WASHINGTON DC, USA – A recent World Bank report has shown that Nigeria’s Diaspora community remitted $168.33 billion to the country in the past eight years. The remittances have played a significant role in cushioning the adverse effects of foreign exchange scarcity and keeping the country’s forex reserve afloat.
According to the report on Tuesday, April 25, 2023, Nigeria’s Diaspora remittance was $21.2 billion in 2015, peaked at $24.31 billion in 2018, plummeted to $17.21 billion in 2020 due to the pandemic, and rose to $20.9 billion in 2022.
The report further stated that Nigeria’s Diaspora remittance inflows have been one of the country’s top sources of non-oil foreign exchange in recent years.
Despite the huge remittance inflows, the Nigerian Diaspora community has stated that the current global economic hardship may affect its ability to transfer huge amounts of funds home. The World Bank’s report is also a reminder that while Nigeria has an enormous potential to benefit from its Diaspora, it needs to make the country more attractive to its citizens abroad.
The government should take steps to address issues that discourage Nigerians in the Diaspora from investing in the country.
“The sustained increase in Diaspora inflows since 2021 has been because of several new policies from the Central Bank of Nigeria,” the World Bank noted. As of April 19, 2023, data from the CBN showed that Nigeria’s forex reserve was $34.43 billion, an 18.4 per cent increase from the $29.07 billion it was in 2015.
The report comes at a time when Nigeria’s foreign investment inflow remains unstable due to a scarcity of foreign currency, which has led to the free fall of the naira. The report is an indication that Nigeria needs to continue to tap into its Diaspora community to sustain its economy.
“The diaspora is one of Nigeria’s most underutilized resources,” said Dr Chijioke Nwaozuzu, an economist at the University of Lagos. “If Nigeria can harness the economic potential of its diaspora, it would significantly impact the country’s economy.”
The Nigerian government should encourage its citizens in the Diaspora to invest in the country and create a more favourable business environment for them.
