According to the World Bank, Diaspora remittances into Nigeria in 2021 are projected to hit $17.6 billion, representing 2.5 per cent increase from $17.2 billion recorded in 2020.
The projected Diaspora total remittances would amount to 67% of the federal government budget for the same year.
In a report titled, “Migration and Development Brief 35,” the Bank attributed the moderate increase to policies intended to channel inflows through the banking system.
Among other things the report projected 7.3 per cent increase in remittances to low and middle income countries in 2021. The World Bank stated: “Remittances to low- and middle-income countries are projected to have grown a strong 7.3 percent to reach $589 billion in 2021.
“This return to growth is more robust than earlier estimates and follows the resilience of flows in 2020 when remittances declined by only 1.7 percent despite a severe global recession due to COVID-19, according to estimates from the World Bank’s Migration and Development Brief released today.
“Remittance inflows to Sub-Saharan Africa returned to growth in 2021, increasing by 6.2 percent to $45 billion. Nigeria, the region’s largest recipient, is experiencing a moderate rebound in remittance flows, in part due to the increasing influence of policies intended to channel inflows through the banking system.
“Countries where the value of remittance inflows as a share of GDP is significant include the Gambia (33.8 percent), Lesotho (23.5 percent), Cabo Verde (15.6 percent) and Comoros (12.3 percent). In 2022, remittance inflows are projected to grow by 5.5 percent due to continued economic recovery in Europe and the United States.