The primary countries investing in Nigeria are the United States, China, and the Netherlands.
Information on the FDI influx in the region is available in the Global Investment Trends Monitor published by the UNCTAD.
Why You Should Choose to Invest in Nigeria
Strong Points
With a population of over 180 million people, Nigeria is the most populous country in Africa and therefore among its largest markets. The country has abundant natural resources and an inexpensive workforce, and it is strategically located near many West African countries. The Nigerian Government tends to pursue a policy of economic liberalization, promoting public-private partnerships and strategic alliances with foreign firms.Weak Points
- There are a number of obstacles to FDI: poorly developed transport and energy infrastructure, which result in high operating costs; inefficient government institutions and corruption; an inefficient judicial system and unreliable dispute settlement mechanisms; a high tax burden; a restrictive trade policy; and an increasing lack of security, especially in connection with the extremist group Boko Haram operating in the north-east of the country.
Government Measures to Motivate or Restrict FDI
The Nigerian Government has introduced many programmes to boost FDI, notably in agriculture, exploitation and mining, oil and gas extraction, as well as in the export sectors. Tax incentives are granted to pioneering industries deemed beneficial for the economic development of the country and employment of its workforce (such as clothing); allowances facilitating capital investments and the deduction of interest on loans for gas companies are also planned. Outside of the oil and gas sector where investment is limited to joint ventures or production-sharing agreements, foreign companies are allowed to own 100% of businesses. Industries considered crucial to national security, such as weapons, ammunition, military and paramilitary clothing, are not open to private investment.Bilateral Investment Conventions Signed By Nigeria
- Nigeria has signed bilateral investment agreements with Algeria, Bulgaria, China, Egypt, France, Finland, Germany, Italy, Jamaica, Montenegro, Netherlands, North Korea, Romania, Serbia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, Uganda and United Kingdom. Only four treaties (France, Netherlands, South Korea and United Kingdom) have been ratified by both parties, the ratification process has been hesitant and poorly organised. The government has expressed an interest in negotiating a bilateral investment treaty with the United States.
Procedures Relative to Foreign Investment
Freedom of Establishment
- The Government supports anti-competitive business practises and protects private property in accordance with the NIPC Decree of 1995.
Acquisition of Holdings
Possible.Obligation to Declare
Every company must be registered with the Corporate Affairs Commission (CAC) and stamp duty must be paid to the Federal Inland Revenue Service (FIRS). Every company with foreign participation must also be registered with the Nigerian Investment Promotion Commission (NIPC) and a business license and an expatriate quota must be obtained from the Ministry of Interior.- The financial statements must be prepared annually and submitted to the CAC.
- Competent Organisation For the Declaration
- Corporate Affairs Commission (CAC)
Nigerian Investment Promotion Commission (NIPC)
Find out more about Investment Service Providers in Nigeria on Global Trade.net, the Directory for International Trade Service Providers.
Investment Opportunities
Investment Aid Agency
- Nigerian Investment Promotion Commission (NIPC)
Economic Developments and Prospects in Nigeria - African Economic Outlook
Tenders, Projects and Public Procurement
- Fontier Market Network, Tenders in Africa
African Tenders
African Development Bank Group, Public Oversight Body
DgMarket, Tenders Worldwide
Other Useful Resources
- Small and Medium Enterprises Development Agency of Nigeria
Nigeria Export Processing Zones Authority
NIgerian Export Promotion Council
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