Abstract
The study examined the impact of remittance inflows on private domestic investment in Nigeria for the period 1986-2020. Ex-post facto research design was adopted in the investigation. Multiple regression analysis was employed, in which Auto-Regressive Distributed Lag (ARDL) model was utilized in the research. The results revealed the presence of long-run relationship among the variables. The results showed that foreign remittances had a positive and no significant effect on private domestic investment in the short-run; and positively and significantly impacted on private domestic investment in the long-run. The results also indicated that foreign aids had a positive and significant effect on private domestic investment in the short-run; and have positive and significant influence on private domestic investment in the long-run. Similarly, the results also revealed that credit to private sector had a significant and positive effect on private domestic investment in both the short-run and the long-run. Furthermore, the results disclosed that gross domestic product have positive and no significantly influence on private domestic investment in the short-run; but had a positive and significant effect on private domestic investment in the long-run. Thus, the research recommends for the formulation and implementation of friendly foreign remittances led-investment growth policies that target at attracting huge migrant workers' remittances into the domestic economy. In view of the fact that foreign aids have positive and significant impact on private domestic investment in Nigeria, government should continue to initiate and implement bilateral policies that ensures improvement in the inflow of foreign aids into the economy also since the study found that credit to private sector significantly and positively impacted on private domestic investment in Nigeria both the short and the long –run.