Diaspora Remittance To Nigeria Hits $19.2bn

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Nigerian naira and U.S. dollar banknotes are seen in a picture illustration
Nigerian naira and U.S. dollar banknotes are seen in a picture illustration, July 14, 2020. Picture taken July 14, 2020. REUTERS/Afolabi Sotunde/Illustration - RC2M3I91PL5T

Nigerian naira and U.S. dollar banknotes are seen in a picture illustration

Diaspora remittance to Nigeria rose by 11.2 per cent in 2021 to $19.2bn from the $17.21bn recorded in 2020.

The figure was the highest in Sub-Saharan Africa (SSA), which recorded a 14.1 per cent leap to $49bn.

This was contained in the World Bank’s Migration and Development Brief released at the weekend.

According to the publication, the Central Bank of Nigeria’s Naira-4-Dollar policy and other interventions were partly responsible for the surge in the inflow of Diaspora remittances to the country.

The World Bank added that, “Stabilization of the Naira against the dollar within a range of 410-415 per USD over the last year has contributed to the pickup in recorded inflows as well.”

The publication stated that the 14 per cent rise recorded by SSA more than erased “the falloff of 8 per cent recorded in the pandemic year of 2020—and representing the strongest gain since 2018.”

According to the World Bank’s Migration and Development Brief, “Remittances to Africa have maintained a strong secular uptrend, with several years of exception, advancing by 11 per cent on average per year over 2004–21.

However, remittances have never proved dominant among external financial flows for the region, eclipsed by ODA over the period (by some $9 billion in 2021) and by robust—yet quite volatile—inflows of FDI, largely directed toward resource-rich economies (the surge in FDI during 2021 reflects a mega M&A transaction in South Africa).

Portfolio investment inflows have been volatile historically, given the region’s debt difficulties; and portfolio flows now have been adversely affected by the onset of the Russia-Ukraine crisis.”

Afrotimes Newspaper

www.afrotimesnews.com

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