ABSTRACT

This research work was embarked upon with a view to empirically analyse the impact of capital formation and investment on Nigerian economic growth. The objectives were set to access the impact of capital formation and investment on economic growth in Nigeria. Ordinary Least Square (OLS) multiple regression analysis was used in carrying out the statistical analysis. The result shows that there is a positive relationship between domestic investment, public investment, capital formation and economic growth in Nigeria within the years under study. The hypotheses further showed that there is a significant relationship between public investment, savings and economic growth in Nigeria. It was concluded from the findings of the study that capital formation and investment have positive relationship with economic growth. It was recommended that government should encourage domestic savings by increasing interest rate in Nigeria, in order to garner investible from the citizens. This thus will translate to capital formation which, however, is the engine of growth of any economy.