Navigating Nigeria’s Foreign Investment Rules

Olasunkanmi Ibrahim | WBN News Africa | May 15, 2025

Part II of Investing In Nigeria Series

Beyond foundational laws, foreign investors must navigate sector-specific regulations and local content requirements. The National Office for Technology Acquisition and Promotion (NOTAP) mandates registration of technology transfer agreements—including licenses, franchises, and software contracts—to promote fair financial terms and compliance with local content laws.

Nigeria's key sectors are governed by specialized frameworks:

Oil & Gas: Regulated by the Petroleum Industry Act (PIA) 2021 and supervised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Banking & Finance: Overseen by the CBN Act, BOFIA 2020, and the Securities and Exchange Commission (SEC).

Mining: Governed by the Nigerian Minerals and Mining Act, 2007.

Telecommunications: Regulated by the Nigerian Communications Commission (NCC).

Incentives also play a major role in attracting FDI. The Industrial Development (Income Tax Relief) Act offers the Pioneer Status Incentive, granting up to five years of tax holidays for qualifying industries. Operating in Free Trade Zones (FTZs) allows tax exemptions and easier customs procedures. Furthermore, Nigeria has entered Double Taxation Treaties (DTTs) with multiple countries to prevent tax overlap.

Nevertheless, compliance with the Federal Inland Revenue Service (FIRS) is essential. Foreign investors must adhere to VAT, withholding tax, and transfer pricing guidelines to avoid penalties.

In conclusion, while Nigeria is ripe with opportunities, a well-advised investor must pair enthusiasm with strategic legal and regulatory compliance. Partnering with experienced consultants significantly enhances long-term investment success.

Tags: #Foreign Direct Investment, #Nigeria Business Law, #Technology #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.