Summary
This study examined the relationship between institutional quality and foreign capital flows in Nigeria over the period 2001 to 2020. Based on the empirical investigation, the following specific findings emanated as follows:
(i) That rule of law (ROL) has significant positive relationship with foreign capital flows in Nigeria. Hence, it is a potent factor to be considered when determining the overall flow of foreign capital in Nigeria.
(ii) That Political stability (POS) has an insignificant positive impact on foreign capital flows in Nigeria, as it failed the 5 percent level of significance.
(iii) That government effectiveness (GOE) has an insignificant negative impact on foreign capital flows in Nigeria; suggesting that, effectiveness governance as far a Nigeria is concern is not sufficient in ensuring high inflows of foreign capital investment into the country.
(iv) That control of corruption (COC) has significant inverse impact on foreign capital flows; in Nigeria. The variable was found to pass the 5 percent significance level. By implication, as the level of control of corruption increases, overall foreign capital flows reduces by approximately -1.61 percent.
