Multinational Corporation Executives' Reluctance to Invest in the Telecommunications Sector of Nigeria: A Multiple Case Study

Investments by multinational corporations (MNCs) have contributed to the economic growth in many emerging nations. While Nigeria the largest economy in Africa has benefited from (MNCs) investments, she continues to struggle to attract Foreign direct investment (FDI) as a source of capital in financing infrastructural development of the telecommunications sector. FDI in the telecommunications sector is a critical catalyst for increasing economic development, improving poverty levels, and reducing unemployment. The purpose of this qualitative multiple case study was to gain an understanding of MNCs executives' reluctance to bring FDI into Nigeria's telecommunications sector. The study utilized qualitative multiple case study approach and face-to-face semi-structured open-ended interviews with special focus on the opinion of MNCs business executives to gain insight on the stagnant inflow of FDI into Nigeria. A total of 18 interviews of MNC's were conducted on six business operations managers, six business investment managers, and six business development managers in the global telecommunications and allied corporations in the United States. The data was analyzed using thematic analysis to develop common themes. While the results indicated an active interest in making investments in Nigeria, they illuminated several perceived deficiencies in the country. The themes revealed were large market, power failure, corruption, safety, poor road network, political stability, and investment incentives, which constituted the basis for the reluctance of MNCs' to invest in Nigeria. The study concluded the need to develop policy positions that would influence the investment profile of Nigeria. The implication of the study was that MNCs' executives were unlikely to commit investment resources in a country exposed to considerable investment risks. The study recommended that further research on the consequences of corruption on Nigerian corporations and government agencies on a wider scope was critical.