Investment Policy Monitor
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The Investment Policy Monitor provides the international investment community with up-to-date, country-specific information on recent policy developments affecting foreign direct investment (FDI).
Through its ongoing monitoring of investment policy changes, UNCTAD delivers cutting-edge and forward-looking contributions to investment policy discourse. The Monitor also supports evidence-based policymaking aimed at ensuring that foreign investment contributes to sustainable development. The Monitor also informs the analysis of global and regional investment policy trends featured in the World Investment Report, the Investment Policy Monitor publications and the joint UNCTAD-OECD Reports on G20 Investment Measures.
UNCTAD has tracked changes in national policies affecting FDI on an annual basis since 1992. Over time, the methodology has been revised to enhance the quality and consistency of reporting. The most recent revision, completed in 2024, further refined the monitoring framework and applied the updated classification to policy measures dating back to 2012.
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UNCTAD Investment Policy Monitor The UNCTAD Investment Policy Monitor database compiles official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting foreign investment (FDI-specific), as well as general investment measures that have a clear impact on such investment (FDI-related).
The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases).
The classification of measures as more or less favourable to investors is based solely on their potential impact on investors. The type of measures included in each category are described below. This classification does not reflect any value judgement by UNCTAD on the merit or suitability of the measure.
Classification of the nature of measures
More favourable to investors
Liberalization: includes privatization; lifting of entry restrictions (e.g. opening of sectors to FDI) and entry conditions (e.g. minimum capital requirement); removal (total or partial) of FDI screening or approval mechanisms; lifting of foreign exchange restrictions; liberalization of land access.
Facilitation: includes streamlining of investment procedures (e.g. one-stop shops); greater transparency of investment-related laws and procedures (e.g. information portals); introduction by IPAs and other entities of new services to assist investors (e.g. linkages programmes, investor visa facilitation or alternative dispute resolution mechanisms).
Promotion: includes establishment of IPAs or other institutions with a remit as investment promoters and expansion of their mandate; adoption of investment promotion strategy and plans; introduction of PPPs, auctions, and concessions initiatives or framework; introduction of OFDI promotion initiatives.
Incentives: includes adoption of new tax and financial incentives schemes for investment; introduction of other incentives (e.g. citizenship by investment programmes); adoption of new SEZ-related incentives.
Other regulatory changes: includes enhancement of investor treatment and protection guarantees; easing of labour or migration regulations concerning foreign hires and key personnel; removal of operational restrictions on investment (e.g. local content requirements).
Less favourable to investors
Entry: includes introduction or tightening of entry restrictions (e.g. total or partial ban on FDI in specific sectors); introduction or tightening of entry conditions (e.g. minimum investment threshold, joint venture requirements or State participation in strategic sectors); introduction or expansion of screening mechanisms for national security.
Treatment and operation: includes introduction or expansion of foreign exchange restrictions; introduction or expansion of restrictions on foreign hires and key personnel; removal or reduction of investment incentives; introduction or expansion of post-establishment requirements for local content; reduction of guarantees for investment treatment and protection; introduction or expansion of restrictions on OFDI.
Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
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- Nigeria - Restructures and integrates petroleum taxation system
Nigeria
Restructures and integrates petroleum taxation system
16 Aug 2021On 1 January 2026, the Nigeria Tax Act, 2025 came into effect, restructuring Nigeria’s petroleum taxation system by amending and harmonizing the fiscal framework established under the Petroleum Industry Act, 2021 and reducing the tax burden. The Act retains a dual-tax system for upstream petroleum operations, combining companies income tax and hydrocarbon tax, and replacing the former petroleum profits tax regime, under which rates ranged from 50 to 85 per cent. Hydrocarbon tax is set at 30 per cent for petroleum mining leases and 15 per cent for petroleum prospecting licences in onshore and shallow-water areas, while deep offshore acreages are exempt. It applies to crude oil, condensates and natural gas liquids, but exempts non-associated gas and certain downstream gas outputs to encourage investment.
Production royalty is volume-based and calculated per field. Rates are 15 per cent for onshore areas, 12.5 per cent for shallow-water areas, 5–7.5 per cent for deep offshore areas and 7.5 per cent for frontier acreages. Gas royalties are 5 per cent, or 2.5 per cent for domestic use. Additional royalties apply at 5 per cent when prices reach $100 per barrel and 10 per cent when prices exceed $150 per barrel. Companies may deduct royalties, rents, drilling expenses and host-community contributions, while benefiting from capital and production allowances.
The Petroleum Industry Act also allows investors to create security interests over licences and leases, subject to regulatory consent, under the relevant 2023 and 2024 regulations. Existing operators may voluntarily convert their licences in accordance with the transitional arrangements under the Petroleum Industry Act, although they may have to relinquish undeveloped portions of the licence area. Alternatively, they may continue under their existing licences until termination, in which case they remain subject to the previous petroleum profits tax regime. Operators must also contribute 3 per cent of their prior year’s actual operating expenditure to a host-community development fund and may deduct repair costs arising from vandalism, sabotage or civil unrest.
Nature of measure:
- Other regulatory changes
Type:
- Entry and establishment (Approval and admission - other)
- Treatment and operation (Other)
Industry:
- Primary (Mining and quarrying)
Inward FDI:
YesOutward FDI:
NoSources:
- Nigerian Upstream Petroleum Regulatory Commission , Petroleum Industry Act, 2021, https://ngfcp.nuprc.gov.ng/wp-content/uploads/2022/09/Petroleum-Industry-Act-2021-pdf-searchable.pdf, 27 Aug 2021
- dentons, From bids to blocks: Navigating the proposed 2025 oil licensing bid rounds, https://www.dentonsacaslaw.com/en/insights/articles/2025/august/29/navigating-the-proposed-2025-oil-licensing-bid-rounds, 29 Aug 2025
- KPMG Advisory Services Nigeria, Petroleum Industry Act (PIA) 2021 - A Game Changer ?, https://assets.kpmg.com/content/dam/kpmg/ng/pdf/tax/petroleum-industry-act-(pia)-2021-a-game-changer.pdf, 31 Aug 2021
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The Investment Policy Monitor provides the international investment community with up-to-date, country-specific information on recent policy developments affecting foreign direct investment (FDI).
Through its ongoing monitoring of investment policy changes, UNCTAD delivers cutting-edge and forward-looking contributions to investment policy discourse. The Monitor also supports evidence-based policymaking aimed at ensuring that foreign investment contributes to sustainable development. The Monitor also informs the analysis of global and regional investment policy trends featured in the World Investment Report, the Investment Policy Monitor publications and the joint UNCTAD-OECD Reports on G20 Investment Measures.
UNCTAD has tracked changes in national policies affecting FDI on an annual basis since 1992. Over time, the methodology has been revised to enhance the quality and consistency of reporting. The most recent revision, completed in 2024, further refined the monitoring framework and applied the updated classification to policy measures dating back to 2012.
-
UNCTAD Investment Policy Monitor The UNCTAD Investment Policy Monitor database compiles official measures affecting FDI adopted by United Nations Member States. These encompass measures explicitly targeting foreign investment (FDI-specific), as well as general investment measures that have a clear impact on such investment (FDI-related).
The measures are either reported directly to UNCTAD by Member States through annual surveys or identified by UNCTAD researchers through publicly accessible sources (such as government websites and specialized policy databases).
The classification of measures as more or less favourable to investors is based solely on their potential impact on investors. The type of measures included in each category are described below. This classification does not reflect any value judgement by UNCTAD on the merit or suitability of the measure.
Classification of the nature of measures
More favourable to investors
Liberalization: includes privatization; lifting of entry restrictions (e.g. opening of sectors to FDI) and entry conditions (e.g. minimum capital requirement); removal (total or partial) of FDI screening or approval mechanisms; lifting of foreign exchange restrictions; liberalization of land access.
Facilitation: includes streamlining of investment procedures (e.g. one-stop shops); greater transparency of investment-related laws and procedures (e.g. information portals); introduction by IPAs and other entities of new services to assist investors (e.g. linkages programmes, investor visa facilitation or alternative dispute resolution mechanisms).
Promotion: includes establishment of IPAs or other institutions with a remit as investment promoters and expansion of their mandate; adoption of investment promotion strategy and plans; introduction of PPPs, auctions, and concessions initiatives or framework; introduction of OFDI promotion initiatives.
Incentives: includes adoption of new tax and financial incentives schemes for investment; introduction of other incentives (e.g. citizenship by investment programmes); adoption of new SEZ-related incentives.
Other regulatory changes: includes enhancement of investor treatment and protection guarantees; easing of labour or migration regulations concerning foreign hires and key personnel; removal of operational restrictions on investment (e.g. local content requirements).
Less favourable to investors
Entry: includes introduction or tightening of entry restrictions (e.g. total or partial ban on FDI in specific sectors); introduction or tightening of entry conditions (e.g. minimum investment threshold, joint venture requirements or State participation in strategic sectors); introduction or expansion of screening mechanisms for national security.
Treatment and operation: includes introduction or expansion of foreign exchange restrictions; introduction or expansion of restrictions on foreign hires and key personnel; removal or reduction of investment incentives; introduction or expansion of post-establishment requirements for local content; reduction of guarantees for investment treatment and protection; introduction or expansion of restrictions on OFDI.
Note: Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
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