Effect of ease of doing business dimensions on foreign direct investment in Nigeria

Abstract
In Sub-Saharan Africa countries, there is growing interest regarding attraction of foreign direct investments in order to sustainably grow economy. Despite the fact that Nigeria is the economic hotspot in Sub-Saharan Africa, recent declining foreign direct investment statistics is increasingly becoming a serious concern to government. Regrettably, constraining factors have been under-researched leading to little understanding among policy-makers. This paper examines dimensions of ease of doing business on foreign direct investment in Nigerian economy. Survey research was adopted as the design of the study. The population of the study comprises registered small and medium enterprises in Southeastern Nigeria. A sample of 300 respondents where statistically determined. The study used primary data which were generated through the administration of structured questionnaire on the representative sample of the population. Descriptive statistics such as percentages was used to describe the demographic characteristics of respondents while hypotheses of the study were tested using regression analysis. The study finds that power supply, security, transportation as dimension of ease of doing business has significant impact on foreign direct investment in Nigeria. The paper concludes that Nigeria, a leading economic hotspot in Sub-Saharan Africa needs to re-examine prevailing business constraints and redefine its business model in order to attract more foreign investors into the economy. The policy and managerial implications of the findings are highlighted.

Keywords
Foreign Direct Investment, Ease of Doing Business, Nigeria

Cite this paper
Vincent Okwudili Iweama, Edwin Chukwuemeka Idoko, Yusuf Musa Muhammad, Effect of ease of doing business dimensions on foreign direct investment in Nigeria , SCIREA Journal of Management. Volume 5, Issue 2, April 2021 | PP. 34-52. 10.54647/management63054

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