Investment Financing for Economic Growth in Nigeria

Abstract

The study is an attempt to examine the relationship between investment financing and economic growth in Nigeria from 1980 to 2010, secondary data were used for the estimation and analysis with econometrics tool of Ordinary Least Squares (OLS) and E-views7.0 was used for the test of data and estimation. From the Augmented Dickey-Fuller (ADF) Test for Stationarity the data were found to be stationary and fit for use. The result clearly shown that investment financing has a positive and strong relationship with economic growth in Nigeria, from the findings some of the problems of investment financing in Nigeria that were identified are the issues of Inadequate macroeconomic framework and policy inconsistencies, Low level of domestic savings, and Low return on investment. Therefore, the research recommended that government should pursue strong macroeconomic policies, improve economic efficiency, and increase public investment towards human capital development and improve infrastructures in the country to enhance productivity and efficiency.

Keywords: Financing, Investment, Efficiency, Capital, Accumulation