THE IMPACT OF FOREIGN INVESTMENT ON THE DEVELOPMENT OF NIGERIA ECONOMY. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
1.1 STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY
Investment generally speaking is a function of saving. Without saving there can be no investment. Saving on the other hands is a function of income. This is because excess of income over expenditure lead to saving.
In Nigeria however, the average income level is very low. In view of this, investment level is very low compared to the level necessary to make the economy grow.
This therefore gives rise to a need for foreign investment to fill up the gap. When this is done, the economy can them grow at a reasonable rate.
Unfortunately, the level of foreign investment in the economy is also very low. View of this situation the economy appears to be stagnant. Foreigner has not been motivated to a reasonable level to make them invest in the economy. One of the problems which appear to be scaring foreigners away is the level of corruption in the country.
Purpose of the study
The purpose of the study therefore is to identify factor that has been hindering foreign investment in the economy. These factor if identified and removed will create a conducive atmosphere to attract foreign investment in the economy.
1.2 RATIONALE OF THE STUDY
This study if successfully conducted and the recommendation implemented can change the country to investment friendly economy. This can systematically attract the much needed foreign investment to the economy.
1.3 SIGNIFICANCE OF THE STUDY
The study is necessary to solve as a guide to policy makers so that they come out with clear out policies that will attract foreign investment to the country. The study will also enable Nigerian to cooperate with foreigner so as to take advantage of the available investment opportunities in the country.