The World Bank in its latest report disclosed that remittances by Nigerians in the Diaspora declined by 27.7 per cent in 2020.
The report titled ‘Defying predictions, remittance flows remain strong during COVID-19 crisis’ said Nigeria contributed 40 per cent of the remittances into Sub-Saharan Africa.
It put remittances to Sub-Saharan Africa at $42bn. Forty per cent contribution of Nigeria to this means that remittances to Nigeria was $16.8bn in 2020.
A decline of 27.7 per cent also put remittances into the country in 2019 at $21.45bn.
The report said remittances to Sub-Saharan Africa declined by an estimated 12.5 per cent due to a decline in the remittances to Nigeria that contributes the largest amount in the region.
Nigeria has been having foreign exchange crisis resulting from decline in earnings from crude oil sale.
Diaspora remittance is the second major source of foreign exchange for the country. Drying forex remittances recently pushed the Central Bank of Nigeria to offer an incentive of N5 for every dollar remitted through official channels.
Differing exchange rates often push Nigerians in the diaspora to explore alternative ways of remitting money into the country so that they can enjoy higher value.
The report stated that the decline inflows to Sub-Saharan Africa was almost entirely due to a 27.7 per cent decline in remittance flows to Nigeria.
Excluding flows to Nigeria, it stated, remittances to Sub-Saharan Africa increased by 2.3 per cent, demonstrating resilience.
Part of the report read, “Remittances to Sub-Saharan Africa declined by an estimated 12.5 per cent in 2020 to $42bn.
“The decline was almost entirely due to a 27.7 per cent decline in remittance flows to Nigeria, which alone accounted for over 40 per cent of remittance flows to the region.
“Excluding Nigeria, remittance flows to Sub-Saharan African increased by 2.3 per cent.
“Remittance growth was reported in Zambia (37 per cent), Mozambique (16 per cent), Kenya (nine per cent) and Ghana (five per cent).”