Assessing the Impact of Foreign Direct Investment (FDI) on the Economic Growth of Nigeria from 1979 to 2016

The study is on assessing the impact of Foreign Direct Investment (FDI) on the economic growth of Nigeria. The impact of FDI on the Process of growth has been an intense debate topic for a long time. Evidence shows that recipient country benefits from FDI as it provides healthy competition, technology, foreign exchange, capital, and access to foreign markets. Considering the current status of the economy of Nigeria, the study wants to examine the impact of FDI on the economic growth of Nigeria. Annual data starting from 1979-2016 was used for the study. The variables used include GDP, FDI, external debts and remittances. Gross Domestic Product (GDP) which is proxy for economic growth is the dependent variable while FDI, external debts and remittances are the independent variables. Using cointegrating regression the study found that there is a positive relationship between FDI, external debts, remittances and economic growth of Nigeria. Additionally, FDI, external debts and remittances have a significant impact on the economic growth of Nigeria. Based on the findings, the study recommended that the present government should amend or make policies that will attract foreign investors which will in turn increase FDI inflow. Finally, the Nigerian Government should encourage the transfer of technology through the provision of more incentives to foreign investors.