ABSTRACT

Most countries strive to attract foreign direct investment (FDI) because of its acknowledged advantages as a tool of economic development. Africa – and Nigeria in particular – joined the rest of the world in seeking FDI as evidenced by the formation of the New Partnership for Africa’s Development (NEPAD), which has the attraction of foreign investment to Africa as a major component. This study investigated the empirical relationship between FDI and and Nigeria’s economic improvement and also the determinants of FDI into the Nigerian economy. The secondary data were sourced from various publications of the Central Bank of Nigeria, such as CBN Statistical Bulletin, CBN Statement of Accounts and Annual Reports, and Bureau of Statistics publications. The period analysis covered thirty (30) years (1989 – 2019). Based on the findings revealed by the study, it is recommended that Nigerian economy should improve the investment climate for existing domestic and foreign investors through infrastructure development. Moreover, provide services and changes in the regulatory framework relaxing laws on profit repatriation which will encourage investors to increase their investments and also attract new investors.

Keywords: Foreign direct investment, Economic growth, Gross domestic product