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RE-ASSESSING EFFECTS OF POLITICAL INSTABILITY ON FOREIGN INVESTMENT IN NIGERIA: AN EMPIRICAL SURVEY

Abstract: The study examined the effect of hostage taking on Foreign Direct Investment (FDI) in Nigeria to have a reliable and constant growing economy with assured security for foreigners. It is the duty of the government to provide the citizenry and foreigners with secured environment that allows equal participation in activities that engender economic development. It empirically examined professional ideas as well as explores documentary evidences about hostage taking and foreign investment, the political situation, security situation, socio-development and psychological imponderances of the leaders in the unfolding scenarios of Nigeria. The use of the internet, journal, thesis and archival material assisted in the source of information. The paper found evidence of pervasive tendencies for declining Foreign Direct Investment (FDI) due to unyielding effort of government to have a secured environment, especially for foreign investors. The paper concluded, among others, that there are devastating effects such as unemployment, declining standard of living, winding up of foreign established organisation, etc as a result of hostage taking that reduce Foreign Direct Investment.

Keywords: Hostage Taking; Foreign; Direct Investment; Development; Unemployment; Economy; Security; Environment.