Vol 11, No 2 (2023)

Effects of Remittances on Economic Growth in Nigeria

Collins K Anosike, Hailah Alfadhel


The study examines the effect of Remittances on economic growth in Nigeria. The study investigates remittances in Nigeria for a forty-year period and see how it’s effect on economic growth in Nigeria. Remittances in Nigeria witnessed an upward trend in recent decades and have been driven by increased poverty and more need to support families back home by immigrant family members working abroad. This study is unique because it captures Nigeria, which has the highest remittances in Africa, it provides updated data and examines why remittances have not been driving economic growth in Nigeria. Furthermore, we use time series data with real GDP growth rate as the dependent variable and seven explanatory variables (per capita GDP, gross fixed capita formation, inflation, lending interest rate, personal remittances, real effective exchange rate and real GDP). The variables of per capita GDP, gross fixed capital formation, inflation and real GDP were statistically significant while the remaining three variables were not statistically significant in the effect of remittances on economic growth. From empirical findings, this study recommends trade liberalization, increase in capital formation and investment by public and private sectors to attract investment and strengthening of financial system regulation by monetary authorities.

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Personal remittances; Real GDP; Economic growth; Per capita GDP.

Publication information

Volume 11, Issue 2
Year of Publication: 2023
ISSN: 1857 - 8721
Publisher: EDNOTERA

How to cite

K Anosike, K. C., Alfadhel, H.: Effects of Remittances on Economic Growth in Nigeria. Journal of Applied Economics and Business, Vol 11, No. 2, 5-31. (2023)