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1. Introduction
This article aims to critically evaluate the laws and agencies that regulate foreign direct investment (FDI) in Nigeria. The purpose of this evaluation is to ascertain how the legal framework is being utilized to foster the requisite attainment of sustainable development in Nigeria. Subsequently, the prevailing issues for determination in this research are whether the legal machinery for FDI is sufficient to obtain a viable and meaningful influx of FDI. In essence, this article focuses on the legal barriers in the different sectors or segments of the Nigerian economy highlighting their various regulatory frameworks. The agricultural, steel, banking, employment and oil sectors will be in focus in this article.
2. History of company law and rise of multinational corporations in Nigeria
Prior to the arrival of the Europeans, the pre-colonial Nigerian occupations included agriculture, hunting, cattle rearing and trading amongst others (Orojo, 1992). With the abolition of slave trade, and the establishment of British rule over Nigeria in the nineteenth century, legitimate trade grew tremendously (Orojo, 1992). Prior to 1912, when the Companies Ordinance was enacted, there were no local laws regulating the activities of companies in Nigeria and these companies were foreign with their inherent status (Orojo, 1992; Amao, 2008).
Before we dwell on the various colonial regulations or developments on company law (and practices) in Nigeria, a brief background of the relevant legal developments in colonial Nigeria will be highlighted.
Nigeria was colonised by Great Britain and colonial administration in the early 1900s was made up of two protectorates: the Northern Protectorate and the Colony and Protectorate of Southern Nigeria. In 1914, these two protectorates were unified or amalgamated into an entity called Nigeria (Omeje, 2006). Furthermore, notwithstanding the amalgamation of the protectorates, the British colonial administration “continued to rule the Northern and Southern Protectorates as two distinct entities with very minimal attempts at administrative, institutional and social co-ordination” (Omeje, 2006, p. 26). However, in company and business regulation, attempts were made by the colonial authorities to have national laws regulating it. Thus, in 1914, a Supreme Court Ordinance was enacted to cover the entire country; thus, one Supreme Court was established for the entire country (Orojo, 1992). Section 14 of the aforementioned law stated that:
[…] subject to the...