Abstract: One of the major macroeconomic variables that stimulate growth is investment. Economic theories have shown that there is a causal relationship between economic growth and the increase in investment. This study, however examined the growth implications of multinational direct investment in Nigeria. The results of the data analysis and estimation were obtained using the parsimonious error correction mechanism. The result demonstrated that there is a positive relationship between multinational direct investment and growth in Nigeria. It shows that 1% rise in multinational direct investments will cause as much as 80% growth in the gross domestic output. This result indicated that multinational direct investment has the greatest influence on the growth of Nigerian economy compare to other variable in the model and strongly support the need for the government to encourage multinational corporation to establish more direct foreign investment in Nigeria. This is possible by simplifying the screening process and by creating more conducive political, social and economic environment for effective operation of multinational corporations.