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Borno State Investment Policy

Strategic Policy Focus

Strategic Policy Focus

Generally, the Government is pursuing pro-poor economic growth policies in which also there is an overarching concern for providing a favorable business and investment climate for private sector development, particularly small and medium-scale enterprises. In line with the state’s comparative and competitive advantage in the agricultural sector, the strategy involves the promotion of small medium-scale enterprises that a has strong linkage with the agricultural sector. This also includes the promotion of production and distribution of goods and services through Small and Medium Scale Enterprises and the development of Cooperatives & Entrepreneurship. This is viewed as a viable option for the gradual industrialization of the state with huge potential for jobs and Wealth creation.

Other specific strategies include:

  • The proposed establishment of an Export Processing Zone for the promotion of cross-border trade.
  • Development of skilled and semi-skilled labor through various skills acquisition centers.
  • Promotion of trade-based cooperative groups.
  • Financial intermediation Services to facilitate access to credit.
  • Provision of incentives for private sector participation in the industrial development of the State. These include, among others, the provision of free industrial plots, exemption of all land development charges and other tax concessions, preparation of industrial profiles and feasibility studies, etc;
  • Promotion of Research and Development.

THE BORNO INVESTMENT COMPANY.

To achieve its strategic objectives, the Borno state government established the Borno Investment Company Limited (BICL) aimed at stimulating and promoting both private and public investments to hasten the industrial growth and development of the state.

This is hoped to be achieved by promoting, financing, and implementing small, medium, and large-scale projects in the manufacturing commercial, financial, and service sectors of the nation’s economy through equity and loan or loan Investment.

  • Providing investment information and expertise to agencies and private investors.
  • To monitor and manage government investments in public companies and corporations.
  • Provide company secretarial and legal services.
  • Provide free financial and technical advice to private and individual companies in the form of feasibility studies and assistance to a company in which it has invested.

Borno Investment Company Limited will consider investing in a project if it satisfies the following condition:

  • The project must be technically feasible, commercially viable, and self-sustaining.
  • The project sponsor must be an individual or institution of proven integrity.
  • A portion of the Equity capital of the project should be provided by the project sponsor.
  • The project must assist the economic development of the country by providing or engaging in one or all of the following:
    • Employment
    • Import Substitution
  • The project must be assured of competent management along with technical expertise if this is required by the nature of the operation.
  • BICL shall have at least a board set and/or participate actively in the management of the project.
  • The project must not conflict with national economic objectives and policies.
  • Development of local enterprises and entrepreneurship.
  • BICL invests only in limited liability companies.

BICL currently has a wide portfolio of Investments in 26 quoted companies and 15 unquoted companies within and outside the state.

Borno State Competitive Advantages

  • Strategic location borders Cameroon, Chad, Niger, and four (4) Nigerian States.
  • Groundnut, Cattle, Fish, Rice, Maize, Wheat, Cowpea, Sesame, and Soya Beans Producing state.
  • The State has a dedicated Gum Arabic belt.
  • The State has huge deposits of solid minerals, Diatomite, Bentonite, Gypsums, limestone, Uranium, Potash, Silica sand, etc.
  • Over 1 million hectares of land reserved for livestock production.

Industrial Raw Materials in commercial quantities

  • Sesame
  • Gum Arabic
  • Onion
  • Cowpeas
  • Groundnuts
  • Pepper
  • Maize
  • Rice
  • Wheat
  • Soyabeans
  • Tomatoes
  • Sorghum
  • Cattle
  • Fish
  • Hide & Skin

Incentives to Investors

In order to boost industrialization, both the Federal and State governments provide incentives to investors. The Federal Government incentives include fiscal and non-fiscal incentives.

Fiscal Incentives include:

  • Pioneer status
  • Tax Relief for Research and Development
  • Local Raw Material Utilization
  • Export Oriented Industries
  • Investment in Economically Disadvantaged Areas
  • Reinvestment Allowance

Non-Fiscal Incentives include:

  • Investment Guarantee
  • Guarantee Against Expropriation
  • Access to Land
  • Export incentives
  • Depreciating Capital Allowance
  • Establishment of Special Economic/ Industrial Zones.

In addition to the Federal Government incentives mentioned above, Borno State Government also offers the following incentives to both local and foreign investors. They are.

  • Fast processing of applications for land acquisition
  • Tax relief
  • Provision of infrastructural facilities such as roads, water, electricity, etc.
  • Borders with three (3) countries, which provides good access to the export market.
  • Teeming unemployed graduates as a skilled labor force.