Impact Assessment of Insurance Policy in Foreign Direct Investment (FDI) on Nigeria-USA Political Economy Relations in Muhammadu Buhari's Administration 2015 -2023

This study examines the impact of political risk insurance on foreign direct investment and Nigeria-United States political economy relations during Muhammadu Buhari’s administration (2015–2023). Employing a quantitative research design, it analyzes data from the World Bank, United Nations Conference on Trade and Development, United States Bureau of Economic Analysis, and United States International Development Finance Corporation reports using descriptive statistics and correlation analyses. Neoliberal Institutionalism frames the study, highlighting how institutions like the United States International Development Finance Corporation and Nigeria’s National Insurance Commission mitigated risks, such as political violence and expropriation, fostering bilateral trade valued at 8.1 billion dollars in 2022. Findings of the study reveal a decline in Nigeria’s foreign direct investment inflows from 4.45 billion dollars in 2016 to negative 0.19 billion dollars in 2022, contrasted by stable United States foreign direct investment stock between 5 and 6 billion dollars, supported by a 160 percent increase in United States International Development Finance Corporation portfolio exposure to 780 million dollars by 2023. However, systemic challenges, including corruption, insecurity, and policy inconsistencies, limited broader foreign direct investment growth. The study recommends strengthening Nigeria-United States economic ties through institutional reforms and expanded political risk insurance coverage.