Foreign Investment Requirements

Foreign Investment Requirements

Principal Laws on Foreign Investments
The principal laws regulating foreign investments are, the Nigerian Investment Promotion Commission Decree No.16 of 1995 and the Foreign Exchange (Monitoring and Miscellaneous Provisions) Decree No.17 of 1995.

Deregulation of Equity Structure in Nigeria Enterprises
Effectively, the Nigerian Enterprises promotion (Repeal) Decree No. 7 of 1995 has abolished any restrictions, in respect of the limits of foreign shareholding, in Nigeria registered/domiciled enterprises.
The only enterprises which are still exempted from free and unrestrained foreign participation are those involved in:
- Production of arms and ammunition;
- Production of and dealing in narcotic drugs and psychotropic substances;

The Nigerian Investment Promotion Commission Decree No. 16, 1995 (NIPC Decree)
This decree established the Nigerian Investment Promotion Commission (NIPC) as the successor to Industrial Development Coordination Committee (IDCC)

Functions and Powers
The Nigerian Investment Promotion Commission (NIPC) is an Agency of the Federal Government with perpetual succession and a common seal which is specially established, among other things, to:
(a) co-ordinate, monitor, encourage and provide necessary assistance and guidance for the establishment and operation of enterprises in Nigeria;
(b) initiate and support measures which shall enhance the investment climate in Nigeria for both Nigerian and non-Nigerian investors;
(c) promote investments in and outside Nigeria through effective promotional means;
(d) 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;
(e) register and keep records of all enterprises to which the NIPC Decree legislation applies;
(f) identify specific projects and invite interested investors for participation in those projects;
(g) initiate, organise and participate in promotional activities such as exhibitions, conferences and seminars for the stimulation of investments;
(h) maintain liaison between investors and Ministries, government departments and agencies, institutional lenders and other authorities concerned with 
(i) provide and disseminate up-to-date information on incentives available to investors;
(j) assist incoming and existing investors by providing support services;
(k) evaluate the impact of the Commission in investment in Nigeria and recommend appropriate remedies and additional incentives;
(l) advise the Federal Government on policy matters, including fiscal measures designed to promote the industrialization of Nigeria or the general development of the economy; and
(m) perform such other functions as are supplementary or incidental to the attainment of the objectives of NIPC Decree.

Provisions Relating to Investments
Notable amongst the provisions relating to investments are the following:
- A non-Nigerian may invest and participate in the operation of any enterprise in Nigeria;
- An enterprise in which foreign participation is permitted, shall after its incorporation or registration, be registered with the NIPC.
- A foreign enterprise may buy the shares of any Nigerian enterprise in any convertible foreign currency.

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