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Abstract
This study examined determinants of foreign portfolio investment in Nigeria. There is need for the present reforms going on in the Nigeria capital market to be sustained especially in the area of investor’s portfolio, infrastructural development and accounting disclosure requirements. In the light of this a number of questions arose as to whether there is significant relationship between gross domestic product, interest rate exchange rate, trade openness and foreign portfolio investment. Therefore, the research design adopted for this work is the ex post facto research design. The population of this study consists of Nigeria macroeconomics and capital market system as represented by net foreign portfolio investment, Gross Domestic Product, exchange, interest rate and trade openness from 1994-2024. The findings revealed that foreign portfolio investments (FPI) and gross domestic product (GDP) is positive and but not statistically significant. The relationship between foreign portfolio investment and foreign exchange rate is positive but not statistically significant. However, the relationship between interest rate (INTR) and foreign portfolio investments (FPI) is positive and statistically significant. Expectedly high interest rate in a domestic economy serves as a major attraction to foreign investors to invest in the local economy. The study recommended among others that monetary policy should promote stable domestic interest as a priority objective to attract foreign portfolio investment.
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