An Examination of the Legal Framework for Foreign Investment in the Agribusiness Sector in Kogi State

Foreign direct investment in Nigerian agribusiness presents significant economic potential, particularly in Kogi State, North Central Nigeria, which possesses mineral-rich soils and water resources, yet legal barriers including land access restrictions, contractual uncertainty, and regulatory fragmentation continue to deter investors. This study examines the legal framework for foreign agribusiness investment in Kogi State, analysing the Nigerian Investment Promotion Commission Act, the Nigerian Agricultural Transformation Agenda regulatory instruments, the Land Use Act, and the National Food Safety Management System. Field interviews were conducted with 15 agribusiness investors, 8 lawyers, and 5 officials from the Kogi State Investment Promotion Agency. Results indicate that land tenure insecurity arising from the Land Use Act creates significant due diligence costs for foreign investors. Multiple regulatory agencies impose conflicting requirements, increasing transaction costs. Contract enforcement through Kogi State courts was rated as unpredictable and slow by 80 percent of interviewed investors. The study concludes that Kogi State's agribusiness investment climate requires legal simplification, land tenure reform for commercial agricultural leases, and investment treaty-supported contract enforcement guarantees. Recommendations include a Kogi State Agricultural Investment Facilitation Law, establishment of a one-stop investment facilitation desk, and accession to the ICSID Convention for agribusiness investment dispute protection.

Keywords: foreign investment, agribusiness, Kogi State, Land Use Act, investment regulation