Cultural impediments to the flow of Foreign Direct Investment (FDI) in the Nigerian power sector

By

ACKNOWLEDGEMENT

I would like to thank my supervisor for supporting me throughout my project and giving his valuable suggestions. Finally thanks to all my friends and family for their utmost support and inspiration.

DECLARATION

I, (Your name), would like to declare that all contents included in this dissertation stand for my individual work without any aid, & this dissertation has not been submitted for any examination at academic as well as professional level previously. It also represents my own views & not essentially the ones associated with university.

Signed __________________ Date _________________

ABSTRACT

The study on the “Cultural impediments to the flow of Foreign Direct Investment (FDI) in the Nigerian power sector” is an important topic that needs to be discussed in detail by taking into account several aspects of the Nigerian economy and the related factors contributing to the low levels of Foreign Direct Investment in the Nigerian power sector. The study has highlighted various factors related to the Political, Economical, Social and Technological aspects of the Foreign Direct Investment that positively impacts Nigerian and other economies of the world. The study has highlighted the privatization process as one of the main reasons for the power sector of Nigeria receiving low levels of Foreign Direct Investment within this sector in particular. The current power reform program in Nigeria necessitates a critical examination of the cultural issues which could influence the process. The cultural impediments like corruption, bribery and other factors are considered to be the important aspects of the Nigerian operating context that have also been highlighted within the study.

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

ABSTRACTiv

SUMMARY1

INTRODUCTION3

Literary Cultural Analysis of Nigeria3

Nigerian Culture and Multinational Culture4

Foreign Direct Investment5

Foreign Direct Investment in Nigeria5

Role of Multinationals in stimulating FDI7

Importance of FDI for Economic Growth9

Nigerian Power Sector12

Development in Nigerian Power Sector13

Privatisation Process in Nigerian Power Sector14

Culture analysis of Nigeria17

Cultural Classification by Hofstede17

Power Distance17

Individualism and Collectivism18

Uncertainty Avoidance18

Masculinity and Femininity18

CULTURAL DISSIMILARITIES/ TRAITS AND POSSIBLE OPPORTUNITIES24

REFERENCES30

SUMMARY

Nigeria has a population of approximately 132.8 million and is the most populous country in Africa, accounting for about 46% of the Sub-Saharan gross domestic product. A historical analysis of Nigeria since its independence 48 years ago indicates that both military and civilian governments have dominated and controlled the ownership of major industries in the country. It is stated in the past studies on Nigerian economy that government's control and ownership of major industries in Nigeria has stifled economic growth and discouraged foreign investments due to various cultural impediments acting as a barriers for the increased levels of Foreign Direct Investment (FDI) in Nigeria. The cultural impediments that are associated with the low levels of Foreign Direct Investment (FDI) in not only Nigerian power sector but also other sectors of the country are the lack of stability, credibility, legitimacy, and continuity in the successive governments. Other than that, the cultural impediments that have contributed to the low levels of foreign direct investment are the privatization process of the Nigerian power sector that is again associated with the ...