Foreign investment capital, both in cash and in kind (e.g. by way of machinery and equipment, technical expertise and services), play vital role in the development of Nigeria (Agosin, 2000). Nigeria has an extreme shortage of long-term debt capital, as well as equity funds. Other financial instruments that could support private sector development, such as leasing, are underdeveloped (CBN, 1992). In a continent where finance is a major constraint on development, the private sector in Nigeria, in particular, the small and medium enterprises (SMEs) suffer many disadvantages including but not restricted to high interest rates, loan terms of rarely more than one year, absence of equity capital, and stringent collateral requirements. These problems are further exacerbated by land-titling problems. Nigeria’s desperate situation stands out even …show more content…
The solid minerals in Nigeria range from precious stones to the various industrial minerals for a wide range of industries as construction, pharmaceuticals, food processing, and other forms of manufacturing. Despite the huge resource base of the country, Nigeria has not been able to achieve a high level of economic growth, nor has it been able to attract a high level of private sector investment commensurate with its economic potentials (Anyanwu, 1998). In the assessment of the Nigerian investment environment, the following factors have been identified as the major obstacles to economic growth and the flow of private sector investment to the country- 1. Dependence on the oil sector, which accounts for 95% of foreign currency income and 80% of the national budget, 2. National budget deficit and foreign debt caused by free-spending economic policies under past military junta regimes, 3. Inadequate
In Africa for example, savings rates of around 17% of GDP compare to 31% on average for middle income countries. Low savings rates and poorly developed or malfunctioning financial markets make it more expensive for African public and private sectors to get funds for investment as higher borrowing costs impede capital investment. Moreover, in
The United States is both the world’s largest foreign direct investor and the largest beneficiary of foreign direct investment. While there may be many positive advantages to foreign investments, such as: increased productivity and economic development simulation, there are and equal amount, if not more, disadvantages. Direct foreign investments cause less domestic investments to occur within the United States and they could possibly even lead to Modern-Day Economic Colonialism. The United States Foreign Policy is a guideline that limits and allows overseas trade within the country. It is used to as a form of security to protect the United States' well-being, to make sure that trade with other countries and organizations won't jeopardize the
Nigeria is considered to be one of the most corrupt countries in the world. Many different forms of corruption are familiar to Nigeria including political corruption, bureaucratic corruption, electoral corruption, embezzlement, and bribery. Corruption has even been said to be a viable enterprise in Nigeria due to the involvement of citizens, government officials, and private corporations alike. Two main factors help explain why corruption and bribery are so high in Nigeria, these factors include Nigeria’s complete dependence on the petroleum industry and profit-focused companies taking advantage of a less developed,
Nigeria has a population of around 180 million, making it the most populous country in Africa. Nigeria is located in a region with tropical climate and that can grow variety of crops. With their numerous resources and growing technology they have been able to have positive economic advancement. Nigeria has had improvements in five of the ten economic freedoms. This includes Freedom of corruption, labor freedom, and management of government spending ("Nigeria." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption.). Nevertheless these large improvements in their economy has not brought human development, where most Nigerians live under the poverty line. This paper will focus on why Nigeria has not been able to use their economic prosperity in the sector of human development, this includes standard of living, health, safety, and basic necessity one needs to live a stable life. We will compare it to the state of Ghana whose economy has also flourished but has been success in human development.
This paper is about Nigeria and their health care, lending institutions and human capital. It is how this country can grow because this country is capable of great things. They need help and It seems that they are trying to fix the problems in their country, but it s very hard to climb yourself out of a hole that seems impossible. They need a assistance but the World Bank and IMF see unable to provide the amount of care that they need or give them the financial push that is required to keep their country a float.
Oil and foreign imports dependence exposes the economy to energy price volatility and price manipulation and may compromise national security and foreign policy interests;
The commission paid to an agent is relatively lower than the margin of profit a distributor will make from buying and selling the company’s product.
Economic diversification holds the key to the emergence of a robust Economy that is capable of creating jobs and reducing poverty and unemployment. President Buhari’s administration needs to articulate and implement an economic blueprint for the diversification of the Nigerian economy, leveraging sectors such as agriculture, manufacturing, hospitality, tourism and ICT to boost productive activities and revenue
The GDP of the country depends heavily on oil prices , the fact oil prices fluctuate a lot recently , does not help the public finances because 96% of money from public finances come from oil production coupled with the fact any trouble in the country disrupts the oil production.
“This essay will be written on Nigeria during the independence era to the present time of the country. What will be discussed about Nigeria is how they achieved their development, how they are now currently the African continent’s top economy. “The discussion that will be in this essay is the theories used after Independence in Nigeria to obtain development. Nigeria is also known for the country’s population growth; population growth has its advantage which has a positive impact on the country’s economic growth as it causes demand for products and also leads to an upsurge in human a country which is why Nigeria today is leading with their economic growth.” “Nigeria is a country endowed with human, agricultural, petroleum, gas and large untapped mineral resources” Nigeria was once a colonialized country, they managed to obtain their Independence. According to (Babs,1977) Nigeria is mostly likely referred as the “Giant of Africa” because of its population, the country is also culturally diverse and has a large economic growth in Africa.” Nigeria has relatively advanced power, road, rail and ICT networks that cover the national territory quite extensively, Nigeria has a good progress in their infrastructure and sanitation”
What that means in Nigeria, we had good growth, we had high profitability the firms were able to generate fund at home which was then reinvest in other African countries, and where we see opportunities was identified. A firm ownership advantage may include resource endowments and favourable domestic
Although many developing economies have access to abundant natural resources, they face more limited human capital, physical capital, and technology than developed nations. Developing countries are also constrained by corruption, the quality of their institutions, and political and economic instability. These constraints hinder capital accumulation and are a major obstacle to the efficient use of existing resources. It is not surprising that developing countries turn to international sources of economic development and economic growth, particularly foreign direct investment (FDI) Developing countries seek to attract international investors by offering new and relatively unexploited markets, access to natural resources and relatively cheap labor, locational advantages, and direct and indirect incentives
According to Mojekwu et al. (2013) cement manufacturing in Nigerian dates back to 1957 when they first cement factory was built followed by the opening of
The findings indicate the internationalisation process of Nigerian firms deviate from the main stream theoretical claim such as Uppsala model. It can be said that Nigerian firms internationalise to close proximity country not close psychic distance in their early stage of their internationalisation as they follow their clients to render services across border. Proximity not due to Psychic Distance as alleged in Uppsala Model but to the presence of home countries customers presence in the host countries. Home institution factors had also play a role in the rapid growth of the firms due to the recapitalisation requirements by the Government and this allow the firms to bring in capital and to utilise that capital wisely and embark in foreign expansion. (OLI) The recapitalisation and stock listing gave the firms more resources and capacities to be in a better position to compete better in a foreign market this is in line with Ownership capabilities of OLI theory,
The topic of my dissertation is about the determinants of foreign direct investment (FDI) in developing countries. With the trend of economic integration, FDI has been considered as an important part of boosting the economic development within any country around the world. Foreign direct investments differ entirely from indirect investments such as portfolio management.The direct way of investing in a foreign country can be conducted in a number of ways—either by establishing overseas controlled corporations, or associate company abroad, by obtaining shares of an multinational company, or though a joint venture.