INVESTING IN NIGERIA

WHY NIGERIA 

Nigeria is Africa’s foremost business destination second only to South Africa. Its currency is the Naira. $1.00USD is approximately N156. The country operates a market economy dominated by crude oil exports with the revenue earnings from the sector accounting for 90% of forex earnings and 65% of budgetary revenues. Other exports are cocoa, palm oil, groundnuts, cotton, timber and rubber.

Nigeria’s imports are in the region of $14.54billion USD. Import commodities include machinery, chemicals, transport, equipment, manufactured goods and live animals.

In recent times, focus is being directed at non oil exports and agriculture, which presently accounts for 30% of the GDP, to diversify the economic base. Opportunities exist for the exploitation and export of natural gas, bitumen, limestone, coal, tin, columbite, gold, silver, lead-zinc, gypsum, glass sands, clays, asbestos, graphite, and iron ore, among others.

Nigeria offers the market in sub-Saharan Africa, with a population of about 120 million people. The Nigerian market potential also stretches into the growing West African sub-region.Sample Description
Nigeria offers stable political environment.
Nigeria has enormous resources, most of which are yet to be fully exploited. They include mineral, agricultural and human resources.
The Government has created a favorable climate for business and industrial ventures. Administrative and bureaucratic procedures have been greatly streamlined. The Government has put in place policies and programmes that guarantee a free market economy.
The country has a dynamic private sector, which has assured greater responsibilities under the new economic environment.
Exchange control regulations have been liberalized to ensure free flow of international finance. There is now unrestricted movement of investment capital.
There is well-developed banking and financial sector. The investor has easy access to working capital and other credit facilities.
There is an abundance of skilled labour at an economic cost, resulting in production costs, which are among the lowest in Africa.
A comprehensive package of incentives has been put in place to attract investment.
Rapid development of physical and industrial infrastructure, in terms of transportation, communications, electricity and water supply.

The Nigerian Investment Promotion Commission (NIPC)

The Nigerian Investment Promotion Commission (NIPC) is Federal Government Agency in Nigeria established by the NIPC Act N0. 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 Act 16 of 1995.

The Commission has perpetual succession and a common seal, which is specially established, among other things, to:

  • Co-ordinate, monitor, encourage and provide necessary assistance and guidance for the establishment and operation of enterprises in Nigeria;
  • Initiate and support measures which shall enhance the investment climate in Nigeria for both Nigerian and non-Nigerian investors;
    Promote investments in and outside Nigeria through effective promotional means;
  • Collect, collate, analyse and disseminate information about investment opportunities and sources of investment capital and advise on request, the availability, chance or suitability of partners in joint-venture projects;
  • Register and keep records of all enterprises to which the NIPC Act legislation applies;
  • Identify specific projects and invite interested investors for participation in those projects;
  • Initiate, organise and participate in promotional activities such as exhibitions, conferences and seminars for the stimulation of investments;
  • Maintain liaison between investors and Ministries, government departments and agencies, institutional lenders and other authorities concerned with investments;
  • Provide and disseminate up-to-date information on incentives available to investors;
  • Assist incoming and existing investors by providing support services;
  • Evaluate the impact of the Commission on investment in Nigeria and recommend appropriate remedies and additional incentives;
  • Advise the Federal Government on policy matters, including fiscal measures designed to promote the industrialisation of Nigeria or the general development of the economy; and Perform such other functions as are supplementary or incidental to the attainment of the objectives of NIPC Act.