Impact of Capital Inflow on Domestic Investment in Nigeria (2001-2022)

Student: Augusta Ikpemeshi Musa (Project, 2025)
Department of Banking and Finance
Auchi Polytechnic, Auchi, Edo State

Abstract

This study examined the effect of capital inflow on domestic investment in
Nigeria within the period 2001 -2022. The objective of the study is to ascertain
the impact of capital inflow and inflation and exchange rates on domestic
investment in Nigeria. The study made use of secondary data. Using data
sourced from CBN statistical bulletin 2022, the study employed the ordinary
least square regression method to carry out the analysis. The findings revealed
that Capital inflows, exchange rate have significant and positive impact on
domestic investment in Nigeria within the period 2001-2022 and inflation rate
had a negative impact on domestic investment. It is recommended among others
that Nigeria should attract more of foreign direct and portfolio investments and
borrow less for the purpose of economic growth, even as government should
continue to pursue trade and foreign exchange policies that would ensure
competitiveness of the export sector viability and economic growth

Keywords
CAPITAL INFLOW DOMESTIC INVESTMENT
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