Effect of Terrorism and Insurgency on Foreign Direct Investment in Nigeria.

Abstract

This study examined the effect of terrorism and insurgency on foreign direct investment (FDI) in Nigeria. Using a survey research design, the study employed both descriptive and inferential statistical techniques, including Ordinary Least Squares (OLS) regression, to analyze the relationship between terrorism, insurgency, and FDI. The findings revealed a significant negative relationship between both terrorism and insurgency with FDI, with insurgency showing a stronger detrimental effect. The analysis underscores the crucial role of security in fostering a stable business environment conducive to foreign investment. Based on the results, the study recommends that the Nigerian government prioritize enhancing security measures, such as strengthening anti-terrorism and anti-insurgency efforts, improving military and law enforcement presence in high-risk regions, and securing borders to mitigate the negative effects of insecurity on FDI. This study provided valuable insights for policymakers seeking to restore investor confidence and promote economic growth in Nigeria.

Keywords: Terrorism, Insurgency, Foreign Direct Investment (FDI),