Industrial growth in all countries is inextricably linked to and connected to the business environment where it is situated. This study examined the linkage between the business environment otherwise call investment climate and the performances of industrial sector in Nigeria. The paper employed standard econometric method, Ordinary Least Square multiple regression, (OLS ) to determine the relationship. The time series secondary data were screened using stationarity and co integration tests. The data were found to be stationary and co-integrated. The Empirical findings demonstrated a negative relationship between investment climate and the performances of industrial sector in Nigeria. Specifically the study found that the main empirical constraint to the performances of industrial sector in Nigeria is corruption and political instability while poor infrastructure and macroeconomic instability have played significant roles. The study recommended that the policy makers should pay greater attention to the bad investment climate in Nigeria and put in place macroeconomic policies that can eradicate corruption and checkmate the components of macroeconomic and political instabilities .The findings equally suggested the need for the government to continue to develop the infrastructural base of the economy to boost the industrial sector.
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