Effect of Insurance on Foreign Direct Investment Inflow to Nigeria

Nigeria poses a high return on investment and is on the search light of foreign investors. Nonetheless there are risks that face these investors in the country. It is therefore pertinent to expose the relevance of the insurance sector in absorbing the risk that could accrue to these investments coming into the country. The empirical study showed that insurance sector impacted positively and significantly on Nigeria''s foreign direct investment inflow. However there should be effective risk transfer mechanism and financial inter-mediation which gives the investor confidence in the risk management strength of the host country.