Update on the Activities of the Nigerian Investment Promotion Commission A PRESENTATION BY HAJIA LADI KATAGUM AG. EXECUTIVE SECRETARY NIPC AT THE 2016 FIRST CAPITAL MARKET COMMITTEE MEETING HELD AT FEDERAL PALACE HOTEL, VICTORIA ISLAND LAGOS 13 TH APRIL, 2016

Outline 1.Introduction: - Background 2. The Role of NIPC in Investment Promotion/Facilitation 3.Challenges of the Nigerian Business Environment 4.Efforts of Government in further improving the Investment Climate 5.Conclusion

Background:  Foreign Direct Investment (FDI) is widely acknowledged worldwide as the most useful and cheapest source of development finance - it creates employment, ensures transfer of technology, conserves foreign reserves, and ensures quality goods and services among others.  For this reason, the competition for FDI has been very stiff, particularly in recent years due to globalization brought about by technology.  One of the strategies adopted by most countries to attract FDI is the establishment of Investment Promotion Agencies (IPAs), with over 170 IPAs world wide competing to attract often limited FDI to their various countries.  NIPC is the Agency of the Nigerian government for attracting FDI and backed up by NIPC Act No. 16 of 1995 Introduction

 If the Commission is to achieve its purpose, there is the need for effective collaboration with stakeholders for mutually beneficial purposes.

NIPC Mandate: NIPC Act No. 16, 1995 established the Nigerian Investment Promotion Commission, to encourage, promote and co-ordinate investment in the Nigerian economy; and for matters connected therewith. Functions of the Commission: (a) be the agency of the Federal Government to co-ordinate and monitor all investment promotion activities to which this Act applies; (b) initiate and support measures which shall enhance the investment climate in Nigeria for both Nigerian and non-Nigerian investors; NIPC’s Role In Investment Facilitation

NIPC’s Functions (c) promote investments in and outside Nigeria through effective promotional means; (d) collect, collate, analyse and disseminate information about investment opportunities and sources of investment capital, and advise on request, the availability, choice or suitability of partners in joint-venture projects; (e) register and keep records of all enterprises to which this Act applies;

NIPC’s Functions (f) identify specific projects and invite interested investors for participation in those projects; (g) initiate, organize and participate in promotional activities, such as, exhibitions, conferences and seminars for the stimulation of investments; (h) maintain liaison between investors and Ministries, Government departments and agencies, institutional lenders and other authorities concerned with investments; (i) provide and disseminate up-to-date information on incentives available to investors;

NIPC’s Functions (j) assist incoming and existing investors by providing support services; (k) evaluate the impact of the Commission in investments in Nigeria and make appropriate recommendations; (l) advise the Federal Government on policy matters, including fiscal measures designed to promote the industrialisation of Nigeria or the general development of the economy; (m) perform such other functions as are supplementary or incidental to the attainment of the objectives of this Act.

Current Services Provided by NIPC  Domestic and Overseas Investment Promotion:  Promotional tactics within specialized industrial sectors, emphasizing innovative investment strategies  Outreach marketing strategies: Investor forums; Seminars; Individual presentations, in- bound and out-bound missions etc.  Pre-Investment Facilitation Services:  Assisting investors with approvals /licenses from the various government agencies involved in investment facilitation in the country.  Support existing investors in analyzing trade and investment policies of government, to enable them expand or diversify.  Process and approve Pioneer Status incentives & provide information on other incentives  Post-Investment Services (Real Sector and Infrastructure &Services Sector ):  Aftercare services to existing Investors  Technical advice on improvement and expansion plans of existing businesses  Policy Advocacy & National Competitiveness.  Provide and support initiatives aimed at improving the investment climate within the country.  Advise on amendment to Policies and laws that would improve the country’s global ranking. 9

NIPC’s Role...cont’d  Maintain close working relationship and regular interaction with the Organized Private Sector (MAN, NACCIMA, NASME) during Business Forums, etc  Interactive sessions with targeted business communities and Foreign Embassies in Nigeria  Active advocacy role through the Honorary International Investor Council (HIIC). NIPC is the Secretariat of HIIC.  Interface and collaboration with government agencies at all levels  The annual National Conference on Investment (NCI) 10

Current Services.. Cont’d  Secretariat to the two following Business Committees:  Doing Business and Competitiveness Committee:  To address policy issues inhibiting competitive business environment  To coordinate policy reforms that would stimulate private sector growth  Investor After-Care Committee:  To instil fair and transparent business operational procedures  To eliminate discretionary concessions and privileges  To enhance the image of the economy and build investors’ confidence

NIPC’s Role... Cont’d One-Stop Investment Centre (OSIC) as an investment facilitation strategy:  streamlining the investment procedures  remove all bottlenecks in business legalization procedures  Business Incorporation/ Registration, Grant of Approvals, Permits/License and Investment Information & Data  26 Government Ministries and Agencies  More centers to be opened in Lagos, Port-Harcourt and Kano (eventually all States of the Federation) 12

NIPC’s Transformation Pillars  Corporate Accountability and Institutional Discipline [which include sound Corporate Governance Framework, Enterprise-wide Risk Management Framework and a Best-in-Class IT Infrastructure]  Operational Excellence and Administrative Effectiveness  Robust and effective Stakeholder Communication and Engagement;  Structured, Systematic and Expanded National Investment Promotion Strategy including the formulation of an effective Global Investment Facilitation Framework and country-specific strategies amongst others.

NIPC’s New Strategy   Effective Communication and Policy Advocacy Active engagement with Stakeholders Develop structured engagement matrix with each partner Develop effective communication mechanism Have a dynamic website Provide leadership for investment climate improvement  Investment Promotions Streamlined Investment promotion drive through country specific strategies, investor targeting, investment-type, Industry specific, which fit with the Nation’s investment priorities Develop a structured and result-driven investment promotion calendar Certification of Private Organizations engaging in Investment Promotion

NIPC’s New Strategy  Investment Facilitation and Investors Servicing – Support investors through the investments decisions stages and provide after care services Provide Risk Assessment Reports Country as well as Sector Specific Reports Provide Sector Specific Information – Transform the One-Stop Investment Centre (OSIC) into a virtual Centre – Negotiate and facilitate Special Incentives for investors

Conclusion NIPC welcomes an objective assessment of its previous engagements by stakeholders to identify areas in which it needs to improve its services and shall continue to evolve new strategies for Investment Promotion and Facilitation to make it the first contact on Investment information in order to serve the investing community better.

For more Information Hajia Ladi Katagum Ag. Executive Secretary/CEO, Nigerian Investment Promotion Commission (NIPC) Plot 1181 Aguiyi Ironsi Street Maitama District, Abuja, Nigeria Visit NIPC Social Facebook.com/nipcng Twitter.com/nipcng Youtube.com/nipcng 17