The Effect of Remittances on Household Financial Behaviour in Imo State

Remittances constitute a substantial and growing source of household income for many families in Nigeria's South East geopolitical zone, where diaspora ties and labour migration have historically been strong. This study examines the effect of remittance inflows on household financial behaviour in Imo State, focusing on savings rates, investment decisions, consumption patterns, and participation in formal financial services. A cross-sectional survey design is employed, with primary data collected from 270 remittance-receiving households in Owerri, Orlu, and Okigwe senatorial zones. Structured questionnaires capture remittance frequency, amounts, channels used, and resulting financial decisions. Data are analysed using descriptive statistics, propensity score matching to compare remittance and non-remittance households, and multiple regression to isolate the effect of remittance size on financial outcomes. The theoretical framework draws on the life-cycle hypothesis, the altruism model of remittance motivation, and the financial inclusion literature that positions remittances as a gateway to formal financial services. Recent literature from Nigeria and the West African sub-region highlights the paradox of large remittance volumes coexisting with high levels of informal financial management among recipient households. The study examines whether formal financial service providers have capitalised on remittance receipt as an entry point for savings and investment products. Findings are expected to inform strategies for diaspora engagement, financial product design for remittance households, and the Central Bank of Nigeria's diaspora investment programme. Keywords: remittances, household finance, Imo State, savings behaviour, diaspora