As part of the efforts to provide an enabling environment that is conducive to the growth and development of industries, inflow of foreign direct investment (FDI), shield existing investments from unfair competition, and stimulate the expansion of domestic production capacity; the federal government of Nigeria has developed a package of incentives for various sectors of the economy. These incentives, it is hoped, will help revive the economy, accelerate growth and development and reduce poverty.
WHY INVEST IN NIGERIA?
• Abundant Resources: Nigeria has enormous resources, most of which are yet to be fully exploited. They include mineral, agricultural and human resources.
• Large Market: Nigeria offers the market in sub-Saharan Africa, with a population of about 120 million people. The Nigerian market potential also stretches into the growing West African sub-region.
• Political Stability: Nigeria offers stable political environment.
• Free Market Economy: The Government has created a favorable climate for business and industrial ventures. Administrative and bureaucratic procedures have been greatly streamlined. The Government has put in place policies and programmes that guarantee a free market economy.
• Robust Private Sector: The country has a dynamic private sector, which has assured greater responsibilities under the new economic environment.
• Free Flow of Investment: Exchange control regulations have been liberalized to ensure free flow of international finance. There is now unrestricted movement of investment capital.
• Attractive Incentives: A comprehensive package of incentives has been put in place to attract investment.
• Fast Growing Financial Sector: There is well-developed banking and financial sector. The investor has easy access to working capital and other credit facilities.
• Skilled and Low Cost Labour: There is an abundance of skilled labour at an economic cost, resulting in production costs, which are among the lowest in Africa.
• Infrastructure: Rapid development of physical and industrial infrastructure, in terms of transportation, communications, electricity and water supply.
Nigerian government accepts the private sector as the engine of growth and the creator of wealth, while the government’s major responsibility is to provide the enabling environment for the private investors to operate. In this regard, laws which had hitherto hindered private sector investments have been either amended or repealed and a national council on privatization has been established to oversee orderly divestment to private operators in vital areas of the economy such as mining, transportation, electricity, telecommunications, petroleum and gas.
Nigerian government’s policy of economic deregulation and liberalisation has opened up new windows of opportunity to all investors wishing to invest in the country’s economy. In this connection, an interest rate regime Supportive of the real sector of the economy as well as an exchange rate that is market determined are the object of government policy. The security of life and property of the citizens are being vigorously pursued with the reorganization and strengthening of the Nigerian police force.
In addition, the Nigerian investment promotion council (NIPC) has been strengthened to enable it serve as a one-stop office for clearing all the requirements for investment in the country. The tariff structure is being reformed with a view to boosting local production