Sectoral Output and Foreign Direct Investment in Nigeria

Abstract

This study empirically investigated sectoral output and foreign direct investment
in Nigeria. To achieve this objective, relevant data spanning from 1981–2021 were sourced from
the Central Bank of Nigeria (CBN) Statistical Bulletin, the World Bank Data Base, and the
United Nations Conference on Trade and Development (UNCTAD) for the period under review.
Descriptive statistics and other analytical tools were used for test for the study. Foreign Direct
Investment (FDI) was used as the dependent variable, while the agricultural, mining and
quarrying, manufacturing, construction, trade, transportation, information and communication,
financial and insurance, education, human health, and social services sectors' output were used as
the independent variables. Based on the analysis, all the variables were stationary at their
respective levels; the variables granger cause each other since there is unidirectional causality.
Based on the overall level of significance, the variables were statistically significant. The study
therefore concludes that sectoral output in Nigeria attracts foreign direct investment that will
boost economic growth and development in the country. The study recommended that the
government should encourage the activities of all the sectors reviewed during the period of study
in Nigeria to enhance investment frontiers in the key sectors of the economy, which will lead to
economic growth and development