Assessing the Effectiveness of Nigeria’s Investment Promotion Strategies in Attracting Technology Sector FDI

This research assesses the effectiveness of Nigeria's investment promotion strategies in attracting foreign direct investment into the technology sector, a priority area under the federal government's economic diversification and digital economy agenda. Nigeria has positioned itself as a leading African technology hub, and its investment promotion architecture includes the Nigerian Investment Promotion Commission, special economic zones for technology firms, and fiscal incentives including pioneer status and tax holidays. However, competition from Rwanda, Kenya, and South Africa for technology sector FDI is intensifying. The study employs a mixed-methods design combining quantitative analysis of technology sector FDI data from UNCTAD and the NIPC covering 2019 to 2024 with qualitative interviews from 25 foreign technology investors and investment promotion officials. Regression analysis identifies determinants of technology FDI decisions alongside thematic analysis of investor experience narratives. The theoretical framework draws on the OLI eclectic paradigm and investment promotion effectiveness literature. The study evaluates the alignment between Nigeria's investment promotion messaging, its actual regulatory and infrastructure environment for technology investment, and investor perceptions of the business climate. Findings are expected to reveal a significant credibility gap between promotional claims and the regulatory and infrastructure reality experienced by arriving investors, contributing to investment attrition after initial commitment. Recommendations include streamlining technology firm registration processes, delivering on announced digital infrastructure projects, and adopting post-investment facilitation services to retain committed technology investors. Keywords: investment promotion, technology FDI, Nigeria, NIPC, digital economy