ADSU International Journal of Applied Economics, Finance and Management

Impact of Remittance on Economic Growth in Nigeria

Abstract

The world is autarky people travel from one country to another in search of greener pasture hence no country is a highland. It’s the contributable tools and viable tools that promote economic activities among nations. This study examined the impact of remittances on economic growth in Nigeria on time series data sourced from Central Bank of Nigeria Statistical Bulletins spanning from 1990 to 2022. And examine the impact of remittances on economic growth in Nigeria, evaluate the effect of foreign exchange rate on economic growth in Nigeria and assess the impact of foreign direct investment on economic growth in Nigeria. Applying descriptive statistics on the data, the result revealed that the data were normally distributed. Augmented Dickey Fuller (ADF) shows that all variables were stationary at first difference except remittance which was stationary at level. Furthermore, ARDL Bound test revealed that a long-run relationship exists among the studied variables. The study recommended that government should provide proactive policy such as scholarship grants that could help boost the citizens settling and schooling abroad thereby encouraging more remittances to Nigerian economy. Government should implement the policy of economy diversification for higher productivity in Nigeria so as to minimize high exchange rate fluctuations in the country. Therefore, the economy should equally improve their purchasing power in making the exchange rate more favorable and making the interest rate low for smooth economic.