FOREIGN DIRECT INVESTMENT AND NIGERIA’S ECONOMIC GROWTH

Abstract

This study investigated the impact of foreign direct investment (FDI) on economic growth in Nigeria from 1981 to 2023. The reason for this study was based on the generally perceived opinion that FDI contributes to economic growth of any nation if properly utilised. Above all, there has been conflicting views about the impact of FDI on economic growth particularly for developing countries like Nigeria. Two null hypotheses were tested in the study after a review of relevant literature. The ordinary least square (OLS) method was employed to analyse the data for this study. This study found that FDI had positive and significant impact on the economic growth of Nigeria within the study period. Also, the trend analysis revealed that for some years the FDI into Nigeria was not always progressive. The study recommended that efforts should be made to have a conducive atmosphere for attracting foreign investors through 
an increase in security and the protection of property rights as well as the rule of law.