THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC DEVELOPMENT IN NIGERIA
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- NGN 3000
Abstract
This research paper looks at foreign direct investment and economic development in Nigeria (2001– 2018).
The major objectives of the study is to identify various policies and incentives operating in the economy such as the exchange control act of 1962, the Nigerian Enterprises Promotion Decree of 1972, 1977, 189 and 1993, the structural adjustment programme and other policies, to find out whether they served their due purposes.
This paper also identifies a number of factors that are believed to have hindered effective inflow of foreign direct investment in Nigeria. Firstly, with seven military coups after independence and unclean democratization process, the political history of the nation appears rather insecure for the overseas capital.
Secondly, the unnecessary stringent regulations and approval procedures affecting foreign investors appear frustrating.
Another factor is the institutional arrangement, problem of external debt service burden.
The study recommended that for increased inflow of foreign direct investment into Nigeria, there is the need for sustainable macro-economic policies. There is also need for improvement in our political process and an increased efficiency in Nigeria’s labour force.
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