ABSTRACT
The
primary of objectives of this study is to examine the impact of foreign private
investment on Nigerian economy.
Furthermore,
the favourables used to test the impact of foreign private investment on
Nigerian economy shows that the role play by the foreign private investment is
very minimal and it is hoped that the policy recommended will enable the
authorities and the parties concerned re-assess the issues in the overall
interest on the whole populate of Nigeria for our concern is with economic
arrangements for continued existence and not that of unstable economic.
Foreign
private investment, which includes private direct inventory and foreign private
portfolio investment is an important component of aggregate investment
especially in developing countries. In a country like Nigeria where domestic
saving is low, increase in foreign increasing in macro significant sequence of
private foreign investment resulting from increase in domestic saving and
acceleration of foreign capital flows
TABLE OF CONTENTS
PAGES
Title Page
Certification
Dedication
Acknowledgement
Abstract
CIIAPTER
ONE
1.1 Background of
the Study
1.2 Statement of
the Problems
1.3 Aim and
Objectives of the Study
1.4 Significant of
the Study
1.5 Research
Questions
1.6 Research
Hypothesis
1.7 Scope and
Delimitation of the Study
1.8 Definition of
the Terms
1.9 Organization
of the Study
CHAPTER
TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Need/Importance
of Private Foreign
Investment in Nigeria
2.3 Problems of Private
Foreign Investment 16 in Nigeria
2.4 Incentives
Government for Foreign Investment
2.5 Private Foreign
Investment and Nigerian Economic Development
2.6 Investment
Climate in Nigeria
2.7 Review of
Nigeria's Foreign Investment Policies and Strategies
2.7.1 The First
Republic
2.7.2 The First
Military Dictatorship
2.7.3 The Second
Republic
CHAPTER ONE
1.1
BACKGROUND OF THE STUDY
Foreign private investment, which includes private direct
inventory and foreign private portfolio investment, is an important component
of aggregate investment especially in developing countries. In a country like
Nigeria where domestic saving is low, increase in foreign increasing in macro
significant sequence of private foreign investment resulting from increase in
domestic saving and acceleration of foreign capital inflows.
Like the Nigeria economy, which up to the late 1970's
enjoyed considerable boom result of its oil wealth, as form 1981, thrown into
an unprecedented economic recession. Private investment is an important channel
for aggregate investment. That is to say progress economic adjustment is
expected to trigger.
The cause of this had ironically been the oil itself. By
1981, the global prices of oil fall an all-time
low have about $12.00 a barrel, as against us $40.00 per barrel in foreign
previous year. This leads to significant fall in the foreign exchange earning
acid serious distribution of the economic development process. It because
difficult for government to implement already approved national projects the
foreign exchange problem could not be every by the exports from the
Agricultural sector has suffered major neglect in the years of the oil boom.
Consequently, productivity declined in the industries, unemployment increased
as factories produced below capacities or were shut down. Also the rate of
inflation increased because of shortages industrial output and the restriction in the effort to conserve foreign
exchange. Attempt to resolve the economy was done by virus regimes - Shagari,
Babangida, Buhari (SAP), in the 80' s by 1987, it was clear to the government
that the oil boom years were gone for good. The development as may be noted was
further aggravated by the failure to raise funds for investment domestically
and the decline in the flow of foreign capital into the country.
Hence, the emphasis of the Babangida administration on the
need for new foreign investments into the economy. The government had in this
context strongly upheld the several benefits assumed to accrue to the host
country from foreign investment help to reduce the shortage of domestic saving
and increase the supply of foreign exchange thereby permitting rapid expansion
in real income. It is assumed that direct foreign investment could result in
higher direct taxes to be paid by foreign afflicts.
However, G.L. REUBER et al have expressed some reservation
on this since the amount of benefits here would be conditioned by the
substantial subsidies, which the host countries have to provide. It is envisaged that
direct foreign investment may lead to lower product prices especially when
investment are cost producing foreign investment is assumed to be associated with
certain external economics. Apart from bringing physical capital to the host
country, they also in their own way bring technological knowledge, market
information, managerial and supervision, personal organizational experience and
innovation in products all that are in short supply in many developing
countries. In this connection foreign investment may be vital to the portion of
private technical assistance and the demonstrative efforts that could be
beneficial elsewhere in the economy, new techniques accompany the inflow of
private capital by promoting the diffusion of technological advancement in
the economy.
It is further envisaged that foreign investment In Nigeria
encouraged domestic investment through the reduction of cost in other
industries; profits could rise and result in the expansion other industries. Moreover,
initial foreign investment in Nigeria has contributed to the creation of
external investment incentives by raising the demand for the output of other
industries.
1.2 STATEMENT OF
THE PROBLEM
The private foreign investment is described to help reduce
the shortage of domestic saving and increase the supply of foreign exchange
thereby permitting rapid expansion in real income. It is assumed that direct
foreign investment could result in higher direct states to be paid by
substantial subside which the host countries have to provide.
Similarly, it is envisaged that direct foreign investment
may lead to large employment of labour force. Beyond this, foreign investment
was seen to be associated with external economics.
The critical questions are on the magnitude of the inflow
given the political and social economic arrangements of the country.
The external relation of the country and the economic,
situation in the developed countries and their incentives to investor's
significant inflows.
The inflow of the private
foreign investment had also tended
to be dictated by changing political and economic situation of a country.
Their situation may either improve or moved the potential
growth of foreign private investment and the benefits of foreign private
investment to Nigeria economy.
1.3 AIM AND
OBJECTIVES OF THE STUDY
Foreign investments have contributed substantial solution
to the fundamental problems In Nigeria's economic recession and growth.
Also the stimulation of private foreign.
1. To examine the contribution of private
foreign investment to the Gross Domestic Product of the Nigeria economy.
ii. To show the growth and development rate by
private foreign investments in the economy.
iii. To highlight to the government that either
sector of the economy could be developed very well with the participation of
foreign investment into the country without depending solely on the oil sector
of the economy.
iv. To determine the cover all performance of
private foreign investments in Nigeria from 1980
- 2002.
v. To exploit the various areas of private
foreign investment say the usual economic sectors, mining and quarrying,
manufacturing and processing, agriculture, forestry, fishing, transportation
and communication. Others are construction building, trading and business,
services and miscellaneous.
vi. To examine the prospects for increasing
participation of foreign private investment into Nigeria over the years.
1.4 SIGNIFICANCE THE STUDY
The study is significance for following reasons. The study
will examine the contribution of foreign private investment to the Nigeria
economy, (negatively or positively) as regard to some sector of the economy.
Furthermore, the study will also serve as source of
information for an individual governments and investors etc. on various effect of foreign
private investment to the economy.
Hence, serve as a basis for decision making and policy development.
Conclusively, the study is also significant panting out
the fact that foreign private investment could serve as a means of stability
i.e. taking aggregate problems, unemployment, inflation, balance of payment e.t.c.
1.5 RESEARCH
QUESTIONS
The following are the research questions in the course of
this study. They are meant in order to find out solution to the problem the confront
foreign private investment in carrying out their contribution (5) to the
devolvement of the economy they include:
1. What is the
impact of foreign private investment on the G.D.P?
2. How does
foreign private investment affect employment in Nigeria?
3. What is the effect of foreign private
investment on balance of payment?
4. What is the effect of foreign private-
investment the development of technology in Nigeria?
1.6 RESEARCH
HYPOTHESIS
The following hypothesis was formulated to be stated In the course of the
study.
Hypothesis 1
Ho:- Foreign private investment has no significant
effect on Gross Domestic Product in Nigeria.
HA:- Foreign
private investment has significant effect on Gross Domestic Product in Nigeria.
Login To Comment