Nigeria looks forward to the participation of foreign investors in the implementation of the country’s development strategy until 2043. The country government is open to review investments in the oil and gas sector. This is what Permanent Secretary of the Ministry of Science and Technology of Nigeria Amina Bello Mohamed Shamaki mentioned at the 28th session of the Energy Charter Conference.
According to the politician, the country is currently implementing a strategic plan for economic growth and recovery until 2043. The country is aimed at massive diversification of the economy. Funding for this strategy is estimated at $3 trillion, and the third part of these funds should go to the development of the energy sector.
Nigeria alone will not be able to cope with such challenges. Consequently, the country’s government is actively seeking international investment, financing the oil and gas sector, expanding its potential. It is especially relevant for the electricity sector. Nigeria hopes to use not only improved energy services but also opportunities for employment, technology transfer, and research and development. All these opportunities, investments in extractive and processing areas, are crucial for ensuring the national development of the country.
Should You Invest or Not?
Nigeria’s economy is currently emerging from recession. The main driver of this growth is sustainable, reliable, and affordable electricity, as many experienced investors say. It is no wonder that foreign investment in Nigeria increased by 137% last year.
According to data published by the Central Bank of Nigeria, in 2017 Nigeria attracted foreign investment in the country in the amount of $9.6 billion, which is 137 percent more than in 2016. According to a local newspaper citing data from the Central Bank of Nigeria, last year the total volume of direct investments in African countries amounted to $36 billion, while investments in Nigeria accounted for about 27 percent of the total.
If you are looking for a strategic location for your expansion project, Nigeria offers you a unique combination of benefits. Hundreds of multinational companies have already concluded great benefits from these assets. In other words, setting up or expanding a business in Nigeria can summarize two adjectives: smooth and easy. You can even take part in fx trading in Nigeria, which has already proven its high level of profitability. There are many platforms where you can place deals, but it is Forextime that has made a good showing.
Such a solution as the registration of an investment company in Nigeria is gradually gaining popularity among experienced entrepreneurs. Due to the large oil fields, established trade relations with the USA, France, and Spain, as well as the well-developed transportation system, many investors prefer this jurisdiction. The local government is extremely interested in attracting foreign investors; therefore, it creates special programs and offers a number of incentives for those who want to open an investment company in Nigeria. Also, the authorities have developed an effective way to resolve investment disputes in Nigeria through arbitration.
The conclusion of investment agreements with government agencies in Nigeria is regulated by the law introduced by the Foreign Investment Promotion Commission (NIPS Act). It is also worth noting that the NIPC has established a Single Investment Center (OSIC) that brings together all relevant government agencies in one location to provide efficient and transparent services to investors.
Benefits of Investing in the Nigerian Economy
Those who decide to conduct an investment transaction in Nigeria are able to repatriate capital, interest, profits, or dividends in freely convertible currencies without any restrictions. Local laws protect the foreign investment from nationalization, expropriation, or expropriation.
Entrepreneurs planning to establish an investment company in Nigeria will be able to invest in the following sectors of the economy:
● Banking and finance;
● Service industry (professional services);
● Telecommunication sphere;
● Forex trading;
● Extraction and processing of oil and gas.
The country is a contracting party to the Investment Dispute Settlement Convention (ICSID Convention). This means that the settlement of investment disputes in Nigeria through arbitration takes place strictly within the framework of this Convention.
For entrepreneurs intending to conclude an investment contract in Nigeria, we suggest that you familiarize yourself with the following:
● There is no known or well-established practice requiring confidentiality in investment arbitration. However, investment arbitration involving Nigeria is generally treated confidentially.
● As a rule, the resolution of investment disputes in Nigeria through arbitration affects the field of oil, gas, and other minerals.
Due to the complex process, we recommend that you contact dedicated specialists before making any investment or concluding any deal.