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This study investigates how financial development measured by Total Stock Market Capitalization (TSC) impacts Foreign Direct Investment (FDI) inflows in Nigeria between 1996 and 2023. It specifically looks at whether Regulatory Quality (RQ) acts as a moderating factor in this relationship. Using data from the World Bank’s WDI and applying the Fully Modified Ordinary Least Squares (FMOLS) estimation technique, the study controls for trade openness and the real effective exchange rate.