Diaspora Nigerians Remitted $165.19bn In Seven Years- World Bank

Data by the World Bank Group says Nigerians in Diaspora remitted a total of $21.967bn to the country last year, which brought total remittances to $165.19bn in the seven years since 2011.
Remittances to Nigeria in 2017 accounted for 57.81% of Sub-Saharan Africa’s $38bn; which increased by 11.4%, supported by improving economic growth in advanced economies and higher oil prices benefiting regional economies. Senegal came a far distant second with $2.2bn just as Ghana.
According to a report by the group, Nigeria’s remittance inflows in 2017 also represented a $2.329bn or 11.86% rise over the $19.636bn recorded in 2016; which was a drop when compared to the $21.060bn in the prior year.
In 2014, Nigeria recorded $20.829bn remittances, which was flat, when compared to the $20.797bn of 2013; as well as $20.543bn and N20.617bn in 2012 and 20111 respectively.
Specifically, in 2017, the bank estimates that officially recorded remittances to low- and middle-income countries reached $466bn, up by 8.5% over $429bn in 2016. When inflows to high-income countries is added, the figure comes to $613bn in 2017, from $573bn in the preceding year.
A breakdown of the remittance inflows by country showed that India emerged top recipient, accounting for $69bn, ahead of China, $64bn; the Philippines, $33bn; Mexico, $31bn; Nigeria, $22bn; and Egypt, $20bn.
The World Bank expects remittances to increase by 4.1% in 2018, reaching $485bn; global remittances could rise by as much as 4.6% to $642bn this year.
Meanwhile, the bank put global average cost of sending $200 at 7.1% in the first quarter of 2018, more than twice as high as the Sustainable Development Goal target of 3%.
The report noted Sub-Saharan Africa as the most expensive place to send money to with an average cost of 9.4%. Major barriers to reducing remittance costs are de-risking by banks and exclusive partnerships between national post office systems and money transfer operators. These factors constrain the introduction of more efficient technologies—such as internet and smartphone apps and the use of cryptocurrency and blockchain—in remittance services.
“While remittances are growing, countries, institutions, and development agencies must continue to chip away at high costs of remitting so that families receive more of the money. Eliminating exclusivity contracts to improve market competition and introducing more efficient technology are high-priority issues,” said Dilip Ratha, lead author of the Brief and head of KNOMAD.