Deregulation of Equity Structure in Nigeria EnterprisesEffectively, 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 psycothropic 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 PowersThe 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 oppor-tunities 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 stimu-lation of investments;(h) maintain liaison between investors and Ministries, government departments and agencies, institutional lenders and other authorities concerned withinvestments;(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 industrialisation of Nigeria or the general development of the economy; and(m) perform such other functions as are supple mentary or incidental to the attainment of the objectives of NIPC Decree.
Provisions Relating to InvestmentsNotable 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 partici-pation is permitted, shall after its incor-poration or registration, be registered with the NIPC.- A foreign enterprise may buy the shares of any Nigerian enterprise in any convertible foreign currency.
A foreign investor in an approved enterprise is guaranteed unconditional transferability of funds through an authorised 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 InvestmentThe 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 InvestmentFor 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
