U.S. firms in Nigeria generate N2.6tr

United States’ companies operating in Nigeria generated revenue worth more than N2.6 trillion in 2017, a survey conducted by the American Business Council, in collaboration with Accenture, KPMG, PwC and the U.S. embassy has revealed.

The revenue generated during the period was higher with about N1.6 trillion, when compared to the amount the companies generated in 2016, representing about 160 per cent increase.

The Vice President of the American Business Council and Senior Partner, PwC, Darell McGraw, disclosed this to journalists during the 2018 U.S. Economic Impact Survey launch in Lagos, last weekend.

He said the survey, which reflects the contribution of 74 U.S. companies operating in Nigeria and their responses, reinforce the role the country plays in the economic health of the nation in the areas of job creation, investments in training and development, tax contribution and corporate social responsibility, among others.

Notwithstanding the harsh economic environment, the Foreign Direct Investment (FDI) inflow by U.S. into Nigeria during the period stood at $1billion, with the creation of about 11,200 indirect jobs and over 9000 full time jobs, thus, representing a 72 per cent and 70 per cent growth respectively from 2016.

While 52 per cent of the companies identified Nigeria as a regional hub for their operations in West Africa, others said that if specific industry regulatory and business environment challenges are addressed, most companies would be inclined to consider the country for their business operations.

President of the council, Lazarus Angbazo, who commended the Federal Government for its drive on the ease of doing business and the Economic and Recovery Growth Plan (ERGP), stated how the ABC and other private sector companies have been supporting the presidential initiative on competitiveness and industrialisation, adding that the engagement with government around these areas is very active.

Angbazo, who is also the President and Chief Executive Officer of GE Nigeria, noted how his company goes all out to recruit, train and qualify local Nigerian companies to become part of the global supply chain and also compete at the global standard.

The idea, GE boss, pointed out, is not to make Nigeria a substandard partner, but to get them on the same track as top suppliers from the world.

The Commercial Counselor, U.S. Commercial Service, Brent Omdahl, recalled how the Commercial Investment Dialogue (CID) platform was signed with  Nigeria in 2017, with an overall idea to deepen trade investment between both countries and to foster sustainable partnership between the governments, with issues of common interest to both countries.

The 2018 survey also highlighted the number of U.S. companies currently operating in Nigeria, the cumulative direct investment committed by these companies, revenue generated through tax paid to the government, trainings provided to staff, local content initiatives and how they have provided employment opportunities to Nigerians.