The Impact of Risk on Investment Decision in Nigeria

Abstract

The business world today is increasingly becoming aware of the fact that managing the risk of investment and capital projects is crucial to the economic viability of any organization. However, considering the murky nature of business environment in Nigeria and the general overview of the Nigerian economy, corporate organizations have to factor into their investment decision process, the volatility of global economic climate which often affects domestic economy tremendously. The objective of this paper is to examine the impact of risk on investment decision in Nigeria using descriptive analysis. In carrying out this study, we employed the use of primary data via the administration of questionnaires to respondents from various investment companies in Lagos, Nigeria. The data collected from the respondents were analyzed using Chi-Square. Findings from the study revealed that for organizations in Nigeria to remain competitive in business, it has to always carry out a thorough appraisal of any investment opportunity before putting money into it.  In other words, organizations are advised to adopt best practices in their investment activities in order to keep abreast with the dynamics of global economic climate.

Keywords: Risk, Investment Decision, Uncertainty, Investment Companies, Nigeria.