May 1, 2013
Ottawa, Ontario
Prime Minister Stephen Harper and Mohammed Namadi Sambo, Vice President of the Federal Republic of Nigeria, today announced the conclusion of negotiations toward a Canada-Nigeria Foreign Investment Promotion and Protection Agreement (FIPA). The announcement was made following a bilateral meeting that was part of Mr. Sambo’s visit to Canada from April 30 to May 4, 2013.
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“This agreement will facilitate investment flows between Canada and Nigeria, contributing to job creation and economic growth in both countries,” said Prime Minister Harper. “It will provide Canadian companies and investors with the protection and confidence they need to take advantage of the many commercial opportunities in Africa’s most populous nation.”
The Agreement will come into force once both parties complete their respective domestic ratification processes. There are significant Canadian investment opportunities in Nigeria, including in the extractive, information and communications technology, agriculture and infrastructure sectors.
Nigeria is Canada’s largest trading partner in sub-Saharan Africa. Since 2006, annual bilateral trade between the two countries has more than doubled, reaching $2.3 billion by 2012. In 2011, Canadian direct investment in Nigeria totalled $36 million and is expected to grow as a result of this FIPA.
BACKGROUNDER
Canada-Nigeria Foreign Investment Promotion and Protection Agreement
The Government of Canada is committed to creating the right conditions for Canadian businesses to compete internationally. An important part of this equation is ensuring that two-way trade and investment between Canadaand other countries can take place in a stable, secure manner.
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By ensuring greater protection against discriminatory and arbitrary practices, and enhancing predictability of a market’s policy framework, a FIPA allows investors to invest with greater confidence. Canada has consistently supported strong, rules-based investment through the negotiation of FIPAs. Once implemented, the Canada-Nigeria FIPA will facilitate investment flow, contributing to job creation and economic growth in both countries. The FIPA includes an article on corporate social responsibility, which Canada now aims to include in all FIPAs. This demonstrates that both Canada and Nigeria encourage investors to voluntarily adhere to internationally recognized standards and best practices on issues such as labour, the environment, human rights, community relations, transparency and anti-corruption.
In order for the FIPA to be ratified, the negotiated text must undergo a thorough legal review in English and French. After the legal review is complete, the FIPA can be signed by both parties, made public, and then proceed through each country’s respective ratification process. In Canada, the FIPA will be tabled in the House of Commons for 21 sitting-days pursuant to the Government’s treaty tabling policy. It will then come into force once the Order in Council has been approved by the Governor General and the ratification process in Nigeria has been completed.
The potential for increased Canadian investment in Nigeria is important, especially in the extractive, information and communications technology, agriculture and infrastructure sectors. Canada currently has 24 FIPAs in force and is in the process of negotiating many more. Since 2008, in Africa alone, Canada has concluded FIPAs with Benin, Cameroon, Madagascar, Mali, Nigeria, Senegal, Tanzania and Zambia as part of its engagement strategy with Africa. It is also engaged in FIPA negotiations with Burkina Faso, Côte d’Ivoire, Ghana, Guinea and Tunisia.
Copyright 2013 The Prime Minister’s Office – Communications