VOL. 6, NO. 2, November 2023 https://doi.org/10.26772/cijds-2023-06-02-05 68 ISSN 978-978-53693-8-9 EFFECT OF EXCHANGE RATE MOVEMENT ON THE NEXUS BETWEEN PUBLIC- PRIVATE INVESTMENT AND ECONOMIC GROWTH IN NIGERIA OLURIN, Enitan Olurotimi (Ph. D) Department of Accounting and Finance, Mountain Top University, Ibafo, Ogun State eoolurin@mtu.edu.ng OLADIPO, Samson Idowu Department of Accounting and Finance, Mountain Top University, Ibafo, Ogun State sfoladipo@mtu.edu.ng Abstract This paper investigated the effect that exchange rate fluctuations can engender upon the linkage between public- private and economic growth. Data on public investment (Gross Fixed Capital Formation-Public) and private investment (Gross Fixed Capital Formation- Private) along with the exchange rate were sourced from World Development Indicators (WDI) 2020. The study adopted the Auto Regressive Distributed Lag (ARDL) model for its estimation techniques. The result shows no significant impact of exchange rate fluctuations on both the private and public investment for the study period in the long and short runs. However, the public investment has a negative and statistically significant relationship with economic growth in the long run as well as in the short run. The Federal Government of Nigeria is advised to increase infrastructural investments as a means of correcting the negative trend and come out with far reaching reforms on institutional corruption Keywords: Auto regressive Distributed Lag, Gross Fixed Capital Formation, Private Investment, Public Investment, 1.0 Introduction Government economic programmes all around the world are substantially influenced by the broad theory that investing in public capital and infrastructure will accelerate economic growth. On the one hand, by providing infrastructure support, public investment may encourage and enable private investment. Despite the fact that economists and policymakers agree that investment boost economic growth, they do not agree on whether public or private investment has a strong impact on economic activity or whether there is a relationship between the two. The well-known work of Aschauer (1989) stressed the value of public expenditures and noted that the decline development in the 1980s. Following this study, a growing body of literature has been published inquiring into the relationship between public and increased production growth and private capital (see Mundell, 1990; Khan & Reinhart, 1990; Barro, 1990; Easterly &