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ABSTRACT

The issue of the using external financing, in particular foreign investment in achieving developmental objectives and aspirations has been at the forefront of economic diplomacy of various Nigerian governments since 1985. In particular, National Economic Empowerment and Development Strategy (NEEDS), programme has encapsulated this view for it to achieve its objectives of poverty reduction, wealth creation and employment generation. It is believed that the achievement of these objectives will help in the transformation of the Nigeria’s socio-economic development. This Study is an effort to examine the inflow of foreign investment as a source of external finance for the achievement of employment creation objectives of NEEDS. Blending the primacy of material conditions of Marxist political economy approach and the theory of Post-Colonial State as the theoretical framework, and using the secondary sources of data, the study found the following. There have been increase in the inflow of foreign investment, and this inflow has not significantly affected employment creation as unemployment increased within the period. The major determinant of foreign investment inflow within the period is the increase in the level of external reserve and the liberalisation of transaction in the Nigeria financial account occasioned by the IMF/World Bank induced policy of debt relief. This has induced the amount of
foreign portfolio investment inflow which has increased more that the inflow of Foreign Direct Investment. The largest inflow went into stock market and banking sectors. We also found that the policy of low inflation pursued by the Central Bank of Nigeria, as a means of stabilizing, the economy for attraction of foreign investment contradicts the objectives of employment creation of NEEDS as it takes away money in circulation and reduced the amount available for domestic investors. The study also
found that the policy is a source of short term accumulation for the financial capital and has increased the integration of the Nigeria economy to the international capitalist market.

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TABLE OF CONTENT
Title ……………………………………………………………………………………………… i
Approval ……………………………………………………………………………………………… ii
Dedication ……………………………………………………………………………………………… iii
Acknowledgment ………………………………………………………………………………………….. iv
Table of Content ……………………………………………………………………………………………. v
List of Tables ……………………………………………………………………………………………… vi
Abstract ……………………………………………………………………………………………… vii
CHARPTER ONE: Introduction
1.1 Introduction ……………………………………………………………………………… 1
1.2 Statement of Problem ………………………………………………………………………………. 3
1.3 Objective of Study ……………………………………………………………………………………. 8
1.4 Significance of Study ………………………………………………………………………………… 9
1.5 Literature Review……………………………………………………………………………………… 10
1.6 Theoretical Framework ……………………………………………………………………………… 22
1.7 Hypotheses ……………………………………………………………………………………………… 24
1.8 Method of Data Collection …………………………………………………………………………. 24
CHAPTER TWO: Economic Policy and Development Strategy in Nigeria ………………………………………………………………………………… 27
2.1. Investment and Development Strategy ……………………………………………………….. 29
2.2 Foreign Investment as Source of External Finance for Developing Countries ….. 32
2.3. History and Overview of Foreign Investments in Nigeria. …………………………….. 38
2.4. Policies and Incentives for Foreign Investments in Nigeria. …………………………. 42
CHAPTER THREE: Meaning of Employment /Unemployment ………… 54
3.1. Trends in Manpower Employment in Nigeria. …………………………………………….. 58
3.2. Employment Strategies and Policies in Nigeria. ………………………………………….. 63
3.3 Nature and Structure of Nigeria Economy. …………………………………………………… 67
CHAPTER FOUR: Global Capitalism and Politics of Economic Policy in Nigeria ………………………………………………………………………………… 71
4.1 Foreign Investment and Employment Creation under NEEDS ……………………….. 74
4.2 Component of Foreign Investment Inflow under NEEDS. ……………………………… 85
4.3 Government Economic Policy and Employment Creation. …………………………….. 95
CHAPTER FIVE: Summary/ Conclusion and Recommendations. . 102
BIBLIOGRAPHY …………………………………………………..109

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