HIGHLIGHTS ON INVESTMENT IN NIGERIA
Nigeria is Africa’s most popular country, the biggest
economy in Sub Saharan Africa, and a key global and gas producer and
exporter. Despite some challenges in the Niger Delta region,
created by a legacy of past policies in oil and gas development and
local political machinations – Nigeria is making steady progress in
a number of key areas, notably the banking sector, reform of the
petroleum sector, and Infrastructure development, Education,
Security, Agriculture, Youth Women Empowerment, and Sustainable
2. Deciding whether to invest in a country is indeed not an easy
task, because it requires crucial information, research and
planning. The Nigerian Investment Promotion Commission (NIPC) is an
indispensable ally of potential foreign investors. The NIPC is
tasked with overcoming the bottlenecks and institutional red tape
that had previously discourage foreign investors especially from
taking advantage of Nigeria’s wealth and opportunities. NIPC is one
step necessity for potential investors, it serves as a central
investment approval agency, streamlining the activities of
government department and agencies involved with investment
promotion. It helps in matters such as registration or
incorporation of foreign enterprises, obtain expatriate quotas or
find out specifics about the different tax regime for sectors like
cargo, oil and mining. It also serves as a catalyst for injecting
the much-desired foreign capital into Nigerian economy through
investments. It allows foreigners and local investors alike wishing
to own up to 100% shares in investments in the country. It also
encourages and promotes competition in the economy.
3. The Nigerian Investment Promotion Commission provides the
following services for interested investors:-
Provides up to date information and investment opportunities
available in the country.
Provides information on available incentives for investment.
Issues business permits to foreign investors.
Coordinates the issuance of expatriate quota.
Negotiates in consultation with appropriate government agencies,
specific incentive packages for investors.
Enters directly into bilateral agreement with investors for purposes
of investment protection.
Identifies specific project and invites interested investors to per
take in them. And more.
Growth Potentials of Nigeria's Economy
In the continuing effort by Nigeria to engage with the international
community with a view to attracting Foreign Direct Investment (FDI)
into the country, the High Commission wishes to provide information
on a research reports recently published on the subject of Nigeria’s
economic growth by the highly reputable and well regarded global
investment Banks; – Renaissance Capital and Citi Group.
The highlights of the reports are as follows:-
Nigeria has a large market with deepening pockets: Nigeria is a
market that is too large to be ignored and it has one of the highest
real income per capita growth rates in sub-Saharan Africa;
Nigeria’s GDP growth was estimated at 7.9% in 2010 making it one of
the fastest growing economies in Sub-Saharan Africa and it is
expected to continue out performing other African OPEC members over
the next five years;
The non-oil sector has been the driver of the growth in the two
years to the first quarter of 2009;
Robust fiscal position. Nigeria has a strong fiscal position with a
small deficit and low levels of government debt compared to baric
and sub-Saharan Africa economies;
Nigeria has pulled ahead of South Africa and Sudan, garnering the
third largest FDI inflows into Africa and the second largest in
Over a decade of civilian rule. Nigeria has made significant
political strides which is indicative of maturing political culture;
Nigeria has the potential to be the fastest growing economy in the
world over the next 40 years, with an average growth rate of 8.5%,
higher than India at 8.0%. It could be a significant contributor to
Global GDP growth increasing its share of global GDP from 0.5% today
to 2.5% by 2050 overtaking Italy, France and the UK in the process;
As elections approach, Near-term trends are encouraging such as the
progress by AMCON in recapitalizing the banking sector and the
establishment of sovereign wealth fund to strengthen the fiscal
framework and savings;
The report points out that the government has prioritized the power
sector and plans to privatize it across the value chain. Removing
infrastructure bottlenecks will accelerate growth.
NIGERIAN HIGH COMMISSION
APRIL 7, 2011