Allows the investment promotion agency to negotiate incentives for strategic investments
14 Feb 2023
On 14 February 2023, the President of Nigeria signed into law the Business Facilitation (Miscellaneous Provisions) Act (BFA), 2022. Among its key novelties, the Act:
• Amends Section 22 of the Nigerian Investments Promotion Commission Act (NIPC Act) to detail the responsibilities of the Commission in identifying, determining, and promoting strategic or major investments. The new section 22 requires the Commission to specify priority area of investment and any applicable benefits and incentives and negotiate special incentives packages for strategic investment in addition to the general incentive applicable to any enterprise under the law. The Commission is required to publish the criteria for determining strategic investment and the details special incentives awarded in the Federal Government Gazette and on its website.
inter alia, the Nigerian Investments Promotion Commission Act, with implications for (i) Registration for acquisition of foreign equity and (ii) Incentive for special investment. More specifically:
• Amends Section 20 of the NIPC Act by introducing a new subsection (3) which requires a company that acquires foreign equity after it commenced business to register with the NIPC. Before the effective date of the BFA, the NIPC Act only required a new company with foreign participation to register with the NIPC before commencement. Based on this amendment, any Nigerian company which subsequently acquires a foreign participation is required to register with the Commission within three (3) months of such acquisition.
The new law entered into force on 8 February 2023.
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Promotion and facilitation (Investment facilitation )
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