AN EVALUATION OF THE IMPACT ON INVESTMENT OF FOREIGN DIRECT ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA

Abstract This study applies the two-stage least squares (2SLS) method of the simultaneous equation model to investigate the effect of foreign direct investment on economic growth in Nigeria from 1994 to 2024. The results of the study showed that, as a result of insufficient FDI flow into the Nigerian economy, there was a negative association between economic growth as measured by GDP and FDI. Therefore, it is advised that Nigeria promote domestic investment to boost economic growth rather than depending solely on foreign direct investment (FDI) as a prime mover. Additionally, a code of conduct for FDI should be developed to stop multinational corporations' restrictive business practices and restrict their ability to repatriate profits from Nigeria.