The Nigerian government has been grappling with the detrimental effects of capital flight. Given the country’s low level of development, extreme economic uncertainties, and limited savings and domestic investment, the outflow of resources demands urgent attention. This study investigated the impact of capital flight on private savings in Nigeria, utilizing the World Bank residual approach to measure capital flight and analyzing data from 1981 to 2020, sourced from the CBN statistical bulletin and World Bank Development Indicator (WDI). The Autoregressive Distributed Lag (ARDL) bounds test approach was employed for the analysis. The findings revealed that capital flight adversely affects private savings in Nigeria. Consequently, the study recommends implementing appropriate monetary policy measures to minimize capital flight and enhance savings
Keywords: ARDL, Capital Flight, Domestic Investment, private savings
