Nigerians in the Diaspora have broken Africa’s record of remittance injection. The World Bank revealed that Nigerians abroad wired over $22 billion back home in 2017. This inflow is the largest remittance by immigrants and an African record.
In the same year, officially recorded remittances to low and middle-income countries reached $466 billion, an increase of 8.5% over $429 billion in 2016, the bank disclosed.
In 2018, the amount of remittances is also expected to increase by At least 4%.
World Bank’s Reaction to Nigerians in the Diaspora
Consequently, the World Bank has launched a global call to Nigerians in particular to take steps to simplify the fund wiring process in order to reduce cost.
However, rumours have it that the World Bank could just be peeking on Nigerians in Diaspora. This is because Nigeria is not the only country to record a drastic increase in remittance in 2017.
Reports from reliable sources hold that, the top recipients of these remittances were India with $69 billion, followed by China with $64 billion, the Philippines with $33 billion and Mexico with $31 billion. Nigeria and Egypt followed afterwards.
On a region-by-region basis, Europe and Central Asia recorded the biggest growth in 2017 with Sub-Saharan Africa rising by 11%.
East Asia and the Pacific equally registered the biggest inflow of remittances which took in $130 billion. South Asia took in $117 billion and Latin America recorded remittances of only $80 billion.
World Bank reports that the stronger than expected recovery in remittances is as a result of growth in Europe, Russia and the United States.
Dilip Ratha, lead author of the report stated that, “while remittances are growing, countries, institutions, and development agencies must continue to chip away at high costs of remitting so that families receive more of the money.”
In the first quarter of 2018, the global average cost of sending $200 was 7.1%.
Remarkably, sub-Saharan Africa remains the most expensive place to send money to, where
the average cost is 9.4%.
The World Bank calls on countries to take steps to simplify the process to reduce the costs. This including, “introducing more efficient technology”.
@abikedabiri Nigerians living in Diaspora contribute billions to Nigeria's economy via remittances each year. They deserve better service.
— Mide (@Lemisegra) March 1, 2015
The increase in remittances by Nigerians abroad, therefore indicates they will play a leading role in supporting Nigeria’s economy in future.