This study focused on the effect of remittances in the economy of Nigeria from 1981 to 2023. To achieve this objective, the co-integration technique was applied. From the results and findings, it was found that remittances do significantly but negatively affect the economic growth of Nigeria. After further analysis, it was realized that the negative and significant effect of remittances persisted in the long-run and short-run. This implies that remittances are neither a panacea for economic growth in Nigeria. Additionally, in the long-run, the results showed that the conventional sources of economic growth such as FDI can spur economic growth in Nigeria while increase in exchange rate and inflation caused economic growth to decline. It was therefore recommended that policy makers should create investment vehicles like diaspora bonds among others, to encourage the citizens of Nigeria working abroad to lend their hands to national development. Moreover, as effort is being made to harness the potentials of remittances in economic growth, Nigeria can continue to improve its economy creating an attractive economic outlook that would appease foreign investors. This will help generate investment inflows through FDI, hence higher economic growth.