Investment Policy Review of Nigeria

The Review focused on the objective of increasing non-oil FDI inflows to Nigeria. Historically, FDI to Nigeria outside the oil sector has been low. For long periods since independence, FDI has been restricted by indigenisation policies or hampered by a poor investment climate. Nigeria removed virtually all restrictions to FDI entry in 1995 and is currently extending the scope for FDI by inviting private investment into most areas of the regulated public infrastructure and utilities sector. Reforms carried out under Nigeria´s home-grown development strategy are more advanced than generally appreciated outside Nigeria.

These include measures addressing both macroeconomic and investment climate issues. Despite these accomplishments, Nigeria continues to attract low quality FDI in manufacturing. In this regard, there is little evidence of the participation of foreign affiliates in the country to the process of integration into the regional and global production networks of the transnational corporations that characterize more advanced strategic corporate response to globalization. Few and very basic linkages exist between foreign companies and local suppliers.

Against this background, the IPR of Nigeria considers what needs to be done to enable FDI to make its full contribution to the orientation set by the Government.

According to the analysis presented in the report, the conclusions call for the adoption of a National Investment Policy based on an FDI strategy that would lead to dynamic investment growth beyond oil exploitation with a focus on a strong manufacturing sector, including the agro-allied industries.

Other reports: Blue Book of Nigeria

Report on the Implementation of the Investment Policy Review of Nigeria

The IPR of Nigeria, completed in 2008, analyzed the main bottlenecks impeding economic diversification, with a focus on developing the manufacturing sector through foreign direct investment (FDI). At the time, the sector attracted little investment, and FDI was concentrated in the oil industry. The report on the Implementation of the IPR of Nigeria reviews the progress made in implementing the recommendations set out in the IPR.

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