By Abel Okafor-Nduka Esq
Abstract
This paper entails an analysis of the legal regulations of FDI in Canada, the United States of America and the United Kingdom in comparison with Nigeria. Foreign direct investment in these countries is subject to strict regulatory oversight to ensure national security, especially when foreign entities seek to acquire or gain control over businesses. This research adopts a qualitative method, analyzing legislation, such as Foreign Investment and National Security Act of 2007 (FINSA), Foreign Investment Risk Review Modernization Act (FIRRMA) of 2018,Investment Canada Act alongside the oversight functions of the Committee on Foreign Investment in the
United States (CFIUS) which aim to strike a balance between encouraging economic growth and safeguarding national interests. These statutes examine the procedures, review processes and criteria for national security threats, and the mitigation mechanisms available and comparative references are made to other jurisdictions,
such as Nigeria. This study found out that despite the existence of legal regulations protecting FDI in some selected jurisdictions, Nigeria as a country can take a leap to improve on her FDI Regulations. The study recommends that a committee should be set up by the president that should look into foreign entities coming into Nigeria that might be a threat to National Security. The study further recommends that an investor’s history of corruption should be considered a valid factor in determining potential threats to national security. In conclusion, the paper delves into the future directions for Nigeria’s FDI legal framework. It considers ongoing efforts and potential reforms aimed at enhancing the investment climate.