Abstract:

Regardless of the fact that Nigeria is the major attractor of FDI inflow to Africa and even though many of the Nigerian manufacturing firms have invested huge amount of money in the development of their staff capabilities so that they would be able to absorb FDI-related spillover inform of productivity performance, many analysts continue to question whether these investments do in fact lead to productivity gains. In an attempt to provide answer, this study selected 135 indigenous firms as sample and employed the use of frequency distribution means, Pearson correlation and multiple regression in conducting firms’-level analyses of association and causality between investment in human resource capabilities and FDI-related productivity performance. The outcome shows a robust evidence of a link between the variables, demonstrating that the firms experiencing the largest productivity acceleration were those that have most intensively committed funds in training and development oftheir staff as well as in skills employment activities.