SUMMARY, CONCLUSION, RECOMMENDATION AND REFERENCES.

 


CHAPTER FIVE.


SUMMARY, CONCLUSION, RECOMMENDATION AND REFERENCES.


5.1. SUMMARY.


This study examines the assessment of Nigeria's foreign policy on foreign direct investment over the period of 2007-2016. The research started by discussing the background of the study, statement of the research problem, objectives of the study, research questions were employed in an attempt to elicit reliable information for the study, the significance of the study was also put in place. The scope and limitations of the was made to determine the Nigeria's foreign policy and foreign direct investment between the period of 2007-2016. The study equally reviewed the conceptual discourse on foreign policy, national interest and foreign policy, principles of foreign policy, components of foreign policy as well as the conceptual discourse on foreign direct investment. The theory of comparative advantage was employed so as to linked up with the research. The Nigeria's foreign policy under Obasanjo, Umaru Musa, Goodluck Jonathan and Muhammadur Buhari were briefly put in place as well as the determinants of foreign direct investment in Nigeria. A review was made as regards to the impact of foreign direct investment in economic growth of Nigeria as well as the role of the Nigerian Investment Promotion Commission (NIPC) in the promotion of foreign direct investment in Nigeria.




5.2. CONCLUSION.


From the above analysis of this work, it has been discovered that, foreign policy is the machinery for the actualization of a country's national interest. It is the dynamic process of interaction between the changing domestic demands and the changing international environment. Successive regimes in Nigeria designed clear and practical policies towards attracting foreign investors. The role of foreign direct investment in the development of Nigerian economy cannot be overemphasized. It provides capital for investment, it enhances job creation and managerial skills and possible technology transfer.


The research equally finds out that, FDI increases financial, economic and political ties among states. Foreign investment is increasing importance in the global economy due to the additional resources pooled for development in the host country. Foreign Direct Investment (FDI) has attracted the attention of most governments through the desire to extend the market system, because many developing countries (Nigeria inclusive) are heavily indebted externally. This is to say that the problem of external debt burden cannot be solved by borrowing more but by attracting more flows in the form of foreign investments. Nigeria given her natural resources base and larger market size qualifies to be a major recipient of FDI in Africa.


Generally, foreign policy and strategy of the Nigerian government towards foreign direct investment are shaped by the principal objectives of the desire for economic independent and the demand for economic growth and development. Foreign Direct Investment (FDI) has contributed to expanding and modernization of the production base, improved efficiency and management capacity, productivity and value added in the relevant sectors.




5.3. RECOMMENDATIONS.


Based on the foregoing findings emanated from this study, the following recommendations were made or proposed to encourage, help and improve the inflow of foreign direct investment in Nigeria.




a- That, improving the current image of the country is the key to reversing the dismal FDI trend of the country. This requires an increase in political stability, macroeconomic stability and the protection of property rights as well as the rule of law.




b- That, improving the investment climate for existing domestic and foreign investors through infrastructure development; provision of service and changes in the regulatory framework by relaxing laws on profit repatriation etc, will encourage foreign investors to increase their investment and also attract new investors respectively.




c- That  there is the need for government to formulate investment policies incentives that will be favorable to local investors in order to compliment the inflow of investments from abroad.




d- that, trade openness is another factor which cannot be ignored. The Nigerian borders or ports should be liberal so as to attract foreign investment activities. That is, there should be no delay at the ports for genuine activities.




e- That, there is also the need for the country to adopt a more targeted investment promotion strategy. In other words, the country should identify sectors where they have comparative and competitive advantages and then promote FDI into those sectors. This would make investment promotion less costly and more effective.




f- That, an efficient and effective mechanism of monitoring and recording foreign direct investment flows should be established and encouraged. This will enable policy makers, academics and stakeholders make accurate decisions, forecast and also undertake studies.




g- Relative Peace and Security is another point of consideration. This is to say that, the government should ensure relative peace and security in the nation so as to conveniently attract the interest of foreign investors. Nigerian recent times has witness an unprecedented level of insecurity. With the lingering challenges and the inability of the security apparatus of the government to guarantee safety in the country has consistently ranked Nigeria low in the Global Peace Index (GPI), signifying a worsened state of insecurity in the country. The implications of the insecurity situation in the country has affected business activities. The absence of relative peace and security has led to the decline of foreign investors in the country. To this end, the government should ensure relative peace and security which in turn would enhance and motivate the inflows of foreign investors in the country.




h- Enabling Environment is another important aspect that need proper attention. That, the government should create awareness of investment opportunities, supporting existing investors through infrastructure development, providing incentives for the investors, trade liberalization, etc. These would ensure an effective enabling environment for both domestic and foreign investors.




i- Tax Reduction is also another point of recommendation that may call the attention of the government towards attracting the interest of investors. The government should provide tax relief to both domestic and foreign investors. This is to say that the provision of tax comfortability and or reduction gives room for smooth operation of business activities which in turn attract the interest of foreign investors. In addition, tax reduction played an important role towards attracting more investors thereby providing capital, enhances job creation, managerial skills as well as possible technology transfer.




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