EFFECTS OF DIASPORA REMITTANCES ON HEALTH OUTCOMES IN NIGERIA

One persistent concern in development economics is how private international capital flows particularly diaspora remittances shape health outcomes in low and middle-income countries. In Nigeria, despite receiving billions in remittance inflows annually, health indicators such as child mortality and life expectancy remain suboptimal. This study addresses the gap by empirically analyzing the effects of diaspora remittances on key health outcomes, such as health expenditure, child mortality, and life expectancy over the period 1986 to 2023. Using the Autoregressive Distributed Lag (ARDL) model, the findings revealed that diaspora remittances significantly and positively influence health expenditure in both the short and long run, indicating their role in supplementing underfunded health systems. For child mortality, remittances exhibit a negative and significant effect, particularly in the long run, confirming their potential to reduce vulnerability through improved nutrition and healthcare access. Life expectancy is positively influenced by remittance inflows, though effects are more pronounced in the short run. For the control variables, government health expenditure and GDP per capita further reinforce positive health outcomes, while inflation consistently undermines them. These results suggest that diaspora remittances are not merely welfare transfers but strategic household-level investments with macro-level implications. The study recommends that policymakers strengthen formal remittance channels, reduce transaction costs, and integrate remittance-driven financing into national health strategies. Doing so may not only improve health outcomes but also enhance social protection for vulnerable populations.