Source India Nigeria 27 - 29 March 2018

Eko Hotel & Convention Center, Lagos, Nigeria

Trade Promotion Council of India is organising the 4th edition of the Source India show in Nigeria during Source India Nigeria 27 – 29 March 2018 at Eko Hotel & Convention Center, Lagos, Nigeria. The successful edition of the Source India shows have been organised in Kenya and Ghana with satisfied exhibitors and business visitors.

 

Source India Nigeria is trade show cum BSM (Buyer Seller Meet) with a focus on cost effective promotion of Indian exporters in Nigeria and facilitate direct access to potential buyers and influential decision makers. It expected to have 3000 trade visitors from Nigeria and other neighbouring West African countries where approximately 200 Indian exhibitors from will be exhibiting and show casing their products & services.

 

Nigeria Often referred to as “Giant of Africa”, is the world’s 20th largest economy of the world, worth more than $500 billion in nominal GDP & $1 trillion in Purchasing Power Parity. Imports grossed over US$ 42.1 billion during financial year 2015-16. In 2016 2016 Nigeria’s imports from the world were $30 billion with major products imported include electrical machinery and equipment, automotive, cereals, pharmaceutical products, rubber products etc. Indian exports to Nigeria during the same period touched US$ 1.74 billion and the main products are those items what is imported by nigeria from the world. Thus there is huge potential for the Indian exporters to explore in Nigeria in multiple product segment.As stated in this article, you can browse your selection of available deals on smartphones and top brands and explore the cell phone service plans that best suit your needs.

 

Interested members or exhibitors may please contact Mr. Sandip Das at sourceindia@tpci.in for participation and registration in the event.

Display Product zones

The show is divided into 7 sectoral zones. Please select your industry to know more

Auto & Components

According to the Oxford Business Group, Nigeria imports nearly all of the cars on its roads. Before the announcement of the Nigerian Automotive Policy in 2013, an average of 50,000 new and 150,000 used vehicles were imported each year. However, since June 2015 when the policy was fully implemented, formal imports of new vehicles have dropped by more than 50 percent according to a December 2015 local newspaper report.

The Nigerian government introduced the policy under its National Automotive Industry Development Plan (NAIDP) in a move to resuscitate its local automotive assembly industry which has not traditionally been able to compete with imports. Fully Built Unit (FBU) cars falling under H.S. Code 87.03 would attract a duty of 35 percent and 35 percent levy totaling 70 percent. Also, FBU commercial vehicles falling under H.S. Codes 87.01, 87.02, 87.05, 87.07, 87.16 would attract a 35 percent duty without levy.

Local assembly plants would be allowed to import Completely Knocked Down (CKD) units at 0 percent duty, Semi Knocked Down (SKD) of H.S. Code 87.16 at 5 percent duty and FBU cars at 35 percent duty and FBU commercial vehicles at 20 percent duty without levy in numbers equal to twice their imported CKD/SKD kits.

Key Facts:

  • Titled Africa’s next automotive hub according to PWC report
  • the Nigerian government in 2013 announced a new national automotive policy, the National Automotive Industry Development Plan (NAIDP), which seeks to discourage vehicle importation and encourage local production
  • Offers a large market worth 1700000 USD
  • Out of which 1million USD accounts local production and 70,000 USD accounts for imports
  • Although a used vehicle dominated market but has the potential to be 1 million new car market
  • The total imports of Nigeria from world stands at 1.4 bn USD out of which India’s share is 224 million USD
  • Hence Nigeria offers a market of about 1.1 bn USD for India exporters to explore

Export Potential of India to Nigeria

(Values in %)

Healthcare & Pharmaceutical

Nigeria’s public health care system is overseen and managed at three distinct levels. The federal government is responsible for tertiary care, which is mainly provided by university teaching hospitals and federal medical centers. Nigeria’s 36 states and the federal capital territory of Abuja are each responsible for their own secondary care facilities, mainly in the form of general hospitals, while the 774 local government areas focus on primary health care that is administered primarily through dispensaries. On the surface, the clear delineation of responsibilities by hierarchy should result in greater accountability and fit-for-purpose provision. Yet critics of this three-tiered structure argue that it can result in budgetary leakages, overlap inefficiencies and blame passing.

At N262bn ($1.6bn), health care has been allocated slightly less than 6% of the 2014 budget. While this ranks as the fourth-largest allocation by value after defense, education and finance (when including debt servicing), health care proponents and international health advocacy groups believe the amount to be far less than what is needed. In 2001 Nigeria was a signatory to the Abuja declaration, as a part of which it and other African nations pledged to commit 15% of their federal budget towards health needs, especially the combating of infectious disease and child and maternal mortality. In recent years per capita government expenditure on health has fluctuated between $21 and $29, a figure that exceeds the minimum WHO benchmark for developing countries of $14, but is still far below the global average of around $615.

  • With rising disposable income & awareness, people are seeking better medical facilities hence demand of pharmaceuticals, medical infrastructure is on the rise
  • India providing better and yet cheaper medical facilities, have great scope for medical tourism
  • With the Nigerian government encouraging private sector investment in healthcare sector so as to improve the medical facilities thus standard of medical treatment it opens up the scope exporting medical equipment
  • Nigeria Imported around 1.7 bn USD worth Pharmaceuticals products from the world, India’s share was around 354 million USD
  • Nigeria imported around 386 million USD worth medical equipment from the world, India’s share was around 22 million USD

Medical Tourism:

  • It is a major sector boosting the economy of many developing countries, such as Malaysia, Singapore and India
  • 47 percent of Nigerians visited India in the year 2012, did so to get medical attention
  • Factors like inadequate medical equipment and personnel, and also inadequate infrastructures have greatly contributed towards Nigerians seeking medical tourism
  • Nigerians spent about $200 million which is equivalent to about 20% of the budgetary allocation for the healthcare sector in 2015 towards medical tourism

Export Potential of India to Nigeria

(Values in %)

Engineering & Construction

Nigeria is now recognized as the largest economy in Africa due to the growth in GDP seen in recent years, and, according to the Nigeria Bureau of Statistics, national GDP stands at NGN80.22trn. Given that the engineering sector underpins a lot of other sectors, such as construction, power, agriculture, telecommunications and so on, it plays a prominent role in its contribution to GDP.

This success is due principally to the sector’s expertise, which generally amounts to enough talent and capacity to cope with any project that might come its way. This expertise can best be seen in the construction and telecommunications industries, which are booming sectors in the country. What’s more, the spectrum of the ongoing engineering activities and the growth in GDP has enhanced the development and training of young engineers, as well as the creation of job opportunities.

Medical Tourism:

  • Engineering has a fundamental role to play in addressing all of the Millennium Development Goals in Nigeria especially in providing basic infrastructure services and supporting pro-poor economic activity.
  • Nigerian leaders have recognized and begun to put emphasis on the urgency of strengthening the country’s engineering capacity through the revitalization of higher education institutes.
  • Key issues relating to engineering capacity building in Nigeria are: improving infrastructure; appropriate standards; including social, economic and environmental factors when developing engineering solutions; improving education in engineering; encouraging entrepreneurship and innovation; and ensuring that Nigeria’s environment is protected and development is sustainable.
  • Nigeria’s total imports from world stands around 6 bn USD
  • India’s contribution to the imports is around 300 million USD, India has an export potential of around 5.7 bn USD

Export Potential of India to Nigeria

(Values in %)

IT & Telecom

Nigeria has one of the largest telecom markets in Africa, supported by the second largest economy on the continent after South Africa. Given the potential for further growth, the sector attracts considerable foreign investment. Far reaching liberalization in recent years has led to hundreds of companies, many of them small and localized, providing varied telecom and value-added services in an effectively regulated market.

The mobile sector has benefited from market competition and the wider deployment of LTE services during the last two years, which has supported operator revenue and encouraged the adoption of mobile broadband among subscribers. Other than the key mobile network operators, there are a number of additional players operating under a unified licensing regime.

After a decade of failed privatization attempts, the incumbent national telco Nitel and its mobile arm M-Tel went into liquidation, with the NATCOM Consortium acquiring the telco in March 2015 for some $252 million.

Nigeria has the most competitive fixed-line market in Africa, featuring a second national operator (Globacom) and over 80 other companies licensed to provide fixed-telephony services. The alternative carriers combined now provide around 85% of all fixed connections while the ailing incumbent.

Medical Tourism:

  • India, despite being a leading exporter in the sector, is able to export to Nigeria only 1.26% of its total exports to the world.
  • In this sector, China and Sweden are the prominent import sources for Nigeria. And, India stands as the 10th largest import destination of Nigeria in the concerned sector.

Export Potential of India to Nigeria

(Values in %)

PLASTICS & RUBBER

Rubber products in Nigeria are used in household items such as footwear, mats, and gloves, and automobile related products such as tires and tubes, industrial goods include conveyers and belts, hoses etc. Rising vehicle sales coupled with favorable government policies are expected to boost rubber tyre market in Nigeria over the next five years. With a vehicle motorization rate of around 28 vehicles per 1,000 people, Nigeria offers a huge potential for new vehicle sales over the next five years, thereby promising a positive outlook for the country's rubber tyre industry as well. Nigeria offers a market worth 420 million USD. India exported USD 20 million worth of Rubber articles to Nigeria India ranks 3rd in overall rubber imports of Nigeria. According to industry reports, during the past six years the use of use in Africa has grown by an astounding 150%,

Africa has become a key player in the international plastics and packaging industry where plastic goods and expertise are in high demand. Africa’s plastic industry is reporting high growth rates as demand for plastic goods and machinery in Africa registers a steady growth.

Many countries in Africa have experienced several years of strong economic growth (ranging from 8-12% in 2015) and it is now one of the fastest growing markets for plastic goods and machinery in the world. A growing economy, a population of over 680 million and the potential for significant long-term growth has made the African continent a priority market for many international companies. Some of the areas identified as opportunities for international companies include plastics production machinery (PME) as well as plastics material resins (PMR). Not to mention the high demand for plastic goods that has been growing throughout Africa.

According to industry reports, during the past six years the use of plastics in Africa has grown by an astounding 150%, at a compound average growth rate (CAGR) of approximately 8.7 per cent. Imports of plastics into Africa have grown between 23% and 41% during this time. In a recent conference presentation, analysts predicted that the use of plastics in West Africa alone is expected to increase three folds in the next five years

However, the African plastic sector is facing challenges like lagging behind developed countries in terms of production methods, product quality, scale of production and product range, poor government support and a shortage of good infrastructure to boost manufacturing. Hence there is high potential for Indian markets to import the plastics, packaging and printing products to African countries to meet their ever increasing demands in this sector.

In 2015, India majorly exported Article of Plastics & Rubber such as, Plates, sheets, film, foil and strip, of plastics, Plastic packing goods or closures stoppers, lids, caps, closures, other plates, sheets, film, foil, tape, strip of plastics, Tableware, Kitchenware, tubes, pipes & hoses, new pneumatic tyres, Inner tubes, Articles of vulcanized rubber, mittens and mitts of rubber & fittings to Nigeria.

Export Potential of India to Nigeria

(Values in %)

Food & Agriculture

In spite of the oil, agriculture remains the base of the Nigerian economy, providing the main source of livelihood for most Nigerians. The sector faces many challenges, notably an outdated land tenure system that constrains access to land (1.8 ha/farming household), a very low level of irrigation development (less than 1 percent of cropped land under irrigation), limited adoption of research findings and technologies, high cost of farm inputs, poor access to credit, inefficient fertilizer procurement and distribution, inadequate storage facilities and poor access to markets have all combined to keep agricultural productivity low (average of 1.2 metric tons of cereals/ha) with high postharvest losses and waste.

The main factors undermining production include reliance on rain fed agriculture, smallholder land holding, and low productivity due to poor planting material, low fertilizer application, and a weak agricultural extension system amongst others.

The main factors undermining production include reliance on rain fed agriculture, smallholder land holding, and low productivity due to poor planting material, low fertilizer application, and a weak agricultural extension system amongst others.

Key Facts:

  • India’s Food Exports to Nigeria accounts for around 0.46% of India’s total food exports.
  • Rice and Sugar and Sugar Confectionary occupy a dominant position in export basket of India to Nigeria.
  • India’s prominent competitors under this sector are United States of America and Brazil.

Export Potential of India to Nigeria

(Values in %)

Infrastructure & Building

Nigeria has a very advanced infrastructure platform when compared with other lower income countries in Africa. The construction has made a significant contribution to both industrial output and overall Gross Domestic Product (GDP) in Nigeria over the years. With reference to available country-wise statistics the impact of the built environment sector as a whole is much greater than manufacturing, mining, quarrying, electricity and water sectors taken together.

But as the country approaches the middle income threshold, it will need to focus on upgrading its infrastructure in line with benchmarks. Nigeria has succeeded in increasing household access to telephone, power, and water services by developing its national infrastructure’s backbone.

Moreover its success to service is not confined to only urban areas; rural water, electricity, GSM coverage rates are equally impressive. Very high percentage of the country’s paved and unpaved roads are in good/fair condition. . Institutional reforms have been adopted in the ICT, ports, and roads, and reforms of the water utility have substantially reduced the hidden costs of the sector.

To meet its most pressing infrastructure needs and catch up with developing countries in other parts of the world, Nigeria needs to expand its infrastructure assets in key areas like power, irrigation, transport etc. According to trade study, it’s observed that there exists a huge potential of Indian exports in building and construction products to Nigeria.

Key Facts:

  • Heavy equipment & Technology, Power & Renewable Energy and Transportation & logistics are the major focus areas with respect to Infrastructure sector.
  • Articles of Iron & Steel and ceramics dominate the exports from India to Nigeria.
  • Articles of iron & steel offers a trade potential of around 1.4 million USD
  • Ceramic industry offers a trade potential of 220 thousand USD

Export Potential of India to Nigeria

(Values in %)

Source India Events

Kenya

11 January, 2017

Post Show Report

Ghana

8 February, 2017

Post Show Report

Nigeria

27 March 2018

Iran

12 February, 2018

Argentina

28 February, 2018

Kenya

11 January, 2017

Post Show Report

Ghana

8 February, 2017

Post Show Report

Nigeria

27 March 2018

Iran

12 February, 2018

Argentina

28 February, 2018

Copyright © 2024 TPCI. All Rights Reserved