An Appraisal of the Determinants and Effect of Foreign Direct Investment on the Nigerian Economy

This study investigated the determinant effect of foreign direct investment on the Nigerian economy. The model used is estimated, using foreign direct investment, Exchange rate, inflation investment, and total export as the independent variables in against growth rate of gross domestic product as the dependent variable. Secondary data covering the period of 1980 – 2010 were extracted from CBN statistical bulletin. Data collected were analyzed using multiple regression analysis at 0.05 level of significance. Empirical findings also showed that investment impacted positively and significantly on economic growth in Nigeria. In addition, the result gathered indicated that a strong exportation of good and services as well as investment inflow in Nigeria promoted FDI .We found out that the export , exchange rate and investment enhanced the economic growth of the country while FDI and inflation rate, though with a positive relationship with growth , have a significant impact on growth in Nigeria The study then suggested that adequate efforts be made to mobilize desired gross national savings which would be big enough to attract direct foreign investment that will complement domestic savings towards raising capital formation to a level needed for industrial growth and development that will accelerate GDP growth in Nigeria. Keywords: Foreign Direct Investment, Economic Growth and Macroeconomic Policy; Lead and Correspondsing Author