Cross border investment inflow in palm oil industry in Nigeria: key success factors

Abstract

The study examined cross border investment inflow in palm oil industry in Nigeria. It focusedon the key success factors for cross border investments inflow. Descriptive survey design methodwas adopted in carrying out the study while Pearson Product Moment Correction statistical tool wasused in estimating the parameter of relationship between the regressor and regressand variables ofthe study. The key success factors that were subjected to empirical test proved positively significantto palm oil investment inflow at the r values of 0.745, 0.729, 0.796, 0.652, 0.536, 0.866, 0.598,0.705, 0.720 and 0.35. These analysis results suggested that market size, product demand size, returnon investment, propensity to gross domestic product and foreign exchange earnings, first moveradvantage, palm oil by-product potentials, availability of labour and effective labour cost, policy onland use, government policy measures on economic diversification and risk-free operational environmentare critical to investment inflow in the palm oil industry. Based on these findings, the studyrecommends that to harness the vast opportunities in the palm oil industry like other counterpartnations that are at the forefront in the global palm oil production, government should gear its effortstowards having sustainable investment policy framework in this new strategic business area, provideenabling environment and conditions to boost local ad cross border business development in theindustry.