Effects of Foreign Capital Inflow on Economic Growth of Nigeria

This study evaluated the effects of foreign capital inflow on economic growth in Nigeria, using official development assistance and official remittances inflow as exogenous variables in its model. The study adopted the ex post facto research design and collected secondary data from the CBN statistical bulletin for the period, 1980 to 2024. The study used the Bound test approach to co-integration as the stationarity tests of variables showed mixed results of 1(1) and 1(0). The study utilized the ARDL methodology for its analysis and found out that official development assistance has significant effect on economic growth in Nigeria in the short run. Official remittances inflow also has significant effect on economic growth in Nigeria in the short-run. The study recommended that government prioritize long-term growth sectors by strategically channeling official development assistance into areas that have strong potential to drive structural transformation and sustainable economic expansion. The government should also enhance diaspora engagement policies to mobilize skills and technology by creating structured platforms and incentives that actively involve Nigerians abroad in national development initiatives.