Migrant Remittance and Household Expenditure Pattern in Nigeria

This research work examined migrants’ remittance and household expenditure pattern in Nigeria. The study adopted survey research method. The quantitative study was utilized with the aid of questionnaire. The respondents were selected using convenient and random sampling techniques. Two hundred copies of questionnaires were administered on migrant households in the study area while one hundred and sixty-six questionnaires were returned. The data collected were analyzed through descriptive statistics, such as frequency tabulation and simple percentage compilation; hypotheses formulated were tested with the use of chi-square statistics. From the findings of the study and the tested hypotheses, it was discovered that there is a significant relationship among remittance, income, consumption expenditure and investments of households in Nigeria. The study therefore proffers some recommendations towards utilizing influx of remittance for households’ expenditure in Nigeria.


Introduction
For a very longtime, individuals have been on the move looking for economic opportunity. In the twentieth century, technology advances and undiscovered natural resources drove developments of population from all around the globe.
Global migration produced tremendous upgrades in individuals' lives. Immigrants delighted in higher wages, destination countries benefitted from expanded flexibly of work, and migrant homeland labor market pressures ease. Open Journal of Political Science nating from less fortunate locales around the world. Additionally, remittances sent can likewise elevate access to economic administrations for the sender and beneficiary, thereby supporting investments and expanding money related and social inclusion.
As per the World Bank, in 2019 worldwide remittance arrived at a record USD 554 billion in 2019 expanded up by 4.7% weighed with 2018, surpassing Foreign Direct Investments (World Bank, 2020), the main five settlement beneficiary nations were India ($83.1 billion), China ($68.4 billion), Mexico ($38.5 billion), the Philippines ($35.2 billion), and the Arab Republic of Egypt ($26.8 billion) (World Bank, 2020). In comparative terms, the main 5 nations which got the most noteworthy remittance as a portion of total national output (GDP) in 2019 were: Tonga (37.6% of GDP), Haiti (37.1%), South Sudan (34.1%), the Kyrgyz Republic (29.2%), and Tajikistan (28.2%) (World Bank, 2020). Moreover, the amount of informally dispatched cash could be a few times higher. This can be considered as an extraordinary commitment to household economies, critics contend that this cash is fundamentally influencing consumption, instead of adding to longer-term sustainable development and advancement. Migrant transferred of goods or cash has become a momentous basis of revenue and foreign exchange for emerging nations. A large number of family units are influenced by migration through cash or goods transferred to the migrants' homeland. Global remittances comprise the second biggest avenue of net capital inflows after foreign direct investment which surpasses foreign aid. It is evaluated that inflows of migrant remittances to emerging nations currently exceed official advancement aid in many emerging nations (World Bank, 2018).
Nigeria's remittance inflows continue to be among the most noteworthy in Africa with high commonness of familiarity. Remittance inflows into Nigeria are by a wide margin is one of the most significant in Africa. In 2017, they were the 6th most elevated on the world. In 2018, USD 24.2 billion was transmitted to Nigeria a 9% growth rate from 2017. The Central Bank of Nigeria (CBN) credits this development to improved economic conditions of the world (CBN, 2017).
These noteworthy flows establish one third of official flow of remittance into Africa and are ten times greater than Senegal, which is the second most elevated beneficiary in SSA. Remittances were valued as 5.9% of the Nigerian GDP in 2017. This is a great figure given that Nigeria is Africa's biggest economy. Capital and remittance flows have increased rapidly since 2005 because of the introduction of the Nigerian capital market, and the nation is considered to have linked with the positions of frontier markets (IMF, 2016). Different sources exposed that the flows are comprehensibly undervalued, in such case, with as much as half of remittances inflow to the nation through unofficial sources are not caught in the official information. Transferred remittance remained at about USD275 million of every 2017, making Nigeria a significant beneficiary of remittances.
In the migration literature, there are immediate and indirect impacts of re-Open Journal of Political Science mittances on expenditure of nation's economy. Remittance can be seen as monetary inflow emerging from the movement of people, and the disposal of cash and items by migrants to their homeland. Household expenditure is the amount of final consumption and spending made by families to meet their daily needs such as food, furniture, accommodation, vitality, transport, vehicles, wellbeing costs, recreation, and different administrations. The impact of remittance inflow on recipient families varied (Waheed et al., 2013). In the widest sense, there are positive and negative views on the effects of receiving remittances and speculations have swung between the two. On the constructive side, the immediate impact results when the remittances are coordinated towards investment costs and many policy makers hope that the money received through remittances will be invested to guarantee the basic needs of families, working towards development of the economy, or add to individual savings. On the adverse side, opposing discoveries have recommended that remittance cash, on several instances, is not used for long-term investments, but rather allows obvious consumption or has a limited impact on investments, while indirect impact results when it is coordinated towards family income, education, health care costs and poverty reduction. Above all, families who receive remittances likely to spend more on consumption, wellbeing and education (Adams, 2011). Therefore, this study seek to examine migrants' remittance and expenditure pattern of households in Nigeria.
The study seeks to examine migrants' remittance and expenditure pattern of households in Nigeria. The study addresses the below objectives of the study are thus: 1) Ascertain the extent at which migrants remittance influences households income level in Nigeria; 2) Find out the extent at which migrants remittance influences households spending pattern in Nigeria; 3) Investigate the extent at which remittance influences households investment decisions in Nigeria.

Statement of Problem
The rise of geographical labor mobility due to economic hardship, redundancy and insecure monetary conditions, among other factors, particularly among experts, has been related with brain drain in African nations. In any case, migration is not generally favorable. Labor migration around world presents obvious difficulties, employees and managers worried about the rights of all workers in their supply and workforce, including migrant workers. Migrant workers are progressively helpless against infringement of their principal rights, exploitation and abuse, segregation and unequal treatment and freedom of association. Employers of migrant workers may face legal impediments in respect of the rights of migrant workers; For instance, in many countries foreign workers are restricted by law from joining a union. At the same time, there are a lot of chances for organizations and employers to have a positive influence on the extensive  Bank, 2020). The estimated increased fall in remittance will subvert building up nations' capacity to manage the COVID-19 pandemic, not to mention their capacity to accomplish the Sustainable Development Goals (Amanda, 2020).
It is imperative to stipulate that despite the position of Nigeria as top remittance beneficiary nation in Africa and fifth on the world in 2013 budgetary year, the Central Bank of Nigeria is uncertain about the genuine measure of monies transferred to the nation because of its absence of strategies to quantify casual routes through which remittance move to the nation. This proposes remittance enter the nation through informal ways and this could be make the official figures not exactly precise impression of the truth as individuals like to send remittance home cheaply requiring little to no effort, for the most part through friends who is visiting their homeland. It is essential that Nigerians overseas were recorded to have transmitted US$10/$21 billion out of 2010 and 2013 financial year separately, and this placed the nation in front of other African nations as the most remittance beneficiary nation. In spite of the high flow of remittance into Nigeria, hardship and inequality are still rampant in Nigeria, and the nation is unable to utilize remittance like other developing nations, for example, Philippines and Mexico (Adams, 2011).

Theoretical Framework
There is no single theory can fully explain migration, remittance and household expenditure given the fact that their drivers are complex and multifaceted. There are a number of theories that can be relied upon to explain the drivers of remit-

Dual Labour Market Theory
The dual labor market theory, also known as segmented labor market theory, stressed that migration is reaction of the labor market pressure of the advanced nations (Piore, 1969;Piore, 1970;Doeringer & Piore, 1971). The dual labor market theory holds that the request for low-level workers in the more advanced economies is the critical factor that forms global migration. According to this theory, migration is brought from fascinating (pull) elements in industrialized territories and not by pressure (push) elements in sending nations. It is the economic structure of advanced nations that requires a permanent job offer. The dual theory of the labor market has underlined that the market can be described by the presence of two distinctive sectors, namely the primary and secondary segments. The representatives of the first sector enjoy stable employment, great working conditions and high advancement prospects. The primary sector contains privileged members of the workforce. It represented an internal job market.
Relatively high wages are paid; there is stable work with good working conditions and job safety. This theory was mainly used to clarify how circumstances in receiving nations draw migrants around the world and restricting their job prospects after arrival. Therefore, global migration is considered from the point of interesting (pull) elements in developed nations, in particular aspects essential in their labor markets rather than driving (push) elements in sending countries (Massey et al., 1993).
In a dual labor market, a secondary sector is categorized by short-term business opportunities, next to zero possibility of internal promotion. In terms of professions, they are mainly low or inexperienced jobs. The secondary sector is made up of works without expertise particularity. Employment in the secondary sector makes or strengthens bad work habits, such as unstable work arrangements, low level of promptness and absentmindedness. Wages in these engagements are low. This area has poor working conditions, gives little or no professional prospects and barely any advancement possibilities. Presumably, migrants in this category earn relatively low. Therefore, we can contend that secondary division is an essential feature of emerging nations that inspires migration. This huge informal segment constructs a persistent source of laborers prepared to find employment elsewhere, just on the request for secondary sector workers in established industrialized nations such as the countries of Europe makes consistent interest for immigrant laborers (Piore, 1975).
Therefore, migration may along these lines be viewed from the consequence of labor market situations inalienable to emerging nations as opposed to indi- class are prone to increase economic well-being of family at home, gratitude to a moderately higher flow of remittance. These migrants typically earn relatively more and, will subsequently remit more. Conversely, they are also expected to spend a longer span of time abroad and furthermore are bound to rejoin with their close family in the host nation.

Implicit Family Contract Theory
This theory distinguishes family as the main unit of investigation (Stark & Lucas, 1985;1988). In this view family go into implicit agreements with individuals who migrate. These certain agreement includes investment and repayment assurance among household and migrants, and often lasted for a long while or decades. The understood agreement involve time-based dimension for different years or even decades. In the loan repayment theory, the household puts resources into the education of the migrant and generally funds the migration expenses and accommodation in the receiving nation. This represents the loan component of the hypothesis. The repayment takes place after the migrant settles abroad, his earnings begin to rise over the long run and he is in a situation to begin reimbursing the loan back to the family as in form of remittance. In this way the family puts resources into a higher yielding resource, the migrant who gains a higher salary in an outside nation than other relatives living and working at home. This theory predicts different time profiles of remittance, varying, among others, on the period of time it takes for the migrant to settle in the foreign labor market and on the span of his stay abroad. The sooner the migrant's coordinate into the labor market of the new nation the quicker the progression of remittance. The sums to be moved will depend, in addition to other things, on the earning profile of the migrant (Stark & Lucas, 1985).
Another variation of this hypothesis as an implicit family contract between the migrant and families at homeland is based on the concept of risk diversification.
The notion is basic as insurance and capital markets in reality are inadequate, and risks cannot be expanded in view of the lack of financial resources that edge risks. Furthermore, debt constraints, a particularly serious problem for poor migrants, limit the ability to regulate consumption or finance investments. Assuming that the economic risks between the host country and country of origin are not significantly related, at that point it turns into an advantageous procedure for the family to send a portion of its individuals abroad to diversify economic risk. The migrant, at that point, can assist with supporting his family in awful occasions at home. On the other hand, for the migrants, having a family in the homeland is insurance against the unpleasant occasions that may likewise happen in the host nations. In this perspectives, emigration turns into a co-insurance implementation can be relied upon to be less difficult because of the way that these are implicit family contracts which are aided by family trust and selflessness, an element regularly missing in legitimately authorized agreement (Stark & Lucas, 1988).

Theory of Migrant Network
The network theory was proposed by Massey et al., 1987;Massey, 1988Massey, , 1989 which stressed that transmission of the migration experience from migrants to family members and companions in their homeland as an engine of global migration. Arango (2000) defined the migration network as a relatively steady relationship over time of beneficiary nations with migrants' homeland. As per Massey et al. (1993), migrations produce networks which at that same point feed the migration that created them. In this way, whatsoever micro social, cultural political and monetary circumstances that primarily caused migration originated from pushes and pulls factors, the growing migration procedure turns out to be logically independent to the real causal situations. Basically, migrations in process ascend over the conditions that made them, driving from that point of a liberated presence. Massey (1988) describes migratory networks as sets of relational bonds that connect migrants, ex-migrants, and non-migrants in homeland and host territories from the ties of kinfolk, friendship and common network of origin.
Networks stimulate autonomy of migratory flows for two reasons. Firstly, when network associations arrive at some limit level, they become self-governing social structure that underpins immigration. This emerges from decreased social, monetary, and emotional expenses of immigration allowed by the networks.
In other words, the migrants supported by the network have significant impact in financing transportation, securing accommodation and work in the host territories, and in achieving a reasonable individual and emotive adaptation to what is frequently a hard condition of ethnic peculiarity. These advantages make mi-  (Massey, 1989). Global migration is particularly compelling in light of the fact that international borders make gaps between freedom of income at home and foreign territories. Great occasions in foreign territories can coordinate awful situations at home, or the other way around. Indeed, even without disparities of income, global migration creates a powerful risk diversification strategy, particularly when network of migrant previously exist. Migration networks diminish the economic threats of migration therefore making the approach more gorgeous from the perspective of risk diversification (Massey, 1989

Empirical Review
Migration is now a universal phenomenon, the World Bank (2019) (Lee, 1966).
The new economy of labor migration, from hypothetical point of view, considers remittance transfers as a major aspect of a family unit dynamic strategy to decrease risk at home and increase investment opportunities in areas where credit markets, insurance and capital is preoccupied or were on unsatisfactory (Taylor, 1999). Remittances are commonly defined as the part of a migrant's income transferred from the destination of the migration to his homeland. The term generally can be seen as the transfer of money or goods, although remittances can also be sent in kind. In most literature, the term is further limited to transfers sent by migrant workers, but it is worth noting that refugees and other migrants who do not benefit from the legal status of migrant workers also send remittances (Nair, 2009). Household expenditure is one of the most significant elements in an economy. Different factors, for example, income, expenses and accessibility of merchandise and ventures, family size and the money related circumstance of families impact the conduct of family unit spending. A rising pattern in spending behavior stimulates the development of nations, while downward pattern results to stagnation. Household spending is funded by the earnings among its individuals. Income from any source is fundamental for households; therefore, remittances represents as extra income of households can have a pivotal character in the spending behavior of the beneficiary homes (Clement, 2011).
Several empirical studies found conflicting results on the effect of remittances on family expenditure. Demurger and Wang (2016) examine the inward and outside impacts of remittances on household spending in Tajikistan. They discovered that external remittances have a positive effect on the level of household consumption and a negative effect on household spending on investments, families assign internal remittances mainly to consumption and less to education and family businesses. The study revealed that remittances are not being utilized in a productive manner. Parinduri and Thangavelu (2008) in an investigation on the influence of remittances and consumption and saving pattern of migrant families in Indonesia using coincidence estimators of differences matching. The results revealed that remittances changed family utilization plans. Nevertheless, the study found no solid proof that demonstrated remittances improved the wellbeing of these families. Additionally, remittance families did not have sound education or health care, which submits that remittances may not play an important role in accelerating economic development through these two sources. In any case, the result showed that remittance families have managed to invest part of their income in traditional forms of investment, such as properties and gold jewelries. Taylor and Mora (2006) ascertain the internal and external impact of remittance on household spending in Mexico and they discovered that compared to families without migrants, families with external migrants have higher marginal investment expenditure. Families with local migrants assign a A. Adeseye Open Journal of Political Science higher portion of spending on facilities, well-being and accommodation than families without migrants Castaldo and Reilly (2007) apply the OLS estimator to evaluate the influence of remittances on household spending in Albania. The results indicate that family with external remittances designate a lower portion of total expenditure on food and more on durable goods than family without remittances. The study does not address the possible endogeneity of remittances. This means that parameter estimates on the effect of remittances on household spending can be one-sided and conflicting. Airola (2007)

Research Methods
The research methodology described the purpose of data collection and the Open Journal of Political Science techniques used in data analysis to meet the objectives of the study (Kothari, 2004). The research design adopted for this study is survey method. The researcher applies this design to investigate international migrant remittance and household expenditure pattern in Nigeria. However, Lagos Metropolis was chosen for illustration to demonstrate on the phenomenon. This design is adopted because it focused on gathering opinions and views of the respondents on the research problem and it also allows the researcher to choose a fraction of the study population. The population for this study includes all remittance receiving households in Lagos State. The target population of the study comprised of only migrant households in Lagos Metropolis, Nigeria. The sample is made up of 200 heads of households who have received remittances for three to five years before the study.
Lagos state is topographically located in the southwestern piece of Nigeria and is separated into 5 managerial zones. These zones are additionally separated into the 20 Local Government Areas. Lagos state remains the littlest in region of Nigeria's 36 states. Lagos State is apparently the most monetarily significant part of the nation, containing the country's biggest urban zone. It is a significant economic focus and would be the fifth biggest economy in Africa, in the event that it was a nation. It has the most elevated populace density of states in Nigeria. The Lagos State Government evaluates the number of inhabitants in Lagos at 17.5 million as at December 2006 (Lagos Bureau of Statistics, 2012). Being urban zone, larger part of the occupants are government workers and private representatives, with additionally other income creating jobs like fitting, hair-dressing, printing and so on can likewise be found in the territory. The greater part of its occupants is from Yoruba clan.
The study employed convenient sampling method and simple random sampling. Convenient sampling method was employed to conveniently select 5 selected wards in the study area. The simple random sampling method will be used to select 100 participants from selected wards in the study area because of its fairness and objectivity, since everyone in the population has the same chance of being selected. Questionnaire was used as the main of research instrument in this work. The questions were designed to address the questions raised in the research problems, provide data used in testing the hypothesis formulated as well as achieve the objectives of the study. The nature of the questionnaire is structured, open ended and close ended where options were given to respondents to choose from. Also they were also expected to express their opinion where options were not provided. The quantitative information acquired was assessed with the aid of S.P.S.S measurable Package. Descriptive techniques were applied and were in form of simple frequency distribution. Chi-square was similarly used to test the hypotheses.

Model Specification
The main purpose of this study is to examine migrants' remittance and economic growth in Nigeria. In specifying the model for this study, the following alpha- Therefore, β 1 β 2 β 3 β 4 > 0

Empirical Data and Analysis
This section focuses on the analysis and interpretation of data used to examine migrants' remittance and expenditure pattern of households in Nigeria. The findings from this study would enable the researcher in achieving the study's objectives and arriving at a suitable conclusion. The data were analyzed using

Test of Research Hypotheses
This section centers around testing the hypotheses expressed for the investiga- The degree of importance is 0.05. Hypothesis I Ho: There is no significant relationship between migrant remittances and households income level in Nigeria.
Hi: There is a significant relationship between migrant remittances and households income level in Nigeria. Table 6 and Table 7 revealed the first hypothesis result for the study. This first table shows a cross tabulation between the two variables used to test the hypothesis while the second table represents the chi-square test statistics. The Pearson chi-square value is 293.433 a with a significant of 0.000. Since the p-value of 0.000 is less than 0.05; the null hypothesis is rejected and the alternative accepted, implying that there is a significant relationship between migrant remittances and income level of households in Nigeria.

Hypothesis II
Ho: There is no significant relationship between migrant remittances and spending pattern of households in Nigeria.
Hi: There is a significant relationship between migrant remittances and spending pattern of households in Nigeria. Table 8 and Table 9 revealed the second hypothesis result for the study. This first table shows a cross tabulation between the two variables used to test the hypothesis while the second table represents the chi-square test statistics. The Pearson chi-square value is 272.243 a with a significant of 0.000. Since the p-value of 0.000 is less than 0.05; the null hypothesis is rejected and the alternative accepted, implying that there is a significant relationship between migrant remittances and spending pattern of households in Nigeria.
Hypothesis III Ho: There is no significant relationship between migrant remittances and investment decisions of households in Nigeria.
Hi: There is a significant relationship between migrant remittances and investment decisions of households in Nigeria. Table 10 and Table 11 revealed the second hypothesis result for the study. This first table shows a cross tabulation between the two variables used to test the hypothesis while the second table represents the chi-square test statistics. The Pearson chi-square value is 129.951 a with a significant of 0.000. Since the p-value of 0.000 is less than 0.05; the null hypothesis is rejected and the alternative accepted, implying that there is a significant relationship between migrant remittances and investment decisions of households in Nigeria.

Discussion of Findings
The study examined migrants' remittance and expenditure pattern of households in Nigeria. In the course of this study, three hypotheses were tested. The result of the first hypothesis revealed that there is a significant relationship between remittance and income level of households. This result is consistent with the results of Peter and Valkenburg (2008) which showed that remittance revenues are accumulated for households belonging to the lower ladder of income distribution, aiding recipient households to climb the income scale. They claimed that income from remittances has a positive and significant effect on children's    health and education, but not on apparent consumption or accumulation of assets, while remittances help to increase family income in migrant sending areas.

A. Adeseye Open Journal of Political Science
The result of the second hypothesis emphasized that there is a significant relationship between remittance and consumption expenditure of households. The results obtained were supported by a study by Olowa and Awoyemi (2012) which found that remittances affect household spending in rural Nigeria. However, they concluded that families who receive remittances spend less on the consumption of food, consumer goods and durable goods than families who do not receive remittances.
On the third hypothesis, the result of the findings indicated that there is a significant relationship between remittance and investment decisions of households. Similar results were observed by Singh et al. (2011) discovered that remittances act as a backup and nations with well-working bodies and foundations seem to profit most from the capability of remittances. He concluded that remittances support investments during recessions and serve as reserves in beneficiary countries.

Conclusion and Recommendations
Migration plays a significant role in developing nations and it is essential to see how beneficiary households use them. The inquiry on what remittances signify to households is still a subject of discussion. The manner in which remittances are utilized on income, consumption or investment is strictly evaluated by the context of the analysis. A few nations can encourage beneficial utilization of remittances better than others. The study examines migrants' remittance and expenditure pattern of households in Nigeria. In order to explore the relationship between worker remittances and household expenditure pattern, Chi-square statistical analysis is utilized. From the findings of the study, it can therefore be deduced that there is a significant relationship between remittance and household income in Nigeria. Similarly, a positive relationship has been found with remittance inflow and consumption expenditure of households in Nigeria. Also, the study established that remittance significantly influences investment decisions of households in Nigeria.
Remittances in developing nations are frequently viewed as one of the fundamental sources of external financing. Nigeria is no special case. Over past decades, the inflow of remittances from Nigerian migrants has expanded fundamentally. Aside from positive macroeconomic impacts on financial development and advancement, the remittance impacts family units on the small scale level, raising their income and, therefore, changing consumption and investment patterns. Remittances represent a consistent and changeless progression of money related assets for those family units that are intensely reliant on such income source and can be consequently be seen as permanent income. In this case, families can make consumption and investment decisions based on them. Remittance beneficiary households will in general spend more on consumption and investment in human development in general, which implies that the income from remittances seems to allow for sustained consumption. From this study, it is Open Journal of Political Science clear that families have also used remittances for social purposes, such as weddings, funerals and ceremonies. Migrants support the social functions of their families, because they consider it an investment and therefore expect similar help in the future.
In the realm of the above deductions, the below recommendations are made: 1) The government should improve the collection and monitoring of data on remittances and migratory flows and related financial information to manage them better, as this would promote research that will lead to a better understanding of migration decisions, remittance spending patterns and its influence on investment of households.
2) Policy makers should create useful policies to encourage the use of remittances to support long-term development and income security. Policies should aim to encourage migrants to channel remittances through official channels rather than through informal channels and this will also help them to keep their savings in the form of financial assets rather than abroad.
3) The government should conduct enlightenment campaigns to raise awareness of the benefits of using remittances for investment rather than consumption that will enable migrant workers to transfer more funds and support investments in their homelands.

Conflicts of Interest
The author declares no conflicts of interest regarding the publication of this paper.