Remittances Inflow and Economic Growth in Nigeria

Publication Details

Publication Date

10/11/2026

Volume / Issue

Vol 1, Issue 6 (2026)

Article No.

091

Journal

British Journal of Contemporary Research

DOI

https://doi.org/10.67693/BJCR-TEKS6X26

Received

28 Oct 2026

Views

25

Downloads

14

Abstract

Remittances are household income from foreign economies arising mainly from the temporary or permanent movement of people to those economies. Remittance inflows from the Nigerian abroad have become one of the mainstays of the economy as it contributes to increase in household income. This is because, the year 2022 World Bank report showed that, Nigeria is the second-largest recipient of remittances on the Africa continent after Egypt as her annual remittance inflows stood at over $22 billion. In lieu of the background above, the study examined remittance inflows and economic growth in Nigeria from 1985-2024. The objectives of the study are to; examine the effect of remittance inflows on economic growth in Nigeria; and determine the relationship between remittance outflows on economic growth. Thus, secondary data on remittance inflows, remittance outflows and real gross domestic product (RGDP) were collected from World Bank indicators and Central Bank of Nigeria statistical bulletin. The technique of Generalized Method of Moments (GMM) was used to analyze the data after subjecting the data to ADF unit root test of stationarity. The GMM was used because it allows for flexible moment condition when estimating model parameter without knowing the precise probability distribution. The unit root test result showed that, both the dependent and independent variables were stationary at order one. The empirical findings showed that, remittance inflow has positive relationship and significant impact with economic growth. In like manner, remittance outflow has positive relationship and significant impact on economic growth. Based on the findings, it was recommended amongst other that, remittance inflows should be invigorated in order to finance investment and also to overcome liquidity constraints which in the long run led to economic growth in Nigeria. Also, the study recommended policies that reduce the cost of formal remittance transfers, stabilize and promote productive investment of remittances.

License

This article is published under the Creative Commons Attribution 4.0 International License . Free to read, share, and adapt with attribution.