E-ISSN 2039-2117 ISSN 2039-9340 Mediterranean Journal of Social Sciences MCSER Publishing, Rome-Italy Vol 5 No 4 March 2014 215 The Nexus between Energy pricing, Investment Financing and Economic Growth in Nigeria Edame, Greg Ekpung, Ph.D. Department of Economics, Faculty of Social Sciences, University of Calabar,Calabar - Nigeria Email: gregedame@yahoo.com, Phone: +2348038972991 Effiong, Charles E. (Ph.D Candidate) Department of Economics, Faculty of Social Sciences, University of Calabar,Calabar-Nigeria Email: dodosky01@yahoo.com, Phone:+2348034437978 Adaba, Glory Agatha Department of Public Policy and Administrative Studies, Institute of Public Policy and Administration, University of Calabar, Calabar-Nigeria Email: aadabaglory@yahoo.com, Phone:+2348133974693 Uwoghiren, Bright Osas Department of Public Administration, Faculty of social Sciences, University of Calabar, Calabar-Nigeria. Email: osasese05@yahoo.com, Phone: +2348060823406 Doi:10.5901/mjss.2014.v5n4p215 Abstract This paper attempted to descriptively analyze the nexus between energy pricing and investment finance as it relates to other potential economic variables required for the transformation of the Nigerian economy. The paper also make a comparative analysis of how such chosen macroeconomic variables such as FDI, HCI, Public investment, RGDP, Private investment, etc behave before and after democracy to determine the period where energy pricing, investment and financing and other macroeconomic variables impacted positively on the economy as a means of enhancing the standard of living of the ordinary Nigerian, their health status, infrastructural facilities like power etc. The study also uses the Error Correction Method(ECM) for analyzing the relationship among this macroeconomic variables to find out if there is a positive or negative unidirectional causal nexus from energy pricing, investment and finance. While a negative unidirectional nexus exist from inflation and the rate of interest, hence the result shows that energy pricing impacts positively on investment and finance. However, recommendations has been proffer for policy makers and the stakeholders, which if adequately implementated will enhance efficient and effective management of Nigeria energy and investment finance with the broad aim of transforming the economy and positioning it for global relevance. Keywords: Energy pricing, Investment, Finance, National development. JEL Classification: 013, 016,021,044,054 1. Introduction In any economy both developed and developing the discovery of oil is always marked with serious celebration heralding the advent of economic growth and development due to the anticipated flow of revenue from this sector. This huge revenue if adequately utilize can put the economy in a global map as the most developed oil producing nations of the world. Although, the advent of oil in Nigeria has been both a blessing and curse to the Nigerian economy. Oil brought with it much revenue and this was seen as a blessing to the economy, because it enhanced the economic growth and development of the country. Various regimes (starting from the 1970’s) were able to undertake many development projects that would otherwise not have been possible. The oil sector provided jobs for people; manpower development