Remittances and Household Welfare in Nigeria
Population studies
31
Issue: 1
(02 - 2017)
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.
Key Words: Remittances, Household Welfare, Lagos, Nigeria.
0