Information on the FDI influx in the region is available in the Global Investment Trends Monitor published by the UNCTAD.

Why You Should Choose to Invest in Nigeria

Strong Points

With a population of over 180 million people, Nigeria is the most populous country in Africa and therefore among its largest markets. The country has abundant natural resources and an inexpensive workforce, and it is strategically located near many West African countries. The Nigerian Government tends to pursue a policy of economic liberalisation, promoting public-privatepartnerships and strategic alliances with foreign firms.

Weak Points

There are a number of obstacles to FDI: poorly developed transport and energy infrastructure, which result in high operating costs; inefficient government institutions and corruption; an inefficientjudicial system and unreliable dispute settlement mechanisms; a high tax burden; a restrictive trade policy; and an increasing lack of security, especially in connection with the extremist group BokoHaram operating in the north-east of the country.

Government Measures to Motivate or Restrict FDI

The Nigerian Government has introduced many programmes to boost FDI, notably in agriculture, exploitation and mining, oil and gas extraction, as well as in the export sectors. Tax incentives are granted to pioneering industries deemed beneficial for the economic development of the country and employment of its workforce (such as clothing); allowances facilitating capital investments and the deduction of interest on loans for gas companies are also planned. Outside of the oil and gas sector where investment is limited to joint ventures or production-sharing agreements, foreign companies are allowed to own 100% of businesses. Industries considered crucial to national security, such asweapons, ammunition, military and paramilitary clothing, are reserved for domestic investors.

Bilateral Investment Conventions Signed By Nigeria

Nigeria has signed bilateral investment agreements with Algeria, Bulgaria, China, Egypt, France,Finland, Germany, Italy, Jamaica, Montenegro, Netherlands, North Korea, Romania, Serbia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, Uganda and United Kingdom. Onlyfour treaties (France, Netherlands, South Korea and United Kingdom) have been ratified by both parties, the ratification process has been hesitant and poorly organised. The government has expressed an interest in negotiating a bilateral investment treaty with the United States.