ABSTRACT

The study evaluate the impact ofinflation and investment on the Nigeria economic growth covering the period of 1981 to 2018. The objectives ofthe study were to investigate the impact ofinflation and investment on economic growth in Nigeria and ascertain the long run relationship between inflation and investment'on economic growth in Nigeria. The study employed Ordinary Least Square regression technique, unit root test and Johanson cointegration test, thus, revealed that; money supply has a positive but insignificant impact on economic growth in Nigeria, investment has a positive and significant effect on Nigeria economic growth, interest rate has a negative but insignificant effect on economic growth in Nigeria, consumer price index has a negative and significant impact in the economic growth in Nigeria and there exist a long run relationship between inflation, investment and economic growth in Nigeria. Based on the findings, the study recommended that; federal government should increase their investment capacity so as to boost economic growth and development in Nigeria. The government should reduce consumer price index (inflation rate) this will go a long way to increase economic growth in the long run. Interest rate should be reduce in order to boost investors ‘ confidence. Thus, remain significant in the Nigerian economy. The government shouldadopt allform ofcirculation ofmoney, thus discourage hooding. This will encourage investment and lead to development ofthe Nigerian economy