Title:
A JOURNAL ARTICLE ON THE EFFECT OF INTEREST RATE ON INVESTMENT IN NIGERIA

Authors:
Dr F.O.C Osunkwo, Nigeria

Abstract:

This study is on the effect of interest rate on investment in Nigeria. Data for the study were secondary data obtained from the CBN Statistical bulletin of various years. Being a time series data, the data were subjected for stationarity test using the augmented dickey fuller unit root technique and were found to be stationary at their first differencing. The autoregressive distributive lag (ARDL) model was used to analyze the data, the result shows that interest rate at current and lag values inversely related with investment in Nigeria. It is therefore recommended that government should reduce the interest rate on lending in order to boost productivity, encourage industrialization so as to create employment opportunities for the citizenry.