Transferability of funds
Section 24 of Nigerian Investment Promotion Commission (NIPC) decree provides that a foreign investor in an enterprise shall be guaranteed unconditional transferability of funds through an authorized dealer in freely convertible currency of:
- Dividends or profit (net of taxes) attributable to the investment;
- Payments in respect of loan servicing where a foreign loan has been obtained;
- Remittance of proceeds (net of all taxes)and other obligations in the event of a sale or liquidation of the enterprise or
- Any interest attributable to the investment.
Guarantees against Expropriation
By the provision of section 25 of the same NIPC decree, no enterprise shall be nationalized or Expropriated by any government of the federation, unless the acquisition is in the national interest or for public purpose; and no person who owns either wholly or in part, the capital of any enterprise shall be compelled by law to surrender his interest in the capital to any other person.
These can only be done under a law that makes provision for:
- Payments of fair and adequate compensation; and
- Right of access to the courts for the determination of the investor’s interest or right and the amount of compensation to which he is entitled.
In addition to all these safeguards, the Nigerian government is prepared to enter into investment protection agreement with foreign enterprises wishing to invest in Nigeria.
Access to Land
Any company incorporated in Nigeria is allowed to have access to land rights for the purpose of its activity in any state in the country. It is, however, a requirement that industrial companies comply with regulations on use of land for industrial purposes and with environmental regulations. Land lease is usually for a term of 99 years unless the company stipulates a shorter duration.
Protection of Industrial Investment and International Trade Business
Nigeria’s membership of the World Bank’s Multi-lateral Investment Guarantee Agency (M1GA) and the operation of the bilateral Investment Promotion and Protection Agreement (IPPA) between Nigeria and any interested party country, make for adequate protection of foreign investment in Nigeria. The instrumentality of the Patents and Design Decree of 1970 affords protection and transferability of shares of joint owners of a patent or design registered in Nigeria; while that of the Trade Mark Act of 1956 affords protection of the exclusive right of a proprietor of a trade mark.