Investor Presentaiton
The Country and its
institutions
Business Organisation
and Regulation
Labour and Social
Security Regulations
The Nigerian Financial
Services Industry
Tax System
Foreign Exchange
Transactions
Investment in Nigeria
Accounting and
Auditing Requirements
Importation of Goods Exportation of Goods
COVID-19 Economic
and Fiscal Measures
Doing Business in Nigeria
7.6
7.6.1
7.6.2
Business Environment
The World Bank ranked Nigeria 131st in the world in its Doing Business
2020 ranking62 (146 in 2019) with a score of 56.9 out of 100. In its report,
the World Bank noted Nigeria as one of the 10 economies with the most
notable improvement after implementing regulatory reforms including
registration of businesses, dealing with construction permits, improving
access to electricity, registration of property, cross-border trades and
enforcement of contracts.
However, public procurement/ contracting with the Government was
highlighted as an area of concern in the 2020 report, as bureaucratic delays
and cost overruns continue to hinder the efficiency of public procurement in
Nigeria. Notwithstanding, Finance Act 2020 has introduced some regulatory
amendments to the Public Procurement Act and Fiscal Responsibility Act
which, coupled with other Government economic and fiscal reforms, will
improve governance, ease of doing business in Nigeria and attract fresh
investments to the economy.
Capital Importation
Investors are required to obtain a Certificate of Capital Importation (CCI)
upon importation of foreign currency, raw materials or equipment into
Nigeria. The CCI is used to access the official Foreign Exchange (FX) Market
for repatriation of dividends, profits, and capital or other investments by
foreign investors, through an authorized dealer (i.e., any bank licensed by
the CBN to operate in the foreign exchange market).
In Q4 2020, the total value of capital importation into Nigeria stood at
US$1,069.68 million 63. This represents a decrease of -26.81% and -71.87%
when compared to Q3 2020 and Q4 2019, respectively. Similarly, the total
value of capital importation in 2020 stood at US$9,680.49 million, compared
to US$23,990.05 million in 2019, representing a decline of -59.65%
between the two periods.
Capital Importation by Type of Investment in 2020 ($ million)
Foreign direct
investment
Q1
02
Q3
Q4
Total
$214.25
$148.59
$414.79
$251.27
$1,028.91
$213.84
$148.59
$414.79
$248.73
$1,025.96
$0.00
$2.54
$2.95
Equity
Other capital
$0.41
Portfolio
investment
$4,309.47
$385.32
$407.25
$35.15
$5,137.20
Equity
$639.72
$53.25
$44.10
$18.05
$755.12
$0.00
I
$231.22
Bonds
$231.22
Money market
instruments
$3,438.54
$332.07
$363.15
$17.10
$4,150.86
Other
investment
Trade credits
$0.05
Loans
$1,330.65
$761.03
$639.44
$783.26
$3,514.39
$0.00
$0.05
$559.79
$726.00
$624.45
$668.66
$2,578.90
Currency
deposits
Other claims
Total
Source: NBS
$0.82
$0.00
$0.82
$769.99
$35.04
$14.99
$114.60
$934.62
$5,854.38
$1,294.94
$1,461.49
$1,069.68
$9,680.49
The United Kingdom emerged as the top source of capital investment in
Nigeria in Q4 2020 with US$236.88 million which accounted for 22.14% of
the total capital inflow in Q4 2020. By Destination of Investment, Lagos
State emerged as the top destination of capital investment in Nigeria in
Q4 2020 with US$829.64m (about 77.56% of the total capital inflow in
Q4 2020). Citibank Nigeria Limited emerged the leading bank for capital
investment in Nigeria in Q4 2020 with US$216.17m (about 20.21% of the
total capital inflow in Q4 2020).
62 The Doing Business ranking measures the ease of doing business around the world and is updated annually by the World Bank
63 NBS (Nigerian capital importation Q4 & full year 2020 report)
71
Investment in Nigeria Guide - 8th Edition
KPMGView entire presentation