The Nigerian Investment Promotion Commission (NIPC) has announced an update to its service fees for processing applications, aiming to streamline investment processes in Nigeria.
These revisions are effective from October 1, 2024, and include new fees for both existing and potential foreign investors.
Overview of NIPC’s Role
The NIPC is responsible for promoting and coordinating both domestic and international investments in Nigeria.
It provides critical information on investment opportunities, negotiates incentive packages for strategic projects, and maintains an inventory of foreign enterprises operating in the country.
Investors interested in Foreign Direct Investment (FDI) are required to register their companies with the NIPC before commencing operations.
Incentives provided to registered foreign investors include:
- Repatriation of dividends (after taxes)
- Loan servicing payments
- Remittance of proceeds from sales or liquidation
- Protection against expropriation
- Compensation in the event of compulsory acquisition
Updated NIPC Service Fees
Below is a chart detailing the revised fees introduced by the NIPC:
Registration and Renewal Fees
| Service | New Fee (₦) | Additional Information |
|---|---|---|
| Application Fee | ₦150,000 | Applicable for new NIPC registrations |
| Annual Renewal Fee | ₦50,000 | For foreign entities, effective January 1, 2025 |
Permit Replacement and Pioneer Status Incentive (PSI) Fees
| Service | New Fee (₦) | Additional Information |
|---|---|---|
| Replacement Fee | ₦100,000 | New fee for replacement of permits |
| PSI Application Fee | ₦500,000 | For companies applying for PSI |
| First-Time PSI Applicants | ₦1,000,000 | Due diligence fee |
| First-Time PSI Service Charge | ₦3,000,000 | Plus annual service charge of 1.5% of pioneer profits |
| PSI Extension Application Fee | ₦250,000 | Annual service charge of 1.5% of actual pioneer profits |
Penalty Fees
| Service | New Fee (₦) | Additional Information |
|---|---|---|
| Penalty for Non-Compliance (First-Time Applicants) | ₦200,000 | Penalty for defaulting in PSI requirements |
| Penalty for Non-Compliance (Extension Applicants) | ₦100,000 | Penalty for defaulting in PSI extensions |
These fee revisions are part of the NIPC’s ongoing efforts to create a transparent and investor-friendly environment.
Foreign investors and companies are encouraged to comply with these new guidelines to avoid penalties and ensure smooth operations in Nigeria.
By presenting this updated fee structure, the NIPC aims to clarify the financial requirements and maintain its commitment to supporting investment growth in the country.
