September 5, 2025

Impact analysis of foreign capital inflows on Nigeria’s economic growth

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Analysis reveals foreign capital inflows enhance economic growth in Nigeria, suggesting policy reforms for investment.

Foreign capital inflows significantly promote economic growth in Nigeria, highlighting the importance of investment.
The autoregressive distributed lag model indicates a 93% adjustment back to equilibrium in economic growth.
While foreign direct investment has a positive long-term effect, portfolio foreign investment negatively impacts growth.
Ineffective use of external debt suggests a need for better allocation towards productive investments.

Ahmad et al. (2025) studied this question.

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