Effect of Foreign Aids on the Nigeria Economic Development

Abstract

This paper looks at the Effect of Foreign Aids on the Nigeria Economy since the emergence of the Fourth Republic from 1999 till 2018.Secondary data was sourced from the World Bank. Ex-post facto research design was used and the Ordinary Least Square (OLS) was used to measure effect of Foreign Aid to Government Expenditure, while coefficient of correlation is used to measure the degree of relationship between them, and the result of the findings shows that there is insignificant relationship between Foreign Aid and the Nigeria Economy. Adopting the Aid-Growth Relationship Theory, the paper concluded that the amount of aid received in relation to its size in terms of GDP is too low, thereby having insignificant effect. It therefore recommended that efforts and policies on economic development should not be placed on foreign aid now but should aimed and channeled internally on effort to enhance national savings and investment.