The Nigerian government is committed to developing an International Financial Center (IFC) that will propel the nation into the league of the top 20 world economies by the year 2020. This effort is scheduled to run over the next decade and half, and last for several decades more or even centuries beyond.

An IFC covers many sectors and captures both intra- and inter-sectoral dynamics. Therefore identifying and understanding the factors that make a successful IFC is crucial to this effort; and because IFC systems are dynamic in nature, it is impossible to understand, measure, and monitor long term performance outcomes without understanding the dynamics of their operations, which is most often dependant on their structure of multiple, interdependent factors and relationships rather than isolated independent events.

To better understand the dynamics of establishing and operating an IFC, we are proposing the use of computer modeling and simulation, based on the system dynamics approach, to build models that will represent the complex structure and behavior of an IFC. These models will capture the dynamic, nonlinear feedback loop structures underlying an IFC and, through computer simulation, gain a better understanding of the influencing factors, and ultimately, long-term IFC behavior and performance. The models can be used to design robust, long term policies and also to assist decision makers in assessing the potential impact and risk of various policy initiatives before being implemented.