The Impact Of Foreign Investment On The Development Of Nigeria Economy

Project and Seminar Topics with material for Banking and Finance

Project and Seminar Topics with material for Banking and Finance

Chapter One


1.1 Statement Of The Problem And Purpose Of The Study

Investment generally speaking is a function of saving. Without saving there can be no investment. Saving on the other hands is a function of income. This is because excess of income over expenditure lead to saving.

In Nigeria however, the average income level is very low. In view of this, investment level is very low compared to the level necessary to make the economy grow.

This therefore gives rise to a need for foreign investment to fill up the gap. When this is done, the economy can them grow at a reasonable rate.

Unfortunately, the level of foreign investment in the economy is also very low. View of this situation the economy appears to be stagnant. Foreigner has not been motivated to a reasonable level to make them invest in the economy. One of the problems which appear to be scaring foreigners away is the level of corruption in the country.

Purpose of the study

The purpose of the study therefore is to identify factor that has been hindering foreign investment in the economy. These factor if identified and removed will create a conducive atmosphere to attract foreign investment in the economy.

1.2 Rationale Of The Study

This study if successfully conducted and the recommendation implemented can change the country to investment friendly economy. This can systematically attract the much needed foreign investment to the economy.

1.3 Significance Of The Study

The study is necessary to solve as a guide to policy makers so that they come out with clear out policies that will attract foreign investment to the country. The study will also enable Nigerian to cooperate with foreigner so as to take advantage of the available investment opportunities in the country.

1.4 Background Of The Study

Nigeria needs a lot of industries and investment outlay to keep a lot of idle hand busy. The teaming population of this country has no access to income generating activities. In view of this, unemployment problem continue to increase from year to year.

As people graduate from school with no job opportunities the rate of employment continue to increase while there is no corresponding increase in investment. Though the government appear to be making effort to attract foreign. Investors through liberal financial policies, these efforts are not yet enough to attract the much needed foreign investment.

This study therefore focuses on this environment to know if things can be done to create a positive change that will attract the much needed foreign investment.

1.5 Definition Of Term

Economic growth / development

This is a process whereby a country real capital income increase (grows) over a sustained period of time due to increase in productivity of the various sector of various sectors of the economy.

Foreign private/ investment

This is the inflow of investment from foreign corporation and individual such inflows may be accompanied by the inflow of modern technologies, capital managerial know how.


This is the process of economic development in which a growing part of the national resources is mobilized to developed technically up to data, diversified, domestic economic structure characterized by dynamic manufacturing sector having and producing means of production a high rate of growth for the economy as a whole and achieving economic social progress.


This refers to the embodiment of useful scientific knowledge that has been effectively evolved and adopted to practical use and is available to be applied for the purpose of meeting main immediate economic and social need as determined by him.

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