The Effect of Foreign Direct Investment: A Critical Evaluation of Nigeria Agricultural Sector

Abstract

This study focused on foreign direct investment FDI in Nigerian agricultural sector with a view to find out the effect of (FDI) on the agricultural sector.  Time series data obtained from Central Bank of Nigeria and National Bureau of Statistics on foreign direct investment and capital importation in Nigeria from 2015 – 2018 were used. Descriptive analysis was used in analyzing the data.  The results obtained showed there was 94% increase in foreign direct investment inflow in July 2015 and 53% increase in July 2016.  Annual inflow of foreign direct investment was between $694.58 million to $1146.10 million from 2015 – 2018.  Results for foreign capital importation revealed that shares dominated in the sectors with $14,694.86 million (54.43%), followed by banking $2,783.16 million (10.31%).  During the period under review the agricultural sector received total foreign capital investment of $279.86 million with the highest foreign capital investment made in 2017 ($159.06 million), while the fishing sector received a total sum of $106.44 million with its highest allocation of $100.43 million in 2017.  These foreign capital importations into the Nigeria agricultural sector were very meager (1.04% for agriculture and 0.39% for fishing) compared to the large amounts allocated to shares, banking and telecommunication.