Foreign Direct Investment and Employment in Agricultural Sector in Nigeria


  • Gbenro Matthew Sokunbi Lagos State University of Education
  • Adebayo Akanbi Johson Adeleke University
  • Olatunde Olaide Atanda New Brunswick Community College
  • Timothy Ayomitunde Aderemi Bells University of Technology, Ota


FDI; Employment; Agricultural Sector; DOLS; Nigeria


The agricultural sector in Nigeria holds substantial prominence within the broader framework of the nation's economy. Throughout the years, the agricultural sector has experienced limited growth potentials due to inadequate financial support allocated to the industry. The insufficient funding of the agricultural sector can be attributed to the government and financial institutions' apparent neglect of the sector. As such, exploring FDI for agricultural job creation in Nigeria becomes inevitable. Therefore, the study employed DOLS to assess nexus between FDI and employment in agricultural sector in Nigeria from 1990 to 2021. The findings from the study are summarized as follows; both agricultural gross production (AGP) and government expenditure on agriculture (GEA) contribute a significant negative impact on employment in agricultural sector in Nigeria. Meanwhile, FDI contributes an insignificant impact on employment generation in agriculture in Nigeria. Against these findings, the study makes the following recommendations; the Nigerian policymakers should establish a conducive and supportive ecosystem that can effectively facilitate the expansion prospects and influx of foreign investments in the agricultural industry. So that the prevailing agricultural landscape would possess the necessary attributes to foster and stimulate international investment. Also, it is imperative for the Nigerian policymakers to prioritise the expansion of the agricultural sector by augmenting the allocation of funds from the national budget towards this crucial domain.

Author Biographies

Gbenro Matthew Sokunbi, Lagos State University of Education

Department of Economics

Adebayo Akanbi Johson, Adeleke University

Accounting Department

Olatunde Olaide Atanda, New Brunswick Community College

School of Information


Adeleke, K.M., Olowo, S.E. and. Fasesin, O.O. (2014). Impact of Foreign Direct Investment on Nigeria Economic Growth, International Journal of Academic Research in

Business and Social Sciences, 4(8).

Aderemi, T. A. (2019). Foreign Direct Investment and Economic Growth in Africa: Evidence from Oil Exporting Countries, European Journal of Economics, Law and Politics, 6(2), 14-26.

Aderemi, T. A., Abalaba, B. P., Ebere C. E., & Ojelade, L. O. (2018). Comparative Analysis Approach to Foreign Direct Investment and Economic Growth in Emerging Economies (1990-2017). Saudi Journal of Economics and Finance, 2(5), 263-269.

Aderemi, T.A., Abalaba, B.P. Adeniran, A. A. and Amadi, C. E. (2020). Agricultural Sector and Employment Generation in Post Sap Era Nigeria: An Empirical Perspective. International Journal of New Economics and Social Sciences, 11(1). 185-196.

Aderemi, T. A., Wahid D. O., Ayodeji, G. B., Christiana Onyohu Hassan, C. O., Osabohien., R. and Azuh, D. E. (2021). Role of Agriculture in Poverty Reduction in Nigeria: An Implication for Sustainable Development Goals (SDGs). African Journal of Business and Economic Research (AJBER), Special Edition: Perspectives on Demographic Dividend, and Economic Growth for Sustainable Development, pp 267-280.

Aderemi, T. A., Adebayo, A. B., Jolayemi, L. B., & Kalejaiye, G. T., (2019:1). Panel Cointegration and Granger Causality Approach to Foreign Direct Investment and Economic Growth in BRICS Countries. Acta Universitatis Danubius (Economica). 15(2), 236-248.

Aderemi T. A., Olayemi, H. O., Adejumo, A.V. &Yusuff, F. A. (2019:2). Panel Cointegration and Granger Causality Approach to Foreign Direct Investment and Economic Growth in Some Selected Emerging Economies. European Financial and Accounting Journal, 14(2), 27-42.

Aderemi, T. A. Omitogun, O. & Osisanwo, B. G (2022). Effect of FDI Inflows on Employment Generation in Selected ECOWAS Countries: Heterogeneous Panel Analysis. Central Bank of Nigeria Journal of Applied Statistics, 13(1), 241-263.

Akinmulegun, S.O & Oluwole, F.O. (2014). An assessment of the Nigerian manufacturing sector

in the era of globalization. American Journal of Social and Management Sciences, 5(1), 27-32.

Akinlo, E. (2004). Foreign direct investment and growth in Nigeria: An Empirical Investigation.

Journal of Policy Modeling, 26(5), 627-639.

Akinmulegun, S.O (2015). Agricultural financing and economic growth in Nigeria. Akungba

Journal of Economic Thought, 7, 16- 27.

Akinmulegun, S.O. (2018). Globalization and agricultural productivity paradigm: The Nigeria

perspective. Archives of Business Research, 6(1), 94-104.

Chaudhary, A. (2016). Role of foreign direct investment in the growth of Indian agricultural

sector: A post reform study. Global Journal of Finance and Management, 8(2), 119-129.

Daniel, G.H. & Maiwada, S. (2015).Chinese trade and investment in Nigeria’s agricultural

sector: A critical analysis. American International Journal of Social Science, 4(2), 277-287.

Ebere, E. E., Oresanwo, A. M., Omogboye, M. A. & Aderemi, T. A. (2021). Would Agricultural Credit Sustain Agricultural Output in Nigeria? An Empirical Perspective. The Journal of Accounting and Management, 11(3), 76-83.

Ekienabor, E. Aguwamba, S. & Liman, N. (2016). Foreign direct investment and its effect on the

manufacturing sector in Nigeria. International Journal of Scientific and Research Publications, 6(5), 671 – 679.

Fakun, D.S. & Evbuomwan, G.O. (2017). An evaluation of agricultural financing, policies and

initiatives for sustainable development in Nigeria, in the 21st Century: 1990-2014. Journal of Economics and Finance (IOSR-JEF), 8(3), 32-38

Iddrisu, A., Immurana, M. & Halidu, B. (2015). The impact of foreign direct investment (fdi) on

the performance of the agricultural sector in Ghana. International Journal of Academic Research in Business and Social Sciences, 5(7), 240-259.

Obiakor, R. T., Olanipekun, W. D., Omoyele, O. S. and Aderemi, T. A. (2022). Agriculture, Food Security and Poverty Reduction in Nigeria: Cointegration and Granger Causality Approach. Acta Universitatis Danubius. Œconomica, 18(1), 52-60.

Obiakor, R. T. Omoyele, O. S, Olanipekun, W. D. & Aderemi, T. A. (2021). Is Agriculture still a Strong Force in Employment Generation in Nigeria? An Empirical Investigation. Euro Economica, 40(2), 90-100.

Obida, G.W., & Abu, N. (2010). Determinants of Foreign Direct Investment in Nigeria,

Global Journal of Human SocialSciences, Vol. 10, p. 26.

Opele, A. M., Adegun, E. A., Adewumi Zaid Adeyemi, A. Z. and Aderemi, T. A. (2022). Does Innovation Contribute to Agricultural Development in Nigeria? Granger Causality and Error Correction Model Approach. Euroeconomica, 41(1), 38-46

Oyero, K.B.L. (2019). Foreign Direct Investment Trends and Economic Growth in Africa:

Nigeria Experience in Pre-Recession Era. International Journal of Academic Accounting,

Finance & Management Research (IJAAFMR) ISSN: 2000-008X Vol. 3 Issue 3, March – 2019, Pages: 1-7.

Orji, N., Anthony-Orji, O.I., Nchege, J.E. & Okafor, J. (2015). Manufacturing output and foreign

direct investment in Nigeria: A new. International Journal of Academic Research in Economics and Management Sciences, 4(3), 16-28

Oyegoke, O.E. & Aras, O.N. (2021). Impact of Foreign Direct Investment on Economic Growth

in Nigeria. Journal of Management, Economics, and Industrial Organization, Vol.5 No.1, 2021, pp.31-38.

Ogbanje, E.C., Okwu, O.J., & a, S.F. (2010). An analysis of Foreign Direct Investment in

Nigeria: The fate of Nigeria’s Agricultural sector. A publication of Nasarawa State University, Keffi, 6 (2), 15-25.

Oloyede, B.B. (2014). Impact of foreign direct investment on agricultural sector development in

Nigeria, (1981-2012). Kuwait Chapter of Arabian Journal of Business and Management Review, 3(12), 14-24.

Shuaib, I.M., Igbinosun, F.E. & Ahmed, A.E. (2015). Impact of government agricultural

expenditure on the growth of the Nigerian economy. Asian Journal of Agricultural Extension, Ecology & Sociology, 6(1):23-33.UNCTAD (2002). Foreign Direct Investment Statistics.

Uwazie, I.U., Igwemma, N.N. & Eze, A.B. (2015). The causal relationship between foreign direct investment and economic growth in Nigeria: 70-2013. International Journal of Economics and Finance; 7(11), 230 – 241.

Yusuff, M.A. Afolayan, O.T. &Adamu, A.M. (2015). Analysis of Foreign Direct Investment on

Agricultural Sector and Its Contribution to GDP in Nigeria. Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 6(2), 94-100.




How to Cite

Sokunbi, G. M., Johson, A. A. ., Atanda, O. O., & Aderemi, T. A. (2023). Foreign Direct Investment and Employment in Agricultural Sector in Nigeria . The Journal of Accounting and Management, 13(2), 44–53. Retrieved from