External Capital Inflow and Human Development in Nigeria

External resources inflow to Nigeria has been on the rise over two decades but yet, its influence on the development of the Nigerian economy is still not noticeable. Thus, the need to examine the impact of external capital inflows on human development in Nigeria from 1981 to 2022. The objectives of the study are to; examine the impact of foreign direct investment inflow (FDI), diaspora remittance (DRI) and multilateral debt (MDI) on human development in Nigeria. Human Development Index (HDI) is proxy for human development while FDI, DRI, and MDI were proxy for external capital inflow. Secondary data was sourced from World Development Indicators and Central Bank of Nigeria Statistical Bulletin and the technique of Auto Regressive Distributed Lag modelling was used. The results showed that, while FDI and DRI increases HDI, MDI reduces HDI in Nigeria during the period of study. Based on the findings it was recommended amongst others that, government should encourage external inflows by giving tax incentives and import duty exemptions in order to boost economic development in Nigeria.