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Dynamics of remittance utilization by Nigerian households

Author

Listed:
  • William M. Fonta

    (West African Science Service Centre on Climate Change and Adapted Land Use (WASCAL), Ouagadougou, Burkina Faso Center for Demographic and Allied Research (CDAR), Department of Economics, University of Nigeria, Enugu State, Nigeria)

  • Elias T. Ayuk

    (United Nations University Institute for Natural Resources in Africa (UNU-INRA), University of Ghana, Accra, Ghana)

  • Jude O. Chukwu

    (Center for Demographic and Allied Research (CDAR), Department of Economics, University of Nigeria, Enugu State, Nigeria)

  • Onyukwu E. Onyukwu

    (Institute for Development Studies, University of Nigeria, Enugu Campus, Nigeria)

  • Cletus C. Agu

    (Center for Demographic and Allied Research (CDAR), Department of Economics, University of Nigeria, Enugu State, Nigeria)

  • Innocent O. Umenwa

    (Center for Demographic and Allied Research (CDAR), Department of Economics, University of Nigeria, Enugu State, Nigeria)

Abstract

Nigeria is currently ranked as the world’s top 10 remittance destination country with estimated official inflows of about US$10 billion. However, very little is still known about the end-use dynamics of these large inflows into Nigeria. Understanding these dynamics is central to any attempt to minimize the negative effects of migration, while optimizing its development potentials in the country. Using a new dataset involving 697 end-users of remittances collected at money-operating facilities in the country between March 2011 and December 2012, the study finds that the bulk of remittances flowing into Nigeria are primarily used to subsidize households’ consumption, education and health expenditures (74.3 per cent). However, intriguingly, when sources are disaggregated, the study finds that remittances originating from within Africa are driven by ‘pure altruism’, whereas those originating from the rest of the world are mostly driven by ‘purely selfish’ motives.

Suggested Citation

  • William M. Fonta & Elias T. Ayuk & Jude O. Chukwu & Onyukwu E. Onyukwu & Cletus C. Agu & Innocent O. Umenwa, 2015. "Dynamics of remittance utilization by Nigerian households," Progress in Development Studies, , vol. 15(4), pages 343-357, October.
    • Handle: RePEc:sae:prodev:v:15:y:2015:i:4:p:343-357
    DOI: 10.1177/1464993415592742
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    Cited by:

    1. Bang, James T. & Mitra, Aniruddha & Wunnava, Phanindra V., 2018. "Hollowing Out the Middle? Remittances and Income Inequality in Nigeria," IZA Discussion Papers 11438, Institute of Labor Economics (IZA).
    2. Chinedu Obi & Fabio Bartolini & Marijke D’Haese, 2020. "International migration, remittance and food security during food crises: the case study of Nigeria," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(1), pages 207-220, February.
    3. Nerys Fuller-Love & Mofoluke Akiode, 2020. "Transnational Entrepreneurs Dynamics in Entrepreneurial Ecosystems: A Critical Review," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 6(1), pages 41-66, January.
    4. Iddisah Sulemana & Louis Doabil & Ebenezer Bugri Anarfo, 2019. "International Remittances and Subjective Wellbeing in Sub-Saharan Africa: A Micro-level Study," Journal of Family and Economic Issues, Springer, vol. 40(3), pages 524-539, September.
    5. Ibrahim Ayoade Adekunle & Tolulope Oyakhilome Williams & Olatunde Julius Omokanmi & Serifat Olukorede Onayemi, 2020. "The Mediating Role Of Institutions In The Remittance–Growth Relationship: Evidence From Nigeria," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 65(227), pages 7-30, October –.

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