Investor Readiness Guide: Core Regulatory Frameworks Governing Foreign Investments in Nigeria

Olasunkanmi Ibrahim | WBN News Africa | May 15, 2025

Part I of Investing In Nigeria Series

Foreign direct investment (FDI) is a vital engine driving Nigeria’s economic transformation. As Africa’s largest economy, Nigeria presents numerous opportunities across fintech, energy, manufacturing, and agriculture. However, successful investment requires understanding the regulatory environment.

The Nigerian Investment Promotion Commission (NIPC) Act, 1995, serves as the cornerstone of Nigeria’s FDI laws. It ensures foreign investors are treated equally to local investors, allows 100% ownership in most sectors, and guarantees the repatriation of capital, dividends, and loan repayments, subject to Central Bank of Nigeria (CBN) regulations.

The Companies and Allied Matters Act (CAMA), 2020, mandates that all foreign enterprises incorporate through the Corporate Affairs Commission (CAC) before operating in Nigeria. This step is critical to formalizing a business presence.

The Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, 1995, allows foreign investors to access the Investors' & Exporters’ (I&E) Window, ensuring free currency conversion and repatriation—provided the investment is registered through a Certificate of Capital Importation (CCI).

The Immigration Act governs residence and work permits. Foreign investors must obtain Expatriate Quotas, STR visas, and CERPAC for legal operation. The Nigeria Immigration Service (NIS), in collaboration with the Ministry of Interior, processes these requirements.

Understanding these core laws is foundational for mitigating legal risks and ensuring compliance in Nigeria’s evolving investment landscape. To ensure compliance, it is recommended to seek advice from a lawyer specializing in investment and international law.

Tags: #Foreign Direct Investment, #Nigeria Business Law, #FDI Compliance, #Investment In Africa, #NIPC Act, #CAMA 2020, #Business In Nigeria, #Capital Repatriation, #Fintech Opportunities, #Global Investment

Olasunkanmi Ibrahim, MBA is a seasoned Corporate & Commercial Attorney with over a decade of experience advising high-net-worth individuals, corporate entities, startups, and nonprofit organizations on investment law, corporate compliance, and regulatory frameworks in Nigeria. He specializes in facilitating foreign direct investment, structuring public-private partnerships (PPPs), and navigating sector-specific regulations across energy, infrastructure, agriculture, and fintech. Connect with him here on Linkedin.