Since its inauguration in 1999, the Government of President Olusegun Obasanjo has introduced a number of policies and sponsored the enactment of various laws that are aimed at improving the operating environment for investors, strengthening public financial management and promoting fiscal discipline, economic growth and transparency in governance. Even prior to 1999, the legal and regulatory environment in Nigeria was reasonably investor-friendly, with foreign investors permitted to own 100% of the equity of almost all Nigerian businesses and to freely repatriate dividends, interest, and capital.
One of the major problems that investors were (and still are) faced with is the almost endemic corruption, described by President Obasanjo as having been “practically institutionalised… as the foundation of governance”. To address such problems the Obasanjo Government has deployed measures such as requiring open and competitive tenders for Government contracts, establishing a Budget Monitoring and Price Intelligence Unit that, as part of a “due process” mechanism, reviews and certifies the award of Government contracts, and establishing an Economic and Financial Crimes Commission and an Independent Corrupt Practices Commission to investigate and sanction those who engage in corrupt practices.
