The objective of this study was to determine the perceptions of the impact of political instability on Foreign Direct Investment (FDI) in Nigeria. In conducting this research, 350 questionnaires were distributed to some selected Foreign Direct Investors, Nigerians, and chief executive officers (CEOs) of indigenous companies. Out of the 350, 280 questionnaires were completed, returned and analyzed for this research. Chi-square statistics and frequency distribution were used for the evaluation of the perceptions of the impact of political instability on foreign direct investment in Nigeria. Two hypotheses were also developed on the same subject. The results of the tests conducted showed that fo reign investment is negatively affected by political instability in Nigeria. The results of the study suggest that it would be good public policy for the Nigerian Government to strike a balance between the nation's developmental objectives and the interest of foreign investors. The study makes some recommendations to help improve the climate for foreign investments.