Domestic Investment and Its Role in Economic Output of Nigeria (2000-2024)

Nigeria is endowed with abundant human and natural resources, but investment levels have been relatively low and volatile, undermining the economy’s productive base. Using ex-post-facto research design and ordinary least square research estimation technique, the study examined domestic investment and its role in improving the level of economic outputs of Nigeria for the period 2000 to 2024. The dependent variable economic output was represented with Real Gross Domestic Product (RGDP) while the independent variables include Domestic Portfolio Investment (DPI), Corporate Domestic Private Investment proxied by Banking Sector Credit to Private Sector (BCPS), and Gross Fixed Capital Formation (GFCF). The data were sourced from the Central Bank of Nigeria Statistical Bulletin and analyzed using the Ordinary Least Square regression technique. The result showed that corporate domestic private investment proxied by bank credits to private sectors (BCPS) was positive and significant, it grew the RGDP significantly by 0.2110. The coefficient of Gross fixed capital formation (GFCF) and domestic portfolio investment (DPI) were positive but statistically insignificant, they increased RGDP by 0.1576 and 0.0138 respectively. The study also found a joint significant effect of the variables on RGDP. From the findings, the study concludes that domestic investments play key roles in growing the national output of Nigeria and recommended that government should intensify efforts to further encourage the domestic investors through enacting favorable policies and giving the private sector adequate financial support in order to enhance their domestic investment capacity.

Domestic Investment, Domestic Portfolio Investment, Economic Output, Fixed Capital Formation, Bank Lending to Private Sector

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