Response of Foreign Private Investment to Exchange Rate Fluctuations in Nigeria 1981 – 2018


They examined the response of foreign private investment flows to the fluctuation of foreign exchange rate in Nigeria. The empirical analysis was conducted using ordinary least square multiple regression on E-view 10 Econometric model for the period 1981 to 2018. Preliminary analysis such Jarque Bera normality test and Johnson’s transformation test were carried out to confirm that the data were normally distributed and the transformation is effective. The result of the analysis indicates that foreign exchange fluctuation has negative relationship with foreign private investment in Nigeria. The findings of the study is that Bank lending interest rate, market capitalization, external debt and trade openness made significant effect on the foreign private capital flow in Nigeria while foreign exchange rate fluctuation does not have significant effect on foreign investment. Based on the findings of the study, we recommend as follows: i) That policy makers in Nigeria should seek and implement appropriate
exchange rate that will boost foreign private investment; ii) Ensure enlarge trade relationship by allowing international organizations and citizens access to the financial market in the domestic economy and; iii) To discourage external borrowing thus reduce debt service burden.


Foreign Private Investment; Exchange Rate Fluctuation; Economic growth.

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    English, Array-Array