Abstract:

The growth and development of Africa and indeed Nigeria’s economy depends largely on foreign direct investment (FDI), which has been described as the major carrier for transfer of new scientific knowledge and related technological innovations. The need to step up Nigeria’s industrialization process and growth, calls for more technology spill-over through foreign investment. This article examines Nigeria’s Economic situation, explores the link between FDI and technology transfer to foreign subsidiaries and spillover to Nigeria’s domestic firms. In doing so it offers sustained analysis of available literature, policy documents, official reports and economic information on Nigeria. The article concludes that FDI can facilitate economic growth in Nigeria by generating both technological and efficiency spillovers to local firms, encouraging innovation, allowing technology adoption and developing human capital.