With a population of 160 million people (1/6 of the African population), Nigeria is one of Africa’s largest markets. The country has abundant natural resources, inexpensive workforce and it is strategically located with good access to many West African countries. Nigeria is also the third largest FDI recipient in Africa, and the government has been effectively pursuing a policy of economic liberalization, promoting public-private partnerships and strategic alliances with foreign firms.
Some of the country’s main advantages are: a partially privatised economy, an advantageous taxation system, significant natural resources and the low cost of labour.
However, there are a number of obstacles to FDI: poorly developed transport and energy infrastructures which result in high operating cost; highly inefficient government institutions and widespread corruption; slow and inefficient judicial system and unreliable dispute settlement mechanisms; multiple taxation system, restrictive trade policy and increasing lack of security especially in the north-eastern part of the country.
While the main investing countries in Nigeria are the United States, China and the Netherlands, the country has signed bilateral investment agreements with Algeria, Bulgaria, China, Egypt, France, Finland, Germany, Italy, Jamaica , Montenegro, the Netherlands, North Korea, Romania, Serbia, South Africa , South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, Uganda and the United Kingdom. Only four treaties (France, Netherlands, South Korea and the United Kingdom) have been ratified by both parties, the ratification process has been hesitant and poorly organized.
The government has expressed an interest in negotiating a bilateral investment treaty with the United States.
The Nigerian Investment Promotion Commission (NIPC).
The Nigerian Investment Promotion Commission (NIPC) is the Nigerian federal government Agency established by the NIPC Act No. 16 of 1995 to promote, co-ordinate and monitor all investments in Nigeria.
The basic functions and powers of the NIPC are as prescribed by the Act aforesaid and such functions include, but not limited to:
- registration of enterprises
- provision of support services to existing and potential investors
- provision and dissemination of up-to-date information on incentives available
to investors - investment promotion and monitoring activities
-and so on.
The commission is based at Plot 1181, Aguiyi Ironsi Street, Maitama, Abuja-FCT, Nigeria.
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Call Us – Nigeria : +234(0)81 257 85 0 28 | UK : +44 (0) 79 84 162 168
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