The Influence of Remittances from Diaspora Igbo on Household Economic Welfare in Imo State

Diaspora remittances represent a significant and growing source of household income in many developing communities, with the Igbo diaspora internationally recognized for sustaining substantial financial flows to home communities. This study examines the influence of Igbo diaspora remittances on household economic welfare in Imo State from 2020 to 2024. The study is grounded in the Altruistic Remittance Motivation Theory, which posits that migrants transfer income to home households primarily out of familial obligation, income-sharing, and the desire to maintain family welfare standards during periods of geographic separation. A survey research design was employed, targeting remittance-receiving households in three senatorial districts of Imo State. From an estimated population of 45,000 regular remittance-receiving households, a sample of 380 respondents was drawn using stratified random sampling. Structured questionnaires and data from the Central Bank of Nigeria's remittance tracking reports were the instruments. Findings indicate that remittances contributed an average of 42 percent of total household income for recipient families, with the bulk directed toward housing, education, and healthcare expenditure. Despite this, the majority of remittances were consumed rather than invested in productive economic activities, limiting their long-run income-generating impact. The study concludes that diaspora remittances improve short-term household welfare but do not yet function as a driver of sustained productive investment in Imo State. It is recommended that the state government create diaspora investment vehicles that channel remittance flows into local productive enterprises and infrastructure.

Keywords: Diaspora remittances, household welfare, Imo State, Igbo diaspora, altruistic motivation