An Appraisal of the Role of Law in Curbing the Impediments to Foreign Investments in Nigeria

ABSTRACT

The country’s prolonged inability to attract foreign investments has been an issue of major concern to successive administrations in Nigeria. The desire and urgent demand for a substantial inflow of foreign investment into Nigeria as triggers for national economic development nurtured the undertaking of this research. The research was aimed at identifying the factors that have impeded the influx of foreign investments into Nigeria in spite of the efforts made to attract foreign investors to move their capital into Nigeria and to thereby analyse the role of law in removing the impediments. In carrying out the research, a doctrinal research approach was adopted whereby both the primary and the secondary sources were carefully examined and analysed. The research found that factors such as lack of basic infrastructures like electricity, transport system, power, water and communication system, social and political instability, unfavourable investment legislation, lack of government commitment to international obligations, expropriation, corruption and lack of political will were responsible for the low inflow of foreign investments into Nigeria. The research also found that an appropriate legal framework, both at the national and international levels, if appropriately applied, can promote and protect foreign investments in Nigeria. The research in conclusion recommends for the establishment of the appropriate legal instruments to curb the impediments militating against the promotion of foreign investments in Nigeria. The major contribution of this work to knowledge is its revelation that law can be used as an effective instrument for promoting the influx of foreign investments into Nigeria.