The subject of interrelationship that exists between foreign direct investment (FDI) and standard of living has been an issue of both theoretical and empirical investigations. This study, thus examined the relationship between foreign direct investment and standard of living measured by per capita income (PCI) in Nigeria over 1986 – 2009 period using time series data. The study employed Vector Auto regression (VAR) model because of the fact that the variables are integrated of different orders in their Unit Root Tests. | Foreign direct investment (FDI) and standard of living in Nigeria