Foreign Direct Investment and National Development: Threats of Cyber Crime in Perspective

Abstract

This study examines how cybercrime affects Foreign Direct Investment (FDI) and national development in Nigeria, with a focus on the Federal Capital Territory, Abuja, between 2012 and June 2021. It highlights a strong link between FDI and economic growth, showing that increasing cyber threats such as cyber terrorism, identity theft, malware, cyber stalking, and financial fraud have undermined investor confidence. As a result, revenue generation, employment opportunities, business expansion, and overall economic progress have been negatively affected. Despite efforts by agencies including the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC), and the Office of the National Security Adviser (ONSA), cybercrime remains widespread. This is largely due to weak cybersecurity infrastructure, poor inter-agency coordination, limited technical capacity, and socio-economic challenges such as unemployment and skills mismatch. Using a descriptive survey methodology supported by interviews, questionnaires, field visits, and document analysis, the study identifies critical gaps in Nigeria’s cybersecurity framework, including delays in establishing the National Cybersecurity Coordination Centre (NCCC), underfunded sector-based Computer Emergency Response Teams (CERTs), weak enforcement of penalties, and insufficient training within security agencies. To address these issues, the study recommends strengthening inter-agency collaboration, improving technical skills, upgrading cybersecurity infrastructure, and incorporating emerging technologies such as artificial intelligence into security strategies. It emphasizes a multi-stakeholder approach to reduce cyber threats, restore investor confidence, protect FDI, and promote sustainable national development in Nigeria.