Foreign Investment, Insights

Legal Requirements for Foreign Direct Investment in Nigeria

Foreign Direct Investment (“FDI”) plays a pivotal role in fostering economic growth and development in nations. The concept of FDI involves a financial investment made by a company or individual from one country into another country with the intent of acquiring significant control in the foreign entity. It provides essential skills, technology advancement and financial  resources, which are instrumental in enhancing the economies of developing countries. In 2021, Nigeria received $45.1 in FDI, constituting approximately 0.8% of the nation’s Gross Domestic Product (“GDP”). Given the importance of attracting FDI into the country, Nigeria continues to improve on its ease of doing business more so, the nation’s dynamic business landscape and its huge human resources make it a prime destination for Brownfield and Greenfield investments.

There are policies guiding FDI in Nigeria. this includes registration of a preferred business entity with the country’s Corporate Affairs Commission (“CAC”) and obtaining the necessary business permits and expatriate quota from the Federal Ministry of Interior. This article seeks to provide a comprehensive guide on the prerequisites for undertaking FDIs in Nigeria…

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