Abstract
The study examined the impact of capital flight on economic growth in Nigeria applying annual data sourced from Central Bank of Nigeria Statistical Bulletin from 1986 to 2020 and using an Error Correction Model (ECM). The results of the cointegration test demonstrated that the variables have a long-term relationship. The findings show that most of the constituents of Capital flight (first, second and third lags of foreign direct investment and portfolio Investment) have negatively impacted Nigeria’s economic growth. In contrast, external debt and current account balances positively impact on economic growth in Nigeria. This, therefore, confirmed that changes in capital flight impact economic growth in Nigeria. The study recommends that the government and stakeholders create an attractive, conducive, and enabling environment suitable for ease of doing business that will attract and retain foreign investors in the country. More importantly, the Government should ensure proper use of the funds borrowed, by channelling it to the productive sector of the economy and will also increase Government revenues.
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