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IMPACT OF FOREIGN DIRECT INVESTMENT ON EXPORT
SECTOR IN NIGERIA
(1981-2018)

The objective of the study is to examine the impact of FDI on exports in Nigeria for the period 1981-2018. Specifically, two
linear equations were formulated to trace the impact of FDI on oil sector and non-oil sector. The explanatory variables in
the study were exchange rate, GDP, degree of openness, FDI, and inflation. The ADF technique was used to test for the
stationarity of the time series data. The results of the Error Correction models reveal that there is a positive and significant
(P(FDI) = 0.000) relationship between FDI and oil export in Nigeria. One per cent increase in FDI leads to 0.47 per cent
increase in oil export over the period under study. There is a positive and significant (P(FDI) = 0.005) relationship between
FDI and non-oil export in Nigeria. One per cent increase in FDI leads to 0.31 per cent increase in non-oil export over the
period under study. The impact of FDI on the oil export is higher than the non-oil sector by 0.16 per cent. The study
recommends for more aggressive policies to attract FDI in the oil sector to be pursued by the government. Obstacles to doing
business in Nigeria should be removed.
KEYWORDS: Foreign direct investment, oil export, non-oil export