Impact of Foreign Remittances on Quality of Life in Nigeria

Nigeria remains one of the largest recipients of foreign remittances in Sub-Saharan Africa. These remittances are often considered vital for improving household well-being, as they help meet essential needs such as healthcare, education, and consumption. This research work examined the impact of foreign remittances on quality of life in Nigeria for the period 2004 to 2023. The study used personal remittances received (% of GDP) to measure foreign remittances and principal component analysis was used to develop quality of life index using household expenditure, household income, assess to water, education and health expenditure. Data was obtained from World Development Indicator, Bruegel, IMF statistical Division and UN data. The analysis was carried out using PraisWinsten AR(1) regression model.. The results shows that coefficient of remittances is 0.221 which means that one-unit increase in remittances increases the quality of life Index by 0.221 units. This results shows that foreign remittances has a positive and significant impact on quality of life in Nigeria. Based on these findings, the study concludes that foreign remittances received improved the quality of life in Nigeria.  We recommend that the government should improve remittance transfer platforms used by Nigerians living abroad to send money home, in order to reduce bottlenecks and thereby increase the inflow of remittances into the country.