Foreign Direct Investment (fdi) and Economic Development in Nigeria (1980-2022)

ABSTRACT
This study investigates the impact of Foreign Direct Investment (FDI) on economic
development in Nigeria, spanning the period from 1980 to 2022. The research is driven by the
need to understand the relationship between FDI inflows and various economic indicators,
including HDI, employment, income distribution, and poverty alleviation. Utilizing a
quantitative research design, the study employs secondary data sourced from reputable
institutions such as the World Bank. The econometric model developed includes HDI as a
proxy for economic development, with FDI, human capital, infrastructure development, trade
openness, and oil price volatility as independent variables. Time-series regression techniques
was the Autoregressive Distributed Lag (ARDL) models, which was used to examine the data's
dynamic relationships. The findings reveal that FDI significantly contributes to economic
development in Nigeria, although the extent of its impact is moderated by factors such as
infrastructure quality and human capital. The study also highlights the critical role of
governance in maximizing the benefits of FDI. However, challenges such as oil price volatility
and institutional weaknesses pose risks to sustaining economic growth. Based on these insights,
the study provides actionable recommendations for policymakers to enhance FDI's positive
effects on economic development, including strengthening governance frameworks, improving
infrastructure, and fostering human capital development