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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.

English

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Nigeria's trade policy

Export competitiveness is generally a challenge for Nigeria – in particular as concerns finding niches for exports in which the country can gain in value-added and diversify exports away from the current focus on raw materials. This chapter investigates to what extent Nigeria’s policy and institutional framework for trade (including the draft National Trade Policy of 2013, still awaiting finalisation as of spring 2015) can help address these challenges. This indicates that due to the wide breadth of “targeted” sectors, it is difficult to dedicate sufficient resources and to address supply-side constraints specific to each sector. Moreover various policy questions relevant to trade are not under the ambit of the FMITI, but are rather dealt with by the agriculture or finance ministries, which complicates effective reform implementation. The chapter provides recommendations on how to improve the focus of the draft Policy, better address remaining non-tariff barriers to trade, and enhance institutional co-ordination among bodies responsible for trade and investment policy formulation.

English

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