Cost of Peace Accounting on Foreign Direct Investment in Nigeria

This study examined the cost of peace accounting on foreign direct investment in Nigeria, a time series dataset was developed by the researcher from the information provided by CBN Statistical Bulletin from 2013-2022. The analysis was performed via the STATA 14.0 version from which the ordinary least-squares regression shows an absent of autocorrelation, that is no serial correlation. Contrary, to the assumption that error that is uncorrelated or independent for time series data is often not appropriate. The method described by Cochrane and Orcutt (1949) was employed in the work thereby clearly showing that the regression line fits the data and Durbin Watson (Dw) suggests that the model is serially correlated since 1.578646 lies between the autocorrelation critical value of 1.5 to 2.0. The study observed that the Nigeria Federal government spending on security has negative and insignificant relationship on the inflow of foreign direct investment, signifying that it was not improving the inflow of FDI during the period of investigation. Based on the findings, the study recommends among others that the government should provide an enabling environment that will encourage foreign investors to invest in Nigeria economy by addressing the security challenges in the country, providing investment friendly environment by improved regulatory framework as well as encourage domestic investment.