Agusto Consulting Limited, a credit rating agency, says it is optimistic that Nigerians living abroad will send as much as $22.5 billion back home this year. Also known as diaspora remittances the renown rating agency, said the amount is five per cent increase more than the figure recorded in the previous year, 2020.
Nigeria is second to Egypt in Africa in terms of diapora remittances but many Nigerians living abroad could not sent much to their loved ones, last year, due to the corona virus pandemic which hit global economy.
Nigeria received its highest diaspora remittance in 2018 with about $24 billion. In 2019 the figures dipped by two percent to $23.8 billion while in 2020, a double digit drop of 12 percent was recorded as diaspora remittances fell to $21 billion.
The situation, Agusto said will change this year as big economies in Europe, USA and China begin to experience normalcy.
According to Jimi Ogbobine, the remittance which formed Nigeria’s biggest source of foreign exchange will experience boom after the COVID 19 setbacks.
Ogbobine said “By the end of 2021, we are projecting a 5 percent growth from $21 billion to $22 billion this year. And by 2022, we are projecting another small growth of about 2 percent to $22.5 billion,” Ogbobine said.
The agency said increase in emigration of white-collar workers particularly to Canada, the United Kingdom and Australia will increase diaspora remittances.t
It added that the Central Bank of Nigeria, CBN will “maintain its current policy all through 2021 and into 2022 which requires International Money Transfer Operators, IMTOs to pay beneficiaries in foreign currency and not in naira”.
The report further said Nigeria recorded the worst dip in remittances among top seven countries with highest diaspora receipts in Africa.
The six other African countries were identified as Egypt, Morocco, Ghana, Kenya, Senegal and Zimbabwe.
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