Economic Analysis of Direct Foreign Investment (DFI) in Nigeria

This study focused on the economic analysis of Direct Foreign Investments (FDI) in Nigeria exploring its trends through, job creation, transfer of technology and ultimately economic growth. The study identified eight (8) methods of Foreign Direct Investment (FDI) in line with their corresponding theories. Different growth theories support the fact that FDI is either directly or indirectly beneficial to economic growth of any nation. The study went on to analyze the relationship between economic growth and FDI and the flow of FDI in Nigeria over the years 1981-2021 revealing that Nigeria ranks third in Africa for Foreign Direct Investment (FDI), behind Egypt and Ethiopia. After a comprehensive analysis of existing literatures, it reveals that FDI can have both positive and negative effects on the host economy depending on factors such as the type of investment, industry and the regulatory environment.