THE EFFECT OF MONDAY SIT-AT-HOME AND FOREIGN DIRECT INVESTMENT IN THE SOUTH-EAST, NIGERIA

Abstract

The environment in which any business operates is a very critical factor in determining its success as well as the overall economic impact it makes on the state. Investors want to establish their investment in environments that are peaceful, progressive and such that can enable them to carry out their business activities without the risks associated with economic instability, uncertainty of business environment, insecurity, etc. One of the most contemporary issues affecting the ease of doing business in the South-East is the weekly Monday Sit-at-Home and other associated Sit-at-Home orders declared by the Indigenous People of Biafra (IPOB) since August 9, 2021. While other regions of the country observe normal economic activities every week unhindered, the same does not apply to the South-East. Criminal elements within the zone have hijacked this process thereby using it to perpetrate all manner of crimes that create tensions and an unfriendly business atmosphere in the name of Unknown Gunmen. This study examined the effect of the Monday Sit-At-Home on Foreign Direct Investment (FDI) in South-East, Nigeria. It adopted the Rational Choice theory to establish how the economic environment especially the security situation in the South-East determines the choice of investors towards the zone. The qualitative research approach adopted entails the use of a secondary source of data and a Key Informant Interview (KII) for data collection; an explanatory method of data analysis was used to analyse data collected. The result of the study revealed that the sit-at-home fuels insecurity in the South East as a result of the incessant attacks by unknown gunmen. This has affected the ease of doing business in the region and has scared away foreign investors who are now relocating their business from the region; leading to loss of income and poor economic development of the region. The study recommended that government should be more pragmatic and strategic in the use of dialogue to release the IPOB leader Nnamdi Kanu, address the sociopolitical issues that led to the sit-at-home and provide a business framework that will address setbacks encountered by foreign investors in the zone.