The World Bank has projected $17.6 billion Diaspora remittances into Nigeria in 2021, representing 2.5 per cent increase from $17.2 billion recorded in 2020.
The Bank gave this projection in a report titled, “Migration and Development Brief 35”, attributing the moderate increase in Nigeria’s Diaspora remittances to increasing influence of policies intended to channel inflows through the banking system.
Among other things the report projected 7.3 per cent increase in remittances to low and middle income countries in 2021. The World Bank also projected a 6.2 increase in remittances to Sub-Saharan countries in 2021. The World Bank stated: “Remittances to low- and middle-income countries are projected to have grown a strong 7.3 percent to reach $589 billion in 2021.
“This return to growth is more robust than earlier estimates and follows the resilience of flows in 2020 when remittances declined by only 1.7 percent despite a severe global recession due to COVID-19, according to estimates from the World Bank’s Migration and Development Brief released today.
“Remittance inflows to Sub-Saharan Africa returned to growth in 2021, increasing by 6.2 percent to $45 billion. Nigeria, the region’s largest recipient, is experiencing a moderate rebound in remittance flows, in part due to the increasing influence of policies intended to channel inflows through the banking system.
“Countries where the value of remittance inflows as a share of GDP is significant include the Gambia (33.8 percent), Lesotho (23.5 percent), Cabo Verde (15.6 percent) and Comoros (12.3 percent). In 2022, remittance inflows are projected to grow by 5.5 percent due to continued economic recovery in Europe and the United States.
“Costs averaged 8 percent in the first quarter of 2021, down from 8.9 percent a year ago. Although intra-regional migration makes up more than 70 percent of cross-border migration, costs are high due to small quantities of formal flows and utilization of black-market exchange rates.”