Impact of foreign direct investment on financial institution performance in Nigeria: A study of Jos Metropolitan City of Plateau State

Abstract

Financial institutions are faced with increasingly keen competition and rising costs as a result of regulatory requirements, financial and technological innovations, institutional distress and other challenges which have dramatic effects on their performances. The aim of this study is to examine the impact of foreign direct investment on financial institution performance in Nigeria. The study was grounded in profit maximization theory in relation to FDI performance. This study employs a survey design aimed at establishing the effects of the variables of foreign direct investment as the independent variable on financial institution performance as the dependent variable. The population of this study was based on 10 selected financial institutions operating in Jos Metropolitan city of Plateau Nigeria as at 1st January 2022. Each bank is represented by its Chief finance officer (CFO). Primary data and secondary data were collected from the annual financial statement of selected financial institutions through the respective Chief finance officers also, books, journals and publications, while primary data was collected through questionnaire, while the scope dwells on the deposit money banks in Jos, Plateau State. Descriptive statistics and content analysis were used to analyze the data collected. The results revealed that the FDI variables indicate a strong impact on financial institution performance in Nigeria. The study recommends that a solid framework should be set up in order to curtail bottlenecks and other issues in relation to FDI among Financial institution performance. The study concludes that FDI in relation to financial institutions’ transactions can be intermediated by its dimensions (Foreign exchange).