Migrants Remittances and Financial Inclusion among Households in Nigeria

Ajefu, Joseph; Ogebe, Joseph O.

Abstract

This article investigates the impact of remittances on financial inclusion, using the 2009 World Bank’s Migration and Remittances Household Survey data for Nigeria. An instrumental variable estimation technique was used to estimate the impact of remittances on financial inclusion, and migrant network effect was used as an instrument to control for potential endogeneity between remittance and financial inclusion. This article finds that the receipt of remittances increases the probability of using formal financial services, such as deposit accounts and Internet/mobile banking. This article concludes that reducing barriers and costs to remittance inflows can improve the access to and use of formal financial services in Nigeria, which can lead to an increase in funds for investments and the economic growth of the country.

Citation

Ajefu, J., & Ogebe, J. O. (2019). Migrants Remittances and Financial Inclusion among Households in Nigeria. Oxford Development Studies, 47(3), 319-335. https://doi.org/10.1080/13600818.2019.1575349

• Journal Article Type: Article
• Acceptance Date: Sep 8, 2018
• Online Publication Date: Feb 12, 2019
• Publication Date: Feb 12, 2019
• Deposit Date: Aug 15, 2019
• Publicly Available Date: Aug 15, 2019
• Journal: Oxford Development Studies
• Print ISSN: 1360-0818
• Electronic ISSN: 1469-9966
• Publisher: Taylor and Francis Group
• Peer Reviewed: Peer Reviewed
• Volume: 47
• Issue: 3
• Pages: 319-335
• DOI: https://doi.org/10.1080/13600818.2019.1575349
• Keywords: Migrants, remittances, financial inclusion, households, Nigeria