STONECHANGE 2016 - STONE SECTOR and CHANGING TRENDS Carrara 16-17 June 2016

DEVELOPMENT OF DIMENSION STONES:The Nigeria Experience:

• Nigeria is the most populated country in Africa with declining oil revenues, large mining and natural stones potential and rapid population growth

• Oil rich nation and member of Organisation of Petroleum Exporting Countries (OPEC)

• Located in West Africa and bordered by Niger, Cameroon and Benin Republic

• The population is very young, 62% are below 30 and the median age is just 28 years.

Country OverviewNIGERIA

• The natural stone sector in Nigeria is at its early stages and is characterised by:

• Availability of huge reserves of high quality granites, marbles and limestone

• Large availability of manpower and high level of entrepreneurship

• High and growing demand in the domestic market and some neighbouring countries

• Large export potential

Overview of the Nigerian Dimension Stones Industry

As outline in the Base Line Study carried out in 2009 by SMMRP World Bank financed project, the Nigerian Dimension Stones Sector has very high potential positive factors:

- large geological potential of high quality stones

- large domestic market

- good number of MSMEs already operating in the sector mainly in artisanal way, ready to upgrade to a more industrial phase

- large availability of manpower

- relatively good infrastructure

Overview of the Nigerian Dimension Stones Industry

“The Dimension Stones Sector therefore represents a possible key sector for the

improvement of the Nigerian economy through Job Creation and SME and Community

Development.”

• The current domestic demand for dimension stones is estimated at over 4,000,000 square meters valued at over US$50,000,000

• The huge demand is due to the growing construction industry in the country and huge government spending on buildings in Abuja, the new capital city of Nigeria.

Domestic Market for Nigerian Dimension Stones Industry

• About 95% of this demand is currently being met through imports from China, India, Italy, Turkey, etc.

• The local producers are only able to meet about 5% of the demand due to low investment in the sector

Domestic Market for Nigerian Dimension Stones Industry

“A huge investment opportunity exists for setup of Dimension Stone Quarries and Processing

Plants in Nigeria to meet the growing demand in the domestic market and for export”

Pictures of some of the Dimension Stones Found in Nigeria

Pictures of some of the Dimension Stones Found in Nigeria

Pictures of some application of Dimension Stones Found in Nigeria

Pictures of some application of Dimension Stones Found in Nigeria

Pictures of some application of Dimension Stones Found in Nigeria

Pictures of some Dimension Stone Quarries in Nigeria

Pictures of some Dimension Stone Quarries in Nigeria

Pictures of some Granite Processing Factories in Nigeria

• The Nigerian Dimension Stone Industry, if well developed, has the potential to:

• Stimulate economic growth

• Increase employment and create wealth

• promote import substitution and over dependence on import of dimension stones

• reduce capital flight and save the country’s foreign exchange reserves

• promote export to Europe, Asia and neighbouring countries

Some Government Incentives for Investment in Nigerian Dimension Stones Industry

• 3 -5yr Tax Holiday

• Duty-Free and Tax Free Importation of Dimension Stones Equipment

• Expatriate Quota Allowance

• Capital Allowance

• etc

Some Government Incentives for Investment in Nigerian Dimension Stones Industry