THE ROLE OF FOREIGN AID FINANCING IN BRIDGING NIGERIA'S DEVELOPMENT AND GROWTH GAP

Most developing countries strive to attract foreign aid because of its anticipated efficacy in fostering economic development in recipient countries. This study examines the impact of foreign aid financing in bridging Nigeria’s development and growth gap. The study use time series data generated from secondary sources through the publications of central bank of Nigeria statistical bulletin. The study also employed OLS multiple regression analytical techniques to establish the relationships among the variables of foreign aid on economic growth in Nigeria. The findings reveal that Foreign aids financing have significant effects in stimulating domestic development and growth in Nigeria. It is recommended among others that the Nigerian government should implement policies that will ensure proper use of aid to productive public expenditure. Also, the government should maintain a stable political terrain and put in place sound policies and institutions that would encourage more efficient utilization of free financial resources as these are some of the criteria considered in the disbursement of foreign aid by donor governments.