Foreign Direct Investment and Infrastructure Development in Nigeria: Assessing Government Capital Expenditure (Published)
This study examines the relationship between Foreign Direct Investment (FDI) and infrastructure development in Nigeria, focusing on government capital expenditure. The research considers FDI inflows, FDI outflows, and remittance inflows as independent variables, while government capital expenditure serves as the dependent variable. Using an ex-post facto research design, the study covers the period from 1991 to 2021, relying on secondary data obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin. A multiple regression analysis was conducted to assess the impact of these financial inflows on capital spending. The findings reveal that FDI inflows (p-value: 0.0055) significantly contribute to increased government capital expenditure, whereas FDI outflows (p-value: 0.4081) exhibit a positive but statistically insignificant effect. Additionally, remittance inflows (p-value: 0.0000) show a substantial positive impact on capital expenditure. These results suggest that foreign investment and remittances play a crucial role in shaping Nigeria’s infrastructure development. Given these insights, the study recommends that the government implement policies to enhance investment attractiveness, particularly by addressing security challenges and creating a stable economic environment. Moreover, initiatives should be put in place to encourage both domestic and foreign investors to engage in infrastructure projects that yield long-term economic benefits.
Keywords: FDI inflows, FDI outflows, Foreign Direct Investment (FDI), Nigeria, government capital expenditure, infrastructure development, remittance inflows
Promoting Global Partnerships for Sustainable Economic Growth in Nigeria: The Nexus Between Sustainable Development Goal 17 and Goal 8 (Published)
This study examines the impact of external debt, foreign direct investment (FDI), and official development assistance (ODA) on Gross Domestic Product Per Capita Growth (GDPPCG) in Nigeria. Using econometric analysis based on annual data from relevant sources, including World Bank and IMF databases, the study employs ARDL regression models to assess the relationships between these financial inflows and economic growth indicators. The findings highlight the significant effect of external debt on GDPPCG, underscoring the importance of prudent fiscal management and sustainable debt practices to direct resources towards productive investments. Conversely, FDI and ODA exhibit non-significant impacts, suggesting challenges in maximizing their contributions to sustainable economic development due to infrastructure deficiencies, regulatory complexities, and governance inefficiencies in Nigeria. Policy recommendations emphasize enhancing debt sustainability through transparent financial governance and strategic investment in infrastructure and human capital. Improving the investment climate for FDI by streamlining bureaucratic processes and offering sector-specific incentives is crucial. Similarly, optimizing the effectiveness of ODA involves aligning aid with national development priorities and strengthening institutional capacities for aid coordination.
Keywords: External Debt, Foreign Direct Investment (FDI), Gross Domestic Product Per Capita Growth (GDPPCG), Nigeria, Official Development Assistance (ODA), Sustainable Development Goals (SDGs), economic growth
Corporate Taxation and Foreign Direct Investment in Nigeria (Published)
This study examined the relationship between corporate taxation and foreign direct investment in Nigeria from 1970-1980. The annual reports were sourced from the CBN statistical bulletin, NBS and World Bank which were analyzed using Descriptive Statistic, correlation and regression. The independent variable corporate taxation was measured using corporate tax rate (CTR) whilst dependent variable foreign direct investment was measured using FDI net inflow (% of GDP). GDP, exchange rate and inflation rate were used as control variables. The result showed negative significant relationship between CTR and FDI whilst exchange rate and FDI indicated negative insignificant relationship. However, GDP was positively insignificantly related with FDI whilst inflation had positive significant relationship with FDI. Based on the findings, the study recommended that there is need for the government to lo reduce corporate tax rate in order to attract FDI into the country.
Keywords: Corporate Taxation, Foreign Direct Investment (FDI), Nigeria