NIGER DELTA CONFLICT: IMPLICATIONS FOR FOREIGN DIRECT INVESTMENT IN NIGERIA

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ABSTRACT

This study examines the implications of the Niger Delta conflict on foreign direct investment (FDI) in Nigeria. The study adopted primary, secondary and historical methods, including oral interviews, government reports, policy documents, academic articles, newspaper, magazines internet materials, journal and books. The study revealed that the conflict which began in the 1990s, has resulted in widespread violence, instability, and infrastructure damage, deterring foreign investors and hindering economic development. The research also investigates the relationship between the conflict and FDI inflows, analyzing data from 1990 to 2016. The findings reveal a significant negative correlation between conflict intensity and FDI inflows, with each escalation of violence resulting in a corresponding decline in investment. The study also identifies perceived risk, political instability, and security concerns as major deterrents to FDI. The study also revealed that the causes of the Niger Delta conflict ranges from environmental degradation, economic marginalization, political exclusion, social injustice, resource control, ethnic and communal tensions, perceived government corruption, human rights violations, land and property disputes, youth unemployment, restiveness, historical grievances and military presence. The research concludes that resolving the Niger Delta conflict is crucial for attracting foreign investment and promoting economic growth in Nigeria. Recommendations include implementing sustainable development initiatives, addressing local grievances, and enhancing security and regulatory frameworks to restore investor confidence.

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