Foreign Direct Investment (FDI) and Technology Transfer in Nigeria, 2013-2022

Abstract

The Nigerian state for quite some time has been saddled with the challenges of technology transfer as the country has remained a producer of raw materials for industrial countries. One of various ways Nigeria has sought to overcome her technology advancement challenges is through foreign direct investment. This paper, therefore, assessed the impact of Foreign Direct Investment (FDI) on technological transfers in 
production/manufacturing, oil and gas, agriculture and telecommunication sectors in Nigeria. This study u lized ex post factousing secondary sources of dataas the main instrument of data collection. Findings of the study revealed that a sum of 130.1 billion dollars was received from foreign capital importation during 2012-2023, out of whichFDI inflow stood at 11.72 billion dollars. Thus, the Multinational Corporations (MNCs) operating in Nigeria has provided training programs to Nigerians working in the various sectors of the economy. Nigerians were not made to know the intricacies of producing goods and services effectively and efficiently. Consequently, Nigerian working in these companies innovation ability was not enhanced. The activities of MNCs have generated little multiplier effects for local firms in the country. Therefore, the general impact of FDI on technology transfer in Nigeria is low. The study therefore recommends that Nigerian government needs to increase funding for Research and Development (R&D) activities to support technological advancements.