| Investment
Climate In Nigeria Nigerian
Investment Promotion Decree
Foreign
Exchange Decree
Securities and
Exchange Commision Act
Exchange Control Regulations
The Nigerian Financial System
Privatisation
and Commercialisation Decree
Protection of
Industrial Investment and International Trade Business
Nigeria is a country
endowed with arable land and abundant natural resources. Government
policy has been directed towards ensuring that what nature has provided
is harnessed and utilized to the fullest, for the benefit of the
citizenry.
The thrust of the nation's
current economic development policy is as enunciated in the VISION
2010 Report which is: To make Nigeria a major industrial
nation and economic power that continually strive for sustained
economic growth and development towards the quality of life for
all Nigerians.
This will be achieved
through:
-
Development of
a strong public and private sector partnership which fosters
a strong economy that is private sector-driven with the government
as the enabler.
-
Enhancement of
exploitation of the nation's hydrocarbon, agricultural and mineral
resources, tourism and sporting talents;
-
Promotion of
entrepreneurship and competition within the ambit of fair, equitable
and enforceable laws;
-
Massive investment
in education, health, technology and infrastructure;
-
Involvement of
the community in projects from conceptualization through execution
to maintenance;
-
Movement towards
export-oriented production manufacturing and industrial sectors;
-
Promotion of
indigenous entrepreneurship and building of a strong and viable
indigenous private sector; and
-
Opening up the
economy to participation by more indigenous and foreign investors.
The realisation of
these aspirations, had informed the radical and pragmatic econorm'c
reforms introduced since the mid 1980's. The reforms were designed
to increase the attractiveness of Nigeria’s investment opportunities
and foster the growing confidence in the economy. The reforms resulted
in the adoption of liberal and market oriented economic policies,
the stimulation of increased private sector participation and elimination
of bureaucartic obstacles which hinder private sector investment
and long term profitable business opertions in Nigeria. Some of
the Significant legislations are as follows. Go
to Top
Nigerian
Investment Promotion Decree No. 16 of 1995
This decree completely eliminates all quatitative and qualitative
and barriers to free investment in the the country particularly
for foreign investor. The provisions of the Decree allows foreign
investors to buy unlimited shares of the quoted companies through
the Nigerian Stock Exchange in any covertible currency and also
100% equity ownership of business is allowed. The decree establishes
the Commission as one-stop-agency which facilitates investment location
and provides the investor access to profitable business ventures
and granting of necessary pre-investment approvals. The Nigerian
Investment Promotion Commission, NIPC Decree repealed the Industrial
Development Coordination Committee (IDCC) Decree No. 36 of 1988
and the Nigerian Enterprises Promotion Decree (NEPD) of 1972 as
amended in 1977 and 1989 which hitherto reserved for Nigerians the
ownership of certain business. Go
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Foreign
Exchange (Monitoring and Miscellaneous Provision) Decree No. 17
of 1995
This Decree abolishes all restrictions
on importation of Foreign and repatriation of deividends. The operation
of the Autonomous Foreign Exchange Market as provided for in the
Decree, liberatlize the FEM operations. The Decree repealed the
Exchange Control Act No. 16 of 1962 in its entirety. Go
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Securities and Exchange Commision Act of
1979
This empowers only the commission to regulate the capital market
and determine the price, amount and time which securties of all
public compnies and enterprises having alien interests are sold
to the public whether by offer for sale or subscription. Foreign
investors would be allowed to participate in quoted and bond transactions
on the Nigerian Stock Exchange without any restriction.
Go to Top
Exchange Control Regulations
Regulation of Capital, profit and dividends are allowed, while technical
fees and royalties on imported technical services and technologies
are payable. Repatration of proceeds from disposal of assets is
allowed. Foreign Exchange Transactions are carried out at the Autonomous
Foreign Exchange Market. Go
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The
Nigerian Financial System
The Nigerian Financial System comprises the regulatory/supervisory
authorities, banks and "other" financial institutions. The regulatory/
supervisory authorities are the Central Bank of Nigeria, the Nigeria
Deposit Insurance Corporation (NDIC), the Securities and Exchange
Commission (SEC), the Federal Ministry of Finance (FMF), the Nigerian
Insurance Supervisory Board (NISB) and the Federal Mortgage Bank
of Nigeria (FMBN). There are several commercial and merchant banks
in providing fast and efficient financial services to their clients.
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Top
Privatisation
and Commercialisation Decree No. 25 of 1988 as amended in Decree
No. 28 of 1999 (Government Notice no. 70.)
The privatisation and commercialisation de provided for the divestment
of Government’s interest in some public enterprises which are best
suited for private sector management. The law also stopped further
injection of government funds into enterprises that could be better
operated on commercial bases. Go
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Protection
of Industrial Investment and International Trade Business
Nigeria's membership of the World Bank's Multi-lateral Investment
Guarantee Agency (M.1. G. A) as well as the operation of the bilateral
Investment Promotion and Protection Agreement (I.P.P.A) between
Nigeria and any interested party country, make for adequate protection
of foreign investment in Nigeria. The instrumentality of the Patents
and Design Decree of 1970 affords protection and transferability
of shares of joint owners of a patent or design registered in Nigeria;
while that of the Trade Mark Act of 1956 affords protection of the
exclusive right of a proprietor of a trade mark.
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