Legal hurdles in Nigeria’s Attraction of N246 trillion in Long-Term Investments by 2036 – Aiboni

LAGOS, NIGERIA – A Public Analyst and Partner, Victoria Chambers, Barrister Sam Amaize Aiboni, has identified policy uncertainty when laws and regulations keep changing and investors can’t plan; regulatory complexity when too many agencies, too many approvals, and not enough clear timelines; and concerns over contract enforcement when slow courts make investors nervous about whether agreements will be honored as the main legal hurdles standing in the way of Nigeria’s aim to attract N246 trilliion in long term investments by 2036.

Aiboni, an experienced senior law professional with a plethora of c-suite experience across oil and gas, government and private sector, who made these remarks during an interactive session with newsmen in Lagos on Wednesday, February 11, 2026, noted that though it’s a huge number, but it’s necessary for the scale of development needed as the main shift has to be in the government’s role from being the primary player to being the enabler who makes the environment safe and predictable for private capital.

He described the Petroleum Industry Act as a game changer, stressing that for decades, the oil and gas sector operated under uncertainty, but now there’s clarity, which is fiscal stability, stressing that though it’s huge for predicting returns, once one signs an agreement, one’s tax terms are locked in for the life of the project.

The Public Analyst added that there are also mandated host community provisions, where 3% of operating expenses goes to local development, which legally reduces social risk and licensing is now streamlined under one commission, but for gas specifically, there are even more attractive terms, like production sharing contracts and tax holidays for infrastructure.

He further noted that the energy sector is undergoing a transformative revamp as the focus is on gas commercialization, deepwater oil projects, and refining capacity, stressing that with Africa’s largest gas reserves, Nigeria is launching a gas monetization plan as companies like Seplat are expanding into LPG and CNG projects, creating opportunities in downstream infrastructure and international majors are returning.

“Shell has announced a potential $20 billion investment in the Bonga South West project. The consistent implementation of the Petroleum Industry Act (PIA) has reduced perceived risk. The Dangote Refinery’s scaling and talks to revive state-owned refineries with private operators signal a move toward energy independence, reducing costly fuel imports .

“It is interesting to note that Nigeria’s vast coal reserves are also being reconsidered to provide reliable, low-cost power for energy-intensive industries like data centers and AI infrastructure, tapping into a global AI economy projected at $650 billion”, he said

Speaking on the nation’s agriculture sector, the legal luminary described it as a priority sector, though perceived as absolutely risky, but the law has tools to de-risk it, saying that there’s “Pioneer Status”, which is a complete break from company income tax for 3 to 5 years where one can get import duty exemptions on equipment, saving a significant amount upfront.”

“Perhaps one of the most powerful tools is the credit guarantee scheme – it covers up to 75% of a loan, so if a project fails, the fund pays the bank. That makes lenders much more willing to come to the table. Even on land, which is complex, you can secure long-term leases from states with a Certificate of Occupancy for enforceable rights”

On the nation’s manufacturing sector, Aiboni explained that here, ones legal structure is everything, stressing that If one is export-focused, set up an Export Processing Zone and that gives one 100% tax exemption for a decade and Free Trade Zones also offer similar benefits but allow one to sell a portion locally.

He, however, counselled one not to forget the trade agreements—being part of the African Continental Free Trade Area opens the continent, and there are preferential deals with markets like the U.S, adding that the process is straightforward: register with the right authority, and with good documents, you’re looking at 30 to 60 days for approval.

The Energy and Investment Solicitor also shed light on the legal terms of “capital de-risking”, saying It means the government uses legal agreements to share the risk with you. “For a major project, that could be a sovereign guarantee – a binding promise to top up revenue if it falls short, and it’s enforceable internationally. It could be a PPP agreement under the ICRC Act, which protects you from future policy changes. Or it could be co-investment from a development finance institution where they take the first loss. There’s also political risk insurance from multilateral agencies, which is a legal contract covering things like expropriation”, he said

On how investors can legally protect themselves against a sudden regulatory change or government interference, the legal luminary counseled that you build it into your contracts, stressing that stabilization clauses freeze the rules as of the date you sign.

“You must have iron-clad arbitration clauses specifying a neutral venue like London and rules from the ICC. Also, check if there’s a Bilateral Investment Treaty between Nigeria and your home country – that gives you an additional layer of protection and access to international tribunals. For infrastructure projects, you negotiate “step-in rights” to take over operations if the government partner falters”

When asked to shed light on the essential first legal steps for a foreign investor, Aiboni noted that Step one is choosing your structure – “usually a Nigerian subsidiary to limit liability. Register it with the Corporate Affairs Commission. Step two: get your business permit from the NIPC and any sector-specific licenses.

“Step three: tax registration with the FIRS – don’t delay this, as you’ll need it for everything. Step four: apply for incentives like Pioneer Status. Step five: sort work permits for foreign staff, which takes time, so start early. Step six: for relevant projects, get your Environmental Impact Assessment approval. Do it in that order, and you build a solid foundation”

Speaking on the most common legal mistakes investors make, the Oil and Gas top Executive explained that a few costly ones like not doing thorough due diligence on local partners or land titles – never take documents at face value here; overlooking local content laws, which can void contracts; using weak, generic dispute resolution clauses: you must be specific; failing to keep perfect records for forex repatriation; and assuming intellectual property registered abroad is protected here – it’s not; you must register locally.

For someone considering Nigeria, the Public Analyst said there are three things: First, structure your investment correctly from day one – the legal framework is there to support you, but you must actively use it. Second, understand that in Nigeria, relationship management is as important as the contract itself. How you work with regulators and communities matters immensely. Third, and this is critical, engage experienced Nigerian legal counsel early – people who know the terrain, more so that the opportunity here is real, but the foundation of any successful investment is proper legal structuring and not an extra step, but the first step.