Foreign Direct Investment Policies and the sectors of the Nigerian Economy

The purpose of this study is to examine the major foreign direct investment policies in Nigeria and ascertain their impacts on foreign direct investment and on sectors (agriculture, manufacture, mining and communication) in Nigeria. The foreign direct investment policies treated are the indigenisation policy, exchange rate policy, industrial policy and ownership policy. This study found that during the period of indigenisation policy inward foreign direct investment in the Nigerian sectors was low due to the stringent measure on foreign investors. It also found that the inability of import substitution industrialisation to develop domestic technology has a serious implication on industrialisation in Nigeria. Besides, export promotion industrialisation policy improved the number of foreign direct investment in Nigeria. However, it improved non-oil export at a very low rate which suggests that Nigerian economy was far from being diversified. On exchange rate policy, Nigerian exports during the periods of currency appreciation and depreciation reduced and improved exports respectively.