Foreign Private Investment and The Nigeria’S Economic Growth (1980-2013)
Despite the influx of foreign investments into sub-Saharan African economies, there seem to be no improved growth and development found in them. As a result, many scholars have been asking whether Foreign Private Investment has any good to offer African developing economies especially Nigeria. This work therefore intends to look at the impact of foreign Private Investment on the Nigeria’s economic growth from 1980 to 2013. In order to actualise this, the relationship between real GDP and foreign private investment and other selected macro economic variables such as inflation, exchange rate and interest rate were considered. From the tests conducted, there is presence of unit roots at their first difference which conformed with the Augmented Dickey Fuller (ADF) result as well. The terrace test and maximum Eigen value test on the variables identified one co integrating vector at 5% and 1% critical levels. Also, the ECM showed a long run relationship between real GDP and other variables in the model. All these suggest the activities of FPI have impacted favourably in boosting economic activities in Nigeria within the period of study. The researcher therefore, recommends that efforts and policies should be geared towards increase in foreign private investment in Nigeria.