Nigeria

Critical Success Factors for Project Success in an International LNG Company Operating in a Developing Country: An Action Research Study of Nigeria LNG Limited

Abstract

Critical success factors in project management tend to vary from industry to industry and also tend to vary between countries. Opposed to previous practices of adopting the Iron Triangle of cost, quality, and time, critical success factors have increased to include aspects such as leadership, teamwork, setting realistic targets, and sustainability. While the increase in critical success factors for a project means additional costs, many firms which are involved in environmentally hazardous practices may not pursue such critical success factors.

Thus, this study seeks to explore the critical success factors implemented in Nigeria LNG Limited and seeks to compare and contrast these success factors with international standards in developed countries. This study may provide valuable insight into best practices and may also provide project managers in Nigeria or elsewhere with information regarding better project optimization and success techniques amongst other benefits.

Introduction

Project management is a highly dynamic and complex discipline which requires extensive planning, coordination, and the appropriate management of critical success factors (Pinto & Slevin, 1987). While the project manager has immense responsibility in implementing appropriate strategies to ensure project success, this is often a highly difficult task as approximately 42-47% of projects are successful while others fail (Siguroarson, 2009). However, figures may vary from industry to industry.

Accordingly, critical success factors also vary from project to project. However, project management is often governed by what is termed as the Iron triangle of cost, time, and quality (Pinto & Prescott, 1988). Over the years and with the evolution of project management concepts, project management has become a multidimensional framework which includes other critical success factors such as teamwork, leadership, communication, and ethics, including sustainability (Atkinson, 1999). However, increasing critical success factors can add to the cost of the project and while it is often considered necessary for companies such as liquid and gas companies to implement ethical standards, this is often not practiced in developing countries (Jha & Iyer, 2007).

As the critical success factors of each project vary, the motivation and rationale for this study lies in examining the difference between critical success factors in project management in a developing country such as Nigeria against traditional international standards. Projects carried out in the liquid and gas industry may have severe environmental implications for the area, but project management may not be carried out in an ideal manner with little emphasis upon ethical standards or other key areas which may optimize the project outcome (Kerzner, 2013).

Hence, this study will provide particular insight into the critical success factors considered in LNG Limited in a developing country such as Nigeria and may provide professional knowledge regarding better ways of project optimization and project success if it is found that projects are not properly implemented. Moreover, it will provide insight into the various practices of project management in a country such as Nigeria, as there is not an extant of literature available paying particular attention to this country. This study may provide professional knowledge and best practice for project managers in LNG Limited in Nigeria, project managers who wish to conduct projects in Nigeria, or project managers in other countries.

Research Objectives

1. To understand the specific project fators that determine project success in different project phases in Nigeria LNG Limited
2. To analyze the environmental factors that determine success in Nigeria LNG Limited
3. To understand the similarities and differences in critical project success factors between Nigeria and traditional international practices (developed countries)
4. To determine best practice and suggest better strategies for project optimization and success

Research Questions

Main Research Question: Which specific project factors determine project success in different project phases in Nigeria LNG Limited?

Subsidiary Questions:

Which environmental factors determine success in Nigeria LNG Limited
What are the similarities and differences in critical success factors for project management in Nigeria and international standards (developed countries)
What are the best practices of project management in Nigeria and how can project optimization be improved

Conceptual Framework:

There is an extant of literature available upon the topic of project management and various researchers have devised their own framework of critical success factors. Siguroarson (2009) mentions that most of the research conducted upon project success is based upon the project management theory and the concept of the Iron Triangle of cost, time, and quality. However, over the decades concepts have evolved and included many other factors which include leadership, communication, setting realistic targets, and many others (Pattanayak, Wunder, & Ferraro, 2010). Moreover, with the growing concern for the environment, concepts of corporate social responsibility and the implementation of sustainability principles have emerged which are often considered critical success factors for businesses which have severe implications for the environment such as the liquid and gas industry (Naude, 2010).

However, it is often found that corporations who can avoid the implementation of the theory of sustainability may focus upon other factors in project management, and this may exceptionally be prevalent in developing countries such as Nigeria. Moreover, the determination of critical success factors depends upon the project manager’s skills, education, experience, tradition, and many other factors (Ahsan & Gunawan, 2010).

Based upon previous research, this study will develop in the light of concepts such as the project management theory, Iron Triangle, theory of corporate social responsibility, sustainability principles, and other relevant theories in order to properly explore the topic.

Research Methodology:

As there is not an extant of literature available upon Nigeria LNG Limited, the study is designed to be exploratory in nature. Accordingly, the study will adopt a qualitative data collection method and will focus upon primary research. The study will use an open-ended questionnaire regarding the critical success factors used in LNG Limited as the data collection tool and will direct them at a sample which will later be chosen according to appropriateness. The conduction of primary research is essential because of the specific nature of the study and because no previous literature is available in the context of Nigeria LNG Limited. Moreover, using an open-ended questionnaire will allow the gathering of maximum information while reducing elements of interviewer bias or excessive chances of misinterpretation which may occur in a verbal/telephonic interview. Moreover, using a questionnaire will also increase feasibility and convenience for the researcher and the respondents as the questionnaire can be dispersed through email or through online survey tools.

Data will be analyzed or measured using content analysis and based upon the researcher’s understanding of the information presented by respondents and information he/she gathered through literature. This research design best fits the purpose of the study and allows the gathering of in-depth information (Saunders et al, 2011). However, it has the limitations of including possible elements of researcher bias and respondent bias which may exist within the gathering of qualitative data.

Study Implications:

As the list of potential critical success factors is increasing over the years, this study may provide valuable insight into new critical success factors or new implementation strategies adopted in developing countries or Nigeria specifically. Thus, it may provide project managers all over the world or in Nigeria in particular with information regarding best practices, improvements in project optimization, and the implementation of better sustainability principles, amongst other things. Thus, it can result in the development and implementation of better project management strategies and derision of appropriate critical success factors. Accordingly, this study can provide valuable information for project managers regarding project management and may also increase the scope for Nigeria as a potential project conduction site. Moreover, the study will also be beneficial for academics and will be a valuable addition to the existing literature upon project management.

Feasibility:

The researcher has ample access to potential respondents from the study and the time period allocated is sufficient for the compilation and analysis of data.

References

1. Ahsan, K., & Gunawan, I. (2010). “Analysis of cost and schedule performance of international development projects.”International Journal of Project Management. Vol. 28(1) pp. 68-78.
2. Atkinson, R. (1999) “Project management: cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria” .International Journal of Project Management. Vol.17(6) pp.337-342.
3. Jha, K. N., & Iyer, K. C. (2007) “Commitment, coordination, competence and the iron triangle.”International Journal of Project Management. Vol.25(5) pp.527-540
4. Kerzner, H. R. (2013).Project management: a systems approach to planning, scheduling, and controlling. Wiley.
5. Naude, W. (2010). “Entrepreneurship, developing countries, and development economics: new approaches and insights.”Small Business Economics. Vol. 34(1) pp. 1-12.
6. Pattanayak, S. K., Wunder, S., & Ferraro, P. J. (2010). “Show me the money: Do payments supply environmental services in developing countries?.”Review of Environmental Economics and Policy. Vol.4 (2) pp.254-274.
7. Pinto, J. K., & Prescott, J. E. (1988) “Variations in critical success factors over the stages in the project life cycle.”Journal of management.Vol.14 (1) pp.5-18.
8. Pinto, J. K., & Slevin, D. P. (1987) “Critical factors in successful project implementation.”Engineering Management, IEEE Transactions. Vol. 1 pp. 22-27.
9. Saunders, M. N., Saunders, M., Lewis, P., & Thornhill, A. (2011).Research Methods For Business Students, 5/e. Pearson Education India.
10. Siguroarson, S. (2009) “Critical Success Factors in Project Management” University of Iceland. Masters Thesis.

Nigeria is the sixth largest producer of oil in the world. The Nigerian oil industry is troubled by scandal and corruption, lack of transparency in interaction between the players and a confusing complexity. Of these issues, lack of transparency is particularly problematic, although the others are also notable, with recent scandals including the evasion of over $6 billion in tax by Halliburton West Africa.

This study offers the first two chapters of a fuller piece of research designed to analyse a solution which, it is hoped, goes some way towards addressing these problems: the proposed petroleum bill.This bill, the Petroleum Industry Bill, was put forward to the Nigerian House of Assembly in 2007 but has not yet been passed, due, it has been suggested, to actions by interested multinational corporations. The bill puts together several different pieces of legislation, and acts as a proposed replacement to existing (and very complex) legislation. As the bill gives more power to indigenous oil firms, it has been seen as an attack on the oil and gas multinationals.

The study aims to assess the new bill, and particularly to look at how it compares to best practice around the world. The full study includes both a review of secondary literature and a primary study, although only the introduction and literature review are included in this version. The overall aim of the study is to look at the bill’s key aspects and compares them with global standards and the state of affairs in other oil producing countries. The study first sets out the background to the issue in a literature review.

This examines the details of the proposed bill itself, and also looks extensively at best practice in the rest of the world, for example looking at Norway’s Petroleum Industry Act.The first and second chapters provide a sound basis for a primary research study looking at the questions raised in more detail.

Dissertation Details:

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Title: A Comparative Analysis of the New Petroleum Bill In Nigeria In Relation to Current Global Best Practice of Petroleum Legislations.

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Academic Level: Masters.
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THE IMPACT OF FOREIGN DIRECT INVESTMENTS ON THE NIGERIAN ECONOMY BY SHIRO ABASS A. Department of Finance University of Lagos BSTRACT Generally, policies and strategies of Nigerian government towards foreign direct investments are shaped by two principal objectives of desire for economic independence and the demand for economic development. Multi national corporations are expected to bring into Nigeria, foreign capital in the form of technical skills, entrepreneurship, technology and investment fund to boost economic activities thereby, rising the standard of living of Nigerian.

The main issues in this paper relates to understanding the effects and impact of foreign direct investments on the Nigerian economy as well as our ability to attract adequate amounts, sufficient enough to accelerate the pace of our economic growth and development. From related research and studies, it was revealed that multinational corporations are highly adaptive social agents and therefore, the degree to which they can help in improving economic activities through foreign direct investment will be heavily influenced by the policy choice of the host country.

Secondary data were collected for the period 1970 to 2005. In order to analyse the data, both econometric and statistical method were used. Tables were produced in order to create a visual impression of the dependence of Nigeria economy on that of donor countries such as Western Europe and North America. The economic regression model of ordinary least square was applied in evaluating the relationship between foreign direct investment and major economic indicators such as gross domestic product, gross fixed capital ormation and index of industrial production. The model revealed a positive relationship between foreign direct investment and each of these variables, but that foreign direct investment has not contributed much to the growth and development of Nigeria. This is evident in reality of enormous repatriation of profits, dividends, contract fees, and interest payments on foreign loans.

The study thus suggest that in order to further improve the economic climate for foreign direct investments in Nigeria, the government must appreciate the fact that the basic element in any successful development strategy should be the encouragement of domestic investors first before going after foreign investors. 1. 0INTRODUCTION In order to seek the highest of return for capital, economists tend to favour the free flow of capital across national boarders. It is against this backdrop that multinational companies seek investment in foreign countries with reasonable risk.

Nigeria is believed to be a high-risk market for investment because of factors such as bad governance, unstable macro economic policies, investment as a way out of Nigeria’s economic state of underdevelopment. Since the enthronement of democracy in 1999, the government of Nigeria has taken a number of measures necessary to woo foreign investors into Nigeria. These measures includes the repeal of laws that are inimical to foreign investment growth, promulgation of investment law, various overseas trips for image laundry by the president, among others.

The need for foreign direct investment is born out of the underdeveloped nature of the Nigeria’s economy that essentially, hindered the pace of her economic development. Generally, policies and strategies of the Nigerian government towards foreign investments are shaped by two principal objective of the desire for economic independence and the demand for economic development. There are four basic requirements for economic development namely. i)Investment capital ii)Technical skills iii)Enterprise iv)Natural resources.

Without these components, economic and social development of the country would be a process lasting for many years. The provisions of these first three necessary components present problems for developing countries like Nigeria. This is because of the fact that there is a low level of income that prevents savings, big enough to stimulate investment capital domestically or, to finance training in modern techniques and methods. The only way out of this problem is through acceleration of the economy by external sources of money (foreign investment) and technical expertise.

Foreign direct investment is therefore suppose to serve as means of augmenting Nigeria’s domestic resources in order to carryout effectively, her development programmes and raise the standard of living of her people. According to Nwankwo, G. O. 2 factors responsible for the increase need for foreign direct investment by developing countries are: oThe world recession of the late 1970s and early 1980s and the resultant fall in the terms of trade of developing countries, which averaged about 11% between 1980 and 1982. High real interest rate in the international capital market, which adversely affected external indebtedness of these developing countries. oThe high external debt burden. oBad macro economic management, fall in per capital income and fall in domestic savings. Foreign direct investments consist of external resources, including technology, managerial and marketing expertise and capital. All these generate a considerable impact on host nation’s production capabilities.

At the current level of gross Domestic Product, the success of governments policies of stimulating the productive base of the economy depends largely on her ability to control adequate amount of foreign direct investments comprising of managerial, capital and technological resources to boost the existing production capabilities. The Nigerian government had in the past endeavored to provide foreign investors with a healthy climate as well as generous tax incentives, but the result had not been sufficiently encouraging (as we shall see in this research).

Nigeria still requires foreign assistance in the form of managerial, entrepreneurial and technical skills that often accompany foreign direct investments. Total amount of income that will accrue to capital will be OR0BK0 while labour receives YBR0. Given that Q = F (K, L), the total output in this country is the area under the marginal efficiency of capital (MEC) curve and this output will be distributed between the two factors of production, that is labour and capital.

For foreign direct investment to take place, the returns to capital in the United Kingdom must be less than returns to capital in Nigeria, given that United Kingdom is more endowed with capital utilization In response to this differential in returns to capital, there will be capital movement from the United Kingdom to Nigeria and this will continue until the returns are the same in the two countries. The amount of capital moved from United Kingdom to Nigeria is in the form of foreign direct investment and hence, Nigeria’s stock of capital or investment fund is increased. 2. LITERATURE REVIEW AND THEORETICAL REVIEW 2. 1FOREIGN DIRECT INVESTMENTS AND DEVELOPMENT: PROPONENTS AND ANTI-PROPONENTS. 2. 1. 1 PROPONENTS — Most analysts believe that national and foreign private sector enterprise, if permitted to operate in a competitive market condition will offer developing countries the best prospects for speedy national economic growth. These analysts however do not view multinational capital as panacea to developing countries. Amongst the proponents of foreign direct investments are Peter Drucker, Harry Johnson, Gerald Mier, Sanjaja Hall, Paul Strcter, Carlos, F, Ludiak, l.

A, Manle, . F, Author Nwankwo and many more. Harry Johnson argued that foreign investments bring to the home country, “a package of cheap capital, advanced technology. Superior knowledge of foreign market for final products and capital goods, immediate inputs and raw materials”. Similarly, Drucker has argued that developing countries need to employ export oriented development strategies in order to meet their foreign exchange and employment requirements and that such orientation is much more likely to succeed if these countries can acquire “capital export markets”.

Such markets he maintained are precisely what multinational companies with their worldwide sourcing and marketing can offer. Gerald Mier contends that from the stand profit of national economic benefit, the essence of the case of encouraging the inflow of capital is that the increase in real income resulting from the act of investment is greater than the resultant increase on the income of the investor. This is also the view held by Mactougal when he stated that a moderate inflow of investment in an economy is beneficial.

The chief benefit of foreign direct investment, according to these writers, is the accompanying “package deal” of technical and managerial skill. This may be costly, difficult or impossible to obtain in other alternative investment means. The less developed a country is, the less able it is as a rule to utilize patents, technical advice and contract management assistance without taking the whole package. This view was supported by Penrose (1961) and Chenery (1966). 2. 1. ANTI-PROPONENTS — some analysts (known as the dependence school) are strongly opposed to pro foreign direct investment perspectives. Their arguments are based on series of studies and research carried out. Such analysts include Dos Santos, Ronald Multer, Cardose, Euzo Falleto, Dr. Fashola and many others. Theofonio Dos Santos argued that developing countries’ economic difficulties do not originate in their isolation from advanced countries, but that the most powerful obstacle to their development came from the way they are oined to their international system. Multer, R maintained that multinational corporations transfer technologies to developing countries that result in mass unemployment; that they monopolize rather than inject new capital resources; that they displace rather than generate local business and that they worsen rather than ameliorate the country’s balance of payment. Overall, the dependent school rejects the pro foreign direct investment analysts’ depiction of the benefits derived from participation in the international economy.

Dr Fashola, for example argued that most of the policies adopted by Nigeria since the SAP era are qualitative in nature and as such are yet to be effective in turning round for the better economic fortunes of the nation. More recently, a new body of literature emerged and challenged the pro-foreign direct investment optimist about the long-term negotiating and benefiting prospects of the world. What might be labeled the structuralized school has argued that developing countries may in fact experience a long-term decrease in their power over high technology manufacturing system.

Their arguments were based on what scholars learnt empirically about the behaviour and effects of multinational companies in developing countries. Results of some of their studies are. i)Bornshier and Jean in a multiple regression analysis of variance in growth of GNP per capital in 76 developing countries (Nigeria inclusive) between 1960 to 1975, found out that their flow of foreign direct investment were associated negatively with growth in income per capital.

Other studies by Michael Dolan and Brain Tomlin appeared basically to confirm Bormshier’s observations. Also, Robert Johnson in his regression analysis of growth per GNP in 72 countries between 1960 to 1978, found stocks of foreign direct investment to be positively associated with economic growth at statistically significant level for relatively advanced economies. He therefore concluded that once the size of a developing country is taken into account, the level of direct investment has no consistent effect on growth. i)Vincent Mahler (1976) carried out an analysis of 68 least developed countries and found a statistically significant association between income concentrated in the 6 percent to 20 percent of the population and foreign direct investment in manufacturing but not in mining and agriculture. iii)Several studies were also conducted to estimate the economic desirability of the technology brought to developing countries by multinational corporations.

It was found that royalty payments, technical tees, tie-in-clause leading to the purchase of over priced immediate goods, export restrictions and other limitations had resulted in technology acquisition during most of the sixties to become major burden In conclusion, considering the wide range of conflicting empirical studies on how foreign direct investment in developing countries affect the rate of aggregate growth, distribution of income, employment and some non-economic indicators like culture and political structures, one cannot draw conclusions from them with any minimal acceptable level of confidence.

Perhaps the warning of Arthur Nwankwo is appropriate in this context where he warned that no nation could provide for the welfare of its citizens as long as its economy is fettered. More so, many studies have shown that multinational corporations are highly adaptive social agents and therefore, the degree to which foreign direct investment helps or hurts a developing country will be heavily influenced by the policy choice of the host country. 3. 0 EMPIRICAL ANALYSIS 3. 1MODEL SPECIFICATION The under listed variables are used in building the model. FDIForeign Direct Investments GFCF Gross Fixed Capital Formation

GDPGross Domestic Product llPIndex of Industrial Production The models will therefore be: GPD = b0 + b1FDI + u………….. (equation 1) GFCF b0 + b1FDI + u…………… (equation 2) lIP = bo + b1FDI +u……………. (equation 3) These models, which are used in gauging and assessing the performance of the economy, make the economic indicators functions of the level of cumulative foreign direct investment. If we assume a linear relationship (logarithm), then the model equations become. Log GPD= b0 + b1Iog FDI + u……….. (equation 1) Log GFCF= b0 + b1log FDI + u………… (equation 2)

Log lIP= b0 + b1log FDI + u………… (equation 3) Fromthe model Log GOP=b0 + b1 FDI Log GOP=0. 159 + 1. 237 log FDI Standard Error (Se)=0. 158 Correlation coefficient (r)=0. 99 t1=1. 03 t2=0. 037 3. 2 Interpretation of Results The first noticeable thing about the above result is that Gross Domestic Product is positively related to foreign direct investments. The responsiveness of GDP to FDI to 1. 237 indicates that a one percent increase in foreign direct investment leads to a more than proportionate increase of 1. 24 percent in gross domestic product. A correlation coefficient of 0. 9 indicates a very strong relationship between economic growth (measured by GDP) and foreign direct investments, thus leading to the rejection of our alternative hypothesis and acceptance of our null hypothesis, which states that there is a relationship between foreign, direct investment and economic growth. Also, a test of the significance of the intercept and gradient of our model is found to be statistically significant through a test of standard error. Thus given that: H0 : a = 0 H1 : a + 0, for significance of intercept And H0 = 0 H1 : B + 0, for significance of gradient.

For t1 since the computed value of 1. 02 is less than 2. 042 (value from t table), we reject H1 and accept H0 which states that there is a relationship between foreign direct investment and economic growth. For t2 since the computed value of 0. 037 is less than 2. 042 (value from t table), we reject H1 and accept H0 which states that there is a relationship between foreign direct investment and economic growth. From the model Log GFCF=b0 + b1 FDI Log GFCF=0781 + 0. 873 log FDI Standard Error (Se)=0. 199 Correlation coefficient (r)=0. 95 Tl=9. 41 t2=41. 57 3. 3 Interpretation of Results

The results from this model shows that there exist a direct functional relationship between foreign direct investment and standard of living, such that the elasticity of gross fixed capital formation with respect to foreign direct investment is 0. 873. A correlation coefficient of 0. 95 indicates a very strong relationship between foreign direct investment and gross fixed capital formation (which could be used as a measure of standard of living). Also, a test of the significance of the intercept and gradient of our model is found to be statistically significant through a test of standard error.

Thus given that H0 : a = 0 H1: a + 0, for significance of intercept And H0: B = 0 H1 : B + 0, for significance of gradient For t1 since the computed value of 9. 41 is greater than 2. 042 (value from 1 table), we reject H0 and accept H, which states that the inflow of foreign direct investment has not affected the standard of living of Nigerians. For 12 since the computed value of 41. 57 is greater than 2. 042 (value from t table), we reject H0 and accept H, which states that the inflow of foreign direct investment has not affected the standard of living of Nigerians. 3. 4 Interpretation of Results

The above results show a positive relationship between foreign direct investment and industrial production. The elasticity of the index of industrial production with respect to foreign direct investments of 0. 14 indicates that one percent increase in foreign direct investment will lead to fourteen percent increase in the level of industrial output. The coefficient of explanatory variable of foreign direct investment is also significant, statistically at 8. 5 percent. The correlation coefficient of 0. 78 shows high positive relationship between foreign direct investment and index of industrial output.

Also, a test of the significance of the intercept and gradient of our model is found to be statistically significant through a test of standard error. Thus given that: Ho:a = 0 H1 : a + 0, for significance of intercept And H0 : B= 0 H1 : B + 0, for significance of gradient. For t1 since the computed value of 936 is greater than 2. 042 (value from t table), we reject H0 and accept H, which states that the inflow of foreign direct investment is not associated with the rate of increase in index of industrial production. For t2 since the computed value of 7. 05 is greater than 2. 42 (value from t table), we reject H0 and accept H1 4. 0 CONCLUSIONS AND POLICY RECOMMENDATIONS 4. 1 CONCLUSION Given the above situation and the fact that Nigeria’s economic recovery efforts and growth requires major private sector investment in modern equipments that can industrialize the agricultural sector and the economy as a whole, then the Nigeria’s foreign investment policy should move towards attracting and encouraging more inflows of foreign capital by moving ahead with economic programmes that includes measures easier set-up and expansion of businesses.

In the years ahead, Nigeria (and many other African and third world countries) in trying to pave way for more foreign direct investment faces greater problems, especially with poor external image problem and particularly the concept of European Economic Unity that includes Eastern Europe. This translate to the fact that investment flows that would ordinarily have come from countries of surplus capital like Western Europe to capital deficient countries like Nigeria would now be going to poor European Economic Communities which includes Eastern Europe.

Except African countries are able to adopt new strategies, this development will further compound the crises of under-development confronting countries like Nigeria. A very important challenge of management in the coming years would therefore be the development of indigenous technology and entrepreneurial capabilities as the involvement of multinational companies in our economy may dwindle as a result of new bigger and attractive opportunities that are likely to emerge from Europe.

With the up and down movement of foreign direct investment, Nigeria needs to juxtapose foreign investment with domestic investment in order to maintain high levels of income and employment. The problem therefore does not lie so much with the magnitude of investment flows to Nigeria as with the form in which it Is given. We could emphasize that foreign investment cannot contribute much to the economic development of Nigeria if it is directed primarily to capital supply than to investment projects. Foreign investment can be very effective if it is directed at improving and expanding managerial and labour skills.

In other words, the task of helping a “poor beggar” can be made less generous and yet more fruitful if it is directed at teaching him a trade rather than giving him food to eat. The analysis presented in this work does not offer a simple version of multinational corporation investment in Nigeria because the picture in complex. Foreign direct investment can make a valuable contribution to third world countries’ development in general and Nigeria in particular, but not all foreign direct investment doe so.

Greater flows of investment fund’s climate in the Nigeria economy are important but a good investment climate is not synonymous with what multinational corporation prizes most. In conclusion, in order to further improve the climate for foreign investment in Nigeria, the government must appreciate the fact that the basic element in any successful development strategy should be to encourage domestic investors first before going after foreign investors, considering the fact that they constitute the bulk of investment activities in the economy.

Thus, the most effective strategy for attracting foreign investment is to make the Nigerian economy very attractive to Nigerian investors first. 4. 2 POLICY RECOMMENDATIONS The following policies are hereby recommended to policy makers and government, if it is desired that foreign investment contribute to the growth and development of Nigeria. ? The Nigerian government should encourage the inflows of foreign direct investment and contact policy institutions that can ensure the transparency of the operations of foreign companies within the economy. In evaluating foreign direct investment, the screening process should be simplified and improved upon. For example, export investment projects that consistently generate positive contribution to national income can be screened separately and swiftly, while projects in import competing industries should be screened separately. ? Efforts should be made to engage in joint ventures that are beneficial to the economy. Joint ventures provide for a set of complementary or reciprocating matching undertakings, which may include a variety of packages ranging from providing the capital to technical cooperation.

The government should intensify the policy to acquire, adopt, generate and use the acquired technology to develop its industrial sectors. ? Efforts should continue, this time with more vigor at ensuring consistency in policy objectives and instruments through a good implementation strategy as well as good sense of discipline, understanding and cooperation among the policy makers. ? The Nigerian government needs to come up with more friendly economic policies and business environment, which will, attracts FDI into virtually all the sectors of the economy. The Nigerian government needs to embark on capital project, which will enhance the infrastructural facilities with which foreign investors can build on. ? The current indigenization policy should be pursued to the letter as a way of preventing absolute foreign ownership in the key sector of the economy. ? The Nigeria government should also carry out the liberalization of all the sector of the economy so as to attract foreign investors, so that the current efficiency and growth noticed in the telecommunication sector can also be enjoyed there. For Nigeria to generate more foreign direct investments, efforts should be made at solving the problems of government involvement in business; relative closed economy; corruption; weak public institutions; and poor external image. It is therefore advised that the government continues with its privatization programme, external image laundry, seriousness and openness in the fight against corruption, and signing of more trade agreements. REFERENCE Ahmed A. (1993) Strategies for foreign investment in Nigeria. A central Bank perspective Economic and Financial Review volume 26.

Ajayi S. I. (1992) An Economic Analysis of Capital flight from Nigeria: World Bank Working Paper series No 993. Aremu, J. A(1997) Foreign private investment: Issues, determinants and performance. Paper presented at a workshop on foreign investment policy and practice, organized by the Nigeria institute of Advance legal studies, Lagos, March Arthur, Nwankwo (1981) Can Nigeria survive 4th dimension publication. Enugu. Berham N. J. (1970) National Interests and Multinational Enterprise: Tensions among the North – Atlantic Counties.

Engle Wood Clifts: Prentize Hall. Bhattachary A, Montie P. J and Shame (1997) How can sub-saharan African attract more private capital in flow. Buckley P & Casson M. (1976) The future of multination enterprises: Macmillan press Limited, London. Caves R. E. (1988) Exchange rate movement and foreign direct investment in the United State, New York University Press. Classens S. (1993) Portfolio Capital flows: Hot or Cold? The World Bank Economic Review Vol. 9, No1 page 153-174. Drucker P. F. (1974) Multinationals and developing countries: myths and Realities.

Foreign affairs No. 53. Dunning J. H. (1994) Re-evaluating the benefits of foreign direct investment, Transnational Corporations, Vol. 3, February, No 1, 23-51. Federal Republic of Nigeria (1988) industrial policy of Nigeria: Policies, Incentives, Guidelines and Institutional frame work. Federal Ministry of Industries, Abuja. Fernandez – Arias, E. (1996) The new wave of capital inflows: push or poll? Journal of Development Economics Vol. 48, 389 – 418. Frost K. and Stein J. C (1991) Exchange rates and foreign direct investment: an imperfect capital market approach.

Quarterly Journal of Economics, Vol. 4, No 4, 1191-1217. Hartman D. G. (1984) Tax Policy and foreign direct investment in the United States. National tax journal, Vol. 34, No 4, December, 175 – 488. International Monetary Fund (1985) Foreign private investment in developing countries. A study by the international monetary fund research Department. Occasional paper No 33. Meier G. M. (1984) leading issues in economic Development. Oxford University Press, 4th edition. Mahmoud M. I. (1986) The Determinants of foreign investment in African countries, Dakar, Senegal.

Nigerian Economic Society (1988) Rekindling Investment for economic Development in Nigeria. Selected papers for the annual conference. Nwankwo G. O. (1988) foreign Private Capital flows to Nigeria 1970 – 1983, Economic and financial Review. Volume 28, March. OjO . M. O. (1988) Nigeria Economic Crisis: Causes, Solutions and Prospects. A paper delivered at the AHQ garrison annual officers training, April. Stephen J. K. (1997) Foreign Direct investment, Industrialisation and social change. Contemporary studies in Economic and financial Analysis. Vol. 9, JAI Press, Greenwich connecticut.

In Nigerian tertiary Institutions In the last two decade without a corresponding increase In bed space had resulted In acute shortage of rooms in the hostel thereby overstretching the capacity of the existing structures they were originally meant for. Hostel accommodation Is one of the essential factors in every learning environment. In Nigeria most Institution of higher learning are owned by the government as such accommodation cannot be adequately provided to cater for the highly populated Institutions, Inadequacy and

Insufficient hostel accommodation has led to overcrowding In rooms and some students living outside campus which In turn affect their learning. Built-operate- Transfer (BOOT) emerged as one of the tool In helping to address the situation which becomes a burden to government. BOOT is a type of project delivery that involves different parties whom each contribute in order to see the success of the project. It is a private agreement to build and operate in a public infrastructure project.

The consortia then secure their own finance to sponsor the project. The consortium then own, maintains and manage the facility for an agreed concessionary period and recover their investment through charges or toll free. After the concessionary period, the consortia transfer the ownership and operation of the project to the government or relevant authority. This study takes Federal College of education (Technical) Biochip as a case study.

Government Ministries, such as Federal Ministry of Education who govern the affairs of the school were consulted. Questionnaire and verbal interview were employed in data collection. After the analysis it was found that construction of hostels under BOOT is yielding a positive impact. The findings should serve as a good baseline for the government in solving the accommodation problem and overcrowding in the higher institution of learning in Nigeria.

Therefore there is need for the government to give more support to Public Private Partnership sector so that accommodation problem will be solved. By Amnion The tremendous growth experienced in Nigerian tertiary institutions in the last two aced without a corresponding increase in bed space had resulted in acute structures they were originally meant for.

Hostel accommodation is one of the essential factors in every learning environment. In Nigeria most institution of higher adequately provided to cater for the highly populated institutions, inadequacy and insufficient hostel accommodation has led to overcrowding in rooms and some students living outside campus which in turn affect their learning. Built-operate- Transfer (BOOT) emerged as one of the tool in helping to address the situation which