Remittances and Household Welfare in Nigeria

Olayinka Akanle, Jimi O. Adesina


Remittances remain among the most researched issues in contemporary international migrations, poverty alleviation, welfare dynamics and development financing in developing countries. This is particularly so as remittances continue to rival Official Development Assistance (ODA) and Foreign Direct Investment (FDI) and it is being argued to be more effective in driving development than aid. While studies exist on influences of remittances on household welfare in developing countries, many more are needed to sufficiently understand the actual roles of remittances in households’ welfare in Sub-Saharan Africa- one of the poorest regions in the world. The relationship between remittances and household welfare has particularly not been sufficiently empirically tested in Nigeria- the most populous nation in Africa, among the poorest countries in the world and the highest remittances receiving nation in Africa. This article therefore examined the influence of remittances on households’ welfare in Nigeria. This is a very important article considering the increasing trend of migration and efforts to reduce poverty and inequality. Secondary and primary data were gathered for this article. Secondary data were gathered through documents, journal articles and newspapers, among others, while primary data were gathered through quantitative and qualitative methods between 2015 and 2016, Appreciable positive relationships were found between remittances and household welfare. Unlike many previous studies which claimed remittances receiving households mostly spend remittances on consumptions, more robust expenditure patterns were found. Expression of welfare was also found to be beyond the commonly noted to include important intangible welfare credits like community respect for remittances receiving households. It is concuded that development experts, partners, governments, groups and individuals should therefore better appreciate and appropriate both the financial and non-material effects of remittances on inequality and poverty in developing countries especially of Africa.



Remittances, Household Welfare, Lagos, Nigeria.

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ISSN 2308-7854 (online); ISSN 0850-5780 (print)

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