Determinants of Foreign Direct Investment in Nigeria: An Empirical Analysis

Obida Gobna Wafure, Abu Nurudeen


The role of foreign direct investment in the development of Nigerian economy cannot be over emphasized. Foreign direct investment provides capital for investment, it enhances job creation and managerial skills, and possibly technology transfer. This paper investigates the determinants of foreign direct investment in Nigeria. The error correction technique was employed to analyze the relationship between foreign direct investment and its determinants. The results reveal that the market size of the host country, deregulation, political instability, and exchange rate depreciation are the main determinants of foreign direct investment in Nigeria. The authors recommend the following policies among others: expansion of the country's GDP via production incentives; further deregulation of the economy through privatization and reduction of government interference in economic activities; strengthening of the political institutions to sustain the ongoing democratic process; gradual depreciation of the exchange rate; and increased investment in the development of the nation's infrastructure.


Full Text: PDF


  • There are currently no refbacks.

Keep in Touch

Global Journals Android app is live

Get it on Google Play


Copyright © 2001-    by Global Journals Inc. (US) – All Rights Reserved. The use of this site, and the terms and conditions for our providing information, is governed by our Disclaimer, Terms and Conditions and Privacy Policy. By using this site, it signifies your acknowledgement that you have read them and that you accept and will be bound by all the terms thereof. All information, activities undertaken, materials, services and this website is subject to change anytime without any prior notice.

Best Viewed on FireFox Browsers with Flash Player and Resolution more than or equals 1024x768

USA Incorporation No.: 0423089  |  USA Tax ID (Employer ID No.): 098-0673227  |  License No.: 42125/022010/1186  |  Registration No.: 430374  |  Import-Export Code: 1109007027