Nigeria

NIPC remits N5.4 billion to Nigerian government in five years

The Nigerian Investment Promotion Commission says it has remitted a total of N5.36 billion into the consolidated revenue fund from 2016 to the first quarter of 2021.

This represents 46 percent of its total revenue for the period.

Asides from monitoring all investment promotion activities in the country, the commission also assists incoming and existing investors by providing support services.

Part of these services is the pioneer incentive status which was aimed at encouraging investors.

According to the commission’s financial summary, it spent N6.16 billion and reserved N1.09 billion.

The law allows the NIPC to apply fees charged for services rendered by it towards the discharge of its functions.

In the past five years, the commission has generated more in 2018 (N5.6 billion) and in 2020 (N3 billion).

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In 2019, it generated N1.6 billion; 2016, N425 million; and 2017, N409 million.

In a previous interview with newsmen, the Executive Secretary, Nigerian Investment Promotion Commission (NIPC), Yewande Sadiku, said the investment inflow to Nigeria has been under pressure for a few years, even prior to COVID-19.

“Looking at FDI flows to Nigeria in the last 20 years, we had a peak around 2011-2012 when the country recorded FDI of about $8.9billion. That was about the time the government sold oil assets to indigenous companies,” she said.

“Since then, FDI has been under serious pressure. There might have been a spike in one of the years. But, the trend has been downwards since then.

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“When FDI in Nigeria was high, what we see is because the government policies or economic reforms stimulated the flow of the FDIs. So, when banking reforms, which required higher capital raising, led to consolidation, and when the reforms of the telecoms industry were done, and GSM licenses were issued, not only did the government sell licenses to make some money, those who bought those licenses created a completely new investment ecosystem, with a ripple effect in many sectors of the economy.”

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