National Security, FDI and Economic Development in Nigeria

Abstract

The issue of national security is one that cuts across every sector of economic growth and development. Security offers some degree of certainty which enables people to set goals and invest in their future and that of their children. It also encourages innovation, strengthens social connections and build trust in others and in institutions. The idea is that the more secured a nation is, the easier it is to carry out economic activities which further translates to economic development both local and international. This paper examines the prominent role national security plays in the area of foreign direct investment and economic development in Nigeria. The study aims at providing empirical evidence on the impact of national security on foreign direct investment and economic development in Nigeria. Ordinary least squares (OLS) technique was used in estimating the structural parameters in the equation, we conclude that insecurity is a threat to development because it produces economic stagnation. We recommend that government at all levels and key actors in policy formulation should adopt the culture of transparency such that funds allocated to the security sector are effectively utilized for equipping the security system to meet 21st century standard.