Foreign Direct Investment and Economic Development in Nigeria

This study examined the Foreign Direct Investment (FDI) trends and their influence on the Nigerian Economy over the time frame of 1986 to 2018. Secondary data were sourced from the Central Bank of Nigeria statistical bulletin of various issues and CBN annual reports. This study utilized the Error Correction Model Granger Causality and other diagnostic tests in capturing the long-run and short-run dynamics of the variables used in the model. The result revealed the existence of a positive and significant long-run relationship between Foreign direct investment on the human development index proxy for Economic development. Due to the influence of foreign direct investment, the study recommends that the government should foster its appropriation of capital and recurrent expenditure towards improving the productive dominance of the nation, and eliminate room for insecurity and political turmoil.