Title: Unlocking Sustainable Development Through Enhancing Foreign Direct Investment In Nigeria's Non-Oil Sector
Authors: Tobi Solomon, Agari Evi Prosper, Emmanuel Yusuf Attah, PhD
Volume: 8
Issue: 11
Pages: 208-213
Publication Date: 2024/11/28
Abstract:
This study explores the role of Foreign Direct Investment (FDI) in unlocking sustainable development in Nigeria's non-oil sectors, focusing on its impact on economic growth, job creation, and identifying constraints hindering FDI inflows. Nigeria's heavy reliance on oil necessitates diversification through strengthened non-oil sectors such as agriculture, manufacturing, and services, where FDI can play a transformative role. The study aimed to (1) examine how macroeconomic stability affects foreign investors' decisions, and (2) assess the economic impacts of FDI in the non-oil sector. Using a sample size of 385 respondents, the research employed regression analysis as a tool for analyzing quantitative data gathered from structured questionnaires. Qualitative data from interviews were analyzed using content analysis to identify recurring themes. Key findings revealed that macroeconomic stability significantly influences foreign investors' decisions, with GDP growth being a strong attractor and unstable exchange rates deterring investment. FDI was found to contribute significantly to GDP and job creation. Based on these findings, it is recommended that the Nigerian government prioritize macroeconomic stability by fostering exchange rate stability and moderating inflation and interest rates to attract FDI. Additionally, policies should be implemented to enhance infrastructure and address insecurity to create a more conducive investment environment. By addressing these challenges, Nigeria can leverage FDI to accelerate economic diversification and sustainable development in its non-oil sectors.