The article presents an original study of the investment climate in Nigeria, one of the largest African states. It is pointed out that the government’s ongoing efforts to diversify the economy and avoid excessive dependence on the oil and gas sector make Nigeria a fertile ground for investment. The sectors such as energy, telecommunications, tourism, hotel industry, real estate, transport and miscellaneous manufacturing industries are still at the initial stages of development, so they promise big profits to investors. One of the reasons for investing in Nigeria’s economy is that in the next decade the country will be among the fastest growing economies in the world.
In Nigeria, there is no investment code per se: the investment climate is regulated by the 1995 Nigerian Investment Promotion Commission (NIPC) Act and dozens of other legislative acts applied in various sectors of the economy. The main objective of the NIPC is to create an enabling environment for business and simplify the procedures for registering enterprises. The Nigerian government recognizes the importance of foreign investment for economic growth and the fact that an attractive investment climate is vital to stimulate FDI inflows. To mitigate such negative factors as corruption, political instability and weak infrastructure that constrain the inflow of FDI, tax incentives are introduced and other measures are taken to stimulate investment.
Nigeria, economy, investment climate, Nigerian Investment Promotion Commission, agriculture, oil and gas sector, tax incentives
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