Study of Remittance Inflows and Household Welfare in Imo State

International remittances are a major source of income for households in South East Nigeria, and examining their welfare effects in Imo State provides evidence on how diaspora financial flows shape local economic conditions. This study examined the relationship between international remittance receipts and household welfare indicators among households in Owerri Municipal, Orlu, and Okigwe Local Government Areas, Imo State. A cross-sectional survey of 300 households (150 remittance-receiving and 150 non-receiving, matched for location and household size) was conducted. Data covered remittance amounts, expenditure patterns, investment behaviour, educational attainment, and food security. Independent samples t-tests and propensity score matching were applied. Results showed that remittance-receiving households had significantly higher per capita expenditure (N18,400 versus N12,100 monthly), higher household food diversity scores, and better children's secondary school completion rates (87 percent versus 68 percent). However, 63.4 percent of remittances were primarily consumed rather than invested in productive assets. Real estate investment accounted for 24.7 percent of remittance use, while business investment accounted for only 8.3 percent. The study concludes that remittances significantly improve welfare but are primarily consumption-focused in Imo State. Recommendations include tax incentives for remittances channelled into diaspora investment bonds, financial literacy programmes for receiving households, and diaspora investment matching funds through the Bank of Industry to shift remittances toward productive capital formation.

Keywords: remittances, household welfare, Imo State, diaspora, South East Nigeria