For the purpose of promoting identified strategic or major investments, the NIPC may in consultation with appropriate Government agencies, negotiate specific incentive packages for the promotion of investment.

Investment Incentives and Guarantees

The Federal Government has made available tax holidays for pioneer companies-those producing for export, establishing new industries or expanding production in sectors vital to the economy. The Government also grants non-tax incentives to non-pioneer firms. In addition, the Government offers a number of general and industry-specific incentives.

General incentives

A debit-conversion programme allows foreign companies to obtain an enhanced exchange rate when they are injecting new equity into a production project that has been approved by the Central Bank of Nigeria (CBN).

Small and medium-scale industries are eligible for loans from the Bank of industry and other development banks.

The Raw Materials Research and Development Council provides grants for research and development that leads to the greater use of Nigerian raw materials in domestic industry.

Industry-specific incentives

Agro-industrial ventures benefit from a five-year tax holiday, an agricultural credit scheme guaranteed by the CBN, subsidised fertilisers and zero import duties on raw materials used to make livestock feed.

Nigeria Export Processing Zones {Details}

The Nigeria Export Processing Zones Authority was set up under the Nigeria Export Processing Zones Decree 63 of 1992.

The Authority has the mandate to grant all requisite permits and approvals for operators within the zones, to the exclusion of other government bodies and agencies.

Investment Procedures Within the Nigeria Export Processing Zones (EPZ)

1.Any company, person or group of persons wishing to carry out approved activity within a zone shall apply to the Nigerian Export Processing Zones Authority (NEPZA) using the prescribed forms and shall submit such documents and information in support of the applications. The forms shall specify the application fees and such other details as the Authority may stipulate from time to time. A feasibility study in respect of the investment project, which the applicant wishes to undertake in the zone, shall be attached as an annex to the application and shall contain the following among others:

Project description;

Market survey;

Funding proposals;

Financial projections;

Environmental impact statement and control measures.

2.Application to undertake approved activity in the zone duly received, shall be considered by the Authority within 30 days of receipt and the Authority shall notify the applicant in writing of its decisions to grant the said approval or otherwise. The approval shall be subject to such terms and conditions as may be imposed.

3.If the application is approved the investor may proceed to carry out the following:

1.Apply for company registration

2.If outright purchase of factory building is desired.

Payment of 10% deposit of the selling price of the standard factory building within 3 months of approval;

Payment of the balance 90%, 5 month after;

3.Renting of factory building

Down payment of one-year rent required not exceeding 3 months after signing the rental contract. Thereafter, rental charges shall be paid in the first quarter of every year.

4.Leasing the standard factory

Payment of 40% lease value on approval;

Payment of 30% at the end of the 5th year;