IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIAN ECONOMIC GROWTH

Abstract

This study examined the impact of FDI on Nigerian economic growth during the period 1999-2020, the research uses both primary and secondary sources of data. The primary data was gotten from the interviewees of Nigerian ministry of trade and finance while the secondary data was mainly sourced from the world bank indicator. The objectives of this work are to examine the influence of FDI on economic growth of Nigeria, to investigate the effect of governance on the economic growth of Nigeria and to understand the effect of domestic investment of Nigerian economic growth. The variables used are FDI, economic growth, governance and domestic investment. The findings of this research disclose that FDI positively affect Nigerian EG during the period of study especially from 2018 to 2020. It also revealed that, it is the kind of natural resources which the country has that attracted FDI into the country. As the findings suggest, it is necessary for Nigeria to entice FDI so as to boost its economic growth. The research suggest that there is need for government to enhance the FDIs environment so as to take the benefit of the latest international interest in the event of Nigeria by applying strong macroeconomic strategies, refining the investment climate, encouraging innovations, establishing a transparent legal system which will not favor local investor from international investor, improving good and quality infrastructure and lastly the government should implement strategies which would make FDI to become so attractive in investing into the country.