COVID-19 AND THE CHALLENGES OF FOREIGN DIRECT INVESTMENT (FDI) IN NIGERIA: IMPLICATIONS FOR NATIONAL DEVELOPMENT

Abstract

This paper examines the COVID-19 pandemic and the challenges it poses for FDI in Nigeria as well as its implication for national development. The analytical research method was employed for the study and the Hierarchy of Needs Theory by Maslow with special attention on the security need was espoused as a framework of analysis. The paper found that, the global health challenge has claimed the lives of 1, 398, 029 people globally as at November 24, 2020. The paper revealed that; the COVID-19 pandemic has led to a decline in capital importation and inflow of Foreign Direct Investment (FDI) in Nigeria from $8.51 billion and $257.25 million received in Q4 2019 to $5.85 billion and $214.25 million in Q1 2020. In Q2 2020, the capital importation and FDI inflow in Nigeria further dropped to $1.29 billion and $148.6 million thus impacting on the country’s foreign policy of attracting Foreign Direct Investment (FDI). The paper concludes that, if the COVID-19 pandemic is not contained and the Nigerian economy not diversified, the country cannot hope to record high inflow of FDI and the achievement of an accelerated national development may remain a mirage. It therefore recommends strict adherence to COVID-19 protocols and development of vaccines to contain the pandemic as well as diversification and building of a virile and sustainable economy that will absorb the shocks of global oil prices decline.