DIASPORA REMITTANCES AND THE INDUSTRIAL SECTOR IN NIGERIA

Abstract

This research work examined the diaspora remittances and the industrial sector in the Nigerian economy for the period 1990-2023. Nigeria is known to be the leading country in Sub-Saharan Africa with the highest inflow of remittances, but the sectorial impact of these remittances is yet to be ascertained in empirical literature. We used the diaspora remittance variables as independent variables, which are workers' remittances, migrant remittances and exchange rate. This led to the formulation of a model based on the sector selected. The data were sourced from the National Bureau of Statistics and the World Bank and analyzed using econometric techniques. The results indicated that migrant and worker remittances increased growth of the industrial sector significantly, with long-run causality running from the diaspora remittance variables to the sectorial growth indicators. The conclusion was that diaspora remittances have helped to increase the output of the sector in Nigeria's industrial sector. We recommended the intensification of technical exchange programs between Nigeria and other advanced countries of the world to increase remittance earnings as well as the unification of exchange rates in order to fully explore the many benefits from diaspora remittances into the various sectors of the Nigerian economy.