Overview

Original Research

AN EVALUATION OF THE IMPACT ON INVESTMENT OF FOREIGN DIRECT ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA

SULAIMAN TAIWO HASSAN 1, AJITERU S. A.R 2, and ABALAKA, J. N 3.

Vol 20, No 02 ( 2025 )   |  DOI: 10.5281/zenodo.14963995   |   Author Affiliation: Faculty, Social Science in USA, Official Partners’ Constituent Campuses, Government Regulated Universities worldwide and Online Operation, Crown University Intl Chartered Inc 1,3; Department of Political Science & International Relations Achievers University, Owo, Owo Ondo State Nigeria 2.   |   Licensing: CC 4.0   |   Pg no: 313-324   |   Published on: 28-02-2025

Abstract

This study applies the two-stage least squares (2SLS) method of the simultaneous equation model to investigate the effect of foreign direct investment on economic growth in Nigeria from 1994 to 2024. The results of the study showed that, as a result of insufficient FDI flow into the Nigerian economy, there was a negative association between economic growth as measured by GDP and FDI. Therefore, it is advised that Nigeria promote domestic investment to boost economic growth rather than depending solely on foreign direct investment (FDI) as a prime mover. Additionally, a code of conduct for FDI should be developed to stop multinational corporations' restrictive business practices and restrict their ability to repatriate profits from Nigeria.

Keywords

Nigeria, Sustainable Development Goals, Economic Growth, Foreign Direct Investment.