www.ijaemr.com Page 600 International Journal of Advanced Engineering and Management Research Vol. 2 Issue 3, 2017 www.ijaemr.com ISSN: 2456-3676 FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH OF NIGERIA: AN ANALYSIS OF INFRASTRUCTURAL EXPENDITURE MOTIVATION OKEKE, Ijeoma chinwe 1 OGBONNA, Kelechukwu Stanley 2 OKAFOR, Chioma Nnenna 3 Department of Accountancy and Finance, Paul University, Awka 1 Department of Banking and Finance, Nnamdi Azikiwe University, Awka 2 Department of Banking and Finance, Nnamdi Azikiwe University, Awka 3 ABSTRACT The study examines the effect of foreign direct investment on economic growth in Nigeria. The aim of the study is to determine the impact of foreign direct investment as motivated by infrastructural expenditure on Nigerian economic growth between 1995 to 2015. The study employs Augmented Dickey Fuller Unit Root Test, Johansen Co-integration, OLS regression and Granger Causality for the study. The result of the study revealed that Foreign Direct Investment as motivated by Infrastructural Expenditure impacted economic growth significantly both in the long run and the short run. Hence, the study recommends that further expenditure should be made on infrastructural facilities to boost more investment both foreign and domestic. Key Words: Foreign Direct Investment, economic growth, Sustainable Development Introduction Foreign direct investment (FDI) is real asset investment made by a company or entity based in one country into a company or entity based in another country. Foreign direct investment (FDI) plays an important role on economic growth and development. The inflow of foreign direct investment (FDI) to the Nigerian economy occurs in different sectors including agriculture, manufacturing, communication and other services. The desire of every economy is to achieve sustainable economic growth and development. However the means through which