The World Bank believes that inflow into Nigeria through diaspora remittances would peak at over $20 billion for 2023.
The World Bank has said Diaspora remittance into Nigeria is expected to exceed $20 billion at the end of the year.
Also, it reports that total remittances into the Sub-Saharan Africa (SSA) region increased by 1.9%.
The World Bank’s latest Migration and Development Brief contains this information.
According to the report sighted by The Punch, the global remittance inflows would continue to grow in 2023, although at a slower pace.
The report said: “Remittances to Sub-Saharan Africa are estimated to grow by 1.9% from $53bn in 2022 to $54bn in 2023.
“Projections indicate that remittances to the region will keep increasing, to $55bn by 2024.
“The slowed growth in remittances observed in 2023 is explained by the slow pace of growth in the high-income economies where many Sub-Saharan African migrants earn their income.
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“Remittances to Nigeria, accounting for 38 per cent of remittance flows to the region, grew by about two per cent, while two other major recipients, Ghana and Kenya, posted estimated gains of 5.6 per cent and 3.8 per cent, respectively”.
Remittances To Increase By 2.5%
It was also revealed that fixed exchange rates and capital controls were diverting remittances to the region from official to unofficial channels.
“In 2024, remittance flows to the region are projected to increase by 2.5%.
“Remittances from the United States have remained stable.
“Although the euro area has recovered, its output remains 2.2% below pre-pandemic projections,” it added.
Furthermore, at the current official market rate of ₦885.88 per dollar, the expected total diaspora remittance is estimated at ₦17.717tn.
According to the World Bank, emittances are an important source of financing for the SSA region.
