DETERMINANTS OF AN ENABLING ENVIRONMENT FOR FOREIGN DIRECT INVESTMENT IN NIGERIA

Abstract

This study examines the determinants of foreign direct investment (FDI) in Nigeria, exploring the factors that contribute to an enabling environment for FDI inflows. Grounded in the OLI Paradigm, Market Imperfections Theory, and Institutional Theory, this research provides a theoretical framework to understand the complexities of FDI determinants. Through a comprehensive qualitative analysis of secondary data from academic literature, government reports, and international organization publications, the study identifies key themes influencing Nigeria's attractiveness as an FDI destination. Political stability, market size and economic growth, infrastructure development, institutional quality, and human capital development emerge as crucial determinants of FDI in Nigeria. The findings provide valuable insights for policymakers seeking to promote sustainable economic growth through foreign investment and offer recommendations for enhancing the country's FDI environment.