Diasporans remit $168b in 8 years
By Jeph Ajobaju, Chief Copy Editor
Diaspora Nigerians have remitted $168.33 billion to the country since 2015, according to World Bank reports, but other sources of foreign investment fluctuated in the eight years, stoking foreign exchange (forex) scarcity.
Data from both the World Bank and Nigeria’s Budget Office shows diaspora remittances play a key role in mitigating the impact of forex scarcity and keeping afloat external reserves.
The World Bank said remittances inflow to sub-Saharan Africa (SSA) grew 5.2 percent to $53 billion in 2022, with Nigeria receiving the largest share.
Breakdown of figures
A total $168.33 billion was sent home by Nigerians abroad between 2015 and 2022, the bank explained.
It broke down the figures as follows:
- 2015 – $21.2 billion
- 2016 – $19.7 billion
- 2017 – $22 billion
- 2018 – $24.31 billion
- 2019 – $23.81 billion
- 2020 – 17.21 billion
- 2021 – $19.2 billion
- 2022 – $20.9 billion
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Lifeline for Nigerians
Yearly remittance inflows had only fallen below $20 billion once before 2020, when it dipped to $19.7 billion in 2016, according to the World Bank, per The PUNCH.
The bank said diaspora remittance was one of the top sources of non-oil forex for the country in 2022, crediting the policies of the Central Bank of Nigeria (CBN) with increased inflows since 2021.
CBN figures show external reserves amounted to $34.43 billion on 19 April 2023, an 18.4 per cent rise on $29.07 billion in 2015.
Diaspora remittance is a lifeline for many people in Nigeria but the diaspora community has warned the current global economic hardship may affect its ability to transfer a lot of funds home.
Capital importation dips to $4.89b
Capital importation in the 11 months between January and November 2022 (M11 2022) was $4.89 billion, a 12.3 per cent slash against $5.89 billion in M11 2021.
CBN figures show capital inflows have been slow following the coronavirus pandemic in 2020 and other economic headwinds.
Foreign investment in Nigeria fell from $23.71 billion in 2019 to $9.68 billion in 2020 and to $6.7 billion in 2021, the lowest in five years.
The sums for M11 2022 break down as follows:
- Loans – $1.97 billion (40.2 per cent of total). Up 26.8 per cent from $1.55 billion in 2021.
- Foreign direct investment (FDI) – $421.64 million (8.6 per cent of total). Down 27.4 per cent on 2021.
- Foreign portfolio investment (FPI) – $2.4 billion. Down 25.8 per cent on $3.24 billion in M11 2021. FPI accounted for most inflows at 49 per cent.
- FDI slashed 27.5 per cent to $416.63 million.
- FD in form of other capital dropped 19.2 per cent to $5.01 million.
