THE CONTRIBUTIONS OF FOREIGN AID ON THE GROWTH OF NIGERIA ECONOMY

EMORI ENYA GABRIEL
Lecturer, Department of Banking and Finance, Faculty of Management Sciences, University of Calabar,
Cross River State
Phone No: +2348034567886
Email: emorienya@yahoo.com
AND
NKAMARE, STEPHEN EKPO
Ph.D Student, Department of Banking and Finance, Faculty of Management Sciences, University of
Calabar, Cross River State
Phone No: +2348033967810
Email: nkamares@yahoo.com

ABSTRACT
The study empirically examined the contributions of foreign aid on the growth of Nigeria economy. The
specific objectives were to; examine the contributions of project aid, programme aid, humanitarian aid on
the growth of Nigeria economy, using RGDP as a proxy of economic growth. Ex-post facto research design
and desk survey were adopted in this study. Secondary data were used and also obtained from the Central
Bank of Nigeria (CBN) Statistical Bulletin and international financial statistics (IFS). The study adopted
the augmented Dickey-Fuller (ADF) unit root test as a pre-test technique, Autoregressive Distribution lag
(ARDL) and Wald Test. Based on the results, it was revealed that there was a significant effect of project
aid on the growth of Nigeria economy, there was a significant effect of programme aid on the growth of
Nigeria economy and there was a significant effect of humanitarian aid on the growth of Nigeria economy.
The study recommended that government should judiciously utilize inflows and not to misuse or divert for
non-aided projects. Also, recommended that Nigerian government should put in place an appropriate policy
measures that would monitor the maximum and effective utilization of foreign aid. Finally, donor countries
should be aware of the political situations in recipient countries and work with international bodies to
ensure as much stability as possible.

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