Remittance is one of the key locomotives of economic growth and poverty reduction in developing countries because it serves as development finance needed for investment purposes. This study sheds new light on this question by examining the impact of remittances on private investment in Nigeria. Data on remittance inflow in Nigeria was retrieved from World Development indicator. Error correction and Ordinary least squares is applied for this purpose. The result reveals that remittances increase the rate of private investment in Nigeria and the previous investment is a determinant of the current investment. It is therefore recommended amongst others remittance-receiving households should be encouraged to invest remittances in small and medium scale enterprises rather than use it for the consumption of goods and services.