Foreign Direct Investment and Political Development in Nigeria: a Study of Muhammadu Buhari’s Administration
CHAPTER ONE
Objective of the study
- To Examine the historical patterns of Foreign Direct Investment (FDI) inflows to Nigeria.
- To Assess the effectiveness and implications of the economic policies implemented by President Muhammadu Buhari’s administration to attract and sustain FDI.
- To Investigate the challenges and constraints faced by Nigeria in attracting and retaining foreign investments.
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
DEFINITION OF FOREIGN DIRECT INVESTMENT
Todaro (1977) says that foreign investment is the international flow of financial resources to most third world countries to foster long run development strategies in their countries. Foreign direct investment according to M. Willima (2003), World Bank (2007) can be described as investment made so as to acquire a lasting management interest.(for instance 10% of voting stocks) and at least 10% equity shares in an enterprise operating in another country other than that of the investor country. It is typically a way of filling the gap between the domestically available resources by foreign investors. Nwankwo (1981) defined foreign investment as the transfer of resources which is available in developed countries. These developed countries supply scarce capital in form of foreign private investment so as to encourage economic growth in these countries. xviii Foreign direct investment is a tool used by foreign investors to generate foreign exchange through the production of exports in less developed countries. Foreign direct investment is also viewed as a way of increasing the efficiency with which the world scarce resources are used. A recent and specific example is the perceived role of foreign direct investment in efforts to stimulate economic growth in many of the world poorest countries.
FOREIGN DIRECT INVESTMENT AND MULTINATIONAL CORPORATION
Companies that undertake foreign direct investment is called a multinational corporation (MNC). There is generally no acceptable definition of MNC however for a company it must satisfy some criteria. It must operate in many countries at different level of economic development. It must have a multinational stock ownership and an expansion by FDI which can take any of the three forms: A. Horizontal expansion where the same products are produced. B. Vertical expansion is the process that comes before the processing activity C. Conglomerate expansion whereby different goods for those of the domestic market are produced. xix The greatest part of the FDI in terms of value and number involves either horizontal expansion to produce the same or similar line of goods abroad or vertical integration backwards into the production of some raw materials. Foreign investment originates from differentiated oligopoly in the home market which is also oligopolistic with the product differentiation. They are large in size. They are oligopolistic firm in the home market having exhausted all possible sources of economic of scales, a firm would not invest abroad while profitable opportunities remained for the exploitation of scale economic in the home market. Multinational Corporation tends to populate a foreign oligopolistic market which is protected by strong banners from entry. They have advantage against sources of entry banners in the foreign market. This is achieved in the following ways A. They can attain and even exceed the minimum optimal scale of plaint in a foreign market because i. Having a better product, it may well expect to compute a large scale of foreign market than the local produce. ii. The subsidiary may start exporting to some other countries or send back part of its product to home country.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain Foreign Direct Investment and Political Development in Nigeria: a Study of Muhammadu Buhari’s Administration. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing Foreign Direct Investment and Political Development in Nigeria: a Study of Muhammadu Buhari’s Administration
Summary
This study was on Foreign Direct Investment and Political Development in Nigeria: a Study of Muhammadu Buhari’s Administration. Three objectives were raised which included: To Examine the historical patterns of Foreign Direct Investment (FDI) inflows to Nigeria, to Assess the effectiveness and implications of the economic policies implemented by President Muhammadu Buhari’s administration to attract and sustain FDI and to Investigate the challenges and constraints faced by Nigeria in attracting and retaining foreign investments. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from CBN, Akwa Ibom state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
In light of these considerations, this study contributes to the academic discourse on the relationship between FDI and political development in Nigeria during President Buhari’s administration. The insights gained can inform policymakers, government officials, and stakeholders in their efforts to enhance the investment climate, promote sustainable economic growth, and foster political stability for the continued development of Nigeria
Recommendation
- Policy Continuity and Enhancement: To sustain the positive trends observed during President Buhari’s administration, there is a need for policy continuity and enhancement. The government should build on successful initiatives and continuously refine policies to create a more attractive and stable environment for foreign investors.
- Addressing Security Concerns: Given that security concerns were identified as a significant challenge, the government should prioritize efforts to enhance security infrastructure and create a safe environment for both local and foreign investors. Collaborative efforts with international partners may be explored to address regional security challenges.
- Bureaucratic Reforms: Streamlining bureaucratic processes is essential to reduce obstacles and delays faced by potential investors. The government should continue its efforts to simplify administrative procedures, enhance transparency, and reduce red tape to improve the ease of doing business.
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