This study investigates the Macroeconomic
Determinants of Economic Growth in Nigeria during the
period from 1990 to 2018. The primary objective of this
research is to assess how macroeconomic variables impact
Nigeria's economic growth. The specific goals include
analyzing the patterns of capital, economic openness,
foreign direct investment, gross domestic product (GDP),
and interest rates concerning economic growth in Nigeria.
Additionally, this study seeks to examine the long-term
relationships among these economic growth variables.
Data for this research were obtained from the World
Development Indicators, as well as the annual reports and
statements of accounts from the Central Bank of Nigeria
spanning the years 1990 to 2018. The variables considered
include foreign direct investment, economic openness,
capital, GDP, and interest rates. The study employs
quantitative data analysis tools, adhering to standard
econometric principles. Estimation techniques applied
include the Philip Perron unit root test, auto-regressive
distributed lag analysis, and Error Correction Model
(ECM).
The findings indicate that there is no long-term
relationship among the variables related to economic
growth. Furthermore, all the variables exhibit a positive
association with economic growth in Nigeria, with the
exception of foreign direct investment. The results also
suggest that capital has significantly contributed to
economic growth in Nigeria. The study recommends a
deliberate focus on increasing economic openness to foster
a conducive environment for both foreign and domestic
investments, given their substantial impact on economic
growth.
Keywords : Macro Economic determinants, Interest rate, Foreign Direct Investment, Openness, Economic growth.