Foreign private investment is a determinant of economic growth in a developing country such as Nigeria, FPI enhances job creation, transfer of technology, managerial skills, all these contributes to economic growth and development. Nigeria has tried various reforms to attract foreign investors, such as deregulation of the economy, Nigeria Investment Promotion Commission (NIPC) in the early 1990’s, establishment of economic and financial crime commission (EFCC). However, the FPI inflow to Nigeria still remains low. This paper investigates the impact of FPI as a source of economic growth in Nigeria. A secondary data for the period of 1960-2008 was used. Due to the reason of non stationary of the series we use the Johansen cointegration test to determine the number of cointegrating equation by using the maximum cointegrating rank in the model. From the result we obtain about the minimum of four cointegrating equation present in the model with maximum eigenvalue of 0.314059 and the eingenvalue statistic of 17.71732 with p-value of <0.001 at 5% level of significance. Further we study the short term and the long-run dynamics of the combination of the variables where found a long run equilibrium relationship between the variables and the error correction model was established.