ABSTRACT

 The study investigates the impact ofPrivate sector on Nigerian economic growth from 1981 to 2018. Private sector is represented by private sector investment variable and also, the model in include other variables such as inflation rate, money supply and balance ofpayment in relation to economic growth which represented by gross domestic product. Being a time series data, to avoid spurious regression results, the first step was to test for the normal distribution or stationary of the data by using Jarque-bera descriptive test. The Johansen co-integration test result indicated that, Private sector investment and economic growth have long run significant effect on one another which contradicted by Granger Causal test independence causality running and advise government to focus mainly on short run planning. The estimated result shows that, there is insignificant andpositive relationship between inflation rate and balance of payment on gross domestic product, money supply as negative and statically significant on gross domestic product while Private sector investment as positive and statically significant on gross domestic product. The study therefore recommends that in order to boost economic growth in Nigeria, the government should protect infant industries, through raising of high tariffs on imported goods; encourage import substitution, support local industries and manufacturing sector by giving them incentives such as tax holiday, etc. in short run, in other to improve Balance ofpayment and private sector investment positively. Government should mitigate the level ofmoney supply corresponding with the level ofdomestic production to avoid capitalflight for effective growth and development