23 July 2018

Nigeria: U.S. Companies Contributed N2.6trn to Nigeria in 2017 - Survey

The federal government earned over N2.6 trillion as revenue from United States companies operating in Nigeria in 2017, compared with about N1 trillion the government realised last year, a survey has shown.

Also, the country recorded Foreign Direct Investment (FDI) of about $1.3 billion from US last year.

This was contained in the 2018 report of the US Economic Impact Survey, an annual assessment of companies' impact on the Nigerian economy, through gross value added to the energy future, economic outlook, investment, jobs, and communities, presented at an interactive session in Lagos recently.

Presenting the survey carried out by the American Business Council (ABC), in collaboration with Accenture, KPMG, PWC and the US Embassy, Vice President, ABC, Mr. Darrell McGraw, explained that the report reflected the contribution of over 74 US companies operating in Nigeria, saying that their responses reinforced the role the US played in the economic well-being of Nigeria.

McGraw said such roles were in the areas of job creation, investments in training and development, tax contribution, and corporate social responsibility, noting that the surveyed companies contributed N111 billion in tax revenue to both the federal and state governments, created approximately 11,200 indirect jobs and over 9,000 full time jobs in the year under review.

According to him, the surveyed companies spent over N1.6 billion on training and development in 2017 from N340 million in 2016, stressing that it showed US companies' commitment in capacity building in order to correct the deficit in labour skills.

He said: "N1.5 billion was spent by the companies on corporate social responsibility (CSR), from N217 million spent in 2016.

"The focus areas are education, health, infrastructure and social intervention, which are key area of focus for US companies in Nigeria. About 52 per cent of these companies identify Nigeria as a regional hub for their operations in West Africa.

"Sixty-four per cent of US companies have local content target reflecting an inclination towards localisation in areas such as products, people and supply chain. Critical issues that impact the business operations of surveyed US companies in Nigeria include labour, specific industry regulations, local content and crime and security.

"Security of lives as well as Intellectual Property has been a crucial issue for US companies as this impacts investment and derails trust."

However, McGraw added that Nigeria had improved its performance on the Ease of Doing business, but that businesses continued to face dire challenges in the country, adding, "In spite of the challenges, this survey shows renewed focus of US companies operating in Nigeria committing in human capacity as well as financial investment."

Earlier in his remarks, the President of ABC, Mr Lazarus Angbazo, stated that US was a natural business partner of Nigeria and one with a long-standing commitment to the country, noting that some American firms had been in existence, partnered and invested in Nigeria since Independence.

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