Promoting Foreign Direct Investment (FDI) in Nigeria: Challenges and Opportunities in the Legal Framework, 2020-2023.

Abstract

This paper critically examines the legal framework regulating Foreign Direct Investment (FDI) in Nigeria, highlighting both the opportunities it offers and the significant challenges that hinder its full potential. While Nigeria possesses abundant natural and human resources and has implemented reforms such as the Companies and Allied Matters Act 2020 and the One-Stop Investment Centre (OSIC), legal inconsistencies, regulatory overlaps, insecurity, and weak enforcement continue to deter investors. The study adopts a doctrinal legal research method, drawing on statutory analysis, case law, and policy documents, and supplements this with a comparative approach by examining selected peer economies. It explores domestic and international legal instruments, evaluates institutional mechanisms, and applies comparative insights from other emerging economies like Rwanda, Ghana, South Africa, and Kenya. It finds that despite the presence of investment incentives and treaty protections, the lack of policy stability, fragmented legal regimes, and inefficient dispute resolution mechanisms undermine investor confidence. The paper concludes with practical legal reform recommendations aimed at harmonising laws, enhancing institutional coordination, and ensuring transparent and investor-friendly practices that align with global best practices. 

Keywords: Foreign Direct Investment, Legal Framework, OSIC, NIPC, BITs, AfCFTA.