IMPACT OF INFRASTRUCTURE ON FOREIGN DIRECT INVESTMENT INFLOW TO NIGERIA

Abstract

The study investigated the impact of infrastructure on Foreign Direct Investment inflow to Nigeria for the period of 1995-to 2021. the study made use of Descriptive Statistics, Unit Root Test, Pairwise Correlation, and Multiple Regression were used in finding the result on the Effect independent variable on the dependent variable the result revealed that Exchange Rate has a p-value of 0.035, which is statistically significant at a 5% level of significance, this implies that the exchange rate has a substantial impact on the amount of foreign direct investment flowing into Nigeria. The p-value for Electricity Consumption is 0.176, which is statistically insignificant at the 5% level of significance, this suggests that Electricity Consumption has a negligible effect on Nigeria's Foreign Direct Investment inflow. Market Size has a p-value of 0.024, which is statistically significant at a 5% level of significance, this indicates that Market Size has a substantial impact on the inflow of foreign direct investment into Nigeria. The study recommended that Nigerian government may have a significant impact on multinational firms' investment decisions in the country by enacting policies that would strengthen the trade market, availability of power supply, to establish within the nations a more welcoming investment environment to attract foreign direct investment inflows