One Dollar, One Bank Account: Remittance and Bank Breadth in Nigeria

Forthcoming in Journal of International Migration and Integration, 2014

21 Pages Posted: 2 Jul 2014

See all articles by Uchenna Efobi

Uchenna Efobi

Covenant University

Evans Osabuohien

Covenant University

Stephen Oluwatobi

Covenant University

Date Written: June 30, 2014

Abstract

This study examined remittance and bank breadth in Nigeria, using data from the 2011 World Bank Households Survey for the African migration project in Nigeria. The results based logistic regression technique reveal, among other things, that remittance has an inverse relationship with bank breadth. The reason put forward is that recipients prefer to hold foreign exchange from remittance; hence, they do not increase their demand for banking services. One of the key implications of the findings is the need for the commercial banks go beyond mere serving as liaison for remittance but incorporating elements of advisory services to the customers especially those that frequently receives remittance on how best they can utilize such fund for productive activities.

Keywords: Bank Breadth; Extra Cash Flow; Financial Development; Financial Institutions; Households; Remittance

JEL Classification: E22, F24, O16

Suggested Citation

Efobi, Uchenna and Osabuohien, Evans S. C. and Oluwatobi, Stephen, One Dollar, One Bank Account: Remittance and Bank Breadth in Nigeria (June 30, 2014). Forthcoming in Journal of International Migration and Integration, 2014, Available at SSRN: https://ssrn.com/abstract=2460954

Uchenna Efobi (Contact Author)

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Evans S. C. Osabuohien

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Stephen Oluwatobi

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

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