FOREIGN DIRECT INVESTMENT AND COMMERCIAL LAW REFORM IN NIGERIA: A CRITICAL EVALUATION

Abstract

Foreign Direct Investment (FDI) plays a pivotal role in driving economic growth, technology transfer, and job creation in developing economies. In Nigeria, efforts to attract FDI have led to numerous commercial law reforms aimed at improving the investment climate. This article critically evaluates the effectiveness of these reforms, focusing on recent legislative changes, regulatory institutional frameworks, and the legal barriers still impeding investor confidence. It draws from both statutory developments such as the Companies and Allied Matters Act 2020 and the Finance Act series, as well as Nigeria’s investment treaties and trade facilitation policies. Using doctrinal and policy analysis methods, the study finds that while legal reforms have improved transparency and corporate
governance, persistent issues such as policy inconsistency, enforcement challenges, and bureaucratic inefficiencies continue to undermine Nigeria’s competitiveness. The article concludes with reform proposals that aim to harmonizes commercial legislation, strengthen regulatory coordination, and balance investor protection with national development goals.