BY
1












Overview of investment Promotion Agencies.
Benefits of FDI.
History of NIPC.
Objectives of the Commission.
Functions of NIPC.
What we are.
Provisions relating to investments.
Investment Protection Agency.
Achievements.
Challenges.
Conclusion.
2

•
FDI has been known to facilitate technology transfer, contribute to expanding and modernizing the production base, improve managerial capacity and improve efficiency, productivity and value addition in the relevant sectors.
•
Nigerian Investment Promotion Commission is a member of the World Association of Investment
Promotion Agencies (WAIPA). It is an umbrella body for all the investment agencies world over with over 100 members.
3

•
Transfer of technology to individual firms and technological spill-over to the wider economy;
•
Increased productive efficiency due to competition from multinational subsidiaries;
•
Improvement in the quality of the factors of production including management in other firms and not just the host firm;
•
A healthy balance of payments through the inflow of investment funds;
•
Increases in exports
•
Increases in savings and investment;
• Faster growth of output and employment; and
• Welfare improvement due to lower prices of goods and the introduction of new or better quality goods.
4

The Nigerian Investment Promotion Commission (NIPC) was established by NIPC Act No.16 of 1995. This legislation repealed the Industrial Development Coordination Committee (IDCC) Act
No.36 of 1988.
The IDCC itself was established as part of the institutional reforms necessary for the implementation of the Structural
Adjustment Programme (SAP).
However, the IDCC was bedeviled by daunting problems which militated against its optimal performance. They include; lack of quorums at meetings, inadequate funding and intrusion into its statutory functions by other ministries.
It was on the basis of this , that the Government , in 1995 came out with the NIPC Act No. 16 of 1995, and inaugurated its first
Governing Council on the 30th September, 1997. The Commission eventually commenced operation in 1999.
5

•
To project Nigeria as a safe country to invest in and prosper
• To highlight investment opportunities in Nigeria by sector.
•
To identify Nigerians who will invest in these opportunities.
•
To empower Nigerians to invest.
• To identify and encourage target countries and groups outside Nigeria to invest in the economy.
• To portray Nigeria as objectively combating corruption, advanced fee fraud, and improving infrastructure.
•
To position itself to effectively facilitate investment promotion in Nigeria.
6


The Commission is mandated to encourage, promote and coordinate investment in the Nigeria Economy.
The enabling law empowers the Commission to grant approvals on fiscal concessions on industry related incentives such as:


Pioneer industries;
Local raw material utilization;





Export oriented industry;
Implant training;
Investment on infrastructural facilities;
Research and development;
Investment in economically disadvantaged areas; provided that the fiscal incentives for which approvals are given shall be for tax concessions.
7


Attract investments in and outside Nigeria through promotional means;

Register and keep records of all enterprises as applicable;

Advice the Federal Government on policy matters including fiscal measures designed to promote the industrialization of Nigeria.
To serve as a coordinating and approval centre at the
Federal level, for all governmental approvals with respect to the establishment and operation of industries or business undertakings, and with respect to the operation of governmental measures and schemes aimed at promoting industrialization of the
Country.
8


The NIPC is the only legally empowered Federal
Government agency in Nigeria established by an act of parliament (i.e. NIPC Act 1995) to promote, coordinate and monitor all investment in Nigeria.

We attract, co-ordinate and monitor all investment in
Nigeria.

We report to and are supervised by the Presidency.

We maintain vertical and horizontal relationships with other Agencies of Government and the private sector for the purpose of investment facilitation in Nigeria.
9


We provide a range of investment related services that span through Investment Promotion, Investors
Relation, Investment friendly Policy Advocacy and
Post Investment after-care services.

We work in collaboration with agencies like UNIDO,
MIGA, and FIAS, to facilitate the implementation of new Institutional Strategy for investment promotion.

We are equipped with staff that have requisite competencies and skills in the art of best practices on investment facilitation.
10

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.
Foreign Investors could also repatriate dividends or profit
(net of taxes) attributable to the investment or capital in case of relocation.
Remittance of proceeds (net of taxes) and other obligations in the event of sale or liquidation of the enterprise or any interest attributable to the investment .
11

The NIPC Act also provides that:
No enterprise shall be nationalized or expropriated by any government of the Federation, and
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:
Payment of fair and adequate compensation
A right of access to the courts for the determination of the of the investor’s interest of right and the amount of compensation to
12 which he is entitled.

Countries are also welcome to execute and enter into bilateral
Investment Promotion and Protection Agreements (IPPA) with the Nigerian government.
NIPC’s Business Permit Registration confers permanent authorization for the local operation of businesses with foreign investments either as branch/subsidiary of a foreign company or otherwise.
Expatriate Quota is the official permit to a company; conveying permission for the company to employ individual expatriates to separately approved job designations, and also specifying the permissible duration of such employment.
13

Tracking of FDI in Nigeria
YEARLY PERFOMANCE OF FDI INFLOW BETWEEN 1999-2004
YEARS
1999
2000
2001
2002
2003
2004
TOTAL
NO OF
COMPANIE
S
RECORDED
38
58
50
117
90
109
462
Source: NIPC Records
FDI
INFLOW
(Million $)
LOCAL
INVESTMENT
(Million N)
32.10
47.19
287.29
389.71
240.03
97.65
1,093.97
4,253.91
21,166.70
11,209.75
25,941.46
30,277.12
26,430.32
119279.26
EMPLOYMEN
T
GENERATIO
N
3,964
3,683
5,233
19,349
8,240
7,814
48,283
Reinvestment by major multinationals e.g. Nigerian
Breweries Limited, Guinness Nigeria Plc, Unilever Nigeria
Plc., West African Cement Company, Nestle Foods Plc.
British America Tobacco company, MTN, V-Mobile,
Globacom , etc. amount to over US$4billion 14

•
Wealthy Nigerians Initiative
Aimed at encouraging wealthy Nigerians at home and in the Diaspora to invest in the country.
• National Council on Investment
To fashion out a national investment policy for the country and also facilitate streamlining of investment promotion activities nation-wide.
• Inter-agency Collaboration/Embassies
Networked with government Agencies and Embassies to establish working relationships with them
• Workshops on Market Fires
Organized two workshops in Abuja and Lagos to sensitize the traders of the negative impact of fire disaster on investment and what could be done to reduce or minimize the menace.
15

• Presidential Advisory Council on Investment
Set up by Mr. President to advise on investment and members are people in positions that can influence the investment decisions of their companies as well as their government to invest in Nigeria.. NIPC serves as the Secretariat.
•Policy Advocacy
Effective Policy Advocacy mechanism designed to serve as an interventionist system of addressing problems encountered by investors.
•Business and Investment Forums
Forums packaged to target identified potential investors and multinational companies. Countries visited include: Canada, Malaysia, China, London etc
•Matchmaking Investment Meetings
Organized matchmaking meetings between Potential investors and companies.

• Image-building
ACHIEVEMENTS
Embarks on image building activities to project Nigeria as the most profitable investment destination in Africa through adverts in the local and international media, meetings and courtesy call on foreign Embassies etc.
• Collaborations with other International Agencies
UNIDO- in which 75 projects were packaged and promoted abroad;
WAIPA and Association of the West African Investment promotion
Agencies AIPAWAS) and NIPC is Vice -Chairman of the Association.
• Incentive Package under presidential Cassava Initiative
Prepared appropriate incentive package designed to stimulate investment in the sector.
•Role of NIPC in Micro, Small and Medium Enterprise (MSME) project/World Bank

•Problems hindering investment into the country
•Inconsistent government policies
•Unfriendly Business laws
•Social vices such as corruption, drug trafficking, insecurity, Financial and economic crimes
•Uncompetitive incentives
•Frequent Labour crises
•Poor state of infrastructure
•High cost of doing business
18

•Consolidation in the banking sector through the new capitalization of a minimum of N25 billion;
•Enhancement of transparency and accountability in government procurement through the establishment of Price
Monitoring and Budget Implementation Unit (Due Process) in government procurements and contract awards;
•Continued deregulation and liberalization of the economy
• Empowerment of the private sector through the abrogation of all obnoxious investment laws and the enactment (and constant review) of globally competitive investment law
19

•Concerted fight against corruption and economic crimes – establishment of EFCC, ICPC etc
•Encouragement of a strong and independent judiciary
•Vigorous pursuit of stable macroeconomic environment
•Substantial public expenditure to improve physical and social infrastructure.
NIPC has been accorded its proper place by its membership of the Economic Management Team in the Presidency.
Mr. President also has special interest in investment and is the Chief Investment promoter of the country.
Lastly, NIPC has been re-positioned to play its role in ensuring and protecting the interest of investors in Nigeria.
20

21