Impact of Interest Rate on Investment in Nigeria

Abstract

The study investigates the Impact of Interest rate on Investment in Nigeria.  Multipleregressionswas used as the statistical method for the study which reveals that high interest rate negatively affect investment.  In line with the findings, the study made the following suggestions; that relevant monetary authority should evolve policies that will encourage savings and reduce prime lending rate to genuine investors, among others.   It further recommend that since there is a direct relationship between income and savings, relevant authority should consider economic policies that will increase income level of the people in order to mobilize investment.

Keywords: Interest rate, Investment, lending rate.