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Abstract
The diversification of Nigeria's economy via higher foreign portfolio investment (FPI) may considerably enhance production capacity, which is crucial for rural development. This study analyses the influence of FPI on rural development progress in Nigeria. By improving access to financial services, FPI may indirectly assist rural development by equipping the workforce with vital skills and improve overall living circumstances. The independent variable in this study is foreign portfolio investment (FPI), measured by proxies such as foreign portfolio inflows and equity securities. The dependent variable is access to financial services, offering as a proxy for rural development. Using an ex-post facto research technique, the study evaluates time series data from 2005 to 2022, acquired from the Central Bank of Nigeria, World Bank indicators, and relevant scholarly publications. Multiple regression analysis is employed to analyze the effect of the independent variables on the dependent variable. The statistics suggest that foreign portfolio investment considerably impacts access to financial services and has a big impact on rural development, whereas equity securities have a moderate effect. It is necessary for the government of Nigeria to undertake policies that stable the macroeconomic environment in order to handle these concerns. The paper advises that financial institutions grow their presence in rural areas and offer personalized financial products and services. Additionally, enhancing regulatory frameworks to encourage foreign portfolio investment into rural enterprises and partnering with microfinance institutions will further boost financial inclusion and sustained economic development in Nigeria's rural regions.