IMPACT OF BOKO HARAM TERRORISM ON FOREIGN DIRECT INVESTMENT (FDI) INFLOWS IN THE NORTH EAST NIGERIA (2015 – 2024)

Abstract

The persistent activities of Boko Haram terrorism have posed significant challenges to Nigeria's socio-economic development, particularly affecting Foreign Direct Investment (FDI) inflows. This study investigates the Impact of Boko Haram Terrorism on Foreign Direct Investment (FDI) Inflows in the North East Nigeria, (2015 – 2024). The primary objective is to analyze how terrorist activities influence foreign investors' confidence and decisions, utilizing the Marxist theory to understand the socio-economic implications of terrorism as a class struggle exacerbated by imperialistic interventions. An Ex-Post Facto research design was employed to examine existing data on Boko Haram terrorism and FDI inflows. The population of this study consists of three thousand five hundred and ten (3,511) individuals, encompassing government officials, investors, and residents in affected areas. A stratified random sampling technique was used to ensure a representative sample, resulting in approximately 350 respondents. The findings reveal a significant negative correlation between Boko Haram terrorist activities and FDI inflows in Nigeria. The study indicates that increased terrorism-related incidents lead to decreased foreign investments, as investors are deterred by the high-risk environment. Additionally, the findings highlight the broader economic repercussions, including job losses and stunted economic growth, further entrenching poverty and instability. Based on these findings, the study recommends that the Nigerian government intensify its counter-terrorism efforts to create a secure environment conducive to attracting foreign investments. Additionally, there should be a focus on socio-economic development programs to address the root causes of terrorism, including poverty and unemployment. Strengthening regional and international collaborations to combat terrorism and fostering a stable political climate are also essential measures to restore investor confidence and boost FDI inflows in Nigeria.