Foreign Portfolio Investment Inflows (FPIIS) and Nigerian Economic Growth

The study examined the relationship between foreign portfolio investment inflows (FPIIs) and Nigerian economic growth for the period 1981 to 2021. In order to evaluate the effect of FPIIs on Nigerian economic growth, the following measures FPIIs, namely; Equity Foreign Portfolio Investment (EFPI), Bond Foreign Portfolio Investment (BFPI), Money Market Instrument Foreign Portfolio Investment (MMIFPI), Exchange Rate (EXCHR), Trade Openness (TROP) and Interest Rate (INTR) in relation to Nigerian economic growth proxied with Real Gross Domestic Product (RGDP) in Nigeria. The data was gathered from secondary sources which were mainly World Development Indicators, CBN Statistical Bulletin and CBN Annual Report and analyzed with unit root test, Auto-regressive Distributed Lag (ARDL) Bound Co-integration test and ARDL Co-integrating and Long form. The finding revealed that: EFPI it has a p-value of 0.6722 and a p-value of 0.7512 on the short and long run respectively. EFPI has an insignificant effect on RGDP in Nigeria on the short run and long run; BFPI has a p-value of 0.6620 and 0.6841 both on the short and long run. BFPI has an insignificant effect on RGDP in Nigeria on both on the short run and long run; MMIFPI has a p-value of 0.5528 and a p-value of 0.5681 on the short and long run respectively. MMIFPI has an insignificant effect on RGDP in Nigeria on the short run and long run; EXCHR has p-values of 0.4480 and 0.6987 both on the short and long run. EXCHR has an insignificant effect on RGDP in Nigeria on both on the short run and long run; TROP has p-values of 0.2916 and 0.2024 both on the short and long run. TROP has an insignificant effect on RGDP in Nigeria on both on the short run and long run and INTR has p- values of 0.0084 and 0.5586 both on the short and long run. INTR has a significant effect on RGDP in Nigeria on the short run but insignificant effect on the long run.. In the light of the findings, it evident that measures of FPIIs used has mixed effects of RGDP in Nigeria. Hence, the study concluded that FPIIs does not have significant effects on Nigerian economic growth. It was recommended that the financial system's supervisory and regulatory frameworks be strengthened further to ensure strict adherence to various policies aimed at tracking and controlling indiscriminate capital transmission via foreign portfolio investment transactions in equity.