Transferability of Funds

Section 24 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:

1. Dividends or profit (net of taxes) attributable to the Investment.

2. Payments in respect of loan servicing where a foreign Loan has been obtained.

3. 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.

By the provision of section 25 of the Decree, no enterprise shall be nationalized or expropriated by any Government of the Federation; and

No person 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:

1. There 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:

2. 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.

3. Any compensation payable shall be paid without undue delay and authorization for its repatriation in convertible currency shall where applicable be issued.

In addition, the Nigerian Government is prepared to enter into Investment Protection Agreement with foreign enterprises wishing to invest in Nigeria.

Any company, incorporated in Nigeria is allowed to have access to land rights for the purpose of its activity in any state in the country.

It is 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.

The NIPC 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.

Any 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: -

1. In the case of a Nigerian investor, in accordance with the rules of procedure for arbitration as specified in the Arbitration and Conciliation Decree, 1988; or

2. In the 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

3. In accordance with any other national or international Machinery for the settlement of investment disputes agreed on by parties.