Investing In Abuja
The strategic location of the nation’s capital as well as on-going large-scale development activities makes it a fertile ground for investment. The development of Abuja constitutes an economic resource of unimaginable magnitude when the expected demand for services is considered together with the necessary infrastructural facilities that would have to be provided to make the city run efficiently.
The dawn of democratic governance in Nigeria on 29th May 1999 ended Nigeria’s pariah status in the comity of nations and opened up a new era of diplomatic and economic relations with the industrialized world. For instance, since May 1999, there has been a considerable number of high level visits between the European Union (EU) countries and Nigeria, also other forms of bilateral political and economic intercourse have increased and intensified. These are signals of confidence in the economy of Nigeria.
In order to further encourage local and foreign investments, the Ministry of Federal Capital Territory has provided an enabling environment that is hinged on the following policy initiatives.
- Fiscal measures in terms of tax deduction and allowances payable by enterprises.
- Provision of insurance cover for export-oriented industries as specified in Decree No. 18 of 1986.
- Liberal allocation of industrial parks.
- Provision of well laid-out industrial parks.
- Provision of requisite infrastructure demarcated industrial parks
The Ministry of the Federal Capital Territory through the Abuja Investment and Property Development Company (AIPDC) has through the build, operate and transfer scheme entered into an agreement with four private companies for the development of markets in the territory, while four multi~level car parks’ development have also commenced.
Interested investors are to liaise with the AIPDC to work out modalities for hitch-free operation. Areas of investment include:
Invitation for Pre-qualification for the Procurement Of Associated Fertilizers by the Federal Capital Territory Administration and Expression of Interest in the Privatization of FCT Mini-Abattoirs.
The FCT besides its good climate condition, is endowed with various solid mineral deposits, which are of high quality and have the potential for both domestic and export markets. The FCT Administration is making efforts to create a conducive environment for local and foreign investors to export the abundant economic resources of the new Capital Territory. Some of these solid minerals can be found in the following areas within the Territory: MARBLE, MICA, SAND/CERAMIC CLAY, WORLFRAMITE AND TANTALITE, IRON, SAND, TIN,LEAD, BUILDING AND CRUSHED STONES.
In a bid to encourage rapid industrial development of the FCT the government has introduced a number of incentive packages among which is the removal of bureaucratic bottlenecks normally associated with land allocation. In addition, the MFCT has made provision for development of light, medium and heavy industries at Idu industrial park I, II and III, Gaube and Gwagwalada Industrial parks.
These layouts have been provided with the relevant Industrial infrastructure, including good road network, water supply and distribution network, sewage and drainage systems, electricity services and telecommunications facilities. The Industrial estates are as follows:
- Idu Industrial park
- Idu Industrial park II
- Idu Industrial park III
- Gaube Industrial park.
The FCT and indeed Nigeria, has readily available labour force, both skilled and unskilled. Thus labour; as a factor of production, will not pose any problem to the prospective investors in any part of the FCT.
Real Estate Development
Housing deveIopment is one major area in which the FCT is in need of increased private sectors participation. The Abuja Master Plan envisaged a 51.8% contribution from the organized private sector to the government of Abuja. The government has done considerably well in the area of providing both office and residential houses to a large section of the inhabitants. However, these facilities remain inadequate, The population of Abuja keeps increasing thereby putting undue stress on existing housing facilities. Given the liberal land allocation policy and the prospective large number of corporate bodies and individuals wishing to rent houses, the private sector should as a matter of prime importance avail itself of the huge market advantage by investing in real estate.