THE CONTRIBUTIONS OF FOREIGN DIRECT INVESTMENT ON POVERTY REDUCTION IN NIGERIA, (2010 – 2015) A STUDY OF CBN, AKWA IBOM STATE

ABSTRACT

The purpose of this study was to examine the contributions of Foreign Direct Investment (FDI) on poverty reduction in Nigeria using central bank, Uyo branch for the study. The study objective sought to find out the contributions of Foreign Direct Investment on poverty reduction in Nigeria. The data for the study were collected from primary and secondary sources. Survey research design was adopted for the study, the entire population was studied, simple percentages and tables were used to analyze the data. Findings revealed that there is a strong relationship between FDI and poverty reduction in Nigeria. Conclusions drawn from the study showed that FDI had contributed and helps to increase income growth in Nigeria. It was recommended that the government should make policies and create conducive environment to encourage the inflow of foreign investors.

INTRODUCTION

Foreign direct investment is defined as an investment made to acquire a lasting management interest in a business enterprise operating in a country other than that of the investor (Mwillima, 2003; world bank, 1993, 2007). (Moosa 2002) defined foreign direct investment (FDI) as the process whereby residents of one country (the source country) acquire ownership of assets for the purpose of controlling the production, distribution and other activities of a firm in another country (the host country).

Despite Nigeria’s enormous resources and potential, poverty is widespread throughout the nation. Basic economic indicators place it among the 20 poorest countries of the world (CIA world fact book, 2008). Nigeria has been in stagnation and relative decline since 1981, from a per capita GDP of US $1200 in 1981 to about US $300 in 2000. In 1992, 34.1 percent of the population was below the poverty line, about 70 percent fell below the poverty line in 2000 and still on the increase, the larger percentage is in rural areas, according to (World Bank, 2001).

For many Nigerians, the quality of life has declined rather than improved. In contrast, the standard of living for a few privileged Nigerians has improved substantially. The average worker salary is not enough to support the family because of inflation and rise in food prices and transportation costs (Moosa, 2002). The national minimum wage of about 56,000 naira (about US $198.41) per month, adopted by the federal government, falls far  short of what is needed to cover housing, food, education, healthcare, and transportation, etc.


TABLE OF CONTENTS
Title page   
Dedication   
Certification    
Declaration
Acknowledgment       
Abstract   

CHAPTER ONE
INTRODUCTION
1.1    Background of the Study   
1.2    Statement of the Problem   
1.3    Objectives of the Study   
1.4    Research Questions    
1.5    Significance of the Study   
1.6    Delimitation of the Study   
 1.7    Organization of the Study    
1.8    Definition of Terms as Used in the Study   
 
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.0    Introduction    -   
2.1    Theoretical Framework
2.1.1    Theories of Development Assistance   
2.1.2    Foreign Direct Investment Theory   
2.1.3    Poverty Reduction    -   
2.2    Empirical Framework
2.3    Foreign Direct Investment for Development: Maximizing
         Benefits and Minimizing Costs   
2.4    Set Backs of Foreign Direct Investment (FDI) In Nigeria   
2.5    Advantages of Foreign Direct Investment
2.6    Disadvantages of Foreign Direct Investment   
2.7    Foreign Direct Investment and Economic Growth
2.8    Foreign Direct Investment and Poverty Reduction in Nigeria   
2.9    Summary of Literature Review

CHAPTER THREE
RESEARCH METHODOLOGY
3.0    Introduction   
3.1    Research Design   
3.2    Area of Study   
3.3    Population of Study
3.4     Sampling and Sampling Technique   
3.5    Source of Data
3.6    Instrument Used For Data Collection
3.7    Validation/ Reliability of Instrument
3.8    Method of Data Analysis

CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.0    Introduction   
4.1    Data Presentation and Analysis
4.2    Discussion of Major Findings   

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
 
5.0    Introduction
5.1    Summary and Major Findings
5.2    Conclusion   
5.3    Recommendation   
5.4    Suggestions for Further Studies   
5.5    Contribution to Knowledge
    References   
    Appendix