This research examines the impact of foreign direct investment (FDI) and Domestic investment on the economic growth of Africa’s biggest economy, Nigeria. There are a number of challenges bedeviling the trade and investment environment in Nigeria, such as multiple taxation, high cost of power supply, difficulty with access to loan, poor infrastructure, high cost of doing business, among others. These and numerous other factors culminate in the inability of Nigerian produce to be competitive in the export market and causing an impact on the foreign and domestic investment and by extension the economic growth of Nigeria. The United Nations Conference on Trade and Development (UNCTAD) disclosed in June 2020, that Foreign Direct Investment (FDI) into Nigeria went down by 48.2 per cent to $3.3 
billion in 2019 from $6.4 billion in 2018. The report shows that, FDI flows to Nigeria declined due to a slowdown in investment in the oil and gas industry. There were projections that the COVID-19 pandemic would severely curtail foreign investment in Africa in 2020. The downturn would be further compounded by low oil prices, dragging FDI flows down by 25 and 40 per cent.The study adopted the autoregressive distributed lag modelling approach and ordinary least
square in the analysis. The empirical results revealed that FDI and Domestic has a positive and significant relationship with economic growth in Nigeria within the period under review. The study concluded and recommended that Nigerian Government should implement policies and programs to improve standardization of bilateral trade agreements, stimulating growth of domestic Micro, Small and Medium Enterprises, MSMEs and renewed roadmap to increase Nigeria’s Foreign Direct Investment and Domestic investment. the nation may have recorded 
improvement on the Ease of Doing Business Ranking due to some recent policy measures, realities on ground would continue to differ if the highlighted challenges were not properly addressed. Finally, there is need to improve the educational policy of the country in order to raise thestock of human capital in the country that will make useful policies for the attraction for productive FDIs and Domestic investment in the country.

This research examines the impact of foreign direct investment (FDI) and Domestic investment on the economic growth of Africa’s biggest economy, Nigeria. There are a number of challenges bedeviling the trade and investment environment in Nigeria, such as multiple taxation, high cost of power supply, difficulty with access to loan, poor infrastructure, high cost of doing business, among others. These and numerous other factors culminate in the inability of Nigerian produce to be competitive in the export market and causing an impact on the foreign and domestic investment and by extension the economic growth of Nigeria. The United Nations Conference on Trade and Development (UNCTAD) disclosed in June 2020, that Foreign Direct Investment (FDI) into Nigeria went down by 48.2 per cent to $3.3 
billion in 2019 from $6.4 billion in 2018. The report shows that, FDI flows to Nigeria declined due to a slowdown in investment in the oil and gas industry. There were projections that the COVID-19 pandemic would severely curtail foreign investment in Africa in 2020. The downturn would be further compounded by low oil prices, dragging FDI flows down by 25 and 40 per cent.The study adopted the autoregressive distributed lag modelling approach and ordinary least
square in the analysis. The empirical results revealed that FDI and Domestic has a positive and significant relationship with economic growth in Nigeria within the period under review. The study concluded and recommended that Nigerian Government should implement policies and programs to improve standardization of bilateral trade agreements, stimulating growth of domestic Micro, Small and Medium Enterprises, MSMEs and renewed roadmap to increase Nigeria’s Foreign Direct Investment and Domestic investment. the nation may have recorded 
improvement on the Ease of Doing Business Ranking due to some recent policy measures, realities on ground would continue to differ if the highlighted challenges were not properly addressed. Finally, there is need to improve the educational policy of the country in order to raise thestock of human capital in the country that will make useful policies for the attraction for productive FDIs and Domestic investment in the country.