Insecurity has emerged as one of the most persistent threats to Nigeria’s economic development, with the South-Eastern region experiencing the most complex and evolving form of violent conflict, political agitations, and institutional breakdown. This article provides an extensive theoretical review examining the impact of insecurity on foreign direct investment in South-Eastern Nigeria through the analytical lens of Thomas Hobbes’ Social Contract Theory. Drawing on a broad range of scholarly sources, the study underscores how insecurity, evidenced by armed attacks, infrastructural sabotage, compulsory sit-at-home orders, kidnappings and criminal insurgency, significantly undermines investor confidence, disrupts economic activities and elevates the political risk associated with foreign investments in the region. Findings revealed that insecurity contributes to capital flight, increases insurance premiums and erodes the institutional guarantees required for long-term foreign investment.

Hobbes’ theoretical proposition that the fundamental duty of the sovereign is the protection of life, property and public order was employed to interpret the Nigerian state’s apparent governance failures. The article contends that the failure of government institutions to provide adequate security and infrastructure constitutes a breach of the social contract, leading to a deterioration of economic conditions and a decline in FDI inflows. It concludes that rebuilding investor confidence will require strengthened security governance, infrastructural renewal, and a reassertion of state authority in corroboration with Hobbesian principles of order and collective safety. The study recommends infrastructural development, strengthening of state security apparatus among others, thereby facilitating a conducive environment for foreign direct investment and sustainable economic development in South Eastern Nigeria.