Nigeria: A Review Of The NIPC's Online Investment Guide "Iguide" - Key Features

1.1 Starting a Business

The Platform covers all the stages of doing business in Nigeria, starting from the formation of a business or company to the list of relevant agencies and the documentation involved at every stage. It also lists the various types of businesses listed under the Companies and Allied Matters Act (CAMA) ² and the necessary documentation and procedures required for registering various types of business entities. For foreign investors, this simplifies the entire process as it provides the relevant fees and the expected time frame which leaves little or no room for extortion or fraud. The list of agencies includes the Corporate Affairs Commission ("CAC"), the Nigerian Investment and Promotion Commission ("NIPC"), the Federal Inland Revenue Service ("FIRS"), the One-Stop Investment Centre (OSIC) which currently has twenty – seven (27) participating agencies, National Environmental Standards Regulatory and Enforcement Agency ("NESREA"), amongst others.

1.2 Employment/Labour

This section of the guide outlines a summary of what is required of employers of labour in the Nigerian market. It provides useful data on the Nigerian population, education requirements, skills, employment, wages, and work permits. Also included in this section, are details on social security and other contributions which explain the minimum contribution that employers and employees are required to make to the Pension Fund Administrator. Furthermore, the section gives directions on the Employee Compensation Scheme, National Housing Fund, Health Insurance Scheme and Industrial Training Fund. Foreigners and companies seeking to employ expatriates are also guided on how to obtain work permits, information on expatriate quota and relative fees for obtaining expatriate quotas.

1.3 Production Factors

The iGuide provides information on industry regulators for the Electricity, Water, Telecommunications, Road Networks and Railway sectors. For electricity, the Nigerian Electricity Regulatory Commission (NERC) regulates the business of electricity generation, transmission, distribution and marketing in Nigeria, while the Rural Electrification Agency (REA) is a Federal Government Agency saddled with the responsibility of providing electricity to rural communities in Nigeria. The water industry is regulated by the Federal, State and Local Governments. The Federal Ministry of Water Resources provides policy advice, monitoring and coordination of water resources development, while the State Water Agencies (SWA) are responsible for actual urban, semi-urban and rural water supply. The telecommunications industry is regulated by the Nigerian Communications Commission ("NCC"). The iGuide provides a list of major GSM operators in Nigeria and wireless service providers and further explains the current licensing regime and tariffs available in the country. Information on road networks, aviation and maritime sectors are also provided under this section.

1.4 Land Administration

The iGuide provides information on land administration, land acquisition, costs of obtaining land and related permits and procedures for construction in Nigeria. This section also provides information on the free trade zones and procedures for setting up free trade zones.

1.5 Taxes

All businesses which operate in and derive income from Nigeria are liable to pay tax. This section provides information on relevant taxes and informs the investor of the various tiers of tax collection and applicable tax legislations in Nigeria. The tax registration process in Nigeria is also enumerated with the relevant filing documents required. Investment incentives in Nigeria are also listed for guidance on investments in the country to encourage participation in key sectors of the economy while reducing the cost of doing business.

1.6 Investors Right

The Nigerian legal framework is explained as well as the legal framework for investment protection in Nigeria. Under repatriation of funds the NIPC guarantees investors the unrestricted transferability of proceeds from their investments in Nigeria and capital repatriation in the event of liquidation. Information on intellectual property rights (Trademarks, Copyright, Patents and Designs) are also given in this section and the appropriate commission responsible for registration (where required) as well as remedies for breach or infringement, injunctions etc., are enumerated.

1.7 Growth Sectors and Opportunities

The various key sectors for growth and investment in Nigeria are highlighted such as Agriculture, Mining, Power, Manufacturing, Oil and Gas, Transportation and others.