LEGAL PROTECTION OF FOREIGN INVESTMENT IN NIGERIA

LEGAL PROTECTION OF FOREIGN INVESTMENT IN NIGERIA

With 180 million citizens, Nigeria is the most populous country in Africa and has one of the highest GDPs in the continent. It also has a very large and robust investment potential across a number of economic sectors. This means that Nigeria has the biggest consumer market in Africa and the highest rates of return on investment, making it one of the most attractive countries in Africa for foreign investors thanks to its favourable incentives and legal environment. Focus on Nigeria: Making Nigeria, a piece by Penresa in the April 9 issue of the forbesafrica.com magazine, also made note of the fact that the resuscitation of the Nigerian economy has accelerated under the leadership of the new administration and has promising futures.

LEGAL FRAMEWORK AND LAWS PROTECTING FOREIGN INVESTMENT

The Nigeria Investment Promotion Act, which is the main law governing foreign investment, Cap N117, LFN 2004, section 22, permits foreigners to invest in and take a full, unrestricted part in the activities of any Nigerian firm.

We can divide the legal protection into three categories:

Nigerian Constitution Nigerian Domestic laws on foreign investment Treaties with countries and international bodies.

LEGAL PROTECTION UNDER NIGERIAN CONSTITUTION

The 1999 Nigerian constitution stipulates that foreign investors are treated fairly and equally and that they have the same legal rights that Nigerians do in comparable circumstances. It also accords equal rights and treatment to both foreigners and citizens. The foreign investor has several rights in Nigeria, including the right to life, the right to be treated with respect for his or her human dignity, the right to personal liberty, the right to a fair trial, the right to a private and family life, the right to freedom of expression and the press, the right to movement without restriction, and the right to purchase and own both movable and immovable property.

LEGAL PROTECTION UNDER DOMESTIC LAWS ON FOREIGN INVESTMENT

Companies and Allies Matters Act Chapter (20) LFN 2004(CAMA): This is the law and principal statutes that protect and govern pre-incorporation, registration, management and winding up of all companies operating in Nigeria. Section 54(1) of the Act provides that every foreign company intending to carry on business in Nigeria must register with Corporate Affairs Commission. It also covers Corporate governance in respect of the management of the company.

Nigeria Investment Promotion Commission Act Chapter (N117) LFN 2004 NIPC Act: it is the principal law on foreign investment and it's laid out rules and protection of foreign investment in Nigeria. The acts established the regulatory body and provided for various investment incentives and include applicable laws to both direct foreign investment and foreign portfolio investment and it is the most liberal and accessible law to Nigeria economy through direct foreign investment.

Immigration Act 2015: this is the law in respect of immigrants or foreign investment rights operating or working in Nigeria. This law provides that foreigners planning to take up work or employment in Nigeria are required to have a Resident Permit, Work Permit and other immigration matters issued by Comptroller General of Immigrations.

Foreign Exchange Monitoring and Miscellaneous Provision Act chapterF34 LFN2004 (FEMM ACT) A foreign investor can bring in capital into the country to finance investment through capital importation and can repatriate back to home country 100 percent he or she earnings or profit without hindrance This act sets out the rules and regulations which govern the operation of the foreign exchange market and provides a framework for remittance of interest, dividends and principal payment in foreign currencies by foreign investors.

Investment and Securities Act No 29 of 2007 (ISA): The law covers all issues in respect of Securities and Exchange Commission also investments in Capital Market generally including acquisitions, mergers, take-overs and collective investment schemes with robust legal protection for foreign investment.

Intellectual Property there are adequate laws for the protection of intellectual property rights, trade secret, data protection, technology, creativity and copyright in Nigeria.

Central Bank of Nigeria Act No 7 of 2007 (CBN ACT): With several reforms introduced by Nigerian Central Bank, it has become very easy for the importation of capital through the new Electronic Capital Importation Certificate and other Cyber Security measures innovated for maximum security protection of foreign investor capital investment in the Nigerian economy. It is the apex regulatory body for banks and financial institutions, also management of monetary, foreign exchange and foreign currency reserve of Nigeria.

LEGAL PROTECTION UNDER TREATIES

Nigeria has ratified and is a party to numerous international conventions, trade agreements, and treaties that address conflicts between foreign investors and host nations. The United Nations Commission on International Trade Laws was incorporated into the constitution in 1999. The Act governing arbitration and mediation. The laws of Nigeria respect all signed and adopted international trade agreements, treaties, conventions, and guidelines pertaining to the protection of foreign investment rights.

In light of Nigeria's open legal system and strong legal foundation, as well as the favourable investment climate and adequate protection provided by the aforementioned laws, there are countless chances to invest in Nigeria with the knowledge that they will be protected by the law.

NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com

WRITTEN BY CHAMAN LAW FIRM TEAM

EMAIL: chamanlawfirm@gmail.com

TEL: 08065553671, 08024230080