ABSTRACT
Monetary policy is believed to have huge benefits on the economy especially if it well for formulated and implemented. This study was aimed at investigating the impact of monetary policy on foreign direct investment in Nigeria within the period 1970-2016. The study used secondary data on foreign direct investment and some key of monetary variable like broad money supply, interest rate and monetary policy rate. An econometric approach of ordinary least square was used to empirically analyze the data. The finding reveals that exchange rate and gross domestic product impacted positively and significantly on foreign direct investment while monetary policy rate and broad money supply had an inverse but significant effect on foreign direct investment in Nigeria. The model has a high explanatory power of 79.72% and a significant F-statistic which indicated that the model has a goodfit and be relied upon. Therefore, the study recommends the identification of the maximum level of broad money supply that is beneficial to the economy in the area of an inflow of foreign direct investment as well as the utilization of the huge market size to the advantage of the deferent sector of Nigerian economy.