MODULARITY OF RECEIVING DIRECT FOREIGN INVESTMENTS IN NIGERIA: SECURITY OF ECONOMIC GROWTH
In Africa, few countries have a huge economic potential. Nigeria is one of such countries, which is rich in natural and human resources. Nigeria is considered the fifth major producer of crude oil in the Or-ganization of Petroleum Exporting Countries and has many mineral deposits. It is against this backdrop that Nigeria is implementing measures to institutionalize investment and encourage foreign direct in-vestment in the country. State institutions and investment promotion agencies contribute to improve the investment climate and their flow into the country as a potential source of financing for develop-ment and economic growth. Formation and foreign economic expansion of multinational enterprises, accompanied by the movement of FDI, is an important component of globalization in the world econ-omy. Under current conditions, investors are strongly influenced by the institutional environment in the host countries. These agencies allow foreign investors to obtain necessary information about ad-vantageous opportunities and inform about regulatory procedures in the economy of developing coun-tries. The Government of Nigeria, by facilitating the attraction of FDI, provides itself with good pre-requisites for economic growth in the future.
Keywords: institutional environment, foreign direct investment (FDI), ECOWAS, Africa, Nigeria.
Highlights:
• foreign direct investment is the driving force of technical progress, development of the industrial sector, economic diversification and economic growth;
• institutional transformation plays an important role in attracting FDI, which is a consequence of improv-ing the investment climate;
• economic growth is a consequence of the efforts made by developing countries in Africa, including the deepening of regional integration.
Denis V. Fogel, a junior research scientist, Center for Global and Strategic Studies, Institute of Africa, Russian Academy of Sciences, Moscow.