Ongoing Debate Between Foreign Aid and Economic Growth in Nigeria: A Wavelet Analysis Tomiwa Sunday Adebayo, Cyprus International University Demet Beton Kalmaz , European University of Lefke Abstract. This study aims to reexamine the interconnection between economic growth, foreign aid, trade, gross fixed capital formation, and inflation rate in one model for the case of Nigeria, which has not yet been analyzed utilizing the new econometric techniques, employing time series data covering the years between 1980 and 2018. No previous research has employed a wavelet coher- ence technique to gather information on the dynamic connection and/or causality between these economic indicators at dissimilar frequencies and various time frames. The main objectives are to address the questions: (a) Is there long-run relationship between the indicators under considera- tion? (b) What are the main determinants of economic growth in the long run? (c) How are the indicators related at dissimilar frequencies and various time frames? The empirical findings confirm that (a) there is a long-run relationship between the indicators under consideration; (b) in the long run, economic growth is influenced significantly by foreign aid, trade openness, gross fixed capital formation, and inflation rate; (c) the outcomes of the wavelet coherence technique give evidence to support the long-run estimations of this study; and (d) the outcomes of wavelet coherence are supported by the Toda-Yamamoto causality test results. Foreign aid has surfaced as a prevailing global strategy in developing economies for more than five decades to alleviate poverty and improve the economy. During this time, most international institutions, including the World Bank, the International Monetary Fund, and the United Nations, have gained global economic recognition (Peter, 2000). Sixty years later, however, it seems that the world’s developing countries continue to suf- fer economic turmoil, leading to questions about whether foreign aid is a valuable and effective strategy for triggering GDP growth and development in the beneficiary nations. Notwithstanding Nigeria’s abundant human and mineral resources availability, it is still categorized as a developing economy (Kolawole, 2013). Most of the developing countries are faced with a shortage of domestic savings, which hampers the attainment of desired investment. Furthermore, in several emerging economies, earnings from foreign exchange via the export of products and services are not adequate for capital goods to be imported. Moreover, most of the developing countries’ government revenue is not sufficient to fi- nance the numerous projects on the ground (Dalgaard, Hansen, and Tarp, 2004; Sethi, 2014; Simplice and Jellal, 2016). Therefore, when the issues mentioned above arise, de- veloping economies cannot achieve their growth rate goals. Foreign assistance’s key focus is to fill those holes and thereby foster GDP growth. In such a circumstance, foreign aid Direct correspondence to Demet Beton Kalmaz, Department of Economics, Faculty of Economic and Administrative Sciences, European University of Lefke, Lefke, Northern Cyprus, TR-10, Mersin, Turkey 〈demetkalmaz@eul.edu.tr〉. SOCIAL SCIENCE QUARTERLY C  2020 by the Southwestern Social Science Association DOI: 10.1111/ssqu.12841