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LCCI BUSINESS YEAR BOOK 2012
(d) Collect, collate, analyze and
disseminate information about
investment opportunities and sources of
investment capital and advise on request
the availability, chance or suitability of
partners in joint venture projects.
(e) Register and keep records of all
enterprises to which the NIPC Decree
legislation applies
(f) Identify specific projects and invite
interested investors for participation in
those projects.
(g) Initiate, organize and participate in
promotional activities such as
exhibitions, conferences and seminars
for the stimulation of investments
(h) Maintain liaison between investors
and ministers, government departments
and agencies, institution lenders and
other authorities concerned with
investment.
(i) Provide and disseminate up-to-date
information on incentives available to
investors
(j) Assist incoming and existing
investors by providing support services
(k) Evaluate the impact of the
commission in investment in Nigeria
and recommend appropriate remedies
amidst additional incentives.
(l) Advice the Federal Government on
policy matters, including fiscal
measures designed to promote the
industrialization of Nigeria or the
General development of the economy;
and
(m) Perform such other function as are
supplementary or incidental to the
attainment of the objective of NIPC
Decree.
3.2 Provision relating to investment
Notable amongst the provisions
relating to investment are the following:
- A Non-Nigeria may invest and
participate in the operation of any
enterprises in Nigeria
- An enterprise in which foreign
participation is permitted shall after its
incorporation or registration be
registered with the NIPC
- A foreign enterprises in any
convertible foreign currency
- A foreign investor in an approved
enterprises in guaranteed enterprises is
guaranteed unconditional transferability
of funds through an authorized dealer,
in freely convertible currency of:
(a) Dividends or profit (net of taxes)
attributable to the investment
(b) Payment in respect of loan
servicing where a foreign loan has been
obtained; and
(c) The remittance of proceeds (net of
all taxes) and other obligations in the
events of sale or liquidation of the
enterprise or any interest attributable to
the investment
3.3 Priority Area of Investment
The NIPC issue guidelines and
procedures which specify priority areas
of investment and prescribe incentives
and benefits which are in conformirty
with Government policy.
3.4 Incentive for special investment
For the purpose of promoting
identified strategic or major investment,
the NIPC may in consultation with
appropriate Government agencies
negotiate package for the promotion of
investment
4. Investment protection Assurance
4.1 The NIPC Decree provides that:
(a) No enterprises shall be nationalized
or expropriated by any government of
the Federation; and
(b) No person who owns, whether
wholly or in part, the capital of any
enterprises shall be compelled by law to
surrender his interest in the capital to
any other persons
4.2 There will be no acquisition of an
enterprise by the Federal
Government unless the:
Acquisition is in the national
interest or for a public purpose under a
law, which makes provision for:
(a) Payment of fair and adequate
compensation; and
(b) A right of access to the courts
for the determination of the
investor's interest of right and the
amount of compensation to which he is
entitled
4.3. Compensation shall be paid without
undue delay and authorization given for
its repatriation in convertible currency
where applicable.
4.4 Apart from the investment guarantee
assurances of the NIPC Decree,
countries are welcome to execute and
enter into bilateral investment
promotion and protection Agreement
(IPPA) with the Nigerian Government
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5. Checklist of steps for establishing
new companies in Nigeria with foreign
shareholding.
Stage A
1. Establish partners/shareholders
and their respective percentage holding
in the proposed company.
2. Establish name, initial authorized
share capital and main objects of
proposed company
3. EXCEPT in instances where
the proposed company will be
100% owned by non-resident
shareholders, prepare joint-Venture
agreement between prospective
shareholders. The joint-Venture may
specify inter-alias, mode of
subscription by parties, manner of
Board Composition, mutually protection
quorum of meetings, specific actions
which would necessitate shareholders
approval by special or other
resolutions.
4. Prepare Memorandum and Article
of Association incorporating the sprit
and intents of the joint-venture
agreement.
5. Foreign shareholder may grant a
power of attorney to its solicitors in
Nigeria, enabling them to act as its
Agent in executing incorporation and
other statutory document pending the
grant of Business Permit (i.e
Formal legal status for foreign
branch/subsidiary operations) to the
foreign shareholder.
6. Conduct a search as to the
availability of the proposed company
name and, if available, reserve the name
with CAC
7. Effect payment of stamp duties,
CAC filling fees and process and
conclude registration of the company as
a legal entity.
Stage B
1. Obtain "Tax" Clearance Certificate:
for the newly registered company
2. Prepare Deeds of Sub
lease/Agreement, as may be
appropriate to reflect commitment on
the part of the newly registered
company, to acquire business premises
for its proposed operations.
Stage C
1. Prepare and submit simultaneous
applications to the NIPC (on the
prescribed NICP Application Form) for
the following