Foreign Direct Investment, Host Community Relations, and Nigeria’s Investment Diplomacy: Evidence from Ebonyi State

Foreign direct investment (FDI) is widely recognized as a catalyst for economic transformation in developing economies, and Nigeria's investment diplomacy has actively pursued FDI attraction across multiple sectors through bilateral investment treaties, investment promotion agencies, and diplomatic missions. Ebonyi State, endowed with significant solid mineral resources, has attracted investor interest from Chinese, Indian, and European firms, particularly in solid minerals extraction and agro-industrial processing. This study examines the relationship between Nigeria's investment diplomacy framework, FDI flows into Ebonyi State, and the quality of host community relations in affected local government areas between 2020 and 2024. Using a qualitative approach, the research employs interviews with investors, community leaders, state-level investment agency officials, and legal practitioners, alongside review of bilateral investment treaty provisions relevant to Nigeria. The resource curse thesis and stakeholder theory of FDI provide the analytical underpinning. Findings reveal that while FDI projects have generated employment and revenue, host communities in Ebonyi frequently report inadequate consultation, limited local content compliance, and unresolved environmental grievances related to mining activities. Nigeria's bilateral investment treaties, designed primarily to protect investor rights, are found to contain insufficient provisions for host community obligations and environmental accountability. The study argues that investment diplomacy must evolve toward a more inclusive model that balances investor protection with binding community benefit agreements. Keywords: foreign direct investment, investment diplomacy, host community, Ebonyi State, bilateral investment treaties