The Impact of Foreign Loan and Foreign Investment on the Nigeria Economy

The Impact of Foreign Loan and Foreign Investment on the Nigeria Economy

CHAPTER ONE

1.0 INTRODUCTION OF THE STUDY

In a world where nations are unequally endowed with human nature, financial resources, a high degree of interdependent does exist. No nation can therefore operate as an Island for survival may be impossible.

This independence is so vital that it cuts across ideological and potential political lines. Hence we see, for instance, trade between the Eastern and Western blocks despite their strong ideological differences.

1.1 STATEMENT OF PROBLEM

Owing to such inequalities and independence, there is a constant flow of international resources from one country to another, particularly from surplus to deficit areas. These resources are transferred through many methods that sis foreign loans and investments both of which bring about economic development if well directed and utilized.

1.2 PURPOSE OF THE STUDY

i. To examine critically the aids of foreign loans and foreign investment giving to developed countries and developing countries.

ii. To find out the reason behind the foreign loans and foreign investment in the economic and industrial development of Nigeria.

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iii. To appraise the impacts of foreign loans and foreign investment in economic and industrial development in Nigeria.

iv. For stimulation of employment.

1.3 SCOPE OF THE STUDY

Although foreign and foreign investment taking as a dictionary of business and management defines advance to be banking loan. It goes further to define loans themselves as a business transaction between two legal entities whereby one party (the lender) agrees to lend funds to the developing countries.

PLAN OF THE STUDY

The plan of the study is to examine the prospect and impact of foreign loans and foreign investment in economics and industrial development in Nigeria.

To achieve this, the granting of foreign loans and foreign investment in economic must be given to the developing countries more than given to developed countries in other to be productive and effective.

It is necessary to determine which percentages of loans given out will yield and appreciable revenue and its impact and effect on the general price level index. Based on the findings, additional recommendations of any will be towards efficient and effective collecting foreign loan and foreign investment.

1.4 LIMITATION OF THE STUDY

The study is expected to cover the research aspect, however, due to time visit more banks and financial constraints of the research have been due to the non-availability of some required materials to conduct the research work. in spite of these constraints, an attempt had been made to solve processes involved to the best of our knowledge