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World Bank estimates $20.9 billion in remittance inflow for Nigeria in 2022

Foreign remittance into Nigeria is estimated to hit $20.9 billion by the end of 2022, compared to $19.5 billion in remittances inflow recorded in 2021.

This represents a 7.5% rise from the prior year of 2021.

This is according to the World Bank’s November report titled “Remittances Brave Global Headwinds Special Focus: Climate Migration” published in November.

The report notes that remittance flows to Africa in 2021 registered a strong 16.4 per cent increase to reach $50 billion, exceeding expectations in the May 2022 Migration and Development Brief (World Bank/KNOMAD 2021a).

The report also noted that total remittance inflows were $596.9 billion in 2021 for low and medium-income earners and estimates $781 billion around the world.

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What the data is saying: According to the World Bank, the increase in remittance inflow into Sub-Saharan Africa is due in large part to a resumption of stronger flows to Nigeria, reaching $19.5 billion on the growth of 13.2 per cent.

Headwinds: The report noted that Nigeria was not gaining much from the surge in crude oil prices while Nigerians in the diaspora in the US, UK and Euro continue to face economic challenges to their income

Cost of remittances: Sub-Saharan Africa was named as the most expensive region to send money to.

More Expensive within Africa: Intra-Africa transfer of forex remains an expensive venture. According to the report it cost about 35.% to transfer $200 from Tanzania to Uganda.

What this means: Cross-border transfer remains a major form of foreign currency repatriation in Sub-Saharan Africa, especially Nigeria.

 

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