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VOL. 11, ISSUE 12 (2025)
Contract enforcement and foreign direct investment in Nigeria: A critical review of legal predictability and investor confidence
Authors
Akinsola O K, Agboke M O
Abstract
This paper critically examines the
relationship between contract enforcement and foreign direct investment (FDI)
in Nigeria, highlighting the legal, institutional, and economic factors that
shape investor behaviour. Employing a structured review methodology, the study
synthesises evidence from peer-reviewed literature, policy analyses, and legal
scholarship to identify trends, challenges, and gaps in Nigeria’s commercial
legal environment. The review integrates theoretical perspectives from
Transaction Cost Economics, Institutional Theory, and Property Rights Theory to
explain how judicial efficiency, procedural consistency, and enforceable
property rights influence FDI inflows. Findings indicate that delays,
inconsistencies, and weak enforcement of foreign-jurisdiction clauses continue
to constrain investment, while reforms and alternative dispute-resolution
mechanisms offer pathways to improve investor confidence. The paper concludes
by outlining policy implications, managerial strategies, and directions for
future empirical research, emphasising that predictable contract enforcement is
a critical determinant of Nigeria’s attractiveness as an investment
destination.
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Pages:112-117
How to cite this article:
Akinsola O K, Agboke M O "Contract enforcement and foreign direct investment in Nigeria: A critical review of legal predictability and investor confidence". International Journal of Law, Vol 11, Issue 12, 2025, Pages 112-117
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