Nigeria (Commonwealth) _The World Bank predicts that Diaspora remittances into Nigeria are likely to top $20 billion by the end of the year, while overall remittances into Sub-Saharan Africa climb by 1.9%.
This was disclosed in the World Bank’s most recent Migration and Development Brief, which said that global remittance flows will continue to expand in 2023, but at a slower rate.
According to the studies, “remittances to Sub-Saharan Africa are expected to increase by 1.9% from $53 billion in 2022 to $54 billion in 2023.” According to projections, remittances to the area would reach $55 billion by 2024. The slowing of remittance growth in 2023 is explained by the slowing of development in the high-income nations where many Sub-Saharan African migrants earn their living.
Remittances to Nigeria, which account for 38% of regional remittance flows, increased by around 2%, while two other important receivers, Ghana and Kenya, increased by 5.6% and 3.8%, respectively. Fixed currency rates and capital regulations were also discovered to be diverting remittances to the region from official to unauthorized routes.
“Remittances to the region are expected to increase by 2.5 percent in 2024.” Remittances from the United States have been consistent. Although the eurozone is back on track, production remains 2.2% below pre-pandemic expectations, according to the report.
At today’s authorized market rate of N885.88 per dollar, total diaspora remittances are anticipated to be N17.717 trillion. According to the World Bank, remittances are a significant source of finance for the SSA area. Remittances have been steadier than Foreign Direct Investment, which has fluctuated significantly over the last two decades. In 2023, remittances to the area will much outnumber FDI inflow.
Regional remittance growth in 2023 will be predominantly led by significant remittance growth in Rwanda (16.8%), Ethiopia (16%), and Mozambique (48.5%). Nigeria, Sub-Saharan Africa’s top remittance-recipient country, is predicted to receive more than $20 billion in official remittances by the end of 2023, a modest rise over the previous year.
Remittances to Ghana, the second-largest recipient, surged to $921.17 million in 2023Q2 from $691.60 million in 2022Q2, according to the study. According to the World Bank research, SSA continues to be the area with the highest remittance expenses. The average cost of mailing $200 to Sub-Saharan Africa grew somewhat, averaging 7.9 percent in 2023Q2 vs 7.2 percent in 2022Q2.
Iffath Sharif, Global Director of the World Bank’s Social Protection and Jobs Global Practice, commented on the research, saying that throughout crises, migrants have withstood dangers and demonstrated resilience to help family back home. However, high inflation and slowing global development are limiting the amount of money they can give. Host nations’ labor markets and social protection measures should be inclusive of migrants, whose remittances are a key lifeline for poor countries.
Dilip Ratha, the report’s main economist and author, stated that “remittances are among the few sources for private financing from outside that are expected to expand in the coming decade.” They must be used to mobilize private wealth to assist development financing, particularly through diaspora bonds. In recent years, remittances to poor nations have surpassed the total of foreign direct investment and government development aid, and the gap is widening.”
Nigerians living abroad sent $20.1 billion home in 2022.In 2022, personal remittances received in Nigeria grew by 0.7 billion US dollars (+3.59%) over the previous year. In 2022, the total amount of personal remittances received was 20.13 billion US dollars.
A remittance, or remittance, is a non-commercial transfer of money from an expatriate worker, a member of a diaspora community, or a person with familial links abroad to their home country to supplement household income. Workers’ remittances account for a sizable portion of international capital flows, particularly in labor-exporting countries.
