Conference Paper

Foreign Portfolio Investment and Inclusive Growth in Nigeria

This study examined the impact of foreign portfolio investment on inclusive growth in Nigeria for the period 2010 to 2024. The specific objectives were to examine the impact of total portfolio investment on gross domestic product per capita, determine the relationship between market capitalization and gross domestic product per capita, and evaluate the impact of exchange rate on gross domestic product per capita in Nigeria. The study employed an ex post facto research design with secondary data sourced from the Central Bank of Nigeria Statistical Bulletin. The data were analysed using multiple regression analysis with the aid of EViews 13. The findings revealed that total portfolio investment had a negative and statistically insignificant impact on gross domestic product per capita (β = -6.32E-10, p = 0.8744). Market capitalization had a positive and statistically significant relationship with gross domestic product per capita (β = 1.18E-08, p = 0.0008). Exchange rate exhibited a negative but statistically insignificant impact on gross domestic product per capita (β = -3.03E-07, p = 0.1701). The overall model was statistically significant with an R-squared of 0.916 and F-statistic of 39.98 (p = 0.000003). The study concluded that market capitalization significantly enhances inclusive growth, while total portfolio investment and exchange rate do not exert statistically significant effects. The study recommended deepening the capital market, channeling portfolio investment toward productive sectors, and pursuing exchange rate stability. Keywords: Exchange Rate, Foreign Portfolio Investment, GDP Per Capita, Inclusive Growth, Market Capitalization