Impacts of Foreign Direct Investments (Fdi) on the Nigerian Economy

Abstract

Foreign Direct Investment (FDI) is real investment interaction of the rest of the world with domestic economy. Whether this interaction mar or make economic growth depends on the area of strength of each country and usage. The relative increased trend of FDI into the extractive industry especially during the present democratic dispensation compared to the non – extractive sectors pose a question as to whether the quantum add the same way to economy growth in the country, hence this study. The study was meant to determine the effect of foreign direct investment on the Nigeria economy with the ultimate purpose of looking at the relative performance of foreign firms in both the private and public sectors of the economy, determine the relationship between foreign investment and growth of Nigerian economy, as well as evaluate the various contributions of FDI to technological and expertise base of Nigeria. To enhance efficient and effective prosecution of the study, a total sample size of fifty(50) respondents out of a total population of one hundred (100) staff of the foreign exchange market and banks ( both senior and junior were selected for the study). The investigation made use of both primary and secondary sources of data. While text books, journal articles, and other internet materials were reviewed for secondary data, personal Interviews and questionnaires were also used as instruments to gather primary data for the work. A total of nine (9) research questions and two (2) research hypotheses were formulated and used in this study, just as the study was based on stratified random sampling design. Some of the major findings of this work include that FDI; has significant impact on economic growth of Nigeria, accelerates infrastructural development in Nigeria, contributes to the development of Nigeria economy, has positive and negative Impacts on an economy, is adequately spread to all the sectors of Nigerian economy, represents a cornerstone strat