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Effect of Insecurity on Foreign Direct Investment in Nigeria, 2002-2023

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  • Ajibua Gbenga (PhD)

    (Charisma University, Department of Business Administration, Grace Bay, Turks & Caicos Island)

Abstract

The devastating effect of insecurity on economy performance particularly foreign direct investment have tended to undermine key indicators of macroeconomic variables such as unemployment, poverty and government revenue. The study assessed the impact of insecurity on the level of foreign direct investment in Nigeria covering the data period 2002-2023. Besides the two underlying variables, gross domestic product was included in the model as a control variable. Employing the ARDL model, the study found that insecurity negatively affected FDI growth in Nigeria. Also, the study further found that gross domestic product, a proxy for economic growth, exerted positive impact on foreign direct investment. The study recommended that government may be proactive in dealing with security threats, through training, modern methods of intelligence gathering, and sharing, logistics and the deployment of advanced technology in managing security challenges. Finally, government may formulate policies and programmes capable of addressing the current level of low productivity in the country thereby repositioning the economy for growth and development.

Suggested Citation

  • Ajibua Gbenga (PhD), 2025. "Effect of Insecurity on Foreign Direct Investment in Nigeria, 2002-2023," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(15), pages 395-404, March.
    • Handle: RePEc:bcp:journl:v:9:y:2025:i:15:p:395-404
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    References listed on IDEAS

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    1. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    2. Owolabi Adesegun & Ayenakin, Olabanjo, Olumide, 2015. "Insecurity and Foreign Direct Investment in Nigeria," International Journal of Sustainable Development & World Policy, Conscientia Beam, vol. 4(4), pages 56-68.
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