Nigerian Diaspora Remittances amount to $168.33 Billion in 8 Years, says World Bank

A new report by the World Bank has revealed that Nigerian Diaspora remittances amounted to $168.33 billion in the past eight years, with the country gaining the largest share of the sub-Saharan African region. This comes as foreign investment inflow has remained unstable in the country, caused by a scarcity of foreign currency, leading to a free fall of the naira. The data from the World Bank and Budget Office of the Federation show that remittances from the Nigerian Diaspora have played a significant role in stabilizing the country’s forex reserve and mitigating the effects of foreign exchange scarcity.

According to the World Bank, remittances flow to sub-Saharan Africa grew by 5.2% in 2022 to $53 billion, with Nigeria receiving the most significant amount. Between 2015 and 2022, $168.33 billion was sent home by Nigerians in the Diaspora. In 2015, the Diaspora remittance was $21.2 billion, which decreased to $19.7 billion in 2016, and increased back to $22 billion in 2017. It was $24.31 billion in 2018, $23.81 billion in 2019, decreased to $17.21 billion in 2020 due to the pandemic, and increased to $19.2 billion in 2021. By 2022, the inflows into the country had reached $20.9 billion.

Besides confirming that Diaspora remittance inflows are one of the country’s top non-oil foreign exchange sources in 2022, the sustained increase in Diaspora inflows since 2021 has been attributed to several new policies from the Central Bank of Nigeria. As of April 19, 2023, data from the CBN indicated that Nigeria’s forex reserve was $34.43 billion, an 18.4% increase from what it was in 2015. While Diaspora remittances have had a substantial impact on the country's economy, the recent global economic hardship may adversely affect its ability to transfer a lot of funds home.

The report affirms the importance of the Nigerian Diaspora community's contribution to the country's economy. The Nigerian government and other stakeholders need to take necessary measures to encourage foreign investment inflows and support the Diaspora community, which can significantly contribute to the country's economic growth.