Acta Universitatis Danubius. Œconomica, Vol 16, No 1 (2020)

Abstract

The aim of this study is to examine the long run equilibrium relationship between official development assistant and poverty alleviation in Nigeria over the period of 1981 to 2017 which past studies have failed to explore. Consequently, the study utilized data from UNCTAD, World Bank database, CBN Statistical Bulletin and Cointegration, DOLS and Granger Causality approach was used to address the objective of this study. However, the major findings in this study are summarized as follows. Firstly, there is a significant negative relationship between official development assistance and poverty level in Nigeria. However, FDI which also constitutes a strategic part of foreign capital in Nigeria does not contribute to poverty alleviation in Nigeria. Furthermore, official development assistance and poverty level in Nigeria have a bidirectional feedback. Due to the findings that emerged from this study, the following recommendations are made for the policy makers that whenever alleviation of poverty is the target of the policy makers in the country, the Nigerian government should be committed to the provision of a sound environment and good governance that can facilitate further inflows of official development assistance from the developed countries, especially G 7 countries. Also, the policy makers in Nigeria should ensure that ODA should be tailored towards projects and programs that have trickle down effects on the masses in the country.