The common act of sending money back home resonates greatly with Nigerians in the diaspora. Nigeria is reportedly the largest recipient of diaspora remittance in Sub-Saharan Africa, as remittance to Nigeria now constitutes a significant part of the country’s GDP.
According to Nigeria’s Ministry of Finance, budget, and national planning, it disclosed that diaspora remittances were among the top sources of non-oil foreign exchange for the nation.
Just recently, it was reported that in the first half (H1) of year 2022, Nigerians received the sum of $10.11 billion as diaspora remittances between January and June, which represents a 9.6% increase when compared to $9.23 billion received in the corresponding period of 2021.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
In contrast to the second half of 2021, Nigeria’s diaspora remittance inflow increased marginally by 0.9% from $10.02 billion. This is according to data obtained from the Central Bank of Nigeria (CBN).
In the period under review, a sum of $23.3 million was recorded as remittance outflow from Nigeria, indicating a net inflow of $10.09 billion in H1 2022 as against a net value of $9.99 billion recorded in H2 2021 and $9.2 billion recorded in the corresponding period of 2021.
In contrast to the second half of 2021, Nigeria’s diaspora remittance inflow increased marginally by 0.9% from $10.02 billion. This is according to data obtained from the Central Bank of Nigeria (CBN).
In the period under review, a sum of $23.3 million was recorded as remittance outflow from Nigeria, indicating a net inflow of $10.09 billion in H1 2022 as against a net value of $9.99 billion recorded in H2 2021 and $9.2 billion recorded in the corresponding period of 2021.
The World Bank had earlier projected that Nigeria’s Diaspora remittance inflow will increase by 7.1 percent in 2022, which is reflecting the gains of the continued adoption of official bank channels and the expectation that more Nigerians who have migrated will likely send more money home to support families in the face of an increase in the cost of living.
In a bid to forestall this trend, the Central Bank Of Nigeria CBN in December 2020 introduced measures to encourage Diaspora Nigerians to send their remittances through the banking system.
In one of its measures, the Central Bank introduced the Naira4Dollar scheme in February 2021 which offers beneficiaries of remittances N5 naira for every $1 of remittance sent through the bank.
Among other things, the measures allow beneficiaries to have unfettered access and utilization to foreign currency proceeds, either in foreign exchange cash and/or in their Domiciliary Accounts.
The number of Nigerians in diaspora has been increasing astronomically over the last five years due to the myriad of problems ravaging the country. Also, the high level of unemployment (33% and youth unemployment at almost 60%), the insecurity crisis, and the incessant ASUU strike which has crippled the educational system in the country, have all contributed to the surge in the migration of Nigerians to other parts of the world.