OECD Investment Policy Reviews: Nigeria 2015

image of OECD Investment Policy Reviews: Nigeria 2015

Since the return to democracy in 1999, Nigeria has embarked upon an ambitious reform programme towards greater economic openness and liberalisation. As a result, gross domestic product growth picked up consistently, never going below 5% since 2003. Nigeria has become a top recipient of foreign direct investment in Africa, with inflows having surpassed those to South Africa since 2009. The federal government’s Transformation Agenda recognises private sector development as the main engine for economic growth and includes bold investment reforms. Growth has however not yet been translated into inclusive development and the investment climate still suffers from severe challenges.

This Investment Policy Review examines Nigeria’s investment policies in light of the OECD Policy Framework for Investment (PFI), a tool to mobilise investment in support of economic growth and sustainable development. It provides an assessment and policy recommendations on different areas of the PFI: investment policy; investment promotion and facilitation; trade policy; infrastructure investment; competition; corporate governance and financial sector development. It also includes a special chapter analysing the PFI in Lagos State. The Review follows on the request addressed by the Minister of Industry, Trade and Investment of Nigeria to the OECD Secretary-General in December 2011. It has been prepared in close co-operation with the Federal Government of Nigeria and Lagos State Government.



Investment policy in Nigeria

This chapter provides an overview of Nigeria’s legal framework for investment. It examines the quality of the country’s investment policies and the level of legal protection granted to both domestic and international investors. It covers the admission, regulation and protection of foreign direct investment and ascertains whether the principle of non-discrimination features in investment-related laws. It also looks into the rules for expropriation, the framework for protecting intellectual property rights and the legal regime for land property rights. The adjudication of commercial and investment disputes, including through arbitration, is another building block of the investment policy framework at both federal and state levels. The chapter also analyses Nigeria’s investment treaty practice and provides options for a strengthened and well-balanced treaty policy.


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