It is not only expatriates who send money to Nigeria, and foreign direct investments are a significantly important factor of foreign investment in the country. The enormous consumer market is one of the factors that impact the level of foreign direct investment in Nigeria. To promote additional investment from both within and beyond the country, the Nigerian government has granted a range of tax, export, and other advantages.
Another source of encouragement is the improvement in the ease of doing business; the business registration process has been simplified, easing the burden of registering a company. The country’s attractiveness as an investment destination has also been bolstered by the free flow of investment capital and the absence of expropriation of investment (save for public purposes).
Investors possessing a certificate of capital importation (CCI), which proves that their investment was imported into Nigeria, are free to repatriate their money and net profit after tax without any restrictions. Within 24 to 48 hours of the investor money transfer to Nigeria, Authorized Dealers (banks licensed by the Central Bank of Nigeria to deal in foreign currencies) issue CCIs.
How Does Ease Of Policies By Government Help To Bring More Money To The Country?
The administration unveiled the Economic Recovery and Growth Plan (ERGP)20 in early 2017, which sparked a reconsideration of earlier policy decisions. An investor and exporter foreign exchange window (IEFX) and monetary policy tightening were among the new initiatives. Stabilizing the macroeconomic climate, achieving agriculture and food security, developing transportation infrastructure, and promoting the industry with an emphasis on SMEs are among the ERGP’s aims.
The Voluntary Asset and Income Declaration Scheme (VAIDS), which is progressively recovering the country’s tax system’s efficiency, is one of the ERGP’s accomplishments. Online money transfers to Nigeria through digital payment gateways help investors to send money to the country for investment. The government needs to develop a digital finance system in Nigeria to get more foreign reserves to the country.
The Bottom Line:
The goal should be to integrate world-class corporate principles and standards into the nation’s governance through collaboration between the government and commercial enterprises. FDI would be most beneficial to Africa if accompanied by a transfer of skills, investment in new research and development, and expanded local pharmaceutical and intermediary product manufacture. This, combined with the execution of trade agreements, will increase Africa’s trade exports. In addition, the government should provide ways to send money to Nigeria online to enhance foreign direct investments.