Effect of Terrorism and Insurgency on Foreign Direct Investment in Nigeria.

Foreign Direct Investment (FDI) is widely recognized as a critical driver of economic growth and development, particularly in developing countries like Nigeria.It serves as a source of capital, technology transfer, job creation, and infrastructure development, ultimately contributing to poverty reduction and economic diversification (World Bank, 2022).For Nigeria, a country endowed with vast natural resources, a strategic geographical location, and a large consumer market, FDI has the potential to significantly boost economic growth, reduce unemployment, and enhance industrialization (OECD, 2023).However, the ability to attract and retain FDI is heavily influenced by the stability and security of the host country (UNCTAD, 2023).Historically, Nigeria has been one of the largest recipients of FDI in Africa due to her rich oil and gas resources.According to the Central Bank of Nigeria (CBN), FDI inflows into Nigeria peaked in the early 2000s, driven by economic reforms, privatization policies, and the liberalization of key sectors such as telecommunications, manufacturing, and financial services.However, FDI inflows have exhibited a declining trend in recent years.Reports from the United Nations Conference on Trade and Development (UNCTAD) indicate that Nigeria's FDI inflows dropped from $8.84 billion in 2011 to $2.4 billion in 2021, with further declines recorded in subsequent years.This decline has been attributed to various factors, including economic instability, weak regulatory frameworks, corruption, and, more prominently, the rising insecurity across the country (UNCTAD, 2023).