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This study explores how foreign aid and remittances affect household welfare in Nigeria.

June 19, 2026Open Access

Foreign AId, Remittances and Household Welfare in Nigeria

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Randomized trial examines the impact of foreign aid and remittances on household welfare in Nigeria, indicating significant positive influences.

This study explores how foreign aid and remittances affect household welfare in Nigeria.
Used annual data from 1986 to 2024 from the Central Bank of Nigeria and World Bank.
Employed Autoregressive Distributive Lag (ARDL) and Granger Causality Test for analysis.
Dependent variable was household welfare measured by the GINI coefficient and included variables like ODA, MLA, BLA, TCG, RMT, GDPPC, EXR, and CPI.
ODA, MLA, and BLA positively impact household welfare significantly in both short-run and long-run.
Technical cooperation grants (TCG) have a negative and insignificant effect on household welfare.
Remittances positively influence household welfare in both short and long run, with bidirectional causality with ODA and TCG.

ISIBHAKHOMEN et al. (2026) studied this question.

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Randomized trial examines the impact of foreign aid and remittances on household welfare in Nigeria, indicating significant positive influences.