AN ASSESSMENT OF THE IMPACT OF NIGERIA’S FOREIGN POLICY ON ITS FOREIGN DIRECT INVESTMENT UNDER OBASANJO’S ADMINISTRATION, 1999-2007

Abstract

Since the enthronement of civil democratic government in Nigeria in
1999 after so many years of military rule, President Olusegun
Obasanjo has undertaken so many diplomatic efforts to restore the
country to the mainstream of comity of nations. He indeed utilized
Nigeria’s foreign policy to attract foreign investors and other
international business/development partners to do business in the
country. Obasanjo’s eight years’ tenure actually witnessed the influx of
more Foreign Direct Investment (FDI) into the country; but with the tip
tilting more in favour of Oil and Gas (O&G). There was however
underperformance of the country’s foreign policy where it failed to
support its economic relations instrument for directing the attracted
FDI towards boosting the industrial and manufacturing sector and
subsector of the economy. These sectors have the highest likelihood of
expanding the country’s foreign revenue sources through the
manufacture of unique products and goods in which Nigeria has
comparative competitive advantage in the international market. It is
this failure that forms the motivation for the study. The study is a
qualitative one where the data generated was analyzed through
discourse and explanatory method. The study is a qualitative one where
secondary data was generated through the scrutiny of textbooks,
academic journals, magazines, and internet materials. Data generated
was analyzed through discourse method. The study has found out that
Nigeria’s Foreign Policy under Obasanjo has seen remarkable
improvement in FDI inflow to the country where it started from a mere
$4,035.50bn in 1999 and at $41,734.00bn in 2006. At the end, the study
concluded that even though Obasanjo’s administration has effectively
utilized Nigeria’s foreign policy for attracting more FDI, they were not
directed at the industrial and manufacturing sectors for the
manufacture of unique products and goods that will expand Nigeria’s
foreign revenue sources towards the general development of the
country.