ABSTRACT

The study examines the effect of exchange rate volatility on foreign investment in Nigeria for a period of 35 years (1981 to 2015). The data gathered for this study is a secondary time series data and a linear model was estimated using the OLS estimation technique. The study revealed that exchange rate volatility had a positive and significant effect on foreign direct investment in Nigeria. Based on the finding of this study, it is recommended that there is need to minimize exchange rate volatility and to keep exchange rates stable.