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The issue of capital flight has been a recurrent topic of discussion among researchers
especially in Africa. The cause, magnitude and consequences of this undesirable outflow
of domestic capital have been a persistent concern among scholars. Nigeria among
other African countries has been a victim of massive capital outflow to other developed
nations. Thus, this study investigated the impact of capital flight on economic growth
in Nigeria. In carrying out the analysis, data from CBN statistical bulletin was used for
the period 1981 to 2017. The Autoregressive Distributed Lag (ARDL) bounds test
approach was adopted for the study. The study showed that capital flight significantly
decreases economic growth in both short run and long run. Other variables found to
have significant effect on economic growth include money supply, credit to private
sector and domestic investment. The study therefore recommended proactive policy
measures that will curtail capital flight and make the economy competitive and
attractive for domestic investment that enhances economic growth. Expansionary
monetary policy should also be adopted to improve money supply whenever the policy
environment is ripe for such.
