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JIGAWA STATE
INVESTORS HANDBOOK | 2013
JIGAWA
Investing Today to Secure Tomorrow
Contents
FOREWORD BY THE GOVERNOR
QUICK FACTS
INVESTING IN NIGERIA
An Overview of the Nigerian Economy
Overview of the Jigawa Economy
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KEY CONTACTS
49
His Excellency
Alhaji (Dr.) Sule Lamido CON
Governor, Jigawa State
JIGAWA STATE:
Quick Facts
DEVELOPMENT ISSUES
GENERAL
?
Created on Tuesday, 27 August, 1991
?
The 'New World' is bordered by Kano
?
The State Capital Dutse acts as the
?
Jigawa is 8th most populous State in
ECONOMY
?
Jigawa State ranks as the 10th
?
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,
?
The State has a total landmass of
?
Industry is mostly limited to small
?
For a number of agricultural produce
?
Commerce and Industry consist of
?
Tourism is a small and developing
?
68.7% household heads are self-
in some economic
[1,535,660] is
activity:
?
Jigawa
?
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
?
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
?
Internet connectivity powered by
?
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.
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
Investing in Nigeria | 9
THE
JIGAWA
ECONOMY
JIGAWA STATE
INVESTMENT POLICY
?
Establishment
of an Export
Processing Zone for the promotion of
cross-border trade;
?
Development of skilled and semi-
of trade-based
cooperative groups;
?
Financial intermediation Services to
of
Development;
Re s e a r c h
and
1st
2nd
Gombe
7th
Kastina
Rank
8th
Kano
24th
Lagos
S/N
Assessment
Parameters
Assessment
Economic Assesment
1
Transport
Energy
Water
Resources /
Supply
Access to
Information
Tax
Administration
Land Regulation
Business
Registration
Business Support
8
Entrepreneurship
& Investment
Promotion,
Access to
Finance and
Public - Private
Partnerships
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
ownership of
companies in all but the petroleum
sector;
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No enterprise shall be nationalized
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Foreign companies are required to
?
100% foreign
?
Transparency in Financial Dealings
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
of the certificate of
incorporation of the company
?
A copy of the SWIFT message from
an investment
of proceeds
resulting from the sale or liquidation
of an investment
?
Debt service payment on foreign
loans
?
The remittance
?
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
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
5
6
7
8
9
?
1% of annual payroll to be paid to the
Rate for
Companies
10%
15%
5%
5%
5%
10%
10%
10%
10%
10%
5%
5%
5%
5%
10%
funds to
themselves in Nigeria
sustain
?
A valid return ticket
?
The applicant completes Form 1
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A letter of invitation from a business
?
Political
/ policy direction of
Government;
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Companys area of business to fall
=N10 Million;
?
Appreciable net profit of which not
?
Monthly Returns of Expatriate Quota
?
Company Organizational Structure;
?
Individual
Investment Incentives in
Nigeria
allowance;
Pioneer Status
?
Local manufacturers of spare parts,
Sectoral Incentives
A number of incentives are on offer to
attract investment to the agricultural
sector and these include:
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
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A number of agricultural and agro-
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;
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A number
of m a n u fa c tu ri n g
activities qualify for the pioneer
incentives;
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Manufacturers are entitled to rapid
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Provision of follow-up business
support,
?
Partnership
with microfinance
banks ;
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Equipment leasing and acquisition
scheme;
?
Capacity building;
?
Facilitation of the partnership of
R&D Incentives
?
Up to 10% of profits set aside as a
on commercializing
R&D qualifies for a 20% investment
tax credit;
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100% expensing of R&D deemed to
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
SECTORAL INVESTMENT
OPPORTUNITIES IN JIGAWA
Agricultural Sector
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The State has large expanse of
?
Currently, it is estimated that less
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
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
11
Cassava
3.1
25.0
25,000
12
Irish Potatoes
12.0
25.0
13
Onions
11.8
20.0
27,000
14
Sweet Pepper
2.2
10.0
96,000
Agro-dealers;
p
Free Emergency Intervention on
Pest/Disease outbreak on crops and
livestock;
p
Free annual vaccination of all
species of livestock.
Investment Opportunities
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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).
GUM ARABIC
?
PRODUCTION AND
PROCESSING FOR EXPORT
Acacia Senegal or gum Arabic is
natural gum producing tree species
commonly found in arid conditions.
?
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.
Real Estate
Development
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Site appraisal and landscape plan
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Detailed site plans
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Planning Report and Environmental
associated costs
This therefore, provides great
opportunities for private real estate
development. The State encourages
public private partnership (PPP) in
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Marketing and sales of houses
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Po s t c o n s t r u c t i o n
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.
Power Sector
commercial
? Container terminal,
? Modern industrial Clinic,
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:
tourist
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,
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.
Key Contacts | 49
KEY
C O N TA C T S
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
Notes
Notes
EN
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