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IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA
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Foreign Direct Investment (FDI) provides with much needed capital investments with a view to achieving economic growth in Nigeria. Foreign direct investment is a leading role in developing countries of Africa giving rise to a widespread belief among policy makers that foreign direct investment has enhanced growth and promotes development in developing and low income countries (LICS). Foreign direct investment (FDI) is an investment made in order to acquire a lasting management interest in a business enterprise operating in a country other than that of the investor defined according to residency (World Bank, 1996). Foreign direct investment consists of external resources, including technology, managerial and marketing expertise and capital and all these generate a considerable impact on economic growth. At the current level of gross domestic product, inflation, interest rate and the success of government’s policies in stimulating the productive base of the economy depends largely on the ability to control adequate amount of foreign direct investments comprising of managerial, capital and technological resources to boost the existing production capabilities in a given country. Nigeria is one of the economies with great demand for goods and services and has attracted some FDI over the years. The amount of FDI inflow into Nigeria was estimated at US$2.23 billion in 2003 and rose to US$5.31 billion in 2004 or an increase of 138 percent. The figure rose again to US $9.92 billion or87 percent increase in 2005. The figure, however, slightly declined to US$ 9.44 in2006 (Locomonitor.com).
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