Impact of infrastructure and inflation on foreign direct investment inflow to Nigeria

Abstract

The study investigated electricity supply and inflation rate on foreign direct investment inflow to Nigeria for the period of 1995-2021. the study made use of descriptive statistics test for coefficient, Anova, Collinearity test was also conducted to determine the effect of IV variables on DV, Electricity supply revealed to have been statistically significant at 1% level of significance with a p-value of .000, it was also observed that the rate of electricity supply has a significant negative impact on foreign direct inflow to Nigeria with a negative value of-270766561.002 it was revealed that inflation rate is not statistically significant at 1% level of significance with a p-value of .5916, it was also observed from the above analysis that inflation rate has a negative effect on foreign direct inflow to Nigeria with a negative value of-13246877.2 The study recommended that electricity power should be frequently supplied in order to stimulate FDI inflows which will in turn enhance economic growth in Nigeria and Government should put in favorable economic policies that will help boost the economy and reduce the rate of inflation in the nation to attract foreign direct investment inflow to Nigeria.