ABSTRACT

The study examined tee effect of capital formation on economic growth in Nigeria for the period under study. In doing this an empirical research was concluded using secondary time series data spanning from 1981 to 2015 a linear model was estimated using the OSL estimation techniques and the key finding of this study suggest that capital accumulation has played a fundamental role in economic growth in Nigeria thus give credence to the Harrod-Domar Model which considers investment as a determinate of economic growth. Therefore it is recommended that there is need for a rekindled interest in the mobilization of domestic recourses to finance savings and economic growth. Furthermore, to improve savings and investment in Nigeria, particular attention should be paid to economic and social-cultural shocks specifically, the investment climate in Nigeria so as to ensure macroeconomic stability and economic development.