Foreign investments and Nigeria's economic recovery: issues and prosoects.

Abstract

The ability of the policy measures in Nigeria's Structural Adjustment Programme to stimulate aggregate output in the country depends strictly on the size, composition and quality of foreign investment the country can attract in the medium term. This is because of the persistence of the problem of foreign exchange scarcity; and the lack of technology and other investment pre-requisites on the part of indigenous entrepreneurs for the production of the industrial inputs on which the revival of activities in the productive sector of the economy depends crucially. In order to be in a positon to stimulate the inflow of foreign investment, large domestic investment in the establishment of industrial infrastructural projects for the production of some basic industrial raw materials needed by some small and medium scale enterprises should be made. Other measures include a comprehensive review of some regulatory measures. This is required to permit the country attract the requisite investors possessing the technology that is appropriate to the country's needs.