Connect with us


Nigerians in Diaspora spent $2.94bn to send $34.8bn – Report



Nigerians in Diaspora spent $2.94bn to send $34.8bn to Nigerian between 2020 and 2021, World Bank reports have revealed.

The reports showed that cost of sending remittance costs into Nigeria hit at least N1.22tn ($2.94bn) in the last two years.

This is according to the World Bank estimate for remittance cost into Sub-Saharan Africa.

According to the global bank in its recently released report, ‘Recovery COVID-19 Crisis Through a Migration Lens: Migration and Development Brief 35,’ remittance into SSA is the highest globally.

The World Bank said, “Sub-Saharan Africa remains the costliest region to send remittances to: costs averaged 8 per cent during Q1 2021, down from 8.9 per cent from Q1 2020.”

Nigeria accounts for 50 per cent of remittances into the SSA region. In 2020, remittance into Nigeria was $17.2bn, and in 2021, the World Bank disclosed that remittance would hit $17.6bn.

The World Bank disclosed that for every $200 sent in 2020, it cost the sender $17.8 (8.9 per cent). In 2021, the figure reduced to $16 (8 per cent). This means that it cost the Nigerians in Diaspora at least $1.53bn to remit $17.2bn in 2020.

In 2021, it will cost Nigerians in the Diaspora at least $1.41bn to remit $17.6bn. Remittance cost in the SSA region was 2.1 per cent above the global average of 6.8 per cent in 2020, and is 1.6 per cent above the global average of 6.4 per cent in 2021.

The global bank said, “The cost of sending money across international borders continued to remain high, around 6.4 per cent on average in Q1 2021, or more than double the SDG target of 3 per cent.

“The cost of remittances to Sub-Saharan Africa remained particularly high (above eight per cent). Corridor-specific data (reported in the regional sections) reveal that remittance costs tend to be higher when remittances are sent through banks than through digital channels or through money transmitters offering cash-to-cash services.”

According to the World Bank, the pandemic caused a shift from handling cash to using digital payment channels. The bank said, “Hand carrying of both cash and in-kind remittances (i.e., goods instead of money) across national borders was affected by travel restrictions, increasing the importance of digital transfers.”

The bank added that international remittances sent and received via mobile devices reached $12.7bn in 2020 (up 65 per cent compared to 2019), and about 80 per cent of the amount was remitted to Sub-Saharan Africa.

The bank said, “However, this amount is a small fraction of the total volume of remittances, implying that there is great potential for this channel to grow among the 5.2 billion mobile phone users in the world. Mobile remittances tend to be cheaper, allowing smaller, more frequent, remittance transactions.”

Copyright PUNCH.

All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: [email protected]

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Local15 hours ago

Kaduna to enroll secondary school students into its health insurance scheme: Official

News19 hours ago

Sound Sultan’s brother exposes scammer who hacked late singer’s Instagram account

Local15 hours ago

VAT declines by N11.76 billion as CIT receives boost in Q3: NBS

News15 hours ago

UBTH boss condemns attack on health workers by patients’ relatives

World16 hours ago

How the Associated Press Covered Israeli President Herzog’s Candle-Lighting in Hebron

Entertainment20 hours ago

“I used to dream of living in a big house, but now I’m scared of the one I live in” – BBNaija star, Tacha laments

Health10 hours ago

Want a Lean Body For Good? Eat These 8 Foods Every Day

Politics15 hours ago

Akeredolu calls for funding of private universities through TETFund grants

Entertainment21 hours ago

Man shares his kids heartwarming reaction when he told them he didn’t have money to buy the drink they wanted

Politics14 hours ago

Okowa, IYC call for justice, investigation into death of Dowen College student

News16 hours ago

FCT PDP endorses Saraki’s 2023 Presidential bid

Local11 hours ago

70 million mobile owners in Nigeria have no bank accounts: eTranzact

Entertainment20 hours ago

“I used to dream of living in a big house, but now I’m scared of the one I live in” – BBNaija star, Tacha laments

Viral2 hours ago

After Bride Allowed Her Ex-boyfriend To Hug Her At Her Wedding, The Husband Did This To The Guy.

World10 hours ago

UK: Muslims produce ‘large amount of money,’ offer to buy woman’s daughter

Local13 hours ago

Lawyer petitions IGP to investigate firm, two individuals for forging Supreme Court judgment

News16 hours ago

Tonto Dikeh calls for commemoration of Sylvester’s 12th birthday at Dowen College premises

World18 hours ago

UK and Israel pledge to ‘work day and night’ to stop Iran from getting nuclear weapons

World14 hours ago

CAIR’s Nihad Awad declares Tel Aviv ‘occupied,’ prays for its ‘liberation’

World13 hours ago

Pakistan drops ban on jihad group that is targeting non-Muslims over Muhammad cartoons, even in the West