Sending money to Nigeria and other Sub-Saharan African (SSA) countries from the diaspora has become even more expensive in 2023, maintaining its position as the most expensive region for remittance, according to a World Bank report.
Sub-Saharan Africa continues to lead in remittance costs, with fees reaching up to 36% for every $200 sent from abroad. In a year-on-year analysis, there’s a slight increase in the average cost of sending $200 to sub-Saharan Africa, rising to 7.9% in Q2 2023 from 7.8% in the same period in 2022.
Globally, remittance costs remain high, exceeding 6.9%, with the Sustainable Development Goals (SDG) target set at 3% by 2030, according to the World Bank.
The report read:
Traditional banks significantly contribute to the high trajectory of remittance fees, being identified as the entities charging the highest costs.
The report noted:
In Nigeria, recent reports suggest that Nigerian banks will impose an electronic money transfer levy on foreign currency inflows equivalent to N10,000 and above from January 2024. This is anticipated to worsen the high cost of remittance, potentially diverting more forex transactions to unofficial markets.
