There is a contention that foreign direct investment (FDI) is a better vehicle for the economic development of poor countries and it should replace foreign aid. This suggestion appeals to many people mainly because to get donor aid has become very difficult and the conditions a country gets are quite stringent. Nigeria is thinking of making a policy shift from donor reliance to reliance on FDI. However, you realize that many people, especially in government, are not very clear as to the exact benefits associated with FDI.
You have been approached and appointed as a consultant to help the government achieve this policy shift. Your brief is to develop a concept paper that will focus on the following:

a) If you believe that foreign direct investments are beneficial to your country, explain, why we don't as a country attract enough to meet our developmental needs? What should we do to attract more?

b) Discuss any issues that have prevented us from benefitting from the any inflows of FDI and what we must do to benefit?

...... kijanicity15@gmail.com

Economic Development = Economic Growth + Structural Changes (Technical transformation)

I think FDI may only lead to economic growth and not development hence FDI is a necessary but not a sufficient condition for economic development. FDI also be refer to our capital accumulated. You can drop ur email address so I can forward what I've for u

This was my Project topic while rounding up my B.Sc Economics in the University.

Ok...

Gydion:
Economic Development = Economic Growth + Structural Changes (Technical transformation)

I think FDI may only lead to economic growth and not development hence FDI is a necessary but not a sufficient condition for economic development. FDI also be refer to our capital accumulated. You can drop ur email address so I can forward what I've for u

i am so thankfull for your kindness email me ... kijanicity15@gmail.com

fbtowner:
This was my Project topic while rounding up my B.Sc Economics in the University.

help me fellow nairalander ...... kijanicity15@gmail.com

OP I want to believe this not a term paper but I'll share a bit.
Firms make foreign direct investment decisions based on certain factors. These could be firm specific factors ranging from revenue drive, following a competitor to a new market in another country, the strain of the liability of foreigness which includes distance language culture and country specific advantages, identification of a viable and vibrant market in terms of size and economy of the target demographics.
There are certain factors that make a country attractive to FDI. These include legal issues, investment laws that bother on allowed ownership structures, tax holidays if any, are it's laws similar in style from country of origin of the FDI etc. Security is another consideration. Infrastructure.... Power roads transport Internet ports banking etc. Then institutions...... Police judiciary arbitration panels customs immigration etc... Are they operating at best practice levels. Furthermore the foreign exchange regime.... Can I get my profit out without stress. Another consideration is polilitical... Is it a democracy? Is there a possibility that the government and governance is unstable and so will translate to unstable policies.
All the issues raised above are major considerations for FDI and no one wants to take their funds to invest in a country where the outlook for these factors are either vague or unhealthy. As I type this Nigeria does not look good. There's a competition out there for this FDI and countries that know the implications are doing all that they can to put these issues which form country specific advantages in the right position. Any one of these not put in place is a risk and nobody likes taking risks or at least let the risk be minimal. For Nigeria to attract FDI I've identified 3 areas that must be tackled.... Security, infrastructure and institutions.
I hope this helps for question number 1.

If I may discuss further.
Security: It's a no brainer what the book haram issue has meant to the business climate. The firm I work with had a couple of opportunities in the outgoing year in the north east of Nigeria. We turned them down. How do you feel foreigners who have security alerts from their various countries and embassies will feel. I've seen expertriates riding with armed guards all over the place and I tell you non is happy about it. Some firms even pay special hazards allowances for staff deployed to Nigeria. This adds to the cost of doing business generally and it's not attractive. This is not to say that security is perfect even at the countries of origin of FDI but it should be minimal and seen as controllable and manageable. Can we recall the spate of kidnappings for ransom etc. I can see why the current zero tolerance for any uprising is quashed with albeit in overkill I must admit. Business and I dare FDI thrives in an atmosphere of peace and tranquility.
INSTITUTIONS: We must be quite familiar with some unwholesome acts going on at the ports. Under hand deals, blatant request for bribes from all quarters even for people to carry out their paid jobs. Scandals from the judiciary, customs, immigration police. All operating below part in terms of ethics. The civil service filled with tin gods that see your legitimate request on their table as am opportunity to shake you down not minding the effects of this behaviour on the long run. The culture of nothing moves unless someone's palm is greased has to stop. There has to be an integrity in the system to promote trust that if we bring our business to Nigeria things will be done properly in good time without any hassles. I'll add here that a lot of people did not understand what the South African govt was doing when they decided to broadcast live the high profile case involving the blade runner Oscar Pistorious murder trial to the whole world. They wanted to show the world that our judiciary can be trusted to fair and firm. That we are transparent and even prompt. On that back drop imagine the rigmarole and opaque system in Nigeria. The world is watching. The people that are in a position to know these things behave like children unfortunately.
INFRASTRUCTURE : have you wondered that the largest economy in Africa is operating on about 5000 watts of power. Even smaller SA is operating on four times that amount. It is laughable really. So generating your own power is a consideration to be made by an FDI aspirant. It cost loads to generate private power. Weak transport outlay is not beneficial to consideration too as the movement of people goods and services is a key factor in ensuring success.

Finally you may say but other foreign companies are still operating in Nigeria. Yes they are... The high population is so so attractive but you may also be aware that they are outsourcing some of the aspects of their businesses to Benin and Ghana for ease.

Impact Of Foreign Aid On Nigeria Socio-Economic Development
A lot of works have been done on the topic “impact of foreign Aid on Nigeria socio-economic development. The review of these works therefore focus on the contributions and relevance of some materials such as newspaper; journals, magazines relevant books on international relations and internet browsing.
http://articlesng.com/impact-of-foreign-aid-on-nigeria-socio-economic-development/