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Abstract
This study investigated the impact of remittances by Nigerians in the diaspora on economic growth for four decades (1980-2020) using the Error correction model developed by Engel and Granger. The impact of remittances on economic growth in developing countries in the literature has is mixed. This research is focused on the impact of per capita remittances as a source of per capita GDP growth relative to other sources of investment in the economy such as investments in human and physical capital within the production framework. We found that remittances and investment in physical capital had positive and significant impacts on the gross domestic product in Nigeria while investment in human capital development and institutional factor both have negative and significant effects on growth. With deliberate policies put in place to strengthen this outcome, the impact could even be greater in the future. Based on the result, the study recommends introduction of more financial innovation tools and inclusion in the use of such tools to reach remote areas. This will increase the volume of remittances, widen the use of the formal financial system in its use and thus its contribution to economic growth