Abstract
The purpose of this study is to investigate the effects of foreign direct investment by Chinese investors in the oil- Sector in Nigeria. This study explores the impact of foreign direct investment on the Nigeria oil sector. The secondary data originates from 2018. The analysis results show that China's opening to direct trade in Nigeria's oil sector has consequences. In addition, there is no significant impact on Nigeria's oil market size and infrastructural development. This result supports the trend of results from similar literature studies. Based on these results, the study recommends paying particular attention to the introduction of new promotional rules necessary to support the country's economic objectives. The aim is to improve the flow of economic growth and direct investment into Nigeria. The main conclusion of the analysis is that Nigeria, as a country, has not yet deduced its potential (taking into account available resources and size of the market) in order to attract foreign investment. Keywords: Foreign Direct Investment , Nigeria, Oil Sector, Economics, China DOI: 10.7176/JESD/11-16-03 Publication date: August 31 st 2020
Highlights
Oil-rich Nigeria has been abandoned due to political instability, corruption, lack of infrastructure and macroeconomic mismanagement that has hampered economic development and growth
This view is supported by some studies, which stated that Foreign Direct Investment (FDI) is the driving force of economic growth and development in Africa, where its needs can only be underlined
What are the determinants of FDI in a typical host country? Second, are these factors under the control of the host country and not subject to manipulation by the investors, in this case China? These topics are widely discussed in the literature, but the gap still exists mainly in empirical analysis
Summary
Oil-rich Nigeria has been abandoned due to political instability, corruption, lack of infrastructure and macroeconomic mismanagement that has hampered economic development and growth. The government is interested in improvements in all these areas This has generated interest in foreign direct investment as a means of achieving economic growth. Ayanwale (2007) stated that most countries are trying to attract FDI because of the benefits recognized as an economic development tool. This view is supported by some studies, which stated that FDI is the driving force of economic growth and development in Africa, where its needs can only be underlined. The literature confirms the fact that FDI has impact on the host country, it comprises increase revenues without sacrificing the economic benefits of foreign direct investment. If the foreign direct investment (FDI) with taxes decreases, the host country should take into account the balance between the potential profits from tax increases and the economic costs of deterring foreign direct investment (FDI)
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