THE IMPACT OF FOREIGN DIRECT INVESTMENT (FDI) ON NIGERIA'S ECONOMIC DEVELOPMENT (2015-2025)

UGWU, EKENE SAMUEL (2026) THE IMPACT OF FOREIGN DIRECT INVESTMENT (FDI) ON NIGERIA'S ECONOMIC DEVELOPMENT (2015-2025). Other thesis, GODFREY OKOYE UNIVERSITY, ENUGU.

[img] Text
UGWU SAMUEL EKENE full project.pdf
Download (602kB)

Abstract

This study examines the impact of Foreign Direct Investment (FDI) on Nigeria's economic development between 2015 and 2025, guided by two research questions: the trend of FDI inflows into Nigeria, and the major challenges limiting FDI's contribution to the country's economic development. Anchored on Modernisation Theory, the study adopts an ex-post facto research design, relying on secondary annual time-series data (2015-2025) drawn from the Central Bank of Nigeria, the National Bureau of Statistics, the Nigerian Investment Promotion Commission, UNCTAD, and the World Bank. Data were analysed using descriptive statistics and Ordinary Least Squares (OLS) regression. Findings show that FDI inflows into Nigeria were highly volatile rather than steadily rising over the period, falling sharply through the mid-2010s, turning negative in 2022 amid major multinational divestments, and rebounding sharply in 2025 on the strength of a small number of large oil-and-gas and cement-sector transactions. The regression of GDP per capita on FDI produced a negative, statistically insignificant coefficient, so the null hypothesis that FDI has no significant effect on GDP per capita could not be rejected, a result attributed largely to confounding exchange-rate shocks. The study also identifies exchange-rate instability, infrastructural deficits, insecurity, policy inconsistency, and a difficult regulatory environment as the major challenges limiting FDI's developmental contribution, alongside persistent sectoral concentration in oil and gas. The study recommends: (1) stabilising and diversifying the trend of FDI inflows through macroeconomic stability and sector-specific incentives for non-oil sectors; and (2) addressing the structural challenges limiting FDI's developmental contribution through power sector reform, improved security, and greater policy consistency.

Item Type: Thesis (Other)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Management and Social Sciences
Depositing User: CHIBUEZE EZE
Date Deposited: 03 Aug 2026 11:57
Last Modified: 03 Aug 2026 11:57
URI: http://eprints.gouni.edu.ng/id/eprint/6149

Actions (login required)

View Item View Item
GOUNI Repository is powered by EPrints 3 which is developed by the School of Electronics and Computer Science at the University of Southampton. More information and software credits.