Foreign Direct Investment and Employment Generation in the Manufacturing Sector of Ogun State

This research investigates the relationship between foreign direct investment (FDI) inflows and employment generation in the manufacturing sector of Ogun State, Nigeria. Ogun State hosts a significant concentration of industrial estates and export processing zones that have attracted multinational corporations from Asia, Europe, and North America. Despite this investment activity, questions persist regarding the quality and volume of jobs created for local residents. The study adopts a descriptive research design, utilising secondary data sourced from the Nigerian Investment Promotion Commission, Ogun State Investment Promotion Agency, and the National Bureau of Statistics covering the period from 2019 to 2023. Ordinary least squares regression is employed to measure the effect of FDI on direct and indirect employment figures. The study also assesses the extent to which technology transfer associated with FDI contributes to skills development among Nigerian workers. Theoretical grounding is drawn from the eclectic paradigm and the labour absorption theory of investment. Preliminary analysis indicates that while FDI inflows have grown steadily, a substantial portion of skilled managerial positions are occupied by expatriates, limiting local employment benefits. The study recommends stricter local content requirements and investment promotion policies that emphasise job creation as a conditionality for incentives. Findings will assist state-level economic planners and investment agencies in designing more inclusive FDI frameworks. Keywords: foreign direct investment, employment, manufacturing, Ogun State, local content