Diaspora Remittances: Implications for Nigeria Economy

Abstract

This paper examined the impact of diasporan remittances on the economic development of their home country with Nigeria in focus. Some perspectives consider remittances as a quantitative metric for measuring the impact of the Nigerian in diaspora on Nigeria’s economic development. The colossal loss of human capital due to brain drain has posed a challenge to the economic development of Nigeria. However, considering that travelling overseas by their wards for greener opportunities is a long-term goal of several families who invest in their education, it becomes necessary to analyze their impact on the Nigerian economy. The study was situated within the classical and neo-classical perspectives of migration theory while data were collected from secondary sources. The study found out that the Nigerians in the diaspora make significant quantitative (remittance and investment), and qualitative contributions (education, health, and non-governmental services) to Nigeria’s economic development. The paper, therefore, recommends that the Nigerian government through the Ministry of Finance and Economic Development should initiate policies that will provide a more enabling environment for Nigerians in the Diaspora to contribute to the development of the country. Encourage more remittances by a deliberate reduction of the cost of overseas remittances by the Central Bank of Nigeria.