ABSTRACT

 Generally, policies and strategies of the Nigerian government towards foreign direct investments are motivated by two principal objectives: desire for economic Independence and the demand for economic development. Multinational corporations are expected to bring into Nigeria, foreign capital in the form of technical skills, entrepreneurship development, technology, and investment of funds to boost economic aT4ties thereby, raising the standard of living in Nigeria. This study evaluates determinants of foreign direct investment as well as contributions of multinational corporations towards attraction of adequate amount sufficient to accelerate the pace of economic growth and development in Nigeria, so as to serve as reference point to the Nigerian government and the relevant stake holders charged with the responsibilities of achieving the millennium goals of the Nigerian Economic Development goal tagged "Vision 2020". Four selected multinational corporations (manufacturing, telecommunications, oil and gas, transport) being the sample size of the entire MNCs sectors. From related research, it was revealed that multinational corporations are highly adaptive social agents and hence, the degree to which economic activities will be improved through determinants of FOI. Furthermore, contributions of these sectors in recent and previous times were reviewed. Investigations show that these sectors leave much to be desired owing to reforms and policies. The issues succinctly highlighted in this research work relates to the general background to the study, objective of the study, review of related literatures and trends of FDJ inflow. Secondary data were collected for the period 1988-2007. In order to analyse the data, both econometric and statistical methods were used. Tables were produced in order to create a visual impression of the dependence of Nigerian economy on foreign direct investors. The Chow test regression model was applied in evaluate the relationship between determinants of foreign direct investment and GP in Nigeria. The model revealed that foreign direct investment has not contributed significantly to economic growth and development. Following this analytical tool, this study concluded that in order to improve the economic climate for foreign direct investments in Nigeria, government must appreciate the fact that the basic element of any successful development strategy should be the encouragement of domestic investors first before going after foreign investors. Keywords: investment, foreign direct investment, determinants, Nigeria.