ANALYZING THE NEGATIVE IMPACT OF INSECURITY ON FOREIGN DIRECT INVESTMENT IN NIGERIA

The importance of Foreign Direct Investment to a developing country has been emphasised by different authorities at different times. Also the risk factor associated with issues of insecurity could scare investors from any potential host country. Hence, this study examined the negative impacts of insecurity on FDI in Nigeria. Data were extracted through in-depth interview of respondentsfrom selected MDAs, academia and some foreign business organisations in the country. While Dunning Eclectic theory provided basis for discussion in this work, data were analysed using content analytical method. Findings revealed that, Nigeria remains investors' first consideration in Africa in spite of high incidence of insecurity because the lure of profit is stronger than the risk of attacks due to the unique potentials of the country. However, both the government and the citizenry directly and indirectly pay for the additional cost incurred by investors to keep their business running thereby robbing the country greater gains from FDI