The Nigerian Investment Promotion Commission (NIPC) Act was a response to Nigeria’s desire to
attract greater foreign direct investment (FDI) in a post-structural adjustment environment where
the government sought to reduce its involvement in the economy and encourage private-sector
participation. By the 1990s, Nigeria’s economy needed diversification away from its heavy reliance on
oil revenues. The NIPC Act was part of a broader policy shift towards liberalization, privatization, and
the opening of key sectors to private investment. One of the key features of the Act is its focus on
ensuring a level playing field for all investors, whether domestic or foreign. It guarantees that foreign
investors can fully own companies in Nigeria (except in a few sectors restricted by national security
or public interest), repatriate profits, and enjoy legal protections that prevent expropriation of their
investments without adequate compensation. In addition, the Act promotes transparency and simplifies
the investment process, reducing bureaucratic hurdles for investors by centralizing the registration
and approval of investments under the NIPC.