An analysis of Foreign Direct Investment in Nigeria: The Fate of Nigeria’s Agricultural Sector.
1Ogbanje, E C, 2Okwu, O. J and 3Saror, S.F.
1Department of Agricultural Management, University of Agriculture, Makurdi 2Department of Extension and Communication, University of Agriculture, Makurdi 3Institute of Food Security, University of Agriculture, Makurdi Received 11th June, 2010, Accepted 19th December, 2010
The study analysed the fate of the agricultural sector in relation to foreign direct investment (FDI) in Nigeria. Data for the study were obtained from the Central Bank of Nigeria’s statistical bulletin from 1970 to 2007. Findings revealed that of the seven sectors into which FDI was classified, agricultural sector got the least average net flow of investment (N553.6132), while manufacturing and processing sector had the highest mean net investment flow (N28,267.00) as depicted in the Duncan Multiple Range Test. The Least Square Difference of the Post Hoc Test showed that mean difference in net FDI between agricultural sector and manufacturing and processing sector (N-27,713.40), mining and quarrying sector (N-25,754.30), and miscellaneous (N-19,490.80) were significant at 0.01 level of probability. One-way ANOVA revealed that the difference in net flow of FDI to the sectors under study was significant at 0.01 level of probability. The relationship (0.879) between FDI to agricultural sector and agricultural Gross Domestic Product (GDP) was significant at 0.01 level of probability. It was concluded that net flow of FDI to Nigeria discriminates against the agricultural sector. Foreign countries should increase investment in Nigeria’s agricultural sector so as to mitigate capital inadequate faced by key stakeholders of the sector and increase agricultural GDP. Also, efforts should be intensified by government and other stakeholders to make the sector more attractive to foreign investors.
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