Diaspora Remittance Into Nigeria May Hit $20.5bn In 2023- World Bank

The World Bank has said that fixed exchange rates and capital controls are diverting remittances to Nigeria from official to unofficial channels.

This is as the World Bank projected that Diaspora remittance into Nigeria will hit $20.5bn in 2023 compared to the $20.1bn remitted in 2022.

In a December 2023 World Bank’s Migration and Development Brief, the bank said diaspora remittance has been more stable than Foreign Direct Investments, which have demonstrated considerable volatility over the past two decades.

It said, “Regional growth in remittances in 2023 was largely driven by strong remittance growth in Rwanda (16.8 per cent), Ethiopia (16 per cent), and Mozambique (48.5 per cent) as remittances to Sub-Saharan Africa are estimated to grow by 1.9 per cent from $53bn in 2022 to $54bn in 2023.

“Remittances to Nigeria, accounting for 38 per cent of remittance flows to the region, grew by about 2 per cent, while two other major recipients, Ghana and Kenya, posted estimated gains of 5.6 per cent and 3.8 per cent, respectively.

“The slowed growth in remittances observed in 2023 is explained by the slow pace of growth in the high-income economies where many Sub-Saharan African migrants earn their income.

“Also remittances flows to the region are expected to increase by 2.5 per cent to $55bn by 2024.”

Continuing, the report noted that the cost of remittance increased in the year under review.

“The average cost of sending $200 to the Sub-Saharan Africa region slightly increased, averaging 7.9 per cent in Q2, 2023 compared with 7.2 per cent in Q2. 2022.

Speaking on the report the Global Director of the Social Protection and Jobs Global Practice at the World Bank, Mrs. Iffath Sharif, said “During crises, migrants have weathered risks and shown resilience to support families back home.

“However high inflation and subdued global growth are affecting how much money they can send.”