Nigerians In Diaspora Remitted $19.2bn To Economy Through Gifts, Grants In 2021- AFDB

Nigerians in Diaspora have remitted a total of $19.2 billion into the country’s economy through gift cards and grants.

Akinwumi Adesina, President of the African Development Bank Group, (AfDP) disclosed this in a statement on Tuesday.

Adesina noted that the value of remittances from African diaspora doubled from $37 billion in 2010 to $87 billion in 2019 and $95.6 billion by 2021.

The record, according to him, has placed African diaspora as the largest financier in Africa.

“African diaspora has become the largest financier of Africa! And it is not debt, it is 100% gifts or grants, a new form of concessional financing that is the key for livelihood security for millions of Africans,” Adesina said.

He noted that Egypt and Nigeria are among the “top-ten remittance recipients globally, with $31.5 billion and $19.2 billion, respectively in 2021.

“Yet official development assistance to Africa in 2021 was $35 billion, or 36% of the remittances from the diaspora.”

The AfDB added that the remittance has helped to meet financial, food, education, and health needs as well as serve as counter-cyclical sources of finance and social protection.

He, however, disclosed that African diaspora bonds (remittances) despite its potentials are overly charged, making it difficult for other African countries to adopt them.

“We must eliminate the ‘Africa-premium’ charged on remittances, as the cost of remitting funds to Africa is twice what it is for South Asia,” he added.

Adesina revealed that only four African countries namely (Ethiopia, Kenya, Ghana, and Nigeria) have successfully issued diaspora bonds.

He further urged African countries to securitize remittances to promote investments, especially for infrastructure on the continent.

He said, “That is why all governments in Africa should prioritize affairs of the diaspora.

“African countries should establish ministries of the diaspora to give policy priority to the specific needs of the diaspora, as well as expand the investment opportunities for them through special incentives.

“Diasporas should also be allowed to vote, If they can send money that powers their home economies, they should also help decide the future of the economies of Africa.”

The effect of the covid-19 shock on most countries, especially Africa, led the International Monetary Fund (IMF), to loan Africa $33 billion which was thirteen times higher than the annual average of the previous decade.