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Abstract

FDI had been identified as one of the drivers of economic growth in developing countries. This is because of the inherent spill over effects that can facilitate technological growth, managerial skill, and global market access for the recipient country. This study examines the determinants of foreign direct investment inflows in Nigeria’s services sector, between 2010 and 2020. It adopted random effect model that was derived from the results of the Hausman test. The results suggest that the market size and the exchange rate are the major determinants of foreign direct investment inflows in Nigeria’s services sector. Based on this, it is recommended that the policy makers in Nigeria need to consider both internal and external macroeconomic stabilities accordingly so as to increase services FDI inflows in the country.

Basiru Oyeniran Fatai Ph.D

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