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.



Other areas of Nigeria's policy framework for investment

This chapter addresses Nigeria’s policy challenges as concerns the impact on foreign and domestic investment of: infrastructure investment; competition policy; corporate governance; and financial sector development. It investigates ongoing efforts to: increase private participation in infrastructure networks, notably energy; enact a competition law as well as a code of corporate governance for Nigeria; and address critical challenges of access to finance in the country, which poses a particular barrier to SMEs seeking to tap into investment linkage opportunities. The chapter makes recommendations regarding how to secure effective implementation of these reforms, and to level the playing field for private investment in various sectors of the economy. In infrastructure markets this will notably require greater institutional co-ordination among the various agencies charged with: price-setting for basic utilities; public procurement; monitoring the governance of state-owned enterprises; and ensuring competitiveness.


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