International Journal of Foreign Trade and International Business
2022, Vol. 4, Issue 2, Part A
An assessment of Nigeria’s foreign policy and foreign portfolio investment in the fourth republic, 1999-2020
Nigeria’s foreign policy from independence has been geared towards earning foreign revenue and general foreign capital inflow for augmenting domestic revenue and for growing the gross national income and the economy for general development. In spite of all these efforts, yet the attraction of foreign capital and other foreign revenues from the non-oil sector are still coming in trickles; such that the country’s gross national income is largely made-up of revenue from the Oil and Gas sector as well as merchandize activities. With the enthronement of civil democratic administrations in the country between 1999 and 2020, it was expected that the prosecution of domestic reforms would make the business environment clean enough for doing business. This clean domestic business environment is expected to make Nigeria’s foreign policy attract more foreign capital such as Foreign Portfolio Investment to augment Foreign Direct Investment for boosting the production processes in the country in the area of industrialization and manufacturing. A manufacture-driven economy will lead to the production of exportable unique products in which the country has comparative competitive advantage in the international market. The export of these unique products and goods would earn for the country more foreign capital that will further grow the domestic economy. The study is a qualitative one where document method was adopted in generating data for the study through the scrutiny of secondary sources such as books, academic journals, magazines, newspapers, periodicals and internet facilities. The data generated was analyzed through discourse and explanatory methods. The concepts of foreign portfolio investment, foreign policy, and global political economy theory have been defined and clarified that served as framework for the study. At the end, the study has recommended for a drastic cut down on foreign merchandize activities in the country; and the re-direction of surplus profits from portfolio investment into productive ventures that will create more employment opportunities and grow the economy.