International Journal of Humanities and Social Science

ISSN 2220-8488 (Print), 2221-0989 (Online) 10.30845/ijhss

Direct Foreign Investment in Nigeria during the Era of Import Substitution Industrialization, 1960 – 1975

This paper examines the role of the state in socioeconomic and political development in Nigeria. Consequently, we focus on the role of the state and national bourgeoisie in formulating and implementing public policies aimed at promoting direct foreign investments in Nigeria from 1960 – 1975 that is , during the import-substitution industrialization (ISI) era. We evaluated the following: chronologically, the provision of Nigeria’s economic development plans, constitutions and degree, and policy actors that have had implication for the flows of direct foreign investment to and from Nigeria. The study observed that in initial stage policy thrust tended towards and opened import-substitution market economy, which it was believed, would initiate the take-off into rapid industrialization of the economy. The contrary was the case as Nigeria was not only rapidly becoming a dumping ground for obsolete goods and services, but also served as conduit pipe for scare capital flight to develop countries through the importation of luxury goods and raw materials for the few import substitution industries. However, there is no denying the fact that it was during the era that Nigeria formulated and implemented economic development plans that was consciously aimed at providing the requisite socioeconomic development infrastructure, aimed at providing a enabling environment for direct foreign investment in Nigeria.

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