FINANCIAL DEEPENING AND FOREIGN DIRECT INVESTMENT IN NIGERIA

ABSTRACT : This study examined the impact of FDI on financial deepening in Nigeria from 1980 to 2022.The research questions address the trend of FDI and financial deepening in Nigeria and the relationship betweenthe two variables. The study will used econometrics analysis basically cointegration and error correction modelto estimate the relationship between FDI and financial deepening . The findings of this researchrevealed thatforeign direct investment exert significant impact on financial deepening in Nigeria along the long run and shortrun horizon. The findings have implications for policymakers, the Nigerian government, investors, andbusinesses. Understanding the impact of FDI on financial deepening helpssuggests appropriate policy measuresand strategies to enhance Nigeria’s financial sector and spur economic growth. Additionally, the studycontributes to the existing literature on FDI and financial deepening, providing valuable insights for futureresearch in this area.

KEY WORDS: Foreign Direct Investment; Financial Deepening; Relationship