Data obtained from the Central Bank of Nigeria have shown that Nigerian workers living abroad remitted a staggering $19.8 billion back home in 2022 a slight increase from $19.3 billion in 2021.
Even though the amount means a 7% increase from the previous year, it is still below the 2018 peak of $24 billion.
Experts said the remittance represents about 5% of the country’s gross domestic product (GDP) and is a vital source of foreign exchange and income for many households.
Remarkably, the data from CBN highlights a significant recovery in remittance inflows and showcases the resilience of Nigeria’s diaspora despite the challenges posed by the COVID-19 pandemic.
Data from the bank shows that remittances fluctuated over the past five years, reaching a peak of $6.3 billion in the fourth quarter of 2018 and a low of $3.4 billion in the second quarter of 2020. ‘
It is no news that the decline in 2020 was largely due to the impact of the COVID-19 pandemic, which disrupted global travel and economic activities. Expectedly, remittances recovered in 2021 and 2022 as the world gradually reopened and vaccination rates increased.
Records have it that the main sources of remittances for Nigeria are the United States, the United Kingdom, Canada, Saudi Arabia, and other countries in Europe, Asia, and Africa.
Even though CBN data does not provide a breakdown by destination, World Bank data have it that about 60% of remittances to Nigeria comes from the US and the UK.
Records have it that these two countries host the largest Nigerian diaspora communities, estimated at over 5 million people.
Meanwhile, the World Bank has disclosed that Nigerian Diaspora community has remitted $168.33bn to the country in the past eight years.
According to data from the World Bank and Budget Office of the Federation, Nigeria’s Diaspora remittances have played a key role in assuaging the impact of foreign exchange scarcity and keeping the country’s forex reserve afloat.
As of April 19, 2023, data from the CBN showed that Nigeria’s forex reserve was $34.43bn, an 18.4 per cent increase from the $29.07bn it was in 2015.
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