Oil and Gas Foreign Direct Investments Inflow: An Empirical Examination of Selected Determinants in Nigeria
Year: 2025
Type: article
Abstract: A country fraught with volatile economic environment but endowed with numerous freely given and economically enticing natural resources, ‘all things being equal’, expects more foreign direct investments inflows. Thus, the researchers empirically analyzed the ramifications of selected oil and gas FDIs inflows determinants in Nigeria. The study’s datasets covered the years, 1990 to 2021. The selected factors of oil and gas FDIs inflows include: GDP per capita, oil and gas revenue, trade openness and exchange rate. Time series data used for the study were obtained from UNCTAD database, World Bank’s World’s Development Indicators and Nigeria’s Central Bank’s statistical bulletin. Technically, the autoregressive distributed lag (ARDL) analytical procedures were applied. Thus, evidently revealed from the findings were that; except trade openness, which was stable at order I(0), other variable quantities became integrated (stable) at order I(1) one and the model exhibited long-run association amongst the variables. Also, FDIs in oil and gas sector, GDP per capita, revenues from oil and gas activities and trade openness portrayed positively significant effects on FDIs in oil and gas sector while Naira-Dolla rates of exchange had negatively significant influence on oil and gas FDIs into Nigeria. Sequel to the described findings, it is concluded that; the selected causal factors are major attractors of oil and gas FDIs inflows into Nigeria in both short-run and long-run. It is therefore recommended among others that government should formulate efficient and feasible trade policies that will liberalize trade and open the Nigerian economy to foreign direct investments into the sector.
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7220109377