Promoting the growth and development of the Nigeria economy can be influenced by trends of gross fixed domestic investment or indirectly through policies aimed at stimulating the flow of foreign direct investment into the country. This study analyzed the impact of foreign direct investment on Nigeria economic growth from the period of 1990 - 2013. Data used in this study is secondary; sourced from various publications of the Central Bank of Nigeria, such as; Statistical Bulletin, Annual Reports and Statement of Accounts. The regression analysis of the error correction model is the estimation technique employed in this study to determine the relationship between Direct Foreign Investment on economic growth. The findings showed that the ECM is significant and correctly signed. Foreign direct investment has significant relationship with economic growth. The paper recommended that government should create macroeconomic policies that would attract and retain FDI in the country. Also, financial markets and institutions should be strengthened and effectively regulated.
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