Abstract

The Nigerian government has implemented a number of anti-corruption initiatives and policies to tackle the scourge of corruption and enhance economic growth. Despite these reforms, the problem has persisted and continues to undermine economic growth in the country. In an attempt to ameliorate these challenges, this study investigated the extent to which corruption affected foreign direct investment, exchange rate and economic growth. The study employed secondary data from National Bureau of Statistics publications and the Central Bank of Nigeria (CBN) Statistical Bulletin. Data analysis was carried out using the ARDL estimation technique. The study found that corruption perception index (CPI) (coefficient = -1.96; p = 0.61 > 0.05) had a negative but negligible impact on Nigeria's economic expansion. The outcome also demonstrated that foreign direct investment is positively impacted by CPI (coefficient = 0.69; p = 0.00 < 0.05). Additionally, the exchange rate was significantly and favorably impacted by the CPI (coefficient = 0.48; p = 0.00 < 0.05). Based on these results, the study came to the conclusion that foreign direct investment and the exchange rate in Nigeria were positively correlated with the corruption perception score. As a result, the report suggested that the Nigerian government should strengthen anti-corruption agencies to effectively combat corruption and implement policies that improve the business environment, infrastructure, and regulatory framework in order to attract more foreign direct investment