FOREIGN DIRECT INVESTMENT AND PERFORMANCE OF SELECTED MANUFACTURING INDUSTRIES IN NIGERIA

This study examined the relationship between foreign direct investment (FDI) and the performance of the manufacturing industry in Nigeria, with particular focus on promoting investment and technological transfer. The study employed secondary data from selected major manufacturing firms, including Dangote Cement Plc, Nestlé Nigeria Plc, Unilever Nigeria Plc, Nigerian Breweries Plc, and Cadbury Nigeria Plc, covering relevant indicators of investment promotion, technology transfer, and manufacturing performance. Descriptive statistics, unit root tests, ARDL model estimation, and bounds cointegration analysis were applied to analyze the data. The unit root tests indicated that the variables were integrated at most of order one, justifying the use of the ARDL model. The bounds cointegration test revealed no long-run relationship among the variables, prompting estimation of the short-run ARDL model. The results showed that promoting investment (coefficient = 0.351, t = 2.687, p = 0.004) and technological transfer (coefficient = 0.072, t = 2.508, p = 0.025) have positive and statistically significant effects on the performance of the manufacturing industry, while lagged performance was insignificant. The model explained 82% of the variation in manufacturing performance (R² = 0.82) and was overall significant (F = 22.39, p = 0.000). Based on these findings, the study concludes that FDI significantly enhances manufacturing performance in Nigeria, primarily through investment promotion and technology transfer. Consequently, it recommends that the government strengthen investment promotion policies and that manufacturing firms facilitate technological transfer through collaborations with foreign investors to improve productivity, competitiveness, and industrial growth.