FOREIGN DIRECT INVESTMENT, FOREIGN AID, REMITTANCES, AND GROWTH IN NIGERIA (1980-2024)

The study examines the nexus between foreign direct investment, foreign aid, remittances and economic growth in Nigeria covering the period 1980-2024. An autoregressive distributive lag (ARDL) model was employed to estimate the model. The findings revealed a positive and significant impact of official development assistance and remittances on growth. Foreign direct investment and institutional quality negative impact on growth and not significant at 5%. the role of institutional quality in attracting capital inflows cannot be overemphasized. This is because it provides incentive for either investors, or financial assistance because of the need for transparency and accountability in the processes. Also, official development assistance, foreign direct investment, remittances, institutional quality, inflation, and external debt have a long run relationship as revealed by the bound test to cointegration. Based on the findings of the study, the following recommendations were made: Strengthening institutional framework to promote transparency and accountability in economic management can help maximize the developmental impact of both FDI, foreign aid and remittances. This will augment savings-investment gap and reduce debt trap. Policies should encourage productive, sustainable foreign direct investment that complements rather than substitutes for development aid. There is need for complementary sound monetary and fiscal policies that enhance capital inflows and sustainable growth.