Asian Research Journal of Current Science

For every economy, investment remained an important factor that determines economic growth. The Nigerian economy requires a substantial level of investment to promote and enhance economic activities that guarantee an improved living standard of her populace. For developing countries to catch up with developed nations, the debate on the investment-growth nexus is still an ongoing issue in development economics. This research study therefore re-examines the impacts of investment on economic growth in Nigeria for a period of thirty-nine years, 1981–2019. Using the autoregressive distributed lag estimator, the study found a long run relationship existing between investment and economic growth in Nigeria. The research study established that investment negatively impacted on economic growth in the short run, whereas, in the long run, the relationship was not statistically confirmed. On the policy front, there is need for government to put effort on accumulation of productive capital so as to enhance expansion and effectiveness of investment activities which in turn speed up sustainable growth of the Nigerian economy.