Exploring the Impact of Foreign Direct Investment on the Economic Growth of Nigeria

This study examined the impact of Foreign Direct Investment on economic growth in Nigeria utilizing RGDP as a proxy for economic growth. The specific objectives of the study are to investigate the effect of foreign direct investment inflow on economic growth in Nigeria and to examine the effect of foreign direct investment outflow on economic growth in Nigeria. To ensure data consistency, the study relied on the Central Bank of Nigeria's statistical bulletin, which provided data starting from 1985-2022. The the purposive sampling technique was employed in the study. The findings revealed that there was a positive and substantial impact of foreign direct investment inflows (FDII) on economic growth, signifying that a 1% increase in FDII leads to a 9.1% increase in RGDP. Conversely, foreign direct investment outflow (FDIO) had a negative, albeit statistically insignificant, impact on RGDP. These results suggest that attracting foreign investment can be a significant driver of economic growth in Nigeria. The study concluded by providing recommendations to the government and policymakers on how to effectively harness foreign direct investment outflows and attract inflows of FDI in Nigeria.