Ibadan Journal of the Social Sciences
Volume 23, No. 1, 2025
DOI: 10.36108/ijss/5202.32.0150
Foreign Direct Investment, Public Private Partnership and Industrial Development in Nigeria (1981-2022)
Toluwanimi Grace Kalejaiye1, Ibrahim Abidemi Odusanya2, Adepeju Rebecca Sokunbi3 and Aisha Oyinoza Abdulakeem4
1,3,4Tai Solarin University of Education, Ijagun, Nigeria
2Olabisi Onabanjo University, Ago Iwoye, Nigeria
Abstract
Industrial history in Nigeria, which is situated in West Africa, is extensive. Although facing several challenges, it has also encountered many opportunities. In the 1970s, Nigeria’s economy boomed due to becoming a major producer of oil. Even though it brought much money, the country began to be too reliant on oil, which caused a lot of economic instability. The nation has found it hard to expand its industries and change the structure of its economy. The study analysed the connections between industrial growth, incoming foreign direct investments, and joint enterprises in Nigeria from 1981 to 2023. The growth of industries greatly depends on foreign direct investment and public-private partnerships. This research relied on the endogenous sectorial growth model used in Makiw, Romer, and Weil’s (1992) work. This research applied the Autoregressive distributed lag (ARDL) Bounds test. Foreign direct investment, public-private partnerships, the value of the Nigerian currency compared to others, interest rates, level of openness to foreign trade, and the value of industry in Nigeria were accounted for as indicators of industrial progress. The data is from the 2023 Statistical Bulletin of the Central Bank of Nigeria (CBN). In the study, foreign direct investment have negative and significant impact on industrial development, while public private partnership have positive and important impact in both short and long run. The study revealed that industrial progress in Nigeria at that period of time was strongly linked to foreign investments and partnerships between the public and private sectors, but lack of investments from abroad is now hindering industrial growth. It was observed that, for FDI to help industry grow well, government policies should support technology adoption, strengthen local firms, and allow industrial development to last over time, while ensuring that competition is fair for domestic firms.
Keywords: Industrial development, foreign direct investment, public private partnership