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The study examined the impact of remittances on Economic Growth in Nigeria. Economic growth (RGDP) was used as the dependent variable with remittances (REM) and Overseas development assistance (ODA as the key explanatory variables while controlling for the model with gross fixed capital formation (GFCF) and exchange rate (EXR). The study utilized time series data of secondary data ranging from the period 1986 - 2021 which were sourced from CBN statistical bulletin and WDI. Employing, the ADF and PP tests, all of the variables became stationary at the first difference. The Johansen co- integration test indicates that there exists a long-run equilibrium association between the dependent and independent variables. The ECM result reveals that the errors from the short run to the long run are corrected at the adjustment speed of 46.10% yearly. REM and GFCF have a positive and significant impact on RGDP in the long run while EXR have a negative and significant impact on RGDP in the long run; ODA has no significant impact on growth. Also, all the variables do not confirm the short run impact on growth. The study however concluded that remittances significantly enhance economic growth in Nigeria within the period of study. Hence, we recommend among others that the government increase remittance inflows into the country by developing the financial sector to reduce the cost associated with the inflow of remittances and reduction of tax rate for transactions so people can send money through appropriate channels to aid government collect actual data on remittance flows.
Mbadiwe et al. (Wed,) studied this question.