Foreign Direct Investment and Stock Market Performance in Nigeria

Student: FAITH IKOGENEONE AYOMONIKA (Project, 2025)
Department of Accountancy
Auchi Polytechnic, Auchi, Edo State

Abstract

This study examined foreign direct investment and stock market performance in Nigeria. The study adopted a longitudinal research design. The population of this study is all quoted multinational entities in the Nigeria Exchange Group from 2014-2023. This study employed the ADF and Philips-Perron (PP) unit root test, panel Johansen cointegration test, VAR model, dynamic ordinary least square regression, full modified ordinary least regression and pairwise granger. The results reveals that; Stock market capitalization has no significant relationship with Foreign Direct Investment in Nigeria; Stock market turnover has no significant relationship with Foreign Direct Investment in Nigeria; Stock market size has no significant relationship with Foreign Direct Investment in Nigeria. Based on these findings, the study recommends that; Policy makers should concentrate effort on long run policies that will stimulate capital market development in Nigeria. The financial institutions should be strengthen and a healthier and more robust friendly foreign investment policies should be created and maintained. Lastly,the study recommends that government should partner with foreign investors to enhance capital market development in Nigeria.

Keywords
foreign direct investment stock market performance nigeria
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