The Impact of Capital Flight on Educational Development in Nigeria

Abstract

The progress of a nation is a function of the level of the resourcefulness of the people which to a great extent relates to the level of training and purposeful educational development. Such progress or development could only occur when funds (capital) are made available towards it. The recommended 26% of macroeconomic policy (budget) by UNESCO and United Nation (UN) for education is a welcome development. The paper therefore examines empirically the consequences of capital flight on the Gross Domestic Product (GDP) and educational development. The variables for the study include interest rate, exchange rate, balance of payment and GDP. The finding shows that capital flight impact adversely on the educational system in Nigeria and other sectors of the economy. Thus there is the need to strengthen financial controls, capital outflows and financial crime laws which can stimulate investment for an overall education and economic growth and development in Nigeria.