"FOREIGN DIRECT INVESTMENT, STOCK MARKET PERFORMANCE AND SUSTAINABLE DEVELOPMENT IN NIGERIA (1990–2025)"

This study examined the relationship among Foreign Direct Investment (FDI), stock market performance, and macroeconomic conditions in Nigeria over the period 1990–2025. The study was motivated by the need to understand how external investment and capital market development interact with economic performance and sustainable development in Nigeria. Annual secondary data obtained from relevant national and international sources were analysed using descriptive statistics, Augmented Dickey-Fuller (ADF) unit root test, Johansen cointegration test, Vector Autoregression (VAR), and Pairwise Granger causality test. The descriptive results revealed substantial fluctuations in the exchange rate and inflation, reflecting the macroeconomic instability experienced during the study period. The ADF results established that GDP, FDI, stock market performance, exchange rate, and inflation were stationary at first difference, indicating that all variables were integrated of order one, I(1). The Johansen cointegration test confirmed the existence of a long-run relationship among the variables. Granger causality results revealed a unidirectional causal relationship from exchange rate to GDP, while no significant causal relationship was established between FDI and GDP or between FDI and stock market performance. The VAR results further showed significant dynamic interactions among the variables, with exchange rate movements significantly influencing GDP and inflation exerting a significant effect on stock market performance. The study concludes that macroeconomic stability, particularly exchange rate stability and inflation control, is essential for strengthening economic performance and stock market development in Nigeria. The study recommends improved foreign exchange management, effective inflation-control policies, enhanced capital market regulation, and policies that promote productive and diversified FDI.