World Bank says Nige­ria’s di­as­pora re­mit­tances to de­cline 25% in 2020 on COVID

Business Day (Nigeria) - - COMPANIES & MARKETS - MERCY AYODELE

Di­as­pora re­mit­tance flows into Nige­ria will tum­ble by 25% this year as the coro­n­avirus pan­demic drags on the eco­nomic cri­sis, deep­en­ing hard­ship for house­holds that re­ceive re­mit­tances, ac­cord­ing to the World Bank.

In a re­cent we­bi­nar by the World Bank tagged “Nige­ria in the time of COVID- 19, Rising to the chal­lenge”, the in­sti­tu­tion said there are 1517 mil­lion Nige­ri­ans liv­ing abroad who send home over $25 bil­lion dol­lar an­nu­ally.

53 per­cent of this pop­u­la­tion re­side in Europe and North Amer­ica, where rising un­em­ploy­ment rates are al­ready chok­ing in­comes, the Bank says.

With most ad­vanced coun­tries al­ready in re­ces­sion be­ing dragged by the coro­n­avirus pan­demic, it will be­come more dif­fi­cult for Nige­ri­ans in di­as­pora to send money home.

“Re­mit­tances are a vi­tal source of in­come for de­vel­op­ing coun­tries. The on­go­ing eco­nomic re­ces­sion caused by COVID-19 is tak­ing a se­vere toll on the abil­ity to send money home and makes it all the more vi­tal that we shorten the time to re­cov­ery for ad­vanced economies,” said World Bank Group Pres­i­dent David Mal­pass.

Global re­mit­tances were pro­jected to dip sharply by about 20 per cent in 2020, said the World Bank.

Ac­cord­ing to the World bank, the fall in re­mit­tances will af­fect house­hold con­sump­tion as 1 in 2 of Nige­ri­ans live in house­holds that re­ceive re­mit­tances.

Ac­cord­ing to the Na­tional Bureau of Sta­tis­tics (NBS), Nige­ria re­ceived $17.57 bil­lion di­as­pora re­mit­tances in 2019, up by 56.4 per­cent from $11.23 bil­lion in 2018.

“Di­as­pora re­mit­tances into the coun­try could fall to $17 bil­lion in 2020, a 32 per cent drop from the $25 bil­lion in­flows recorded in 2019”, Bis­marck Re­wane, chief ex­ec­u­tive of­fi­cer, Fi­nan­cial De­riv­a­tives said.

On the av­er­age, re­mit­tances re­ceived per house­hold is $224 or N84,741 and over 80 per­cent of the re­ceived re­mit­tances goes to con­sump­tion, the Bureau noted.

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