International Journal of Commerce and Management Research

Authors
Kuwata Goni

Abstract
Nigeria is one of the developing nations that have consistently received the foreign direct investment inflow as it is believed that this will add to its gross capital formation, technology transfer, competitiveness and industrial productivity among others. Despite the level of FDI attracted by Nigeria compared with its resource base and potential need, the FDI inflow has not translated meaningfully on the economic growth of the country. Perhaps, it has not significantly impacted on the Nigeria Gross Domestic Product (GDP). This study therefore seeks to examine the impact of the FDI on the Nigeria’s GDP. This study made use of secondary data, which was obtained from the Central Bank of Nigeria’s statistical bulletin, annual reports and statement of accounts. Data obtained spanned from 2000-2014 and were subjected to Dynamic Least Square regression analysis using E-views 7. Findings revealed that FDI has a positive and significant relationship with Nigeria’s GDP. This study therefore recommends that: (i) the government of Nigeria should put in place economic policies that will attract more foreign investors and specifically, barriers such as arbitrary tariffs, high tax levies should be seriously reduced among others ; (ii) Infrastructures should also be provided, especially power supply, as investors are also interested in the ease and cost reduction aspect of their production; and (iii) the government of Nigeria should also ensure a politically stable environment, as no investor will be willing to invest in a crisis prone environment. This study concludes that if the above recommendations are implemented, there is the possibility of increase and high inflow of FDI, which will positively impact on the Nigerian growth and development at large.