IMPACT OF FOREIGN DIRECT INVESTMENT ON AGRICULTURAL AND MANUFACTURING OUTPUT IN NIGERIA

Abstract

Inadequate funds which affected the nation’s productivity has attracted attention of citizens of developing economy. Foreigners had been injecting funds to Sub-Sahara nations and had not impact growth of agricultural and manufacturing outputs. The study tends to add to body of knowledge by examining the impact of foreign direct investment on agricultural and manufacturing outputs in Nigeria from 2017 to 2022.  The study employed Ex-post Facto research design and judgmental sampling technique in choosing the years analyzed. Secondary source of data collection was employed and obtained from the Federal Inland Revenue Service and CBN Statistical Bulletin. The period covered were six years. Data were analysed with the use of descriptive and inferential statistics. The study model expressed the impact of foreign direct investment and other variables on agricultural and manufacturing sector outputs using Augmented Dickey Fully (ADF) test and Engle Granger Co-integration for unit root and stationarity among the time series variables used for this analysis. It was discovered that foreign direct investment negatively impact both manufacturing and agricultural output. Thus, FDI has been biased in favour of the extractive industry, hence its impact on manufacturing and agricultural output is insignificant. The study recommends amongst others, that the government should make policy to attract more foreign direct investment into the manufacturing and agricultural sectors by creating incentives which will favour and attract more investor. Also, these sectors should be properly developed to take care of many people especially the poor.