Experts predict diaspora remittances to Nigeria may exceed $34 billion yearly

According to a report by consulting firm PricewaterhouseCoopers, PwC, diaspora remittances to Nigeria have been estimated to exceed $ 34.8 billion which was earlier predicted for 2023.

Recall the firm had in 2019, predicted that migrant remittances to Nigeria could grow to $25.5 billion, $ 29.8 billion, and $ 34.8 billion in 2019, 2021, and 2023 respectively.

Remittances from the diaspora have been noted to be a higher source of foreign exchange to Nigeria thus making it a larger contributor to the Gross Domestic Product GDP, of the country.

Diaspora remittances take a higher position than oil in the GDP contributor ladder and also, far outweigh the contributions of Foreign Direct Investment, FDI into the country.

In 2021, remittance from Nigerians abroad was four times the FDI inflows. FDI in 2021 was $4.8 billion while diaspora home remittance was $20 billion.

The prediction that diaspora remittances will keep increasing is partly based on the large number of Nigerians that keep migrating to other countries on a daily basis. As of June 2022, an immigration report in the United Kingdom indicated that Nigeria had the highest number of migrants to the UK.

The report noted that the number of Nigerian immigrants to the UK rose by 686 per cent from 8,384 recorded in 2019 to 65,929 as of June 2022.

The World Bank also revealed that in sub-Saharan Africa, Nigeria remains in the lead as the highest recipient of remittances in 2022. Kenya, Ghana and Senegal followed closely.