Foreign Investment Requirements

Principal Laws on Foreign Investments - continued

A foreign investor in an approved enterprise is guaranteed unconditional transferability of funds through an authorized dealer, in freely convertible currency of:
(a) dividends or profit (net of taxes) attributable to the investment;
(b) payments in respect of loan servicing where a foreign loan has been obtained; and
(c) the remittance of proceeds (net of all taxes) and other obligations in the event of sale or liquidation of the enterprise or any interest attributable to the investment.

Priority Areas of Investment
The NIPC issues guidelines and procedures which specify priority areas of investment and prescribed incentives and benefits which are in conformity with Government policy.

Incentives for Special Investment
For the purpose of promoting identified strategic or major investment, the NIPC may in consultation with appropriate Government agencies; negotiate specific incentive packages for the promotion of investment

Investment Protection Assurance
The NIPC Decree provides that:
(a) No enterprise shall be nationalized or expropriated by any Government of the Federation; and
(b) No person who owns, whether wholly or in part, the capital of any enterprise shall be compelled by law to surrender his interest in the capital to any other persons.
There will be no acquisition of an enterprise by the Federal Government unless the acquisition is in the national interest or for a public purpose under a law which makes provision for:
(a) payment of fair and adequate compensation; and
(b) a right of access to the courts for the determination of the investor�€™s interest of right and the amount of compensation to which he is entitled.
Compensation shall be paid without undue delay, and authorization given for its repatriation in convertible currency where applicable.
Apart from the investment guarantee assurances of the NIPC Decree, countries are welcome to execute and enter into bilateral Investment Promotion and Protection Agreements (IPPA) with the Nigerian government.

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