Arguably, Nigeria is Africa’s largest recipient of foreign remittances. According to a report by the World Bank, the country boasts of Diaspora remittances of more than $21 billion. This has created a huge, but untapped funds’ reservoir for an economy at the mercy of tumbling oil
prices. Experts urge the Federal Government to capture the Diaspora remittances and other capital inflows into the revenue net to revive the economy. Assistant Editor CHIKODI OKEREOCHA reports.
The World Bank has estimated the value of Nigeria’s Diaspora remittance market at $21 billion. It is the largest in Africa. With the bank projecting that Africa’s foreign remittance market would hit $41 billion this year, experts say that Nigeria can leverage the huge, but untapped financial reservoir from the Diaspora to weather the current economic storm triggered by crashing oil prices in the international market.
Diaspora remittances are funds sent back home by Nigerians leaving or working abroad. According to a World Bank report, the size of Nigeria’s remittances has been rising every year over the last decade. For instance, from $16.93 billion in 2006, it rose to $20.83 billion in 2014. It, however, fell slightly to $20.77 billion last year.
According to the report, the United States (U.S), with $5.7 billion and the United Kingdom (UK) with $3.7 billion are the top two sources for Diaspora remittances to Nigeria last year.
The U.S was the largest source of remittances in the world, with outflows hitting $56 billion, followed by Saudi Arabia, from where $37 billion was remitted and Russia at with $33 billion outflows.
Continue here
