Impact of Chinese Foreign Direct Investment in Nigerian Oil Sector

Abstract

The purpose of this study is to investigate the effects of foreign direct investment by Chinese investors in the oil- Sector in Nigeria. This study explores the impact of foreign direct investment on the Nigeria oil sector. The secondary data originates from 2018. The analysis results show that China's opening to direct trade in Nigeria's oil sector has consequences. In addition, there is no significant impact on Nigeria's oil market size and infrastructural development. This result supports the trend of results from similar literature studies. Based on these results, the study recommends paying particular attention to the introduction of new promotional rules necessary to support the country's economic objectives. The aim is to improve the flow of economic growth and direct investment into Nigeria. The main conclusion of the analysis is that Nigeria, as a country, has not yet deduced its potential (taking into account available resources and size of the market) in order to attract foreign investment.

Keywords: Foreign Direct Investment, Nigeria, Oil Sector, Economics, China

DOI: 10.7176/JESD/11-16-03

Publication date:August 31^st 2020