Impact of Capital Flight on Economic Growth in Nigeria

Abstract

Capital flight is a challenge for many developing countries of the world. It has been a source of major concern in developing countries especially in Nigeria where there is shortage of capital essential for growth and development. This study investigated capital flight in Nigeria. Questionnaire was used to collect data from respondents: industrialists, economists and financial experts in the South-East Zone of Nigeria. The options were scaled with a Likert Scale Rating Model with a 2.5 bench mark. Result showed that fear of uncertainty and risk, political instability, economic mismanagement, corruption, high level of external debt, weak institutions, lack of transparency and poor governance are some of the divers of capital flight. Among the recommendations are that government should improve its institutions quality and strengthen governance.