Nigerian migrants who send money to Nigeria have improved the living standards of millions of people. Nigeria is the largest remittance recipient in Sub-Saharan Africa and one of six countries listed by the World Bank as top remittance recipients in 2012. Nigeria, a major regional player in West Africa, accounts for roughly half of the population, with 202 million people and one of the world’s largest youth populations. It is Africa’s largest oil exporter and has the continent’s largest natural gas reserves, thanks to its natural wealth.
What Is Relation Among Remittance, The Economy and Poverty of a Developing Country?
For several factors, it is crucial to comprehend the connection between economic development, remittance and poverty. Governments may use a deeper understanding to assess if their strategies have the desired impact and where to focus resources to boost results. Nigeria’s high unemployment and poor educational and health results can help explain why economic growth has not resulted in expected poverty reductions, despite poor and inconsistent data quality for economic growth and poverty measures. A deeper understanding of this relationship could lead to more successful national and global strategies for improving economic development by increasing money transfer to Nigeria from abroad and reducing poverty.
How Diaspora and local authorities of Nigeria Can Up Lift the Economy of Nigeria?
In a developing economy like Nigeria, international remittance inflows are some of the most important macroeconomic factors that drive the country’s development.
Remittance-receiving countries must create a favourable economic environment by implementing sound macroeconomic policies, such as stable exchange rates, basic physical infrastructure, improved market integration, dependable financial and other institutions, a transparent legal system, and good governance. In other words, conditions that can improve the economy for development and equip it adequately to receive remittances. This is particularly crucial if remittances are to be attracted and used for development purposes.
What Are the Other Factors that Can Be Utilize to Support the Economy of Developing Countries?
By lowering transaction costs, simplifying money transfer procedures, and promoting the use of online & structured financial networks by various other means, the corporate sector, especially banks and other money transfer services, you can do a lot to increase the volume and value of official flows. Ace Money Transfer is already providing fee-free online money transfer to Nigeria, including other sub-Saharan Africa.