Abstract
This study investigates the impact of insecurity on foreign direct investment (FDI) and economic development in Nigeria using a quantitative research design. Secondary data from 2013 to 2025 were analyzed using regression models to determine the relationship between insecurity, FDI inflows, and GDP growth. Findings reveal a statistically significant negative relationship between insecurity and FDI, with a regression coefficient of -0.2471 and an R² of 0.969, indicating that 97% of the variation in FDI is explained by insecurity levels. Similarly, FDI positively influences GDP growth, with a coefficient of 4.3572, confirming its mediating role. Survey responses from stakeholders further corroborated these statistical results. Specifically, 78% of respondents affirmed that insecurity had discouraged foreign investors, while 66% indicated that investor confidence had significantly declined due to security threats. Additionally, 72% of participants believed that FDI is essential for economic development, particularly in critical sectors like infrastructure, agriculture, and manufacturing. Interestingly, the regression also showed a positive coefficient (1.0703) between insecurity and GDP growth, although this result may reflect data complexity or model limitations. Nonetheless, the impact was statistically significant (p < 0.001), suggesting an indirect influence possibly mediated by government spending or resilience strategies. The study concludes that insecurity severely undermines FDI and, by extension, economic development. It recommends strengthening national security, promoting investor-friendly policies, and enhancing regional stability to foster sustainable economic growth in Nigeria.