Diaspora Remittances Plummet to $1.02 Billion — CBN

The Central Bank of Nigeria (CBN) has revealed that Nigeria’s total direct diaspora remittances dropped by 50.47 per cent to $1.02billion from $2.05billion between January and February 2020.

Analysts attributed the decline to current global economy challenges caused by COVID-19 and dwindling in global oil prices.

CBN had revealed that Nigeria received $19.2 billion in total direct diaspora remittances between January and December of 2019.

The data published by the apex regulator stated that the remittances rose by 70.6per cent when compared to $11.23 billion reported in 2018.

It was gathered that remittances are funds transferred from migrants to their home countries.

READ MORE: COVID-19 Intervention Fund: CBN Disburses N107.5bn to Beneficiaries

The breakdown of CBN’s total direct remittances revealed that, in January 2019, $1.89billion was remitted, while in February, $1.92billion was the total direct remittance.

According to the CBN, $1.12 billion and $1.56billion was the total direct remittance between March and April 2019 respectively. Total direct remittance hits $1.74billion in May; $1.67 billion in June and $1.66 billion in July 2019.

ALSO READ: Nigerian Fintechs Need to Address Shortcomings in Broader Ecosystem – Report

However, for August and September, the apex bank reported $1.66 billion and $1.69 billion respectively was remitted to the nation’s economy.  The figures was hovering around $1.35 billion in October and $1.32 billion in November but in December, it increased to $1.59billion.

The above data revealed that diaspora remittances into the nation’s economy continued to soar amidst series of foreign exchange reforms that tend to attract inflow of capital.

The CBN had licensed International Money Transfer Operators (IMTO) and monitors legitimate foreign currency, most especially Dollar inflow into the country.

In addition, banks and oil companies also remit foreign currency to the CBN.

Those operators licensed by CBN are TRANS-Fast Remittance, Worldremit limited,  UAE Exchange Center LLC, Wari limited, and Home Send S.C.R.L.

Others are Small World Financial Services Group, Weblink International limited Cashpot limited, DT&T Corporation Limited and Corporation limited and Fiem Group LLC, and DBA Ping Express, CP Express limited.

However, PwC had said remittances from abroad could strengthen Nigeria’s economy with an estimated amount of $25.5billion, $29.8billion and $34.8billion in 2019, 2021 and 2023 respectively.

Data collected from the apex bank official website disclosed that diaspora remittances into the nation’s economy continued to soar amidst a series of foreign exchange reforms, which attracted capital inflow.

In 2010, Nigeria received $5.66 billion as direct diaspora remittances. Two years later, there was a dip in the country’s remittances as $2.20 billion remittances were recorded in 2013.

Direct remittances inflow picked in 2014, as Nigeria received a total of $8.15 billion.

Fast forward to 2018, direct remittances rose to $17.57 billion. This implies that direct remittances inflow into Nigeria rose by 210.3per cent in a decade.