IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIAN ECONOMY 1988-2023

The study examines the Impact of Foreign Direct Investments on Nigerian economy during the period starting from 1988 to 2023. The study used quarterly data. Descriptive research design was adopted for the study. Secondary source of data was used to gather information for the study. The data was sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and the National Bureau of Statistics. Two research hypotheses were formulated to guide the study and they were tested by carrying out correlation and regression analyses using E-Views version 10. Findings of the study showed that there is a negative relationship between foreign direct investment and economic growth in Nigeria. The study recommends that government should pursue policies that will enhance developmental impact of FDI in Nigeria. The government should design and implement policies that would maximize the potential benefits of FDI (i.e. the positive externalities of technological, managerial and capital spill overs) and minimize the negative externalities (e.g. balance of payment problems, crowding out, transfer pricing, abuse of market power and environmental issues etc.).