Central Bank of Nigeria
Industrial Development Coordinating Committee, IDCC, Foreign Private Investment, Private Investment, Foreign Investment, Nigeria
Policies that attract foreign private investment (FPI) have become the focus of considerable attention in many developing countries particularly since the beginning of the debt crisis in the 1980s. As part of Nigeria's strategy to stimulate foreign investment, the Federal Government of Nigeria established the Industrial Devel,opment Coordinating Committee (IDCC) in 1988 as a one-stop agency for facilitating andattractingforeign investment inflow. A study was initiated by the Research Department to assess the role of IDCC so far in stimulating the desi,:ed level of foreign investment in Nigeria. The study shows that IDCChasbeenrelativelyineffectiveasjudgedbytheforeigncapitalinflowwhichresultedfromtheIDCC's approved enterprises. The expected foreign capital inflow stood at Nl,243.5 million by the end of July 1991 while only N149.1 million worth of Certificates of Capital Importation had been issued. Compared with· the flood of FPI inflow into Latin American and South East Asian developing countries, the success achieved through the IDCC, appeared rather meagre. The paper thus recommends that in addition to granting entry approvals to foreign investors, the IDCC should monitor the activities· of the approved enterprises. In addition, the approval procedures need to be improved to ensure compliance with the needs and aspirations of the economy.
CBN Economic and Financial Review
Aremu, J. A. (1991). Industrial Development Coordinating Committee (IDCC) and Foreign Private Investment (FPI) in Nigeria. CBN Economic and Financial Review, 29(4), 334-342.