What Drives IFDIs in the Nigerian Banking Industry?

To contribute to the understanding of FDIs in Nigeria, this study sought to empirically identify significant drivers of IFDIs in the Nigerian banking industry. Using a panel data set comprising 204 observations of 23 banks over the period 1996-2007 and industry-level, macroeconomic and sociological indices over the same period, fixed effects regression results indicate that profitability, volume of international trade and infrastructural development are significant positive drivers of IFDIs in the Nigerian banking industry. Hence, as it currently stands, the Central Bank of Nigeria needs to, for the moment, set aside her habit of wooing foreign investors into Nigeria's banking industry since the habit may not produce sustained results unless accompanied by far-reaching infrastructural and economic development