. A minimum capital
investment of =N5 million from a
foreign owned company (=N150,000 for
a national company) is required to
qualify for pioneer status;

Sectoral Incentives
A number of incentives are on offer to
attract investment to the agricultural
sector and these include:

tools and equipment supplied to


local businesses or exported are also
entitled to a 25% investment tax
credit on their capital expenditure;
?
Mining qualifies for three-year tax

holiday.

SME Incentives
The Small and Medium Enterprises
Development Agency of Nigeria
(SMEDAN) also provides a window of
opportunities in Jigawa State for
prospective investors mainly in the
area of Micro, Small and Medium
Enterprises. In addition to access to
capital and technical expertise,
SMEDAN also engages in:

?
Accelerated depreciation of capital

allowances (up to 95% on some assets


in the first year) with deductibility
on 100% of profits;

Revival of the States small-scale


credit scheme so as to boost the
micro small and medium
enterprises in the state;

?
A number of agricultural and agro-

processing activities have pioneer


status;
?
1% duty on all agricultural machines

and equipment;
?
Agricultural

Credit Guarantee
Scheme Fund (ACGSF) administered
by the Central Bank of Nigeria
guarantees up to 75% of all loans
made by commercial banks to
agricultural related activities;

?
A number

of m a n u fa c tu ri n g
activities qualify for the pioneer
incentives;

?
Manufacturers are entitled to rapid

depreciation allowances and


manufacturing plant and machinery
receives a 10% investment

?
Provision of follow-up business

support,
?
Partnership

with microfinance

banks ;
?
Equipment leasing and acquisition

scheme;
?
Capacity building;
?
Facilitation of the partnership of

SMEs in the State in international


trade fairs and exhibitions
To compliment SMEDAN, the Central
Bank of Nigeria currently working
towards a =N54 billion Micro Credit
Development Fund purposely for
development of Micro, Small and
Medium Enterprises.

JIGAWA STATE INVESTORS HANDBOOK | 2013

National Investment & Regulation Frameworks | 25

R&D Incentives

Additional State Specific


Incentives

Incentives are available through a


number of schemes to encourage firms
t o u n d e r t a k e Re s e a r c h a n d
Development (R&D), with incentives
including:

Additional Incentives provided by the


Jigawa State Government to
prospective investors in the State
includes

?
Up to 10% of profits set aside as a

reserve for R&D qualify as allowable


expenses;
?
Expenditure

on commercializing
R&D qualifies for a 20% investment
tax credit;

?
100% expensing of R&D deemed to

include a levy payable to a qualifying


R&D institution;
?
Corporate

contributions to R&D
carried out by universities and
research institutions to be tax
deductable up to a maximum of 10%
of profits

?
Access to Free Lands for investment

related developments;
?
Long Lease and or highly subsidized

Land Compensations for allocated


lands;
?
Free business support services by the

Jigawa State Ministry Commerce and


Jigawa State Investment &
Properties and the Jigawa State
Chamber of Commerce and Industry
?
Access to

free and or highly


subsidized broad-band internet
services through the state-owned
Galaxy ITT;

JIGAWA STATE INVESTORS HANDBOOK | 2013

SECTORAL INVESTMENT
OPPORTUNITIES IN JIGAWA

Sectoral Investment Opportunities in Jigawa | 27

Market. Rasheed Shekoni specialist


hospital and numerous housing
estates are also located in this
district.
Garu district is the main residential
?
district. It is undergoing extensive
development, which includes the
Royal Golf Course and a number of
tourist attractions such as the
zoological garden. Gadadin junction
has been earmarked as an area for
commercial development and
shopping mall.
Limawa district is predominantly
?
rock outcrop, with great potential
for the development of rock
procession and water processing
industries.

Dutse and Investment


Opportunities
Dutse is the State Capital and is made
up of the three traditional settlements
of Garu, Limawa and Fagoji. Dutse is an
ancient city transformed into modern
residential, commercial and industrial
layouts, and a growing and vibrant
population of almost 250,000
(recorded in the 2006 census). It now
contains five districts, each with its
own potential investment
opportunities and characteristics.
Fagoji district is the city centre
?
housing the administrative,
commercial and socio-economic
activities of Dutse. It is also home to
the Federal University and State
polytechnics.
Takur district provides the main
?
commercial corridor to the entire
city and state. It is home to the
Mechanic Village and Modern

Fanisau district is another area


?
pitched for enormous development
in the coming years. It contains
Dutse airport, Jigawa Stadium and
Karnaya Industrial Centre.
The city has excellent infrastructure
and continuing to develop extensive
links to Nigeria and the West African
region. The Kano-Maiduguri road links
Dutse to the North West and North
Eastern Nigeria, and south to the
Federal Capital Abuja. Inner city roads
are among the best in the federation
with four bye-passes under
construction. The state government
has set aside over 7 billion Naira for the
construction of an airport in Dutse, due
to be completed by the end of 2013.
The administrative and legislative
buildings are all centrally located
within the Malam Aminu Kano triangle
with modern and fully functional
facilities. The Federal University Dutse
is also located in this area with over
1,000 acres of land. FUD offers a broad
range of degree programs in the

JIGAWA STATE INVESTORS HANDBOOK | 2013

Sectoral Investment Opportunities in Jigawa | 28

Humanities, the Natural and the Social


Sciences and Agriculture with new and
modern amenities.
Dutse also has a number of industrial
layouts, including Karanaya along
Kano-Maiduguri, which is being
extended to serve cargo from the new
airport. There is also a smaller scale
industrial layout and Danmasara
Village on Huguma road. The state has
invested in setting up facilities for key
sectors of the economy, including a
Timber Market, Mechanic Village at
Danmasara, and a modern motor park
at Galadanchi, and Dutse Modern
Market and a Central Business District.

There is also potential investment


opportunities in mining and processing
mineral resources located at Gwaru,
Limawa, Maai and Glamawa; these
include, kaolin, clay, tin and gold.
Given the increased population and
demand for housing the Jigawa State
government has provided land in Dutse
to private housing developers free of
charge. The housing potential for the
land is almost 4,000 units, with over
1000 units to Larix Estate Developers,
Airbus Estate Developers and Elsalem
Estate Developers.
Dutse now acts as the gateway to
Jigawa offering investors great
opportunities and support.

JIGAWA STATE INVESTORS HANDBOOK | 2013

Sectoral Investment Opportunities in Jigawa | 29

Agricultural Sector

Agriculture is acknowledged to be the


main economic engagement of the vast
majority of the people in Jigawa State
providing livelihoods for over 80% of
the population. However, as reported
in the State Comprehensive
Development Framework, "despite
the existence of high potentials for
market-oriented agricultural
production, farming in the State is
largely for subsistence.". Majorly,
Government's concern within the
sector is to facilitate an agricultural
transformation in such a way that the
sector significantly contributes to
economic growth with poverty
reduction and increased food security.
This entails opening up the sector
beyond subsistence, enhancing
productivity through new production
techniques to ensure sustained
agricultural growth with agricultural
value-chain development that supports
increased agro-based investments that
provides employment opportunities.

Distribution of Fadama Lands by


Local Governments
S/N
Local Govt.
Area in
Hectares
1
Auyo
27,111.00
2
Babura
6,504.00
3
Birniwa
1,545.00
4
Birnin Kudu
16,000
5
Buji
4,020.00
6
Dutse
6,505.00
7
Gagarawa
8
Garki
3,034.00
9
Gumel
10
Guri
70,000.00
11
Gwaram
4,627.00
12
Gwiwa
1,940.00
13
Hadejia
14
Jahun
12,065.00
15
Kafin Hausa
7,313.00
16
Kaugama
23,400.00
17
Kazaure
2,030.00
18
Kiri Kasamma
53,650.00
19
Kiyawa
10,691.00
20
Maigatari
21
Malla Madori
3,500.00
22
Miga
23,765.00
23
Ringim
16,075.00
24
Roni
4,330.00
25
Sule Tankarkar
26
Taura
80,883.00
27
Yank Kwashi
2,650.00
Total
381,638.00
Sources: JARDA

JIGAWA STATE INVESTORS HANDBOOK | 2013

Sectoral Investment Opportunities in Jigawa | 30

Indeed, the potentials for an


agriculture-led socioeconomic
transformation in Jigawa State are
enormous.:

cane, maize and gum Arabic.


?
Jigawa state is also advantageous

over other states due to the ease for


registering land and property.

?
The State has large expanse of

agricultural land, rivers and flood


plains suitable for crops, livestock
and fish production.
?
Out of about 2.24 million hectares of

land area, over 1.6 million hectares


consisting of upland soils, are
cultivatable during the rainy season
with an additional 381,000 hectares
consisting of Fadama Lands and River
flood-plains suitable for all-year
round irrigation.

Major areas of agricultural practices


include:
? Crops cultivation including millet,
sorghum, cowpea, beans,
groundnuts, sesame, rice, maize,
sweet potatoes, Bambara nuts,
water melon, cassava, cotton, okra,
Roselle and water melon;
? Horticulture largely consisting of
mango, guava, cashew, citrus, and
dates, .

?
Currently, it is estimated that less

than 10% of the total Fadama lands is


actually being utilized.
?
Jigawa

S t a t e s e n o r m o u s
comparative advantage in the
production and processing of a
number of crops remain largely
untapped as production has also
largely remained for subsistence.
These include millet, sorghum,
cowpea, rice, vegetables, sugar
S/No.

Crops

? Industrial Crops: Gum Arabic, Sugar


Cane, Neem, Jetropha, .
? Livestock: cattle, sheep and goats
and poultry
? Fisheries
The following table briefly captures
existing potentials for some of the key
crops

Current Yield

Obtainable
Yields

11-Year Average
Production Level
(Metric Tons)

Rice

1.4

11.0

63,000

Wheat

1.8

4.5

14,000

Sorghum

0.3

2.9

182,000

Millet

0.4

2.5

237,000

Maize

1.2

5.5

108,000

Groundnuts

0.4

1.7

21,000

Sesame

0.2

1.2

75,000

Tomatoes

10.2

25.0

102,000

Sugar Cane

12.5

90.0

180,000

10

Cotton

0.5

1.5

Less than 1,000

11

Cassava

3.1

25.0

25,000

12

Irish Potatoes

12.0

25.0

Less than 1,000

13

Onions

11.8

20.0

27,000

14

Sweet Pepper

2.2

10.0

96,000

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Sectoral Investment Opportunities in Jigawa | 31

The National policy on Agriculture


provides the following incentives for
the sector:Tax holidays - this comprises of waiver
for various state and federal taxes for
both the short-terms and long-term
investors. These include:
?
Projects' investment
of up to $5m
-10years
?
Project Investment
of $5m - $15m
-20years
?
Project Investment
of $15 - $25m
-30years
?
Project Investment
of $25 - $50m
- 40years
?
Project Investment
of more than $50m
- 50years
?
Tax reduction of up to 35% of the
cost of producing infrastructural
facilities (capitalized during the
tax holding period), distributed
over a five year period.
Benefits in respect of these incentives
apply to both existing and prospective
investors throughout the investment
period.
In addition to the above incentives
provided by the Federal Government,
Jigawa State provides the following
incentives for potential and existing
investors in Agricultural sector:Subsidized leasing of land for
agricultural production or
establishment of
valueaddition and agro-allied
enterprisesFree extension
services;

Agro-dealers;
p
Free Emergency Intervention on
Pest/Disease outbreak on crops and
livestock;
p
Free annual vaccination of all
species of livestock.

This package of incentives is robust


enough to support substantial private
sector investments in agricultural
production, processing and valuechain development.

Investment Opportunities
?
LIVESTOCK PRODUCTION BUSINESS

OPPORTUNITIES:
The availability of hundreds of
Government owned grazing reserves
across the State offers an
opportunity for investors to enter
into a long term lease agreement for
the utilization of these reserves as
cattle/sheep/goats ranches or even
large scale poultry farms. Most of the
reserves are linked with all-weather
roads and are close to the National
power grid with mobile phone
n e t w o r k c o v e r a g e . Po p u l a r
livestock species in the state include
goats, sheep, poultry and cattle with
estimated populations of 2.3 million,
1.8 million, 4.2 million and 1.1
million respectively (JARDA 1993/94
LSR).

Access to highly subsidized


Agricultural inputs (seeds,
fertilizer & veterinary d r u g s
etc);

Access to highly subsidized


warehousing facilities for
agricultural inputs suppliers and

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Sectoral Investment Opportunities in Jigawa | 32

TOMATOES AND PEPPER


?
PRODUCTION AND PROCESSING
Tomatoes peppers and a host of
other vegetables are major crops
grown in the dry season under
irrigation. Tens of thousands of
hectares are usually produced. Dry
season crops production is mainly for
cash. Lack of processing facilities has
been a major impediment towards
full utilization of the hundreds of
thousands of hectares available fory
season crops production.

GUM ARABIC
?

PRODUCTION AND
PROCESSING FOR EXPORT
Acacia Senegal or gum Arabic is
natural gum producing tree species
commonly found in arid conditions.

of gum Arabic plantations have been


developed by both the State
Government and individuals.
Currently, the State Ministry for
environment is producing and
distributing seedlings to citizens free
of charge.
?
INDUSTRIAL SUGARCANE

PRODUCTION FOR SUGAR


PROCESSING
Sugar cane is a long season crop that
grows only on flood plains in Jigawa
State due to its high water
requirements. The industrial cane
varieties in use were reported to
have adapted to the Jigawa
environment as soil and climate of
the state happen to be very
favorable for its cultivation. Records
showed that average yields of 70
metric tons per hectare were
common with good cane crop
yielding over 100 metric tons per
hectare. At the moment soft
industrial cane varieties used as
chewing cane constitutes part of the
3000 Ha currently being cultivated
a n n u a l l y. Wi t h h u n d r e d s o f
thousands of hectares Fadama land
available, Jigawa State is in the
position to support large scale sugar
production.

Nigeria is the world's second largest


producer of gum Arabic after Sudan
with annual production of about 20,000
metric tons. The main production zone
is the arid zone stretching from Jigawa
to Yobe and Borno axis.
In Jigawa State, thousands of hectares
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Sectoral Investment Opportunities in Jigawa | 33

?
RICE PRODUCTION FOR INDUSTRIAL

MILLING
Rice in Jigawa State is mostly grown
under flood plains scattered along
river banks across the State.
Construction of flood control
structures along the flood flash
points will allow water to be
supplied to rice fields as and when
needed, thereby making it possible
for more land to be available,
intensive varieties to be cultivated,
and production to drastically
increase. As earlier mentioned, the
State is endowed with over 300,000
Ha of flood plains substantial part of
which can be used for rice
production.
With the development of about
about 10,000 Ha Hadejia Valley
Project under Hadejia-Jama'are
River Basin Development Authority
(H-JRBDA), intensive and high
yielding rice varieties with high
milling qualities were introduced
e.g. FARO 44 and WITA 4. These
varieties yield up to 10 metric tons
per hectare.
Rice processing is done at cottage
level using simple milling machine
with limited polishing and without
de-stoning. The par boiling process is
not good enough either. With the
proliferation of modern rice mills in
the country Jigawa State is
becoming a major source of paddy
rice for rice mills outside the State.
Establishment of modern rice mills in
the State will be of benefit to both
the farmers and the millers due to
reduction in coordination and
handling charges.

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Sectoral Investment Opportunities in Jigawa | 34

real estate development. PPPs


generally take the form of joint

Real Estate
Development

Land resources and real estate


development have long been regarded
as prime areas of investment in Jigawa
State. As a young state, Jigawa still
experiences housing deficit in the face
of influx of public sector employees
and other private residents.
In order to fill the gap, Government has
at various times constructed housing
units to cater for different categories
of people ranging from state
employees to private individuals.
Examples include the Mallam Inuwa
Dutse Housing Estate at Danmasara and
Fatara Housing Estate all in Dutse
Metropolis. Despite these efforts, high
demand-supply gaps still remain in
both residential and commercial
property development.

ventures by signing a Memorandum of


Understanding (MOU) in which the
State government provides land,
infrastructure as well as guarantees for
repayment in the case where the offtakers are civil servants. The Real
Estate developer is responsible for the
following:
?
Conceptual

layout plans and


preliminary designs

?
Site appraisal and landscape plan
?
Detailed site plans
?
Planning Report and Environmental

Impact assessment (EIA)


?
Construction of the houses and all

associated costs
This therefore, provides great
opportunities for private real estate
development. The State encourages
public private partnership (PPP) in

?
Marketing and sales of houses
?
Po s t c o n s t r u c t i o n

JIGAWA STATE INVESTORS HANDBOOK | 2013

estate

Sectoral Investment Opportunities in Jigawa | 35

The State is keen to support real estate


development through free distribution
of land to private sector developers.
Given the increased population and
demand in Dutse land for more than
4,000 potential housing units have
been given free of charge to the private
sector, with over 1000 units to Larix
Estate Developers, Airbus Estate
Developers and Elsalem Estate

Developers.
Reflective of this demand and the
governments commitment to land and
real estate development, Jigawa is
ranked among the best in the nation in
the ease of registering property and
first in terms of dealing with
construction permits.

Transforming Environmental Challenges into Opportunities


The various dimensions of climate-change or global-warming and their ramifications on
socioeconomic living conditions pose huge challenges on human survival. The challenges
have however, brought opportunities which so far, only the State Government is investing
in. The menace of desertification, has direct negative repercussions on the energy needs
of the population. This has led to the establishment of the Alternative Energy Agency (AEA)
in the state with the mission to facilitate the harnessing of the available renewable energy
resources for sustainable human development. The efforts of the Agency is gradually
making impact on environmental protection, natural resource conservation and utilization of
renewable energy for sustainable development.
Most forms of the existing energy sources are detrimental to environmental sustainability.
Fossil fuel consumption coupled with excessive fuel wood usage reinforce the negative
trend of desert encroachment and other topographic catastrophes. The various projects
executed by the State Government such as the Jetropha Planting Program, the Improved
WoodEeconomy Stoves Scheme and the solar electrification of villages are all geared
towards reducing the effect of environmental degradation and global warming.
The AAEA was therefore established to cater for the rising need for renewable energy
sources as a means of addressing the menace of desertification attributed to the massive
felling of trees for fuel wood . It is also saddled with the responsibilities of harnessing and
exploiting the abundant solar energy into home lighting to supplement the persistent power
shortage in the state and the country in general. In its effort to reduce the use of fuel wood
and curtail the menace of desertification, the Agency has fabricated over 60,000 units of
alternative energy-saving cooking stoves; 300 units of industrial size used by mass
consumers of fire-wood such as boarding institutions and local bakeries. Also 26 remote
villages were provided with so solar power systems consisting of Solar lighting for homes,
street lights, public institutions, water schemes and vaccine refrigerators for clinics. It has
also provided solar lighting back-up systems for Hospitals, Skills Acquisition Centers,
Schools, Prison Yards and other Government/Public facilities. Governments investments
in all these areas are "social" and is only meeting a fraction of the actual needs of the
population. The economic / commercial opportunities in these areas are and are yet to be
explored and tapped by private interests.
Another related potential investment area is the use of bio-fuel for electricity generation

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Power Sector

Power supply is critical for business and


investment. As a matter of policy,
power generation is on the concurrent
list of the Nigerian Constitution, and a
number of national initiatives are
currently ongoing under the National
Power Reform Programme. One of such
initiatives is the liberalization of the
issuance of licence for the generation,
transmission and distribution of power.
The PHCH, hitherto a state monopoly,
has been unbundled into 18 private
companies.These reforms have
therefore opened up the sector to
private investment and competition.
The liberalization of the sector
presents an opportunity for Jigawa
state to attract private investment in
alternative sources of energy which the
state has in abundance for power
generation.

The Power Situation


The electricity distribution network in
Jigawa State is fairly uniform across
the 27 Local Government Areas. It
consists of about 1000KM of 33KV and
100KM of 11KV distribution lines with
over 500 distribution transformers.
This distribution network is supported
by four 132/33KV transmission
substations; two located in the State
(Dutse and Hadejia) and the other two
are located in Dakata (Kano State) and
Kankia (Katsina State). These are
within the jurisdiction of the Kano
Distribution Company (Disco), covering
three states of Jigawa, Kano and
Katsina. The Kano Disco is one of the
eleven Distribution Companies that
were recently sold to private
entrepreneurs in accordance with the
Electric Power Sector Reform Act,
2005. The privatized Kano Distribution
Company is now owned by Sahelian
Power SPV Ltd.

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Power Sector Investment Potentials


The power sector has been liberalized
and is now open to private
participation. The State has abundant
potentials for renewable energy which
can be harnessed to produce
electricity. These include solar, wind
and biofuel from Jatropha oil. With an
established and mature 600ha Jatropha
Plantation at Yarda Kangiwa in
Kaugama L.G.A and over 2000ha of
arable grazing reserves all over the
State, the potential for Jatropha
cultivation is quite significant.
On the average, the State enjoys
twelve of solar radiation every day of
the year. There is an existing State
owned Alternative Energy Agency
which can provide database for the
solar radiation intensity and pattern
for planning and design purposes. The
Agency has already electrified many
villages in the State using solar
photovoltaic technology.

The State has also started tapping


energy from wind to pump water from
deep boreholes for livestock watering
in some grazing reserves. Larger wind
farms for electricity generation in the
State are also feasible especially with
the successful commissioning of the
10MW Wind Turbines in the neighboring
Katsina State that geo-climatologically
situates in the same wind corridor.
With the current level of generation
put at less than 5000MW in a country
where the power requirement is about
40,000MW; and also the carrying
capacity of the transmission lines
(330KV and 132KV) still at less than
6000MW, grid power will, for some time
to come, remain inadequate. This is
why off grid generation especially from
the renewable sources of solar and
wind which Jigawa State has
comparative advantage, will still be
attractive and competitive for
potential investors.

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Sectoral Investment Opportunities in Jigawa | 38

Commerce and Industry

Modern industry in Jigawa is at its


infancy with three pioneer joint
ventures in dairy, fruit processing and
grain milling. The trade and commerce
sector on the other hand is vibrant
especially at the micro, informal level.
Formal trade is estimated at
approximately N8bn or 1% of GSP (Gross
State Product) and consists of
wholesale and retail activities in
household consumer goods and in agrocommodities including grains, sesame,
vegetables and livestock. Commercial
activities are generally carried out
through hundreds of regular markets
all over the state as well as specialized
markets at Sara, Gujungu, Maigatari,
Kupsa, and Hadejia.

Free Trade Zones established by the


Federal Government.
Export Processing Zones
The Nigerian Export Processing Zones
Act 1992 outlines the legal framework
for investment in Nigerias Export
Processing or Free Trade Zones. The
Act establishes the Nigeria Export
Processing Zone Authority (NEPZA) to
administer and manage all free trade
zones in the country. Free zone may be
managed by public or private entities
or a combination of both under the
supervision of NEPZA. Approved free
zone activities include: ? Manufacturing of goods for export

Jigawas geographic position provides


opportunity for regional trade within
the north of Nigeria, and cross border
trade with neighbouring countries in
both North and West Africa including
through the Export Processing and

? Warehousing, freight forwarding and


customs clearance
? Handling of duty-free goods

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Sectoral Investment Opportunities in Jigawa | 39

? Banking, stock exchange, insurance


and other financial services
? Import of goods for special service,
exhibitions and publicity
? International
arbitration service

commercial

? Other activities deemed appropriate


by NEPZA

investment at any time with the


capital appreciation of the
investment;
? Unrestricted remittance of profits
and dividends earned by foreign
investors;
? No import or export licenses
required in the zone;
? Rent free land at construction stage,
thereafter rent shall be set by the
investment management authority;
? Liberalized regime for employment
of expatriate
The Maigatari Export Processing Zone

A minimum investment of US$500,000


is required by approved enterprises to
undertake these activities in the free
zones. Approved Free Zone enterprises
can take advantage of incentives
including the following:
? Up to 100% foreign ownership of
business;
? Exemption from all federal, state
and local government taxes, levies
and rates;.
? Exemption from all federal, state
and local government taxes, levies
and rates;.
? Duty free import of capital
equipment, machinery, raw material
components and spare parts;
? Freedom from legislative provision
pertaining to taxes, levies duties and
foreign exchange regulation;
? Repatriation of foreign capital

The decision to establish the Border


Free Zone at Maigatari town was
dictated by the strategic location of
the town along the Nigeria-Niger
boarder, its historic role in regional
livestock marketing
and as transshipment point along the ancient
Trans-Saharan trade route. The free
zone was licensed in 2000 by NEPZA
and was envisaged to cover a total of
6.5 square kilometers with robust and
modern infrastructures to support and
sustain both light, medium and heavy
manufacturing
industries targeting
the export market. The first phase of
the zone covering a total of 2.3 square
kilometer enclave is 85% completed.
Facilities available include ten
prototype factory buildings complete

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Sectoral Investment Opportunities in Jigawa | 40

with the associated road networks and


drainages, electricity and water supply
network ready for outright lease to
potential investors.
Other services/facilities available
include the following:? Utilities - Electricity HT lines
covering the 2.3 square kilometers
and LT line covering all the
developed areas as mentioned above
and the street line. There are three
(3No.) transformers (two 350KV and
one 500KV) and there are two (nos.)
standby generating sets of 350 and
500KVA. The water requirements of
the ten prototype buildings and their
support infrastructures are provided
by the three boreholes drilled and
reticulated to all the areas;
? Banking facilities
? Hotel Accommodation;

3. To generate wealth and create


employment opportunities, provide
sustainable means of livelihood and
reduce poverty among the populace.
Other Policies for the Promotion of
Commerce
Major Markets Development
The Major Markets Development /
Modernization Programme of the state
involves the provision of modern and
critical infrastructures; such as road
network, drainages, electrifications,
quasi-public facilities and services;
such as public convenience, shopping
mall and stalls, warehouses, animal
pens, motor park, and social and
security facilities such as Police and
Fire Services station, Clinics and
Mosques in the 8 major markets of the
state namely; Gujungu, Maigatari,
Sara, Hadejia, Shuwarin, Furji, Kumsa
and Babura. The objectives are :

? Container terminal,
? Modern industrial Clinic,

? To provide enabling environment and


structures for rapid economic
growth and development;

? Block of lettable offices;


? Security Services including Customs
and Immigration Services and Police
Posts;
The establishment of the export
processing zone is intended:
1. To provide easy access to Niger
Republic and other landlocked
countries in the West African subregion.
2. To promote the development of
export-oriented activities and
attracting foreign investment given
the incentives and facilities made
available at the free zones.

? To provide an easy access to market


by both domestic and foreign
investors;
? To engineer the private sector to be
more productive and relevant by
contributing their own quota toward
developing commercial activities in
the state via private participation;
? To provide a clear mindset in the
commercial sector of the economic
by inducing the private sector to
actively participate and contribute
in providing employment to Jigawa
State indigenes thereby reducing the
rate of unemployment in the state;

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Sectoral Investment Opportunities in Jigawa | 41

? To boosts the revenue generation


activities by encouraging private
sector to contribute their own quota
in the economy thereby reducing the
dependency on oil sector;

The state government is committed to


the provision of critical and modern

? To modernize the market by


providing infrastructure to compete
with other similar modern markets in
other states.
As part of the governments deliberate
policy of encouraging private sector led
economic development strategy, a
public private partnership
implementation strategy was adopted.

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Solid Minerals Sector


Jigawa state is blessed with abundant
Solid Minerals deposit capable of
feeding medium to large scale
industries for optimum industrial
operation. Previous work conducted by
t h e S t a t e M i n e r a l Re s o u r c e
Development Agency and Jigawa State
Investment and Property Development
Company Limited revealed
the
existence of various solid mineral
deposits which when effectively
harnessed would improve the
economic status of the state and its
people in general. These deposits
include among others:
Granite for Dimension Stone:
Varieties of beautiful granites of
different colors and texture that are
chemically and physically tested and
found most suitable for granite tile
production exist in the most southern
part of the state especially in Dutse,
Birnin Kudu and Gwaram Local
Governments.

Tin and Colombite: In Nigeria tin and


columbite have been found to be
associated with the younger granite
rocks which is tin bearing. The
weathering, transportation and
deposition of tin from the younger
granites have risen to the alluvial tin
deposition of Nigeria. It is also worthy
to note that some of these granites
contain appreciable quantity of tin and
a there is also primary tin deposit
which are found in pegmatite veins
around these granites. Collected tin
sample on reacting with HCL
(Hydrochloric Acid) with zinc dust give
effervescence and the tin sample turns
from black to grey color. This denotes
excellent quality of tin deposit;
Iron Ore Deposits: A prefeasibility
study within an area of 700 square
meters was conducted. The iron ore
out crops to the surface having a
maximum height of 0.4m. Within an
area of 700 square meters the

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Sectoral Investment Opportunities in Jigawa | 43

superficial out crop iron ore revealed


4,097. 12 tones. However this could not
reveal appreciable information on the
extent of the iron ore occurrence.
Hence detail work must be carried out
to determine the extent of the iron ore
reserve over the vast area of
deposition;

Soda Ash (Trona): Trona exist in the


eastern part of Jigawa state in lakes
and salt plays in the arid region of the
state. Reserve Estimates of Soda Ash in
various locations around the State is up
to 20 million tons. It is generally used
for Pharmaceuticals; Textiles; Leather
works; Glass production; and Soap &
Detergent production.

Kaolin: Kaolin is used for industrial


production in Paper Industry, Ceramic
Industry, Cement Pharmaceuticals,
Rubber and Plastic Industry, and
textiles. The reserve estimate of
industrial grade kaolin in Jigawa over
an area of 14.4km2 stands at
1,278,773,70 tones. With an annual
production of 38,400 tones it put the
life span deposit at approximately 24
years.

JIGAWA STATE INVESTORS HANDBOOK | 2013

Tourism Development
Jigawa state tourism industry is
growing while Jigawa itself is endowed
with abundant tourist attraction sites,
numerous cultural festivals and
traditional sports, which are being
systematically developed for maximum
impact on economic growth, poverty
reduction and, increased employment
opportunities. Government overall
policy objective in this sector is the
creation of an investor-friendly
environment anchored on the principle
of public private partnership through
the provision of robust tourism and
hospitality infrastructures including
road networks across the state Hotels,
hostels, eateries and other modern
recreational facilities. The current
administration has established the
Hotels and Tourism Board a machinery
for the development, promotion, and
regulation of tourism businesses in
Jigawa state.
Pr o m i n e n t a m o n g t h e
attractions in Jigawa are:

Baturiya Birds Sanctuary Tourist Base


Camp - This is a wetland area covering
more than 320sqkm. It provides a
natural habitat for more than 370
species of migratory birds mostly from
Europe. In addition to birds sanctuary,
the area is rich in cultural activities
which when carefully harnessed will
attract tourism investors to the state.
In addition to road network to the area,
Government has produced a
conceptual drawing for a tourist base
camp which will provide decent
accommodation and recreational
facilities to visitors. The Tourist base
camp will include round hut and
dormitory accommodation,
restaurant, outdoor recreational
facilities, open air theater and multi purpose hall for seminar and
conference;

tourist

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Sectoral Investment Opportunities in Jigawa | 45

Wawan Rafi Lake Holiday Resort Wawan rafi is a fresh water lake
located in the outskirt of kazaure town.
It covers an area of more than 200
meter square and a sand beach
stretching more than 500 meters. The
site has since being recognized as a
potential tourist centre. Because of its
economic and social potentialities,
government has intended to construct
a holiday resort which will comprise of
round hut accommodation, golf course,
out door recreational facilities, open
Air theatre, restaurant, and a
conference hall;
Birnin Kudu Rock Paintings - These are
unique cultural heritage blessed to the
people of Birnin Kudu. The paintings
were since declared a national
monument by the national commission
on museums and monuments. Because
of the global recognition of the sites as
a tourist centre, Government has
sought
for private investors
participation
in the provision of
additional tourist facilities in order to
meet the increasing demand by both
residents and visitors. The proposed
project will include landscaping of the
sites, construction of exhibition hall,
outdoor seating facilities, umbrella
shades, conveniences, information and
snack kiosks.
Horse Racing Stadium Gumel - Horse
racing sport is an event attraction
which brings people of different
nationality, race, religion, and cultural
background to compete with their
animals in a running speed.
Government recognizes the need to
involve individual and corporate
i n v e s t o r s i n p r o m o t i n g u n i t y,
friendliness, mutual understanding,
and cooperation between people and
nations, Government has proposed a
stadia for tourism investors which will
consist of pavilions, race track,

stables, paddock, horse treatment


c e n t e r, s o u v e n i r s h o p s a n d
conveniences.

Dutse Amusement Park the political


capital of Jigawa has a beautiful
natural rock scenery that is attractive
to visitors but is lacking in world class
hospitality and recreational facilities.
Dutse metropolis is currently served by
a three-star rated hotel and the need
for more and higher rated hospitality
infrastructure cannot be overemphasized, given the increasing
demand for leisure and recreational
facilities by residents and visitors. .
Government has proposed a site near
the 3 Star Hotel for, and welcomes
private sector participation in the
construction of a modern amusement
park. The park will consist of folk
village, children amusement facilities,
aqua plant garden, mini zoo, outdoor
recreational facilities snack and
souvenir shops.
Fishing Village - The concept of a
fishing village is to create a center near
a pond where traditional fishing
festival and cultural celebrations are
periodically organized. This activity
will enhance economic activities and
preservation of our cultural heritage.
The state is blessed with many
potential fishing sites across many
local government areas of the state.
The scope of the project will include
construction of round hut
accommodation, pavilions, open air
theatre, restaurant, artificial fish pond
and provision of recreational facilities.

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Sectoral Investment Opportunities in Jigawa | 46

Tourism investors are therefore


welcome to explore this great
opportunity;
Kiyawa/Jahun Sand Dunes Picnic
Centre - Sand dunes, a major feature
of the state has continued to remain a
significant attraction to many visitors.
The construction of a picnic centre
along Kiyawa/Jahun road, will no
doubt stimulate new Tourism activities
in a yet to be exploited recreational
market. A great opportunity therefore
awaits Tourism Investors in this area.
The intended project will include
construction of restaurants, open air
theatre, multi- purpose hall,
information kiosk, and the provision of
outdoor recreational facilities
Government is now sourcing for private
investors, in order to make the dreams
a reality.
Dutse Royal Golf Club Dutse is also
home to the Royal Golf Cub golf course.
The Emir of Dutse Sanusi, commission
the golf course, which is bigger than
the IBB course in the Federal Capital. A
number of damns have been
engineered around the course to
ensure it is green all year round.

JIGAWA STATE INVESTORS HANDBOOK | 2013

ICT and Galaxy ITT in Jigawa


The Jigawa broadband internet access
network project was initiated based on
the evolving requirements of the state
and the benefits that broadband access
and internet connectivity will have on
the Jigawa state government including
the business of government (egovernment), education (eeducation), Commerce (e-commerce)
and Healthcare Systems (e-health)

Brief History of Galaxy ITT


In June 2001, Galaxy Information
Technology and Telecommunications
(Galaxy ITT) Limited was incorporated
as a limited liability company. It was
charged with the responsibility of
ensuring the smooth completion of the
project and maintaining the network
for effective delivery of IT services to
Jigawa state government. The project
was officially commissioned by former
President Olusegun Obasanjo on the 1st
of June 2004, and Galaxy ITT officially
became operational in 2005.
Licenses
The Nigerian Communications
Commission (NCC) issued three major
licenses to the company namely;

1. Very Small Apparture Terminal (vsat)


Licence
2. Internet Service Provider (isp)
Licence
3. Regional Fixed (telephony) Licence
Strength
The Network Operating Centre(NOC)
located in Dutse has a very wide area of
coverage with the capacity to transmit
Vsat services in any part of the country
and the entire west Africa. Galaxy ITT
have successfully deployed Vsat
equipments in the republics of Mali and
Burkina Faso.
The network is equipped with two
earth stations of 6.3 dimension each,
manufactured by Vertex RSI, the
leading antenna manufacturer in the
world.
It operates on a high speed C-Band
platform that can provide good quality,
fast and effective linkage to as much as
5,000 subscribers via radio equipment
on point and multi point connections.
The Network is equipped with

JIGAWA STATE INVESTORS HANDBOOK | 2013

Sectoral Investment Opportunities in Jigawa | 48

transportable earth stations that can


be used to transmit services at any
location required and at any time.
Galaxy ITT has the capacity to provide
up to 10,000 lines on its PHS Telephone
Network.
The company has the capacity to
create employment opportunities for
Jigawa State Indigenes and other
Nigerians as well.
The company has the capacity to
empower Jigawa youths through the
enhancement of IT skills acquisition.
Capacity to render wide range of IT
services to public and private
institutions, International
organisations etc on various
developmental projects on ICT.
The company possesses immense
revenue generation capacity for
Jigawa State.
Galaxy ITT has established a trademark
name that is widely recognized and
appreciated locally, nationally and
regionally.

4. The company has done a lot in the


area of capacity building, have given
requisite training to its staff and
Jigawa State Indigenes in particular.
5. Galaxy ITT has provided the needed
IT services covering various national
and international conferences with the
required internet capacity using the
transportable earth equipment.
6. In 2005, Galaxy ITT Limited signed a
contract agreement with Mobile
Telecommunications Limited (M-Tel) in
which it successfully carried m-tel
traffic using E1 clear channel capacity
via satellite in Dutse, Hadejia, Gumel,
Babura in Jigawa State, and Geidam in
Yobe State.
Operations
Galaxy successfully launched
operations of the network by the end of
year 2003, with the deployment of
VSAT equipment and establishment of
satellite links to commence
transmission in 13 remote sites
comprising of 11 local government
headquarters across the state, Abuja
and Kano.

Achievements
1. The company has succeeded in
acquiring and distributing very large
internet traffic with phenomenal
efficiency to its clients.
2. The company has developed a
robust network predicated on world
class standards which explains why it
was considered to be the major
contributor to the Federal
Governments Galaxy Backbone
project.

In each of these local government


councils, a VSAT was installed and
activated establishing internet access
direct from the network operating
centre (NOC) in Dutse. A point to point
connection was established between
the Secretariat and Schools and other
institutions located in the local
government headquarter via radio
equipment. This way, many Schools and
computer skills acquisition centres
across the state have benefited
through the internet access provided
by Galaxy ITT.

3. The company won an International


Award " The wireless communities best
practices" on digital Inclusion in 2005.
JIGAWA STATE INVESTORS HANDBOOK | 2013

Key Contacts | 49

KEY

C O N TA C T S

MINISTRY OF COMMERCE AND


INDUSTRY
Permanent Secretary
0803 652 7416
[mbmuazu160@yahoo.com
Director Industry
0803 6299 223

Head of Operation
0803 539 1062
amuhammad@galaxyitt.com
BUDGET AND ECONOMIC PLANNING
DIRECTORATE
Permanent Secretary
0803 683 2233
garungabas@yahoo.com]

Director Commerce
0705 9592577
M. D. Solid Minerals Development
0803 213 7361
sabungaru@gmail.com
Managing Director Tourism Board
0803 269 5131
JIGAWA STATE INVESTMENT AND
PROPERTIES LIMITED
Managing Director
0806 5577 942
halliru@hotmail.com,
jsipdc@hotmail.com
MINISTRY OF AGRICULTURE AND
NATURAL RESOURCES
Permanent Secretary
0803 1317 119
Managing Director JARDA
0803 627 2838
ggaliyu@yahoo.com
Director Technical Services JARDA
0809 621 0919
muhddansista@yahoo.com

Director Planning
0803 654 1588
ibrahimadamuumar@yahoo.com]
DUTSE CAPITAL DEVELOPMENT
AUTHORITY
Executive Chairman
0816 1619 999. 0803 553 4367
Administrative Officer
0803 6933338
MINISTRY OF FINANCE AND
ECONOMIC PLANNING
Permanent Secretary
0807 485 8755
Accountant General
0703 8228767
MINISTRY OF LANDS AND REGIONAL
DEVELOPMENT
Permanent Secretary
0803 594 4447
Director Lands
0803 716 0140

GALAXY ITT JIGAWA STATE


Managing Director
0803 7882734
hringim@galaxyitt.com
JIGAWA STATE INVESTORS HANDBOOK | 2013

Notes

Notes

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