The Effect of Remittances and Corruption on Economic Growth in Nigeria

This study examined the dual roles of remittances and corruption on economic growth in Nigeria over the years and their interrelationships. Secondary data on the variables were extracted from the World Development Indicators (WDI). The study uses the Autoregressive Distributed Lag (ARDL) approach for the realization of its objectives. The results indicated that in the long run, remittances, corruption, labor force, and gross fixed capital formation all positively and significantly affect economic growth in Nigeria at 5%, 10%, 5%, and 1%, respectively. In the short run, remittances, labor force, capital formation, and inflation are expected to negatively affect the Nigerian economy. The negative impacts of these variables in the short run, however, could be reduced with the right economic policies. Based on the study’s empirical findings, the government of Nigeria should strive hard to channel remittances being consumed in the country to the productive sectors of the economy. Such remittances could be channeled to agriculture, manufacturing, and infrastructure development in the country. Also, accountability institutions such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices Commission (ICPC) should be strengthened to check corruption in the country. By doing so, such institutions would be able to prevent corrupt practices in the country without allowing positive activities in the country to be affected. Such a scenario would promote a better business environment and would also attract investment to the country.

Economic Growth, Corruption, Remittances, ARDL, Nigeria

1. Abeeb, O. O., Adewale, O. T., & Mathew, A. A. (2025). Migration and economic growth in Nigeria: Do migrants' remittances matter? Journal of Identity & Migration Studies, 19(1). [Google Scholar] [Crossref]

2. Afen-Okhai, F. (2023). Migration, remittances, and household welfare in Nigeria. Lagos: University of Lagos Press. [Google Scholar] [Crossref]

3. Amadi, K. C., & Abe, I. I. (2024). Migrant remittances and economic growth in Nigeria: An ARDL approach. Nigerian Journal of Economic Studies, 12(2), 45–62. [Google Scholar] [Crossref]

4. Asafo Agyei, D. (2021). Remittances and economic growth in Sub-Saharan Africa. African Development Review, 33(2), 211–228. [Google Scholar] [Crossref]

5. Barguellil, A., & Zaiem, M. H. (2013). Remittances, education and economic development. Journal of Economics and International Finance, 5(5), 162–169. [Google Scholar] [Crossref]

6. Barro, R. J. (1996). Determinants of economic growth: A cross-country empirical study (NBER Working Paper No. 5698). Cambridge, MA: National Bureau of Economic Research. [Google Scholar] [Crossref]

7. Eze, O. R. (2023). Remittances, exchange rate dynamics, and Dutch disease in Nigeria. International Journal of Development Economics, 8(1), 33–49. [Google Scholar] [Crossref]

8. Fredrick, A. E., Onuorah, A. C., & Osuji, C. C. (2025). Dynamics of remittances and economic development in Nigeria. Review of International Economic, Taxation, and Regulations, 1(1), 47–58. [Google Scholar] [Crossref]

9. Habib, H. (2024). Are institutions improving the contribution of remittances to economic growth? A panel data analysis. Institutions and Economies, 16(1), 29–52. https://doi.org/10.22452/IJIE.vol16no1.2 [Google Scholar] [Crossref]

10. Iheke, O. R. (2012). The effect of remittances on poverty and inequality in Nigeria. International Journal of Economics and Management Sciences, 1(11), 1–9. [Google Scholar] [Crossref]

11. Kaasschieter, G. (2014). Remittances and Dutch disease: A review of the evidence. Amsterdam: Tinbergen Institute. [Google Scholar] [Crossref]

12. Kaufmann, D., Kraay, A., & Mastruzzi, M. (2010). The worldwide governance indicators: Methodology and analytical issues (World Bank Policy Research Working Paper No. 5430). Washington, DC: World Bank. [Google Scholar] [Crossref]

13. Knack, S., & Keefer, P. (1995). Institutions and economic performance: Cross-country tests using alternative institutional measures. Economics and Politics, 7(3), 207–227. [Google Scholar] [Crossref]

14. Lewis, W. A. (1954). Economic development with unlimited supplies of labour. The Manchester School, 22(2), 139–191. [Google Scholar] [Crossref]

15. Makar, A. T., Ngutsav, A., Ijirshar, V. U., & Ayaga, M. (2023). Impact of corruption on economic growth: An empirical evidence from Nigeria. Journal of Public Administration, Finance and Law, 27(1), 254–276. https://doi.org/10.47743/jopafl-2023-27- [Google Scholar] [Crossref]

16. Mbadiwe, M., & Egesimba, C. (2024). Remittances and economic growth: A case study of Nigeria. International Journal of Entrepreneurial Development, Education and Science Research, 8(1), 308–324. [Google Scholar] [Crossref]

17. Ojewunmi, A. (2025). Corruption and democratic governance in Nigeria: Origins and effects. Journal of African Political Studies, 14(1), 88–107. [Google Scholar] [Crossref]

18. Oladipo, O. S. (2020). Migrant workers' remittances and economic growth: A time series analysis. The Journal of Developing Areas, 54(4). https://doi.org/10.1353/jda.2020.0038 [Google Scholar] [Crossref]

19. Olaniyi, O. A., Olanrewaju, T. A., & Adekanmbi, A. M. (2025). Migration and economic growth in Nigeria: Do migrants' remittances matter? Journal of Identity and Migration Studies, 19(1), 16–26. [Google Scholar] [Crossref]

20. Olulu-Briggs, O. V., & Sunday, D. D. (2021). Dynamics of remittances and aids in economic development in Nigeria. International Journal of Economics, Commerce and Management, 9(4). [Google Scholar] [Crossref]

21. Olusuyi, A. E., Adebayo, A., & Ojo, T. (2017). Remittances, savings, and capital formation in Nigeria. West African Journal of Economics, 6(2), 101–118. [Google Scholar] [Crossref]

22. Omoniyi, O., & Owoeye, T. (2024). Effect of remittance inflow on economic growth of Nigeria. Journal of Applied and Theoretical Social Sciences, 6(1), 74–87. https://doi.org/10.37241/jatss.2024.104 [Google Scholar] [Crossref]

23. Ratha, D., & Riedberg, J. (2005). On reducing remittance costs (Unpublished paper). Development Research Group, World Bank, Washington, DC. [Google Scholar] [Crossref]

24. Shobowale, D., Ajayi, O., & Bello, K. (2024). Remittances, macroeconomic stability, and poverty reduction in developing economies. Journal of Development Finance, 11(1), 22–41. [Google Scholar] [Crossref]

25. Šumah, S. (2018). Corruption, causes and consequences. In Trade and Global Market. IntechOpen. https://doi.org/10.5772/intechopen.72954 [Google Scholar] [Crossref]

26. Transparency International. (2014). Corruption Perceptions Index 2014. Berlin: Transparency International. [Google Scholar] [Crossref]

27. World Bank. (1997). World development report 1997: The state in a changing world. Washington, DC: World Bank. [Google Scholar] [Crossref]

28. World Bank. (2023). Remittances remain resilient but are slowing: Migration and development brief 38. Washington, DC: World Bank. https://www.knomad.org/sites/default/files/publication-doc/migration_and_development_brief_38_june_2023_0.pdf [Google Scholar] [Crossref]

• Impact of Foreign Direct Investment in India
• Issues Involved in Digitalisation Special Reference to Indian Tourism Growth
• Relationship Marketing and Customer Loyalty in the Fast-Moving Consumer Goods (FMCG) Industry in Nairobi County
• Financial Literacy or Financial Inclusion? Which is Which, What is What—To Achieve Uganda’s 10-Fold Economic Growth By 2040
• Harnessing Natural Gas for Economic Transformation: Overcoming the Regulatory and Infrastructural Bottlenecks in Nigeria