Foreign Direct Investment Inflows And Sustainable Development Goal One (Published)
This study examines the impact of foreign direct investment (FDI) on poverty reduction in Nigeria, with a focus on achieving Sustainable Development Goal One (SDG 1), covering the period from 1985 to 2023. The country still stands as one of the poorest in the world despite foreign financial inflows, FDI inclusive, and a large number of people who live in extreme poverty. The study examines the long-term connection between FDI and the poverty headcount ratio taking into account other external financial inflows such as remittances, foreign portfolio investment, and official development assistance. The study, using econometric analysis, demonstrates that while FDI shows a statistically non-significant positive impact on the poverty headcount ratio, it may contribute to poverty reduction using employment creation and economic growth. The research additionally brings out the fact that government regulation comes into play in attracting FDI that is geared specifically towards poverty alleviation. The suggestions for boosting the efficiency of FDI include creating a stable economic environment, developing infrastructure, offering the right incentives, and building partnerships with foreign investors. The data obtained can be used by decision-makers in Nigeria as well as other developing countries that wish to exploit foreign investments for sustainable poverty reduction to the extent that LDCs will.
Keywords: Foreign Direct Investment, Nigeria, Official Development Assistance, Poverty Reduction, Remittances, econometric analysis, economic growth, foreign portfolio investment, policy recommendations, sustainable development goal 1