Transferability of Funds
of NIPC Decree provides that a foreign investor in an enterprise shall
be guaranteed unconditional transferability of funds through an
Authorized Dealer in freely convertible currency of:
Dividends or profit (net of taxes) attributable to the Investment.
Payments in respect of loan servicing where a foreign Loan has been
Remittance of proceeds (net of all taxes) and other Obligations in
the event of a sale or liquidation of the Enterprise or any interest
attributable to the investment.
Guarantees Against Expropriation
provision of section 25 of the Decree, no enterprise shall be
nationalized or expropriated by any Government of the Federation; and
who owns, whether wholly or in part, the capital of any enterprise shall
be compelled by law to surrender his interest in the capital to any
other person. The above provision are however subject to the following:
shall be no acquisition of an enterprise by the Federal Government
unless the acquisition is in the national interest or for public
purpose and under a law which makes provision for:
Payments of fair and adequate compensation; and Right of access to
the courts for the determination of the Investor’s interest or right
and the amount of compensation to Which he is entitled.
compensation payable shall be paid without undue delay and
authorization for its repatriation in convertible currency shall
where applicable be issued.
addition, the Nigerian Government is prepared to enter into Investment
Protection Agreement with foreign enterprises wishing to invest in
company, incorporated in Nigeria is allowed to have access to land
rights for the purpose of its activity in any state in the country.
however a requirement that industrial companies comply with the
regulations on use of land for industrial purposes and with
environmental regulations. Land lease shall be for a term of 99 years
unless the company stipulates a shorter duration.
Decree provides that where a dispute arises between an investor and any
government of the federation in respect of an enterprise, all efforts
shall be made through mutual discussion to reach an amicable settlement.
dispute between an investor and any Government of the Federation in
respect of an enterprise which is not amicably settled through mutual
discussions may be submitted and at the option of the aggrieved party to
arbitration as follows: -
case of a Nigerian investor, in accordance with the rules of
procedure for arbitration as specified in the Arbitration and
Conciliation Decree, 1988; or
case of a foreign investor, within the framework of any bilateral or
multilateral agreement on investment Protection to which the
investor depending on his Nationality may be a beneficiary of; or
accordance with any other national or international Machinery for
the settlement of investment disputes agreed on by parties.
respect of any dispute, there is disagreement between the investor and
the Federal Government as to the method of dispute settlement of
investment Dispute Rules shall apply.