ABSTRACT

 The study analyzed the impact ofdomestic investment on economic growth in Nigeria using annual data spanning theperiod of1980 - 2018. Specifically, the study examined the impact ofdomestic investment on economic growth in Nigeria. And determined the nature of the causal relationships between economic growth and domestic investment in Nigeria. The study adopted ex-postfacto research design. Secondary data sourced from Central Bank ofNigeria Statistical bulletin was used for the study. Ordinary least square (OLS) technique and the Granger Causality test were used to test the objectives ofthe study. The result revealed that domestic investment has a direct and significant impact on economic growth in Nigeria; there is unidirectional causality between domestic investment and economic growth in Nigeria. The study concludes that domestic investment is not only the amount of goods purchased or accumulatedper unit time which are not consumed at the present time, but could also be seen and used as an effective policy tool which the government can employ to achieve its varied objectives. It is pertinent to note, ifNigeria economy will make a meaningfulprogress, there is need to increase investment in the domestic economy, encourage industrialization, promote agricultural output drastically and above all draft developmental document that addresses how the country will achieve sustainable high level ofeconomic growth. We recommended that there is a needfor government to create enabling an environmentfor domestic investment to rise through the adoption ofmacroeconomic policies which will boost investment opportunities in the economy thereby contributing to the growth of the economy.