World Bank estimates that remittances from Nigerian diaspora will total $21bn in 2022

REMITTANCES by the Nigerian diaspora during the course of 2022 is estimated to total about $21bn representing a 7.5% year-on-year increase according to statistics just published by the World Bank.

According to data from the bank's latest Migration and Development Brief, Nigerians abroad have remitted home $20.9bn to families and friends so far in 2022. This puts Nigeria's remittance inflows far ahead of other countries in sub-Saharan Africa such as Ghana with $4.7bn, Kenya with $4.1bn and Senegal with $2.7bn.

In sub-Saharan Africa, Nigeria was the largest recipient of remittances but across the continent as a whole, the country was second behind Egypt, which remitted $32.3bn. Nigeria, which witnessed a sharp recovery in remittance flows during 2021 of 13.2%, maintained the improved momentum of 2021 into to the first quarter of 2022.

According to the World Bank, Nigeria is currently reaping little benefit from the surge in crude oil prices, while the expatriate community faces real income losses in the US, UK and the Euro area. Financial flows to Africa have been exceptionally volatile over the longer term and continuing into the 2020s, particularly for foreign direct investment and portfolio flows

Remittances are expected to constitute 38% of total flows in 2022, with official development assistance standing at 53%.  Subject to less volatility than other sources of foreign inflows, remittance receipts have offered a degree of support for overall financial flows.

Relative rankings of the top 10 recipients have changed little in recent years, although Gambia has moved up in the remittances/gross domestic product group given the dramatic political-economy changes there in recent years. Sub-Saharan Africa remains the most expensive region to send money to, with senders having to pay 7.8% to send $200 during the second quarter of 2022.