THE IMPACT OF MIGRATION ON THE NIGERIAN ECONOMY

ABSTRACT

This research investigates the influence of migration on the Nigerian economy, employing an Error Correction Model (ECM) and analyzing data from 1990 to 2021. The study examines variables including Gross Domestic Product Growth Rate (GDPR), Migrant Remittances (lnMGR), Unemployment Rate (UNEM), Population Growth Rate (PGR), Net Migration Rate (NMR), and Gross Fixed Capital Formation (GFCF). The findings reveal a complex relationship between migration and the Nigerian economy. While a relationship between Net Migration Rate (NMR) and GDP growth rate (GDPR) is observed, it lacks statistical significance at the 5% level, suggesting that migration may not have a direct impact on economic growth. Similarly, migrant remittances (lnMGR) do not exhibit statistical significance, making it challenging to determine their influence on the economy. However, a significant, negative relationship between unemployment and GDP growth rate underscores the detrimental effects of unemployment on economic growth in Nigeria. Policy recommendations include promoting the positive aspects of migration, reducing remittance transfer costs, enhancing the productive use of remittances, and focusing on job creation strategies to address unemployment. Continuous monitoring of relevant variables and further research are advised to guide effective policy decisions for a resilient and prosperous Nigerian economy.