Improving Nigeria's Investment Climate for Enhanced Economic Growth

Book excerpt: The slow economic growth rate experienced by most developing countries including Nigeria in the late 1970s and the early 1980s even now manifested itself in the form of macroeconomic imbalances, wide saving-investment disparity, high rate of inflationary spiral, high debt overhang etc. Hence, the study examines improving the Nigerian investment climate for enhanced economic growth. The data was sourced from the Central Bank of Nigeria (CBN) Bulletin and National Bureau of statistics. The level testing results reveal that none of the variables were stationary at its levels. However, the absolute values of the variables in the first-difference is greater than the Mackinnon Critical value as provided by EVIEWS Package, which means that we fail to reject the null hypotheses for the non-stationary series. It was observed that many reasons accounted for the poor economic performance of the Nigerian economy, among is the decline in the investment rates. It is thus recommended that polices that will improve and encourage investment should be institutionalized, stable macroeconomic framework pursued, favorable fiscal regime promoted and the deepening and diversifying the financial sector strengthened to achieve investment objectives.