Select Currency
Translate this page

DETERMINANTS OF INVESTMENT IN NIGERIA

Format: MS WORD  |  Chapter: 1-5  |  Pages: 75  |  689 Users found this project useful  |  Price NGN3,000

  DOWNLOAD THE FULL PROJECT

DETERMINANTS OF INVESTMENT IN NIGERIA

 

ABSTRACT

In recent times, there has been growing concern about the rising but volatile rate of investments in Nigeria. Thus concern stem from the fact that investment plays a dominant role in stimulating growth. The study buttress on the overview and empirical analyses into the determinant of investment in Nigeria in other to achieve the objective hypotheses which was stated with the purpose of achieving current and future stable and upswing of investment by readdressing problems of investment, as highlighted in the statement of problem. The study used investment as dependent variable and interest rate, inflation, foreign direct investment, degree of trade openness, gross domestic product, and money supply as independent variable. In analyzing the data, economic model of multiple regression using ordinary least square (OLS) techniques was employed. T-test was conducted to evaluate the significant of independent variables in the model not statistically significant at 5 percent level. Auto correlation and heteroscedaticity test were employed as the second order test.

 

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

The Nigeria economy has witness a slow pace growth of less than 5percent in the decades. Various reasons have been advanced to this development but the most apparent have been poor investment climate in the economy and this has been attributed to the low available investable funds. The stimulation of sustained economy growth requires a balance investment in physical and financial assets human and social capital as well as natural and environmental capitals.

Nigeria has been classified as low saving and even lower investment economy (Ajakaiye 2002) one of the principal objectives of the Nigerian government under the 1999 democratic dispensation is fostering of sustained economic growth. Over the years, the government has been in the driver’sseatingrowth the government economy. But lessons of experience have shown that government cannot regulate the economy effectively. A typical example has been the shift under the National economic empowerment and development strategy (NEEDS) which has recommended the need to restructure and deepen the financial system. Some economist like Mc Kinnon and Shaw (1973) said that rising investment alone is not sufficient enough to bring about growth and the role of financial institutions is very vital. In particular the new express of that the role of capacity fund is very critical to the success of any endeavor (World Bank 1998). In this regards, it is therefore important to investment the determinants to investment in economy in the past three decades.

Banking sub sector in Nigeria has remained foreign in rural areas. But recently the establishment of community banks (now micro finance banks) has been, to deepen their operation in rural areas. These banks with government assistance give loans and mobilize savings from rural areas for further investment in Nigeria. In addition government have tried to provide necessary infrastructure in rural areas reduce the rate of rural- urban migration for the purpose of compelling the rural population to take agriculture to grater height as it was in past 38 years, however, the diversification of the various sectors of the economy has been the main objective of the government. This is to increase employment which will increase income and saving for investment. But the process so far have not been adequate because of political instability and police inconsistence which range from corruption of political administrators and negative effects of transitional government.

Diversification of different key sectors of the economy like agriculture and industry increase employment, incomes, consumptions, savings demand and generally, aggregate investment level that will broaden and Deeping the society standard of living. But dismissal growth record in most African countries relatives to other region of the world has been of concern to economist. (World bank, 1998). This is because the growth rate registered in most African countries including Nigeria is often not commensurate with the level of investment.

In Nigeria for instance, the economy witnessed tremendous growth in the early and late 1970 (World Bank) as a result of the oil boom. This increased investment especially in the public sector, but with the collapse of the oil market prices in the early and mid-1980s investment fill, thereby causing a fall in economic growth. For example, during the investment boom, gross investment as a percentage of GDP was 16.8% and 31.4% in 1974 and 1976 respectively ,where as it decline to 9.5 and 8.7 percent in 1984 and 1985 due to the depression (world bank).

Although the rise in oil prices during the 1990-1991 periods was supposed to spark off an investment but that was not the case in Nigeria. The Nigeria military government for instance was inexperience in formulating economy policies and thus,left that task to bureaucracy (Idoko 1996). The unit was that investment decisions which were undertaken with great decline, the government in 1986 adopted IMF World Bank structural adjustment programmer (SAP) with a view in providing stable macro-economic and investment environment.

To this end interest rate that were previously fixed and negative in real terms were replaced by an interest rate regime which is driven by market force. The policy shift de-emphasized direct investment stimulation through low interest rate and encourages savings mobilization by decontrolling interest rate (World Bank 1996). Consequently, the objective of enhanced investment and output growth was not realized as the countries investment failed to erase to anything near the level it has reached in the 1970s.

Although successive government has implemented policies and strategies raising the level of savings and investments, this policy so far has been erratic as a result of the recent change in government as a result of political instability. In addition, the experience of East Asia countries suggested that an investment rate of between 20 and 25 percent could endanger growth rate of between 7 and 8 percent. Strategically evidence reveals that output represented as the GDP in Nigeria shows a picture growth after the civil war, following the oil boom of the 1970 such that growth rate stood at 21.3% in 1971 (Bage 2003).

Therefore, for Nigeria to register increase in growth and development there is need to increase the private investment that will lead to higher growth, as was the case of Asian countries. Finally an analysis of domestic investment require a simultaneous link to GDP as aggregate factor interest rate and other unique variables that reacts to fluctuations in investment like debt ratio, business environment real exchange rate government expenditure and provision of infrastructure etc.

1.2  Statement of the Problems

Domestic  investment  in  Nigeria  has  been  constrained  by numerous factors. These factors range from the following: Low capital stock:investment can never be successful if the capitalis low. The poor level of capital stock has been as a result of poverty which decreases domestic saving resulting from decline in real pre-capital inadequate infrastrastructure.

  DOWNLOAD THE FULL PROJECT

Not What You Are Looking For?



For QUICK Help Call Us Now!

+234 813 2926 373

+234 701 5050 881


Here's what our amazing customers are saying

Emmanuel Essential
Kogi state University
I actually took the risk,you know first time stuff But i was suprised i received as requested. I love you guys 🌟 🌟 🌟 🌟
Very Good
Azeez Abiodun
Moshood Abiola polytechnic
I actually googled and saw about iproject master, copied the number and contacted them through WhatsApp to ask for the availability of the material and to my luck they have it. So there was a delay with the project due to the covid19 pandemic. I was really scared before making the payment cause I’ve been scammed twice, they attended so well to me and that made me trust the process and made the payment and provided them with proof, I got my material in less than 10minutes
Very Good
Gbadamosi Solomon Oluwabunmi
Lasu
Swift delivery within 9 minutes of payment. Thank you project master
Excellent
JONNAH EHIS
Ajayi Crowther University, Oyo
I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!
Excellent
MATTHEW NGBEDE
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Excellent
Temitayo Ayodele
Obafemi Awolowo University
My friend told me about iprojectmaster website, I doubted her until I saw her download her full project instantly, I tried mine too and got it instantly, right now, am telling everyone in my school about iprojectmaster.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work
Very Good
Stancy M
Abia State University, Uturu
I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...
Excellent
Ibrahim Muhammad Muhammad
Usmanu danfodiyo university, sokoto
It's a site that give researcher student's to gain access work,easier,affordable and understandable. I appreciate the iproject master teams for making my project work fast and available .I will surely,recommend this site to my friends.thanks a lot..!
Excellent
Dau Mohammed Kabiru
Kaduna State College of Education Gidan Waya
This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.
Very Good
Joseph M. Yohanna
Thanks a lot, am really grateful and will surely tell my friends about your website.
Excellent

HOW TO GET YOUR COMPLETE PROJECT INSTANTLY

  • Select 3 Project Topics of your choice from your Department.
  • Submit the 3 topics to your Supervisor for Approval.
  • Call Our Instant Help Desk on 0813-292-6373 and Get Your Complete Project Material Instantly.
  • All project materials on this website are well researched by professionals with high level of professionalism.

FREQUENTLY ASKED QUESTIONS

How do i choose a Project Topic?

Look for your department and select any topic of your choice

I have a fresh topic that is not on your website. How do I go about it?

How fast can i get a complete project from your website?

Within 15 minutes if the exact project topic is on our website

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

One of your topics suites my project, but the case study is different. What do i do?

Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

How do i get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: (+234) 813-292-6373

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!