3.1. NIGERIA'S FOREIGN POLICY UNDER OLUSEGUN OBASANJO.

CHAPTER THREE.

3.0 INTRODUCTION.

This chapter will discuss the reflections of Nigeria's Foreign Policy under Obasanjo, Umaru Yar'Adua, Good luck Jonathan and Muhammadu Buhari administrations as well as the factors that determine the inflows of Foreign Direct Investment (FDI). The pursued of foreign policy is essentially designed or geared towards the achievement of national interests. The pursuit of Nigeria's Foreign Policy began in earnest after the attainment of Independence in October 1, 1960. At independence, the country's foreign policy sought to achieve the following objectives: promoting of the economic well-being of Nigerians and Africans; promotion of Nigeria'a territorial integrity; eradication of all forms of racism and colonialism from African continent; protection of the rights of black men all over the world; and promotion of international peace and security (Ogwu, 1986:8). It is very pertinent to note that, Nigeria's foreign policy since independence was geared toward attracting Foreign Direct Investment into the economy in order to diversify the economy, increase Growth Domestic Product of the country, create more jobs opportunities for her teaming population and increase her exports and foreign earnings. These objectives or goals of the Nigeria's foreign policy have constantly been maintained despite numerous changes in government.

3.1. NIGERIA'S FOREIGN POLICY UNDER OLUSEGUN OBASANJO.

According to Umara (2014:25), Foreign policy are formulated towards attaining specific objectives infused on national interests across the globe. Indeed, both foreign policy and government pronouncements in the country emphasize the priority of national interest in its foreign relations.

As regards to the reflection of Nigeria's foreign policy under the administration of President Olusegun Obasanjo was merely a shift from an African-centred to a global-focused. Akinterinwa (2004) argued that, with the emergence of President Obasanjo, there was a paradigm shift from an African-centred to a global-focused foreign policy. According to him, Nigeria's foreign policy still remained essentially African-focused at the political level, while it was globally centered at the economic level. The poor situation of the Nigerian economy inherited by Obasanjo, coupled with political vulnerability at the time demanded new tactics and strategies, and indeed, prompted the need to focus greater attention on extra-African actors without necessarily implying any form of neglect of Africa. Thus, Nigeria emphasized the economic factor to the detriment of political consideration.

The central focus in Obasanjo's administration fundamental shift of Nigeria's foreign policy thrust in a globalizing international environment is that Nigeria and more importantly, the Nigerians, stood to benefit from globalization as thrust of Nigeria's foreign policy. Put differently, the "concentric circles" principles that had guided the Nigeria's foreign policy was inadequate and needed to be reconceptualised to reflect contemporary realities by making its epicentre consideration to the Nigerian people. In view of this, Ambassador Oluyemi Adeniji considers that, " concentricism as a foreign policy guide, has to be made constructive and beneficial, and that the focus of a constructive and beneficial foreign policy should first of all be the Nigerian people". By implication, anything Nigerians should be the real focus (Akinterinwa, 2004:452).

In essence, constructive and beneficial foreign policy direction of the Obasanjo administration was intended to address and redress the perceived inadequacy inherent in concentricism was not at all an objective but a means, it was more or less a foreign policy tactics that had not been fully taken advantage of, and as a means to an end, concentricism had have focus (Akinterinwa , 2004:453).

3.1.2 NIGERIA'S FOREIGN POLICY UNDER LATE UMARU MUSA YAR'ADUA.

President Obasanjo was succeeded by the Late Umaru Musa Yar'Adua, who was reputed to have introduced the concept of " Citizen Diplomacy" as the thrust of Nigeria's foreign policy (Ogunsanwo, 2009:19). According to Agbu (2009:52), citizen diplomacy is a political concept depicting involvement of average citizens engaging representatives of another country or cause either inadvertently or by design. He stressed that the concept sometime refers to ''Track Two Diplomacy'', which connotes unofficial contact between people of different nations, as differentiated from official contacts between governmental representatives. He argued that the concept was construed by Nigeria under Yar'Adua to mean that, Nigeria's foreign policy would henceforth be the Nigerian citizens at home and in the Diaspora.

Recalling the observation by Nwakama(2007), Chief Ojo Maduekwe, the then Minister for Foreign Affairs articulated what he called the new framework of Nigeria's foreign policy under Yar'Adua's administration known as ''Citizen Diplomacy". This was in response of feelings and reactions of the citizens that the past endeavours have not been felt by the ordinary Nigerian citizens. In a statement made by the Late President, Umaru Musa Yar'Adau, he said that, " the thrust of my foreign policy will first of all be Nigerians interest because our policy must be well defined under our national interest and then the interest of our sub-region and then the Africa and then the interest of world peace. That is the progression of my foreign policy thrust and that would inform interaction in foreign affairs".

Notwithstanding, at the time when President Yar'Adua was fully committed to fulfilled the objectives of his foreign policy, it was worthy of note that his health had been severely threatened. While he was trying to manage his ill-health, Yar'Adua made no provisions for the Vice President to act in his absence. Thus, the consequence was that, the ship of the Nigerian state was sailing rudderless on the international waters of foreign policy; without functional institutions and without a leader, Nigeria's foreign relations and indeed the state of Nigeria went into coma, thereof, Yar'Adua also went into coma in Saudi-Arabian hospital. This eventually led to the death of Late Yar'Adua on May 5th, 2010. After the demise of the Late Yar'Adua, his Vice President, Good luck Ebele Jonathan, took over the Mantle of leadership as a substantive president where he continued to handle the administration of the state respectively.

3.1.3 NIGERIA'S FOREIGN POLICY UNDER PRESIDENT GOODLUCK EBELE JONATHAN.

The foreign policy position of the administration of President Good luck Jonathan who succeeded the Late Yar'Adua has generally perceived to be a continuation of the foreign policy thrust of his predecessor (Chidozie et al, 2004). In his capacity, Jonathan embark on a number of diplomatic shuttles, as part of a deliberate attempt to reassure the world that Nigeria was well and secure despite the internal political challenges the country was going through.

After president Goodluck completed the tenure of Late Yar'Adua, he then contested and won the presidential election during the 2011 general elections with massive support and expectations among many Nigerians. The president development emphasis was anchored on transformation programs (Transformation Agenda) which according to him was to totally transform every decaying sectors in Nigeria. It was also the time Nigeria was witnessing high level of insecurity occasioned by the activities of BOKO-HARAM in the North East, corruption and youth restiveness among other problems. all these factors contributed negatively to the global perception of Nigeria and Nigerians. In order to address these problems, president Good luck's foreign policy direction focused on investment and economic cooperation within the global community. The foreign policy direction was then propelling the economic and industrial development of the country.

Nonetheless, Good luck renewed diplomatic and bilateral relationship with many countries of the world toward mutual relationship which in turn would lead to the realization of his foreign policy. He also addressed international gathering to help Nigeria in fighting BOKO-HARAM terrorist activities as well as corruption. He also urged Europe and Asian giants to invest in Nigeria's private sectors especially in the key areas of energy, downstream sector and agriculture. According to Ajaebili (2011) President Goodluck stressed that, "there is urgent need for a holistic effort by the government, corporate bodies and individuals to stamp out the evils of insecurity, crime and corruption, so that the country will be relatively safe for both Nigerians and foreigners".

3.1.4 NIGERIA'S FOREIGN POLICY UNDER PRESIDENT MUHAMMADU BUHARI.

President Muhammadu Buhari who assumed office on 29th May, 2015 as a democratically elected president of Nigeria has taken some new directions in his foreign policy largely in line with his party's campaign manifesto which promised the electorate that Nigeria's national interest will guide his foreign policy, after which his administration will focused on the sub-region of West Africa. Immediately after taking oath of office, he wasted no time in embarking on a high level of diplomatic mission to the Lake Chad countries viz: Chad, Niger and Cameroon to drum up support for the fight against insurgency that nearly overwhelmed his predecessor's administration.

Worthy of note is that, the president has not deviated from his three cardinal agenda (i.e. fight against insecurity, corruption, economy/job creation) even in his foreign policy implementation. This can easily be tracked from the president's foreign travels, which have to do with the fight against corruption and negotiations to repatriates Nigeria's money stashed abroad back to the country, to securing international commitment in the fight against terrorism that has become a global phenomenon. He equally embarked upon finding ways of making Nigeria an economically viable country through diversification from oil dependency, and the increase in its technological advancements.

Notwithstanding, according to the Honourable Minister of Foreign Affairs, Geoffrey Onyeama, when Mr. President came on board, the immediate challenges that was faced was very clear and it was those challenges that informed the priorities of the government. The insurgency in the Northeast was presenting existential challenge to the country as well as serious economic issues. As far as these existing challenges are concerned, efforts were made to. minimize the contentious challenges that bedevilled the country.

3.2 DETERMINANTS OF FOREIGN DIRECT INVESTMENT (FDI) IN NIGERIA.

The issue of the determinants of Foreign Direct Investment (FDI) is somehow difficult to understand and generalize because the nature of business differs with their different requirements, so it is of great assignment for the foreign investors to find a better environment suitable for their investments. But generally, it can be agreed upon that, those factors suitable for domestic investments could be of great importance to foreign investments as well as the political, economic, sociocultural and geographical location of the country. It is also true that some determinants maybe more important at a given time than to another investors (Ajayi,2006).

Moreover, while it is difficult to determine the exact quantity and quality of FDI determinants that should be present in a location for it to attract a given level of inflows, it is nevertheless clear that a minimum of these determinants must be present before FDI inflows begins to occur. The suggested factors that could enhance the inflow of FDI according to Ajayi (2006) are as follows:

a-INFRASTRUCTURE:

Poor infrastructure is one of the main hindrance and obstacles of the FDI inflow in any country (Nigeria inclusive) , and good infrastructural facilities will surely make a nation more attractive to foreign investors, thereof, improve the qualities of domestic investment. Infrastructure covers many dimensions, ranging from roads, ports, railways and telecommunication systems to institutional development.

Ajayi (2006) stated that, good infrastructure increases the productivity of investment and can therefore stimulate FDI inflows. FDI depends on the infrastructure of the host country (Nigeria in particular), so , it is very imperative for every nation to develop her infrastructure in order to improve her domestic investment and also to attract foreign investors.

b- AVAILABILITY OF RESOURCES:

The availability of natural and human resources is of great interest to any nation domestically and also to bring the foreign investors into the country. Nigeria had the influence of FDI basically because of the presence of resources in the country. Traditionally, about 60% of Africa's FDI is located to oil and natural resources (UNCTAD,1999). The rising profits in the sector induced a flow of investment. Asiedu (2006) concludes that, besides market size, natural resources are the key determinants for foreign direct investment in Africa. Thereof, Nigeria is blessed with enough resources to attract the interest and inflows of FDI in the country. The availability of natural resources in a given country played an important role in attractive the level of FDI inflows. This is to say that natural resources are important determinant that attract the interest of foreign investors within a given country.

POLITICAL FACTOR:

The stability of political administration of a nation (Nigeria in particular) is of great significant to the operations of Multinational companies. The issue of security is also very paramount to foreign investors because failure attempt of the government to assure high level of security will discourage them to operate without undue risk of their both capital and personnel. A nation (Nigeria in particular) must ensure good and favourable policies that can ensure effective and successful inflows of foreign investors. This is to say that high level of political stability gives room towards attracting the inflows of FDI.

PRIVATIZATION:

This is another important factor that attract the interest of foreign investors. Some foreign investors can be attracted by privatization. This has to do with the fact that, some governmental companies are taken over by the private individual which could led to competition among the private ownership of productions. Competition is of great advantage to the final consumers because it gives room for multiple options and better environment for some foreign direct investment to operate successfully.

MACROECONOMIC VARIABLES:

This is also another considering factor that determines the inflow of FDI. Macroeconomic variables played an important role towards attracting the interest of foreign investors. These macroeconomic variables include income, investment, consumption, export, imports and so on. When they are not put in place, they will surely hinder the FDI inflows, and when they are perfectly taken into consideration, they facilitate the operations of FDI. Ajayi(2006) stated that the stability of macroeconomic variables such as ; low level of inflation, little external debt, stable currency, better GDP rate will surely encourage the interest of the FDI inflows in any country (Nigeria in particular). This is to say that; the absence of stable macroeconomic variables hinders the flow of FDI in a country respectively.

Notwithstanding, there exist other related factors to the above discussed as the determinants of FDI inflow in any country (Nigeria in particular). Like; Salako and Adebusuyi (2001:21) examined the empirical determinants of FDI in Nigeria. Their results indicated that, exchange rate; infrastructures development and credit to domestic economy were some of the main factors that influence FDI flows to Nigeria. It was also observed that, FDI was sensitive to domestic interest rate and real per capita income, while there is need to maintain political stability in order to attract foreign direct investors to Nigeria.

3.1. NIGERIA'S FOREIGN POLICY UNDER OLUSEGUN OBASANJO.

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