The National Security Challenges: Implication for Foreign Direct Investments inNigeria

Abstract

This study explores the national security challenges facing Nigeria and their implications for
Foreign Direct Investments (FDI) in the country. As Nigeria grapples with issues such as
terrorism, political instability, and economic uncertainty, the attractiveness of its investment
climate diminishes. The conceptual underpinnings of this study are rooted in the theories of
investment and security which posit that a country's investment climate, including its security
environment, plays a crucial role in attracting and retaining foreign direct investments. This
study employed a qualitative methodology, specifically documentary reviews and document
analyses involving a thorough examination of existing literature on national security, foreign
direct investment and their interrelationship in the Nigerian context. The document analysis
involved a detailed examination of policy documents, reports, and data from government
agencies, international organizations, and private sector organizations. Findings indicated
that the persistent issues of terrorism, corruption, and political instability create an
environment of uncertainty that deters potential investors. It was concluded that to foster a
more conducive climate for FDI, it is essential for the Nigerian government to prioritize
security reforms and strengthen institutional frameworks. Addressing these challenges will not
only enhance investor confidence but also contribute to sustainable economic growth in the
country. It is therefore recommended amongst others that the Nigerian government should
enhance the capabilities of law enforcement and military agencies through improved training,
resources, and inter-agency collaboration to effectively combat terrorism and organized crime.