By: Mustapha Adamu Zubairu, Bilyaminu Mohammed, Mohammed Hassan Nggada
Pages: 284–301, Volume: 3, Number: 1
Published by: AEFUNAI Journal of Economics, Finance and Development Studies, Alex Ekwueme Federal University, Ndufu-Alike, 2/1/2026, 2026
ISSN (Electronic): 2536-6742
DOI:
Assessing the Impact of Foreign Direct Investment on the Growth of Nigeria's Manufacturing and Agricultural Sectors
Abstract:
This study examines how foreign capital inflows and macroeconomic fundamentals affect Nigeria’s agricultural and manufacturing sectors between 1990 and 2024. Using two ARDL models, the Bounds test confirms long-run relationships in both sectors. Long-run results show that gross fixed capital formation significantly improves performance, whereas trade openness has a negative effect, indicating structural import dependence. Inflation positively affects agriculture, whereas foreign direct investment and exchange rates are largely insignificant. In the short run, changes in foreign direct investment and capital formation influence sector output, but the effects are inconsistent. The study recommends targeted FDI policies that encourage technology transfer into the manufacturing sector.
Keywords: FDI, Manufacturing, Agriculture, Sectoral investment, Productivity, Nigeria
How to Cite
Zubairu, M. A., Mohammed, B., & Nggada, M. H. (2026). Assessing the Impact of Foreign Direct Investment on the Growth of Nigeria’s Manufacturing and Agricultural Sectors. AEFUNAI Journal of Economics, Finance and Development Studies (AEFUNAI-JEFDS), Vol. 3(1), 284–301.
Creative Commons Attribution 4.0 International License (CC BY 4.0)
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