DOES REMITTANCES ACTUALLY IMPROVE THE WELFARE OF NIGERIAN’S HOUSEHOLDS?

Abstract

The paper employed ARDL regression method to investigate the impact of remittances on the welfare of average Nigeria household for the period 1986–2022. The results show that remittances increases household consumption expenditure in the shortrun, reduces the rate of inflation both in the shortrun and the longrun. However, the result shows negative effect of remittances on the household welfare both in the shortrun and the longrun when measure as real consumption through interaction of inflation and household consumption. These findings suggest that the remittances inflow increases the cash available to the household for consumption but not the welfare of the household in Nigeria