Legislation
Previously, FDI in Nigeria was obstructed by minimum capital requirements and indigenous ownership thresholds (of up to 40 per cent in some cases).
The NIPC Act replaced previous acts on foreign investment in Nigeria and essentially removed restrictions on foreign ownership of business in Nigeria, except for in limited circumstances.
100% foreign ownership of Nigerian businesses is possible except for within the oil and gas industry, where investment is limited to existing joint ventures or new production sharing agreements and the Nigerian Local Content Act passed in 2010 seeks to promote local participation in the industry.
The NIPC Act also introduced legislation to prevent businesses from being nationalised or expropriated by the Nigerian government and protection against an investor being forced to surrender his interest in the business.
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