UNIVERSITY OF NIGERIA NNSUKKA

FACULTY OF ARTS

DEPARTMENT OF ENGLISH AND LITERARY STUDIES

NEGATIVE IMPACT OF MIGRATION ON NIGERIA'S FRAGILE ECONOMY

A TERM PAPER WRITTEN IN PARTIAL FULFILLMENT OF THE COURSE
GSP 101
BASIC COMMUNICATION SKILLS AND RESEARCH METHODS

BY
MBAH FAITH CHIAMAKA
2023/256410

LECTURER :
DR F.U NGWUOKE

DATE:

JUNE 2024

DEDICATION:
Dedicated to my parents Mr and Mrs Mba for their love and support, and to my fellow
citizens of Nigeria.

ACKNOWLEDGMENT
I will like to express my sincere gratitude to God Almighty for graces so far, to
my lectures, individuals especially my family and friends for guiding throughout
the completion of this term paper.

PREFACE
The magnitude of the migration of experts and talented citizens
threaten to constitute a clog in the overall development of Nigeria. This study
therefore intends to reveal that national growth and development cannot be realized
when there is a high level of migration of experts from Nigeria. The paper shall
further
expose the causes of this endemic movement of Nigerians on the basis of corruption
which has led to an increase in unemployment and cruel economic state. It further
will reveal the effect of migration on different aspects of the nation. The paper
shall
conclude that national development cannot be achieved if this growing trend of
migration of competent Nigerians overseas is not curtailed.

Table of contents

Title page
Dedication
Acknowledgement
Preface
Table of contents
Chapter I
1 Introduction and definition of migration and Fragility

Chapter 2
Causes of migration

Chapter 3
Negative impact of Migration in Nigeria

Chapter 4
Recommendations and conclusion
References

NEGATIVE IMPACT OF MIGRATION ON NIGERIA'S FRAGILE ECONOMY

CHAPTER 1
INTRODUCTION TO MIGRATION AND FRAGILITY
The migration of human beings is not a new event in Nigerian due to the fact that
the government have failed in every attempt to provide a stable government for the
people. For the sake of noviceship, I will lay a foundation on what migration is
about, it is the movement of persons from one country or locality to another
(Advanced dictionary). Migration can also be seen as the movement from ones home to
other intended or unintended vicinities for want of safety and survival. It has
rendered communities, towns, villages and cities devastated and their inhabitants
dispersed and made homeless, abject and their lives threatened. Migration is
essentially motivated by the quest for security, greener pasture, new land for
peaceful settlement and fertile for farming. It is a human tendency that is
provoked by hostile circumstances beyond the control of the human person and this
movement has been very rampant in the world today (Ogbu,Esther 2019). Notably
there are two types of migration which are (a) Internal migration (b) international
migration.
Internal migration refers to a change of residence within national boundaries,
such as between states, cities or municipalities example from Enugu to Abuja while
International migration refers to change of residence over national boundaries
example Nigeria to United States of America. Although migration can also be from
rural to urban areas within the country as earlier stated which often affect the
national agriculture and increases poverty in rural areas, In this case it is the
movement of people out of the country due to economic, social, political or
environmental factors which can be culpable to the government for their failure to
procure a lasting solution to the aggravating poverty and the deteriorating economy
in the country. The general belief is that a more developed fnancial system is more
stable and therefore, “less fragile”. (Sahay et a, 2015).
Before going further it is important to note what the term "fragile" is, the word
fragile refers to something that is delicate, unstable or precarious. Whereas some
studies define fragility as the propensity of financial problems to generate crises
(Tymoigne 2011). Gordani and Kwan (2019) however, noted that despite these
divergences, a financal system coud be said to be more fragile when hgh levels of
debt (hgh leverage) are linked wth high valuations in the assets used as colatera.
Therefore this can be related to the Nigeria economy considering it's insecurity,
unemployment, poor infrastructures and the likes which basically are the causes of
migration in Nigeria. This is really problematic because the future of any nation
depends largely on the educated and skilled individuals.

CHAPTER 2
CAUSES OF MIGRATION
- Poverty: In Nigeria, the electricity supply is epileptic, there is no pipe borne
water, the condition of roads is deplorable and hospitals are mere consulting
clinics etc. Poor condition of home countries sometimes can be a trigger for people
to emigrate. Hence, poverty and migration are bedmates given the fact that most
migrations are poverty orchestrated. The logic behind the movement of competent
individuals from developing countries to the developed countries is due to endemic
poverty and underdevelopment (Portex and Borocz, 1989).
- Technology: Developed countries have better technology, salaries and conditions
of service which attracts people. The lure of well-maintained high technical
facilities in rich countries in particular is seductive for manpower assets in
under developed societies.
- Mismanagement and Unemployment: The inability of Nigeria to create jobs to cater
for the need of her large number of citizens that desperately yearn for such
opportunity, as the numbers of graduate roaming the street keeps increasing
overtime they seek for the tiniest opportunity to elope in search of greener
pastures. This is because its abundant human and material resources have been
grossly mismanaged over the years.
- Economy: The worsening economic plight in Nigeria has necessitated the
burning desire for Nigerians to leave their country for greener pastures and
survival. The blow of economic downturn has badly affected young graduates and
female gender in Nigeria (Igwe, 2011). It could force young manpower assets, male
and female to migrate to developed nations.
Furthermore there could be other causes of migration such as lack of better
opportunities, political persecution, environmental degradation, seeking better
education or career opportunities, access to a better healthcare e.t.c
It is worth mentioning that Migration can have both positive and negative impacts
on a country's economy. However, in the case of Nigeria's fragile economy, the
negative impacts of migration are more significant.

CHAPTER 3
THE NEGATIVE IMPACT OF MIGRATION
1. Brain Drain: Brain drain is one of the major effect of migration as it involves
movement of highly skilled manpower from our country Nigeria to developed cities,
developed societies which has become an embarrassment to the nation and the bitter
truth about the brain drain syndrome is that most of the engineers, academics,
scientists, physicians and others that were trained in developing countries
institutions of higher learning with substantial amount of money turn out to better
the socio economic fortune of those already industrialized countries (Ogbu,Esther
2019). This has depleted the country's talent pool and negatively impacted its
economic development. In the education sector the out flow of intellectual and
teachers has resulted in the fall in the quality of education thereby discouraging
the process of knowledge creation. In the health care, the scourge of brain drain
has led to inadequate health care delivery services. Brain drain is anti-
developmental and has been a great constraint on the development of poor countries.
This implies that technical and other developmental initiatives are lacking in
Nigeria as a result of brain drain. It is detrimental to the growth potential of
the home, country and the welfare of those left behind. According to the Nigerian
medical association, over 5000 Nigeria doctors are practicing in the united states
alone leading to a significant brain drain in the country's healthcare factor.
Also in the educational sector, Chimamanda Ngozi Adichie's migration to the united
states in 2009 deprived Nigeria of a talented writer, intellectual and cultural
ambassador contributing to the brain drain that has affected the country's
development.

2. Loss of Human Capital: Human capital is the stock of competences, knowledge and
personality attributes embodied in the ability to perform (labour) so as to produce
economic value. It is the attributes gained by an individual through education and
experience. Human capital is a means of production, into which additional
investment yields additional labour.
The challenges faced through the loss of human capital development for a
developing country like Nigeria is enormous. Nigeria's high population, vast
sociocultural diversity, yet to mature political culture and the great hope reposed
on her to emancipate the black-race makes the challenge even more critical for us
(Nwachukwu, 2015). Migration leads to a loss of human capital, as many young and
able-bodied individuals leave the country due to lack of recognition and
appreciation for their professions and in search of better opportunities and higher
standard of living. This reduces the workforce and undermines economic growth. For
example Mr Okoro a young and talented soft ware engineer migrates to Canada in
search of better opportunities, his departure reduces the talent pool of Nigeria's
technology industry. A report by the world Bank estimated that Nigeria loses
approximately $1.4 billion annualy due to the migration of it's skilled workers.

3. Reduced Labor Force: The departure of skilled and unskilled workers reduces the
labor force, leading to a decrease in productivity and economic output. When people
leave their country they bring down their country’s consumer spending as well as
labour force. The migration of skilled workers depletes the stock of professionals
in the source nation. Migration results in talent shortage in the home country in
the sense that the educated crowd instead of serving their own country prefer to
work for the developed nations for the sake of better pay and standard of living or
any other reason. Beyond the reality of increasing unemployment, the statistics
have shown other dimensions to Nigeria’s Labour force. According to the report, the
number of persons in Nigeria’s Labour force decreased by 11.3 per cent when
compared to the third-quarter of 2018.
The reduction in Nigeria's labour force due to migration can be attributed to:
- The lack of quality education and skills in the country
- Limited job opportunities and unemployment
- political instability and insecurity
- Economic challenges and poverty
e.t.c.
For example, Mrs. Uzoma, a skilled fashion designer migrates to the united kingdom
in search of graeter opportunities, her departure reduces the labour force in
Nigeria fashion industry. For instance according to National population
commission, Nigeria labour force reduced by approximately 20 percent in the past
five days due to migration.

4. Decreased Tax Revenue:The idea that tax policy may affect the location decisions
of individuals has a long tradition in economics. In fact, tax-induced mobility is
a central mechanism in several strands of economic theory. In the local public
finance literature, migration responses to local taxes and public goods are the
fundamental force that governs the sorting of individuals across jurisdictions
(Tiebout, 1956). The field of economic geography has focused on spatial equilibrium
models in which the assumptions placed on migration elasticities are key
determinants of the spatial allocation of factors and the geographic variation in
prices (Rosen, 1979). The optimal taxation literature has also emphasized that
migration responses can have important effects on tax design and may trigger
socially inefficient tax competition in uncoordinated tax setting. Migrants remit
funds to their families back home, but these funds are not taxable, leading to a
decrease in tax revenue for the government.
Decreased tax revenue has significant implications for Nigeria development such
as:
- Increased budget deficits
- Delayed or cancelled development project
- Reduced public services and infrastructure
- Increased dept burden
- Decreased economic growth and development
- Reduced ability to address poverty and inequality
A report by the federal inland revenue service (FIRS) estimates that Nigeria loses
approximately N 1 Trillion (approximately $ 2.5 billion) annualy in tax revenue due
to migration.

6. Depletion of Foreign Exchange Reserves: Foreign reserves represent the amount of

external assets held by a nation.These assets include currency, securities,
deposit, special drawing rights, monetarygold,etc. (Molapo,2014). The high demand
for foreign exchange to facilitate migration leads to a depletion of Nigeria's
foreign exchange reserves.
Depletion of foreign exchange reserves in Nigeria can be attributed to several
factors, including:
- Debt repayment: Nigeria's Central Bank has prioritized debt repayment over
defending the naira, leading to a significant decline in foreign exchange reserves.
- Intervention in the FX market: The Central Bank's efforts to stabilize the naira
and increase liquidity in the FX market have contributed to the depletion of
reserves.
- Low oil prices: Volatile global oil prices and decreased oil production have
reduced Nigeria's foreign exchange earnings.
- Low remittances: A decrease in remittances from Nigerians abroad has reduced
foreign exchange inflows.
- Low foreign investment: A decline in foreign investment in Nigerian assets has
reduced foreign exchange inflows.

7. Increased Poverty: Migration can lead to increased poverty in Nigeria, as many

migrants leave behind families who are dependent on them for financial support.
The increase in the geographical mobility of labour as a result of poverty,
unemployment and unstable economic conditions, among other factors, especially
among professionals, has been associated with a brain drain in Nigeria. Despite the
high level of migration and subsequent remittances from migrants, a large
proportion of Nigerians still live in poverty (Rufai 2019). For example Mr and Mrs
Nwachukwu, a couple who migrated to the united states, leave behind their elderly
parents in Nigeria. The parents who depend on their children for financial support,
are plunged into poverty when the remittances stop.
According to the National Bureau of Stastics (NBS), approximately 40% of
Nigeria's population leaves below the poverty line, with families relying on
remittances from migrants to survive.

8. Reduced Economic Activity: Migration can lead to reduced economic activity in

Nigeria, as many businesses and industries suffer from the loss of skilled workers.
Reduced economic activity in Nigeria due to migration can be attributed to several
factors, including:
_Labor shortages: Emigration of skilled and unskilled workers has led to labor
shortages, reducing economic activity
_Reduced consumer spending: Departure of migrants has reduced consumer spending,
leading to decreased economic activity.
_Decreased investment: Emigration of investors and entrepreneurs has reduced
investment in Nigerian businesses and industries.
_Reduced productivity: Loss of skilled workers has reduced productivity, leading to
decreased economic output.
_Disruption of supply chains: Migration has disrupted supply chains, leading to
reduced economic activity.
These factors have contributed to a decline in Nigeria's economic performance,
making it challenging for the country to achieve sustainable economic growth and
development.
According to the National Bureau of Stastics (NBS), Nigeria's GDP growth has
slowed down in recent years due to the departure of skilled workers.

10. Strain on Infrastructure: The departure of migrants can lead to a strain on

infrastructure in Nigeria, as the country's resources are stretched thin to
accommodate the remaining population.
The strain on infrastructure in Nigeria due to migration includes:
_Aging and dilapidated infrastructure_: Reduced investment in maintenance and
upgrades leads to deteriorating roads, bridges, and buildings.
_Inadequate power supply_: Decreased investment in the power sector results in
frequent outages and inadequate electricity supply.
_Water scarcity_: Reduced investment in water infrastructure leads to inadequate
access to clean water and sanitation.

11. High Dollar Demand Depreciating the Naira: Due to the surge in the number of
Nigerians who need dollars for travel, the united states currency has become
scarce, thereby forcing it to exchange for as much as #1500 for a dollar in the
parallel market. Rising dollar demand has put tremendous pressure on the naira and
unfortunately, none of the policies introduced by the Central Bank of Nigeria to
save the naira from a continuous fall seems to be working. The alarming exchange
rate between the naira and the dollar has caused a rise in almost every imported
commodity in Nigeria.

Recommendations
The following recommendation were made as possible solutions to the effects of
migration in Nigerian economy:
1.The government should brace up with improving the economic situation of the
country by
providing employment opportunities for the citizens, also by encouraging
entrepreneurship
through giving of soft loans to young graduates and young people who are willing to
acquire skills
to develop themselves.
2.The federal government should proffer lasting solution to the problems of
insecurity in this
nation such as terrorism, kidnapping for ransom, killing, banditry, incessant
strikes among others
which discourage foreign investors from investing in Nigeria, which Is also a major
reason why
lots of people are migrating to a foreign land
3.The government and their agencies and organisations , should Ahealth, education,
technology, engineering among others thereby making the work environment to
conducive for
work and devoid security and safety issues.
4.The working conditions of the workers should be improved upon which includes
wages,
salaries, training and retraining of staff, giving of medical leave, study leave,
making the
environment conducive among others to reduce Brain-drain syndrome among specialist
in Nigeria.
5. Entrepreneurship centres and programmes should be developed by the government
and nongovernmental
organizations to present livelihood choices such as basic education, literacy and
skills training to groups
that are customarily disadvantaged like women and more susceptible to international
migration;
6. Infrastructural development should be among the priority of the government in
terms of investment to
serve as a stand for the cultivation of skills and acquisition;
7. Migration, a longstanding poverty reduction and strategy for human development
needs to be
mainstreamed into policies of development in Nigeria at the Federal, State and
Local Governments;
8. The government should invest heavily in projects that can generate employment
for the teeming
unemployed youths in Nigeria to curtail the rate at which they are leaving the
country.
9. There is need for the government to create programmes that can enable youth
to realize their potentials example IT innovation hubs, encourage local
contents and also provide opportunities for citizens that have studied
specialized programmes.
10. For Nigeria to retain her best brains, there has to be structures in place,
quality education delivery,career opportunities and job prospects and an
enabling environment that allows intellectualism and innovativeness to thrive
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