In the last eight years, the Nigerian Diaspora has sent $168.33 billion to the motherland, according to data compiled from World Bank data.
This is due to the country’s fluctuating foreign investment inflow during the time under review, which led to a shortage of foreign currency and the subsequent free depreciation of the naira.
Remittances from Nigeria’s diaspora have been a major factor in reducing the effects of currency shortage and maintaining the nation’s foreign exchange reserve, according to data from the World Bank and Budget Office of the Federation.
Remittances to sub-Saharan Africa increased by 5.2 percent to $53 billion in 2022, according to the World Bank, with Nigeria receiving the highest portion.
According to data from the international bank, Nigerians living abroad sent home a total of $168.33 billion between 2015 and 2022.
According to a breakdown of the data, the Diaspora remittance was $21.2 billion in 2015, $19.7 billion in 2016, and $22 billion in 2017.
It was $24.31 billion in 2018. After a brief decline to $23.81 billion in 2019, the epidemic prompted a further decline to 17.21 billion in 2020. In 2021, it recovered to $19.2 billion, and by 2022, the World Bank predicted that the country had received $20.9 billion in foreign investment.
Before 2020, Nigeria’s remittance inflows have only previously dropped below $20 billion, at $19.7 billion in 2016. The World Bank predicts that in 2022, remittances from the diaspora will rank among the top non-oil sources of foreign money for the nation.
It was observed that numerous new policies from the Central Bank of Nigeria have contributed to the consistent rise in inflows from the Diaspora since 2021.
According to data from the CBN, as of April 19, 2023, Nigeria had $34.43 billion in foreign exchange reserves, a rise of 18.4% from $29.07 billion in 2015.
Although remittances from Nigerians living abroad have provided a lifeline for many of them, the Nigerian diaspora community recently expressed concern that the present economic crisis may limit the amount of money it can send home.
Why Are Remittances Important?
Remittances support the economies of all countries, particularly those in low and middle-income countries (LMICs).
They have been demonstrated to lower poverty, enhance nutrition, and even boost enrolment rates in these countries’ schools. Additionally, research has shown that these money infusions might strengthen recipient households’ resilience, particularly in the face of disasters.
However, it’s important to remember that these transfers are not a panacea for the recipient countries. Indeed, some studies indicate that an excessive reliance on remittances can result in a vicious cycle that doesn’t lead to steady economic growth over time.
India reportedly set an all-time high in remittances in 2022 with an estimated $100 billion in receipts.
This rising flow of remittances can be partially attributable to migrant Indians moving from low-skilled and low-paying professions in Gulf countries to high-skilled jobs in high-income nations like the U.S., the UK, and Singapore.
The remaining two biggest recipients of remittances, Mexico and China, transferred an estimated $60 billion and $51 billion respectively in 2022.
Global Remittance By Country (USD)
1 India 100 M
2 Mexico 60.3 M
3 China 51 M
4 Philipines 38 M
5 Egypt 32.34 M
6 Pakistan 29 M
7 France 28.5 M
8 Bangladesh 21 M
9 Nigeria 20.9 M
10 Vietnam 19 M
