In this post, we look at the functions of the Nigerian Investment Promotion Commission (NIPC). The NIPC promotes industrialization and investments in Nigeria. Detailed functions of NIPC will be discussed below.
The Nigerian Investment Promotion Commission is a federal government agency, established with the sole responsibility of promoting industrialization in Nigeria through its support and assistant in promoting investment in Nigeria.
In achieving this objective, the Nigerian Investment Promotion Commission was expected to provide advice for the purpose of creating an Investment climate in Nigeria with a view to attracting investors.
This is the mandate, that the Nigerian Investment Promotion Commission has been working to accomplish through its functions, and in this article, we are going to look at quite a number of them.
Functions Of The Nigerian Investment Promotion Commission:
Quite a number of functions have been assigned to the Nigerian Investment Promotion Commission, in this article, however, I am going to explain some of these functions, be that as it may, I wish we look at these functions of the Nigerian Investment Promotion Commission together.
Read Also: 8 Functions of Nigerian Constitution
1. Provides Services For Grant Of Business
The Nigerian Investment Promotion Commission has been known for making provision for services for investors, such as the grant of business entry permit.
Its services are not limited to a business entry permit, it goes as far as, providing services for licenses of business, authorization of such business, including incentives, all in a single shop environment.
In such a stop shop center, the Nigerian Investment Promotion Commission also provides relevant data plus information on the economy of Nigeria for the purpose of accelerating and facilitating investment decisions that are quite informed.
Other areas, where such informed information has helped facilitate include, licenses, and post entry approval, as well as sector-specific permits, all of these are with agencies of government, also with the general advisory services.
This offer is targeted towards investment opportunities that are profitable here in Nigeria. In addition to this is the requirement of matching investors, which has to do with the available opportunities across the country.
2. Negotiates For Specific Incentive Package
According to the 2014 pioneer status incentives regulations of the Nigerian Investment Promotion Commission, a corporate organization that has been registered in Nigeria is permitted by such regulations to send in an application, asking for the pioneer status incentives.
If it is approved, such corporate organizations will stand a chance of benefiting from what they called ‘ tax holiday’, which lasted up to seven years.
In the course of identifying strategic investment or major investment, the Nigerian Investment Promotion Commission can, in fact, consult with the relevant agency of government thus, negotiating some investment packages that are specific for investment promotion, depending on the Nigerian Investment Promotion Commission specifications.
3. Encourages Investors On Profit-Making
Since the function of the Nigerian Investment Promotion Commission is to promote investment, it is incumbent on the part of the Nigerian Investment Promotion Commission to encourage reasonable profit making on the part of investors, particularly, during the early or formative stage of the business.
All things being equal, the investors are expected to reinvest that money, that is, they are expected to expand their businesses by putting back the profit made into their businesses.
4. Suspends Investors’ Incentive Tenure In The Event Of Host Community’s Hostilities
The Nigerian Investment Promotion Commission is known for providing services for grant of incentives for investors to expand their businesses_but in the event, where the host community is hostile, or where there is natural disaster, and sometimes, where there is strike plus insurgency, the Nigerian Investment Promotion Commission would have no choice than to suspend the incentive tenure, in conjunction with the federal inland revenue, once the claim of investor is verified concerning the problems enumerated above.
Ordinarily, it is next to an impossibility for the investor to enjoy such an incentive, in a hostile environment, therefore, it becomes necessary for the Nigerian Investment Promotion Commission to suspend the operations.
5. Guarantees Investor’s Unconditional Transfer Of Dividends
Any investor, in most cases, it is a foreign investor who registered with the Nigerian Investment Promotion Commission can be guaranteed unconditionally to transfer profits or dividends accruing from investment.
The investor can also be guaranteed to transfer payments with regards to servicing the loan, including some obligations, where there is liquidation or sales of the business owned by the investor, or sometimes, the interest accruing to the investment.
6. Settles Dispute Between Government And Investors
The Nigerian Investment Promotion Commission is saddling with the responsibility of settling a dispute between the government and the investors.
When once there is a dispute between the government and the investors with regards to investment in Nigeria, the Nigerian Investment Promotion Commission will come in to settle the dispute by way of negotiating between the government and the investors.
In most cases, where there is a dispute, the last resort would be the Nigerian Investment Promotion Commission
7. Advises Federal Government On Policy Matters
The Nigerian Investment Promotion Commission was founded to play a significant role in the economic growth of Nigeria through its functions.
One of such functions was to provides the federal government of Nigeria with relevant information, as well as advises the federal government on which policy matters is important and relevant for the promotion of Nigeria’s industrialization.
The advice provided to the federal government by the Nigerian Investment Promotion Commission was to also consider relevant for the provision of enabling an environment for investment in Nigeria.
To invest in Nigeria, a good investment climate is very necessary, and such investment climate will attract investors to come in and invest in Nigeria.
The function carried out with a view to realizing the above objective is credited to the Nigerian Investment Promotion Commission.
8. Identifies Special Projects And Invites Investor For Participation
It has been the responsibility of the Nigerian Investment Promotion Commission to go sourcing for projects that would be attractive to investors, and once these special projects are identified, it is incumbent on the part of the Nigerian Investment Promotion Commission to extend invitation to investors who would be interested in investing in Nigeria to come and participate in the special projects. Therefore, the Nigerian Investment Promotion Commission has been functioning in this regard.
9. Maintains Liaison Between Investors And Government
The Nigerian Investment Promotion Commission, whose mandate is to provide some incentives for the purpose of promoting investment in Nigeria, has remained committed to maintaining liaison between investors, as well as the government.
The Nigerian Investment Promotion Commission maintenance of liaison between investors, including government, is not limited to government ministers, government agencies and government departments, it goes beyond government parastatals to other authorities, like institutional lenders.
More so, some organizations, that have the interest of promoting investment in Nigeria at heart, and that would be willing to support and assist investors in Nigeria, both new and old investors, would also be privileged to build liaison with the Nigerian Investment Promotion Commission.
Read Also: 7 Functions of Nigeria Post Office
The Nigerian Investment Promotion Commission was expected to provide advice for the purpose of creating Investment climate in Nigeria with a view to attract investors
Click here to Join Recharge and Get Paid
Click here to Read Latest School News in Nigeria