Olayiwola, Habeeb Olaniyi

This study investigated the nexus between foreign aid and sustainable development in Nigeria over a period of 33years (i.e 1990-2022). It uses secondary source of data. The data such as net official development assistance, external borrowing, exchange rate, control of corruption, and human development index (proxy of sustainable development) were employed in the study. The data were collated from World Development Indicator, 2023. The techniques such as descriptive statistics, correlation analysis, Autoregressive Distributed Lag (ARDL) and diagnostic test were conducted to analyze the data. In the short run, it was discovered that net official development assistance, external borrowings and corruption inversely related with sustainable development. However, exchange rate positively interacts with sustainable development. Furthermore, net official development assistance has no significant impact on sustainable development while others are statistical significant. Based on the f-statistic results, short run interactions exist among the variables of study. In the long run, there exist of no relationship among the variables as reported by ARDL bound test. It was therefore concluded that only net official development assistances cannot lead to the proclaimed sustainable development in Nigeria in the both short run and long run except with the inclusion of other economic ingredients. The study recommended that government should complement foreign aids with an increased spending towards improving human capital development and domestic investments. In turn, it will enhance the economic performance, thereby leading to the attainment of sustainable development in Nigeria. Keywords: Foreign aid, Corruption, External Borrowing, ARDL, Exchange Rate 0150