DIASPORA REMITTANCES AND MACROECONOMIC STABILITY IN NIGERIA AND GHANA (2012–2023): AN EMPIRICAL COMPARATIVE ANALYSIS

Abstract

This study examines the impact of diaspora remittances on economic growth (GDP growth rate), income levels (GDP per capita), and labour market outcomes (unemployment rate) in Nigeria and Ghana from 2012 to 2023.The study adopts an ex-post facto research design and utilizes annual secondary time-series data sourced from the Central Bank of Nigeria (CBN), Bank of Ghana (BoG), World Bank, International Monetary Fund (IMF), and International Labour Organization (ILO). Data were analysed using descriptive statistics, unit root tests, and Ordinary Least Squares (OLS) regression to estimate the relationships between diaspora remittances and selected macroeconomic variables in both countries.Empirical results show that diaspora remittances have a positive and statistically significant effect on GDP growth in Nigeria (β = 0.18, p = .04) and Ghana (β = 0.26, p = .01). Similarly, remittances significantly increase GDP per capita in Nigeria (β = 28.6, p = .01) and Ghana (β = 45.3, p = .01). In addition, remittances have a negative and statistically significant effect on unemployment in Nigeria (β = −0.21, p = .04) and Ghana (β = −0.13, p = .04), indicating a reduction in unemployment in both economies, with stronger effects observed in Ghana.The study concludes that diaspora remittances enhance economic growth, improve income levels, and reduce unemployment in both countries. However, Ghana demonstrates more efficient macroeconomic absorption of remittance inflows than Nigeria, suggesting that institutional quality and financial system efficiency determine the extent of their developmental impact.