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Effects of International Remittances on Poverty Level, Inequality and Household Income in Nigeria

Year: 2025

Type: article

Abstract: This study examines the dynamic relationships between macroeconomic factors and household economic well-being in Nigeria, focusing on poverty persistence, income inequality, and household savings. Utilizing ARDL models, the analysis reveals that poverty in Nigeria is highly persistent, with past poverty levels strongly influencing current outcomes. The findings indicate that while foreign direct investment (FDI) has a delayed impact on reducing poverty, it tends to exacerbate income inequality by disproportionately benefiting skilled workers. In contrast, remittances significantly contribute to poverty reduction, improve income distribution, and bolster household savings, although their potential remains underutilized in the Nigerian context. These insights suggest the need for policy measures that enhance the productive use of remittances, promote financial inclusion, and strengthen social protection programs to foster inclusive economic growth.

Source: International Journal of Development and Economic Sustainability

DOI: 10.37745/ijdes.13/vol13n293115

Authors: Roy Maduabuchi Okpara, Ndubuisi Eme Uguru, Athanasius Nwokoro, Ihechukwumere Chukwunenye

Institution: Abia State University

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: No poverty, Reduced inequalities, Decent work and economic growth

Open Access status: hybrid

OpenAlex ID: W4411147533