Abstract
This study sought to examine the effect of foreign private investment on the development of small and medium scale enterprises (SME’s) in Nigeria. The study adopted a longitudinal research design which made the use of secondary data imperative. The study employed data on the foreign private investments and development of SMEs in Nigeria covering 1991-2018. The variables used are Net Foreign direct investment, Net Foreign Portfolio investment, percentage of foreign direct investment in Gross Domestic Product (GDP), and development of SMEs in Nigeria. The technique adopted in this study is multiple regressions to test the hypotheses. E-view econometric software 3:1 was used for the analysis. The result revealed that the value of Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) have a negative relationship with the development of SME’s and Foreign Direct Investment (FDI) in the percentage of gross domestic product and exchange rate have a negative and significant impact on the development of SME’s in Nigeria. It was recommended among others that government should increase its funding of small and medium scale enterprises, SME’s should be encouraged to go on public offer to expand the scope of funds, the exchange rate must be strengthened to encourage SME’s to attract funds and the needs to stabilized the economy to discourage divestment.
Highlights
Oil was discovered in Nigeria on 15th January, 1956
Foreign private investment has been a stimulus to most economies in the world
It stimulated the growth of most advanced economies, the magic it did in Asia country speaks volume of its impact
Summary
Oil was discovered in Nigeria on 15th January, 1956. At the time of independent in 1960, Nigeria was mainly an agrarian nation which contributes hugely to government revenue and foreign exchange. As exploration and exportation of oil continues, agriculture diminished while crude petroleum replaced it as dominant source of revenue and export earnings. The period marked inflow of foreign private investment into Nigeria. The period witnessed excessive repatriation of profits to countries of origin. By 1972, it was clear that Nigerian entrepreneurs did not have the money, technology and managerial capacity to compete with foreign investors. This led to the indigenization policy of 1972 which was further amended in 1977
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
