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

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.