Accelerating Economic Growth in Nigeria, The Role of Foregn Direct Investment

The study examines the impact of Foreign Direct Investment (FDI) on Economic Growth in Nigeria. Using foreign direct investment, exchange rate and total domestic savings as the explanatory variables, we examine the effect of Foreign D irect Investment (FD I) on Gross Domestic product, our proxy for economic growth and the dependent variable. Employing the OLS regression technique, our result showed that Foreign Direct Investment (FDI) has significant impact on Economic Growth in Nigeria during the period under study. We therefore conclude that Foreign Direct Investment (FDI) performs a role in accelerating economic growth in Nigeria. Although the relationship between FDI and economic growth was found to be statistically insignificant, but there still exist a positive relationship. Government should strive to create conducive environment for foreign direct investment in Nigeria through appropriate fiscal, monetary and general economic policies and stable political environment.