ABSTRACT

Government should provide an enabling environment for investment to be productive in Nigeria since real interest rate makes investment to go higher, that is investment is a kind of medium that links Investment and Economic growth. Secondly, Government should make policies both monetary and fiscal that will aid investment to be productive in other to be able to achieve the relationship between interest rate and economic growth and finally I recommend that the government and financial authorities should implement policies that favour income growth such as job creation and encouragement of small scale businesses which will in turn increase investment significantly