<P> Developing countries that wish to attract FDI flows should consider measures such as establishing a transparent legal framework that does not discriminate between local and foreign investors; adopting liberal foreign exchange regime (e.g., a regime without large gaps between official and market rates); creating simple, investor - friendly regulations and institutions and effectively administering them . </P> <P> Therefore, the convertibility of naira, the relaxation of the control on remittance of profits and technical fees and the abrogation of the Exchange Control Act of 1962 and the Nigerian Enterprises Promotion Decree of 1989 as spelt out in 1995 Budget are the kind of reforms that can promote the inflow of foreign direct investment a politically stable environment is also of immense importance . </P> <P> Although Nigeria must grapple with its decaying infrastructure and a poor regulatory environment, the country possesses many positive attributes for carefully targeted investment and will expand as both a regional and international market player . Profitable niche markets outside the energy sector, like specialized telecommunication providers, have developed under the government's reform program . There is a growing Nigerian consensus that foreign investment is essential to realizing Nigeria's vast but squandered potential . European investments are increasing, especially since Belgian consultancy companies such as Genco are exploring the Nigerian market . </P> <P> Companies interested in long - term investment and joint ventures, especially those that use locally available raw materials, will find opportunities in the large national market . However, to improve prospects for success, potential investors must educate themselves extensively on local conditions and business practices, establish a local presence, and choose their partners carefully . The Nigerian Government is keenly aware that sustaining democratic principles, enhancing security for life and property, and rebuilding and maintaining infrastructure are necessary for the country to attract foreign investment . </P>

The structure of nigerian economy from 1970 to 2010