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Nigeria’s economy can’t survive without diaspora inputs, says PwC Chief Economist

Dr Andrew Nevin, Chief Economist of PwC, disclosed that the remittance inflows into the country show that Nigeria depends largely on the diaspora to survive.

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Nigeria’s economy can’t survive without diaspora inputs, says PwC Chief Economist

Nigerians in Diaspora have been described as the chief enablers financing the Nigerian economy. The remittance inflows into the country showed that the nation depends largely on them to survive.

This disclosure was made by the Leader and Chief Economist of PwC, Dr Andrew Nevin. While speaking during his presentation at the Africa Institute for Leadership and Public Administration (AILPA) seminar, which was covered by Nairametrics, Nevin said Nigeria was the largest recipient of remittance flows to Sub-Saharan Africa (SSA) in 2018.

With migrant remittance to the country rising by 14%, after a brief decline in 2016, from $22 billion in 2017 to over $25 billion in 2018, Nevin explained that the value of migrant remittances in 2018 represented 6.1% of Nigeria’s GDP, 11 times the FDI inflows, and 7.4 times larger than the foreign aid received in 2017.

Nevin further explained that the remittance inflow is not slowing down any sooner, as it is projected to increase to over $29 billion by 2023 undisturbed by the rising migrant population of Nigerians and the declining cost of sending money home. Occasioned by the activities of fintechs.

[READ MORE: Nigeria receives $17.5 billion diaspora remittances in 2019)

Speaking on the topic, ‘The relationship between good governance and economic prosperity,’ Nevin, who is also the Co-founder of Binkabi, said the economic impact of good governance cannot be overemphasized as it is crucial to the economic prosperity of the country.

He made known that the government needs to focus more on delivering adequate services to the people instead of channelling all its efforts on raising the nation’s GDP. He added that a shift towards measuring SDG’s to GDP should be done.

According to Nevin, Nigeria ranks low on the Sustainable Development Goals index compared to other countries globally and across Africa.

Shrinking public fund and low taxation in Nigeria

Over the last two-decade, Nigeria’s expenditure penetration rate has shrunk from 25% in 2000 to 13% in 2018 and it is estimated to decline marginally to 12% in 2020, Nevin explained.

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According to him, the country also has the lowest expenditure per capita among countries like Brazil, South Africa and India.

Nelvin stressed that while the Finance Bill aims to improve the fiscal structure of the government, more still needs to be done in terms of making taxation work effectively in the country.

Nevin’s words: “The government needs to focus on delivering services so that the people will be more likely to pay their taxes. In addition to this, the government itself has to be more tax compliant, many of the government organisations withhold taxes from their employees at the end of the month.

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“It’ll be easier to pay more taxes if the economy is growing. When the economy is declining, it’s very hard to ask people to pay more but if we were growing faster, then we would find a way.”

[READ ALSO: The diaspora holds the key to improvement in Africa)

Formal versus Informal sector

For Nevin, the informal sector of the economy is directly affecting governance in more than one way. He said that more people choose to work in the informal sector rather than the formal sector of the economy because it is more attractive to them.

He said the formal sector is choked with complexities from the government amidst rules and regulations which are too costly.

Nevin, however, stressed that the informal sector has grown to a large extent. This, he said is detrimental to the economy as the formal sector needs to be growing more.

“For Nigeria economy to become more prosperous we need the formal economy to grow faster than the informal economy. Maybe the informal is doing better because more people are attracted into joining them than the formal and this is obviously because of the poor governance that exist as well as the inequality in the rules and regulations,” Nevin said.

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Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

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Appointments

Standard Bank Group appoints Yinka Sanni as new Chief Executive of Africa Regions

Yinka Sanni has been appointed as Standard Bank Group’s Chief Executive of Africa Regions.

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Stanbic IBTC declares N10.4 billion interim dividend

The Standard Bank Group has announced the appointment of Yinka Sanni as the new Chief Executive of Africa Regions.

This announcement was made by the Group in a post shared via its official LinkedIn account. The bank revealed that Sanni will be replacing Sola David-Borha who is retiring after 31 years of distinguished service to the group.

His appointment will play an integral role in driving the growth of the Standard Bank Group in Africa further in the years ahead.

He is expected to build on the work of David-Borha, a renowned professional who played a key role in growing the Group’s Africa Regions portfolio in terms of capacity, market share and contribution to the group’s headline earnings.

What you should know

  • Yinka Sanni is a Fellow of the Chartered Institute of Stockbrokers of Nigeria.
  • He has served in key positions within the Stanbic Group, as the Chief Executive of Stanbic IBTC Holdings PLC, Chief Executive of Stanbic IBTC Bank PLC, Deputy Chief Executive of the Bank and Executive Director, Corporate & Investment Banking of the Bank.
  • He was also the pioneer Chief Executive, Stanbic IBTC Pension Managers Limited and the pioneer Chief Executive, Stanbic IBTC Asset Management Limited.

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Corporate Press Releases

P2P crypto marketplace, Bitzlato (BZ) partners with Lemonade Finance to ease money transfers across Africa

The partnership will enable users on the BZ platform to buy and sell bitcoins and other cryptocurrencies on the marketplace at zero cost.

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Bitzlato (BZ), the latest P2P Crypto Exchange to enter the African market, has added Lemonade.Finance, a borderless payment platform for Africa, as a payment method to its platform.

Lemonade Finance provides 100% digital payment experience for Africans to seamlessly participate in the global economy from anywhere in the world without any hassle or regardless of where they are from.

The partnership will enable users on the BZ platform to buy and sell bitcoins and other cryptocurrencies on the marketplace at zero cost.

Users in Nigeria will now be able to send Nigerian Naira (NGN) to MPESA at 0% transaction fee.

Speaking about this partnership, Ridwan Olarere, CEO, Lemonade Finance, said:

“We are excited to partner with such an innovative company like Bitzlato to connect more Africans through payment. Many Africans living on the continent face many difficulties when making payments as remittance companies charge high fees and are time-consuming. We are now providing our users with a cost-effective way of sending money to Ghana, Kenya, Uk and Europe.”

Commenting on the opportunities this provides to crypto traders on the BZ platform, Mike Lunov, CEO, BZ, said:

“This partnership will provide a much-needed gateway that enables the markets we serve to seamlessly interact with each other in a borderless and open environment. We seek to break the barriers that presently exist for cross border transfers and enable our users to generate value through the opportunities that accrue from cryptocurrencies trading. The innovation exhibited by the Lemonade platform, and the brilliance of its team assures users of top-notch, secure and reliable transfers going forward.”

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According to BZ, during the first month, BZ will refund commissions in manual mode while using Lemonade Finance, but this will be automated at the end of this period.

Following this partnership, BZ is now looking to partner with merchants in the crypto space especially in Nigeria, Ghana, South Africa that have a steady flow of Nigerian Naira (NGN) to increase liquidity on the platform.

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Take advantage of the new Lemonade Finance payment method on BZ, which offers zero transactional fees for money transfers from Nigeria into Kenya. Sign up on BZ and start trading crypto easily today.

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