The effect of remittances on the Nigerian economy

• Main Author: O.R. Iheke
• Format: Article
• Language: English
• Published: International Society for Development and Sustainability (ISDS) 2012-09-01
• Series: International Journal of Development and Sustainability
• Subjects: Remittances; Nigeria; Economy
• Online Access: http://isdsnet.com/ijds-v1n2-41.pdf

This study analyzed the effect of remittances on the Nigerian economy. The study employed secondary data covering the period 1980-2008. Data sources included official publications of the World Bank, Central Bank of Nigeria, National Bureau of Statistics, Journals and other relevant publications. Data collected were analyzed using trend and regression analysis. Results of data analysis revealed that remittance inflow has been on the increase over the past two decades. Also, remittances, per capita income, investment and time were the positive and significant factors influencing output while consumer price index significantly influenced output negatively. It was recommended that remittance receiving countries should provide a friendly economic environment through sound macro-economic policies, including stable exchange rates, basic physical infrastructure, improved market integration, reliable financial and other institutions, transparent legal system and good governance – in essence, conditions that can prime the economy for development and equip it adequately to benefit from this external stimulus.