NIPC CEO INTERVIEW

Global home exclusive interview with the CEO of Nigeria Investments promotion commission

What is the current level of investment is Nigeria compare to when the commission started

The Nigerian Investment Promotion Commission was established by the NIPC Act No 16 of 1995 to promote, co-ordinate and monitor all investments in Nigeria.

Since the establishment of NIPC the level of investment has progressively increased, with steady stream of investment being attracted into the economy, mostly in non-oil sectors due largely to the unrelenting drive of NIPC.

Currently, Nigeria receives the largest amount of Foreign Direct Investment (FDI) in Africa. FDI inflows have been growing enormously over the last decade; according to UNCTAD, from USD1.14billion in 2001 and USD2.1billion in 2004, Nigeria’s FDI reached USD11billion in 2009 making Nigeria the nineteenth greatest recipient of FDI in the world.

NIPC’s coordinated activities and the setting up of the One Stop Investment Centre (OSIC) in March 2006 have catapulted Nigeria’s FDI framework successfully to the top of the investment table in Sub-Saharan Africa.

NIPC is committed to bringing in even more investment.

What is the process of investing in Nigeria i.e role of NIPC/One stop shop?

The Nigerian Investment Promotion Commission was established to facilitate investment in Nigeria, to create and maintain an enabling environment for local and foreign investors, encourage and provide necessary assistance and guidance for the establishment and operation of enterprises in Nigeria.

NIPC in an effort to streamline the business entry procedures established The One Stop Investment Centre (OSIC). OSIC is an investment facilitation mechanism where relevant agencies are brought to one location, coordinated and streamlined, to provide efficient and transparent services to investors.

Accordingly, business entry procedures into the economy have been made very transparent, convenient, efficient, simple, timely and in one location. The establishment of OSIC has greatly restored the confidence of investors on receiving prompt efficient and transparent service from government agencies.

Business entry in Nigeria has been made easy as all the necessary agencies for business incorporation are in OSIC.

The first stage in the process of investing in Nigeria is the Company Incorporation and Tax registration with the Corporate Affairs Commission (CAC) and the Federal Inland Revenue Service (FIRS) at OSIC.                                                                                                                            The second stage is Obtaining Business Permits from NIPC, which takes not more than 24hrs. Once the company has been duly incorporated and the initial permits acquired, the investor can commence operations and proceed to enjoy other services offered by NIPC and other participating agencies at OSIC.

Have you been able to boost investor’s confidence as regard on-going political situation?

Every country in the world faces political situations at one point in time. Political situations are therefore not just peculiar to Nigeria.

With the establishment of the Economic and Financial Crimes Commission in 2006, foreign investors have been given a sense of security and a higher level of confidence. To assist foreign investors, a Transaction Clearance Platform (TCP) was set up, through which investors can access basic due diligence services on proposals before jumping at them.

Nigeria today enjoys a stable democracy and is in no political situation that threatens investors; so there should be no fear of loosing money and investments.

Nigeria is richly endowed with human and natural resources. These wide ranging investment options supported by robust incentives regime, encourages foreign investors to do business in Nigeria.

How are you tackling with infrastructure issues?

The Nigerian government and NIPC are paying particular attention to infrastructural development. Since 2008, Nigeria has been developing a Medium Term Sector Strategy for growth for the years 2009-11, as a means of more clearly coordinating the government’s medium term goals of revitalizing major infrastructures in the country. Notably, these include transport and power generation. President Goodluck Jonathan has emphasized the need to continue developing these critical areas in line with overall objectives of government that focuses on infrastructural development so as to reduce poverty, ensure a stable economy, generate employment and improve the general standard of living.

Through the Public Private Partnerships (PPP) that was launched in June 2010, to transform Nigeria’s infrastructure, states are beginning to understand the need for major road repairs and development of roads such as Lagos-Ibadan expressway.

With 5,300 miles of waterways, a programme being initiated sees the revitalization of major ports including Bonny, Calabar, Koko, Port-Harcourt and Sapele.

The Nigerian government is also working to reopen rail links around the country especially rail links between Nigeria’s seaports and inland container depots as a means of reducing pressure on roads and also finish the 11.8mile long Ajaokuta-Itakpe-Warri standard gauge line.

To address the frightening issue of power, the Nigerian government has launched USD40-60billion power plan over the next six years, which includes the installation of a national super grid to replace the obsolete transmission line.

Which countries has shown more interest in Nigeria investment

Investment opportunities in Nigeria are open to all nations and since the establishment of NIPC, record shows the inflow of FDI has been widely spread across all regions of the world.

Today Nigeria enjoys a versatile inflow of FDI from across the world in not only oil sector but also in agriculture, telecommunication, manufacturing and tourism areas.

There has been a high inflow of FDI from China with a direct investment worth about USD6billion, USA, India, Iran, UK, South Africa, Brazil, Italy, France and Netherland.

How are you tackling the issue of impolite trading activities of foreign investor?

So far we have not experienced any serious challenges and mischief in our dealings with foreign investors. While on our part, we try to ensure that our services are compliant with international best practices which giving proper counsel on how to do business in Nigeria according to the rules.

In what ways do you look after Nigerian investor seeking foreign partner.

NIPC has consistently engaged in organizing Business and Investment Forums (BIFs) across the world, mainly to highlight the investment opportunities in Nigeria, the incentives available to investors and to bring together local and foreign investors. Through various BIFs, NIPC has successfully linked a number of local entrepreneurs with foreign partners. We are also nurturing these relationships through our special aftercare services.

NIPC recently hosted the ‘Nigerian International Investment Forum’ (NIIF) in collaboration with the Commonwealth Business Council. The forum brought together investors, local and foreign companies from across the world, government dignitaries and the media.

The forum provided a platform for local and foreign investors, company representatives, government dignitaries and the media to network and interact with one another.

What are the outcomes of your meeting on U.S.-Nigeria Energy and Investment Working Group?

As a matter of fact Nigeria and USA have a good working relationship and part of the President’s agenda is on reforming the energy sector. The working group is determined to tackle the energy issue. The Nigerian government and the US government reiterated their commitment to continued co-operation in the reform, management and performance of the power sector, particularly in the areas of power generation, transmission and distribution.  Both countries noted the reform of the energy sector is crucial to attracting needed investment and in other to promote sustainable development.

Any plan to expand your activities beyond Nigeria for example like setting up an office in other parts of the world.

NIPC’s function among others is primarily investment promotion. This include image building in the global arena. Hence it will be a brilliant step to establish offices across the shores of Nigeria.

NIPC has a working plan to establish branch offices in strategic locations across the globe to further co-ordinate and promote investment activities.