IN D E X

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LCCI BUSINESS YEAR BOOK 2012
However, less than 10 per cent of the
solid mineral resources of the country
are currently being exploited. Some of
the important minerals include Tin,
Columbite, Tantalite, Gold, Lead/Zinc,
Silver, Molybdenum, Wolframite,
Ilmenite/Rutile, Zircon, Monazite, Iron,
Kaolin Diatomite, Gypsum, Talc,
Feldspar, Marble, Dolomite, Baryte,
Refractory Clay,- Coal, Salt, Bitumen
Magnesite, Gemstones, Granites.
All these mineral and agro-products are
distributed throughout the length and
breath of Nigeria. Thus it may be
necessary for a foreign investor to
undertake appropriate studies before
investment. Such studies can be either
sub-sectoral or resources based. An area
study seeks to identify opportunities in
a delimited sub-sectoral such as
building materials or food processing,
whereas resource-based. Study seeks to
reveal opportunities based on the
utilization of a natural, agricultural or
industrial produce such as forest-based
industries downstream petrochemical
industries, solid mineral industries and
metalworking industries. Most
importantly, for small and medium
scale investors, a pre-feasibility can be
undertaken at a minimal cost before
taking an investment decision that will
require a broad investigation into the
pros and cons of the investment
proposal and possibly of a sound
Requirement and Protections
1. Principal Law on foreign
investments
The principal Law regulating
investments are the Nigeria Investment
Promotion Commission Decree No. 16
of 1995 and the Foreign Exchange
(Monitoring and Miscellaneous
provision) Decree NO. 17 of 1995
2. Deregulation of equity structure
in Nigeria Enterprises:
The Nigeria Enterprises Promotion
(Repeal) Decree No. 7 of 1995 has
abolished any restrictions in respect of
the limits of foreign share holding in
Nigeria registered/domiciled
Enterprises.
formulation into and appropriate
business plan. The consultant is willing
to assist genuinely interested investors
in this area.
Furthermore, entrepreneurs should
consider applying for incorporation of
their business at the Corporate Affairs
Commission (CAC) by submitting the
following document:
* Company's Memorandum and
Articles of Association
* Address of the company's
registered office and head office
* A statement describing the
particulars and consent of the
company's first directors
* A statement of the authorized
share capital singed by one of the
directors
Generally, registration ranges from
N20, 000 depending on the share
capital a function of filing fees and
stamp duty (0.75 per cent of share
capital).
It is also necessary to obtain a VAT
number (free) and register with the
NSITF
Foreign investors should seek further
information on foreign exchange
regulations, tax incentives, port
regulation, environmental regulations
FOREIGN INVESTMENT
- The only enterprises which still
exempted from free and unrestrained
foreign participation are those involved
in:
- Production of arms and
ammunition
- Production of and dealing in
narcotic drugs and psycho tropic
substances
3. The Nigeria investment
Promotion Commission Decree No.
16, 1995 (NIPC Decree)
The Decree established the Nigeria
Investment promotion Commission
(NIPC) as the successor to industrial
development Coordination Committee
(IDCC)
1254
and labour law relations.
Finally, the various incentives in place
to encourage export-oriented industries
are:
* export development fund
* export expansion grant fund
scheme
* export credit guarantee and
insurance scheme
* Rediscounting of short term bills
for export
* export processing free zone
scheme and associated incentives
If Nigerians abroad could come
home to invest, the synergetic impact
will be great. For example, if an
investment of about N500 million is
made on Talc and feldspars, producing
about 500,000 tons per year of both
products (50 per cent), this will bring in
yearly revenue in foreign exchange of
about E75 million of micromised talc.
This is capable of employing over a
thousand hands, generating huge
revenue inform of tax to the
government and a great multiplier
effect on GDP. Converting the £120
million at the open market rate of
N240, this translates to aboutN28.8
billion per year, which will cushion the
effect of FEROX drainage through
imports of equipment and technology.
By- Festus Bamiyo
3.1 Function and Powers
The Nigerian Investment
Promotion Commission (NIPC) is an
agency of the Federal Government with
perpetual succession and common seal,
which is specially and common seal,
which is specially established among
other things to:
(a) Co-ordinate monitors encourage
and provide necessary assistance and
guidance for the establishment and
operation of enterprises in Nigeria.
(b) Initiate and support measures
which shall enhance the investment
climate in Nigerian and non-Nigeria
investors
(c) Promote investments in and outside
Nigeria through effective promotional
means