Economic Impact of Diaspora Remittance on Nigerian Economy

Authors

Keywords:

Diaspora, Economic development, Remittance

Abstract

The purpose of this paper is to assess the huge impact of Diaspora remittance on the Nigerian economy. In 2018, migrant remittances to Nigeria were $24.3 billion, representing 6.1% of gross domestic product. This figure represents 83% of the Federal Government budget in 2018 and 11 times the Foreign Direct Investment (FDI) flows in same period. Remittances are the fastest growing source of foreign exchange earnings in Nigeria. Hence in March 2021, as part of its reforms to boost the inflow of foreign currency in the country, the Central Bank of Nigeria (CBN) introduced an incentive of N5 for every $1 of fund remitted to Nigeria through International Money Transfer Organisations in its forex policy. Remittances, or money transfers, make up the second-largest source of foreign exchange receipts after oil revenue in Nigeria, Africa's biggest economy. $24.8billion was sent to Nigeria in 2019, according to the World Bank data.

References

Aelex, I, E. (2020). Diaspora remittances in Nigeria: Examining the new CBN policy. https://www.mondaq.com/nigeria/financial-services/diaspora-remittances

Africa Check. (2021). How many Nigerians Abroad? How much cash do they send home? https://africacheck.org/fact-checks/reports/how-many-nigerians-abroad-and-how-much-cash-do-they-send-home.

DAILY NEWS. (2021). Official Remittances to Nigeria Plummet by Almost 40% in a year When Crypto Used Surged

Ethiopian Diaspora Agency (2021). Ethiopian Diaspora Remits $1.4 in Five Months. https://www.amchamethiopia.org/post/ethiopian-diaspora-remits-1-4-billion-in-five- months

Johnbrowne, A, O. (2020). Diaspora remittances and Nigeria’s economic growth. BusinessDay Newspaper. https://businessday.ng/opinion/article/diaspora-remittances-and-nigerias-economic-growth

Kalantaryan, S; Mcmahon, S. (2020). Covid-19 and remittances in Africa. European Commission. JRC Technical Report

Komolafe, B. (2021). Diaspora Cash Remittance s Drop by 27% to $17.2 billion. Vanguard. https://www.vanguardngr.com/diaspora-cash-remittances-drop-by-27-to-17-2bn

McCarthy, N. (2021). The World’s Top Remittance Recipients. Https://www.statista.com/ chart/20166/top-10-remittance-receiving-countries

Norrestad, F. (2021). Values of remittances sent to Sub-Saharan Africa in 2020, by countryin billions of U.S. dollars. https://www.statista.com/statistics/962857/remittances-to-sub-saharan-african-countries

Nweze, C. (2021). Diaspora remittances drop by $4.65billion. The Nation Newspaper.

Oluwafemi, A; Ayandibu, A, O. (2017). Impact of remittances on development in Nigeria: Challenges and prospects. Journal of Sociology and Social Anthropology, 5:3,311,318

Onwuamaeze, D. (2021). Driving Remittance Flows in Africa. THISDAY Newspaper

Osemenshan, A, F. (2019). Remittances and Economic growth nexus in Nigeria: Does financial sector development play a critical role? International Journal of Management, Economics, and social sciences (IJMESS). https://www.econstor.eu/bitstream

Pew Research Centre. (2017). Strength from Abroad: the economic power of Nigeria’s Diaspora. https://www.pwc.com/ng/en/pdf/the-economic-power-of-nigerias-diaspora

Reuters. (2021). Nigeria extends naira incentive offer to boost Diaspora inflow.

Thorne, T. (2021). Historic Amount of money sent to Mexico in 2020. https://www.kpbs.org/news/2021/mar/23/historic-amount-remittances-sent-mexico-2020

Trading Economics. (2008-2020 data). Nigeria remittances. https://tradingeconomics.com/nigeria/remittances

Usim, U. (2021). Nigeria, others recorded $540 billion remittances flows in 2020-World Bank. THE SUN

World Bank. (2019). Personal remittances, received as a % of GDP. https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS=2019chart

World Bank Group; Knomad (2019). Migration and Remittances: Recent Development and Outlook

Global Migration Data. (2021). Remittances Data. https://migrationdataportal.org/themes/remittances

Downloads

Published

2021-06-30

How to Cite

Alechenu, B. E. . (2021). Economic Impact of Diaspora Remittance on Nigerian Economy. London Journal of Social Sciences, 1(1), 79–87. Retrieved from http://londonic.uk/js/index.php/ljbeh/article/view/41