An Assessment of the Socio-Economic Impact of Foreign Direct Investment in the Oil and Gas Sector of the Nigerian Economy

Abstract

The study examined the socio-economic impact of foreign direct investment (FDI) in oil and gas sector of the Nigerian economy. The research is based on assessment of literatures, surveys, and interviews with experts, representative of the oil producing communities and business analysts. The findings revealed that FDI has had varied impact on the Nigerian economy and society. While it had positive impact on GDP and government revenue, it had insignificant contribution to employment, and has resulted in environmental damage in the Niger Delta, social inequality and associated tensions, waste through gas flaring, and negative implication on local communities’ history. The study therefore recommends institutional changes to facilitate business in the country, and address national systemic weaknesses, community development, corporate social responsibility, human capital development, diversification and environmental hazards.

Keywords: Foreign Direct Investment, Oil and Gas Sector, and Nigerian Economy