Diaspora Remittances and Economic Growth of Nigeria

A Multi Sectorial Analysis

Abstract

This research work examined the effect of diaspora remittances on sectorial growth in Nigeria from 1990-2023. Three sectors considered were: agricultural sector, industrial sector and services sector. Three variables were used as independent variables: workers remittances, migrant remittances and exchange rate. Three models were formulated. The data were sourced from the National Bureau of Statistics and the World Bank and analyzed using the Error Correction Model (ECM). The results indicated that funds sent by individuals working abroad to their families back home (otherwise called workers remittances) and funds sent by individuals living abroad who intend to relocate their base back home from overseas and invest in their home country (otherwise called migrant remittances) both increased growth of the agricultural, industrial and services sectors significantly. The conclusion was that both workers and migrant remittances have helped to increase sectorial output growth in Nigeria. It was recommended that government stabilize exchange rates and advance policies that will sustain industries in Nigeria to encourage private investments that will boost growth of the real sector.