Role of Financial Remittances in Promoting Financial Development: Evidence from Nigeria

This research aims to investigate whether financial remittances contributed to financial development in Nigeria during the years 1981-2021. The study utilized a combination of descriptive and inferential statistical techniques to analyze the data. It employed Augmented-Dickey–Fuller unit root test, the ARDL bounds test, and subsequent post-estimation examinations. To evaluate the effect of financial remittances on financial development, the current research embraced both bank-related and capital market-oriented indices as indicators of financial development. Descriptive statistics revealed that Nigeria's economic structure leans towards a bank-centred model. Further, in comparison to Foreign Direct Investment (FDI), financial remittances take precedence. The empirical findings confirmed that financial remittances exert a significant influence on financial development over both short- and long-term