Foreign Direct Investments, Oil Revenue and Economic Prosperity in Nigeria

Abstract

Nigeria as a country is supposed to be overflowing with God-giving resources, yet the economy is motionless and faced with numerous problems such as rise in poverty level, unemployment rate, dwindling inflation and interest rates, lack of infrastructural development and a host of others.  Countries like Nigeria blessed with natural resources is meant to flourish given the fact that there is little or no expertise in the creation of such wealth.  Thus, this paper empirically dissect the relationship between foreign direct investment, oil revenue and economic prosperity in Nigeria.  However, secondary data of GDP, Oil Revenue and Foreign Direct Investments were obtained from the Central Bank of Nigeria Statistical Bulletin for the period of 1981-2015. Using the Ordinary Least Square estimation technique, the study indicated that GDP is negatively influenced by oil revenue and foreign direct investment.  On this note, it was recommended that suitable measures that ensures accountability and transparency in the industry should be put in place by the government in order to withstand the revenue generated from oil and foreign investment in Nigeria. By putting these measures in place, funds generated from oil and foreign investments may be invested in the agricultural industry as a means of diversification such that it will sustain and harness economic growth.

Keywords: Economic Prosperity; Oil Revenue; Foreign Direct Investments; Oil and Gas Sector; Manufacturing Industry; Dutch Disease Syndrome