Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between remittance flows and economic growth has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of the Nigerian Capital Market where operating conditions differ markedly from more developed markets.

the Nigerian Capital Market presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

Despite a growing body of literature on remittance flows, there remains limited consensus on the precise nature of its relationship with economic growth, particularly within the Nigerian Capital Market. Many organizations continue to make decisions about remittance flows without a clear, evidence-based understanding of how those decisions ultimately affect economic growth. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Remittance Flows on economic growth in the Nigerian Capital Market.
2. To assess the extent to which remittance flows influences economic growth within the study area.
3. To identify the challenges associated with remittance flows in relation to economic growth.
4. To recommend strategies for optimizing remittance flows in order to improve economic growth.

1.4 Research Questions

1. What is the effect of remittance flows on economic growth in the Nigerian Capital Market?
2. To what extent does remittance flows influence economic growth within the study area?
3. What challenges are associated with remittance flows in relation to economic growth?
4. What strategies can be adopted to optimize remittance flows in order to improve economic growth?

1.5 Significance of the Study

Beyond its academic contribution to the field of economics, this study has practical value for management teams within the Nigerian Capital Market seeking to understand how remittance flows translates into measurable outcomes around economic growth. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

The study is limited to an examination of Remittance Flows and its relationship with economic growth within the context of the Nigerian Capital Market. It reflects a BSc-level scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.