Analysis of Remittance Flows and Household Welfare in Osun State

International and internal remittances are an important source of household income and community development finance, and their quantification and developmental impacts in Osun State provide locally relevant evidence for migration policy in South West Nigeria. This study analysed remittance flows and their effects on household welfare and community development in Osogbo, Ilesa East, and Ife North Local Government Areas, Osun State. A cross-sectional survey of 300 remittance-receiving households collected data on remittance amounts, frequency, sender location, use, and changes in welfare indicators. Mean monthly remittance received was N41,500 for domestic and N82,400 for international remittances. Remittances were primarily used for food and consumption (67.3 percent), school fees (51.3 percent), healthcare (42.0 percent), and housing improvement (28.7 percent). Households receiving international remittances showed significantly better housing quality and child school completion rates. Investment in productive assets was low at 12.7 percent. Recommendations include a state remittance investment fund matching scheme, promoting productive investment through financial literacy campaigns, and improving formal remittance channel access in rural Osun LGAs to reduce transaction costs and encourage savings.

Keywords: remittances, Osun State, household welfare, development finance, migration These findings highlight the need for financial literacy investment, productive investment incentives, and improved formal channel access in rural Osun State.