Remittance to Nigeria is defined as expatriates send money to Nigeria to support their families. In the past few years, remittance inflows have expanded dramatically. As a result, they have become the main financial external inflow in some developing countries, surpassing other inflows that traditionally play an important role in these countries, such as official development assistance and foreign direct investment.
Remittances now account for approximately a third of total financial inflows to developing nations, according to the World Bank. Africa, like other continents, has seen significant rises in the recent decade. According to the World Bank’s Migration and Remittances statistics, remittances account for up to 22% of some African countries’ 2017 GDP.
The growing focus on migrant money transfer to Nigeria stems from an understanding of the critical role they play in poverty alleviation and, if conditions permit, economic development more widely. The former is most visible in how individuals’ situations are directly modified; the latter functions through a collective response that is heavily reliant on the presence of institutions that can leverage remittances to generate actual “development finance.”
What Is The Benefit Of Remittance To the Global Economy?
Cross-border cash transactions from immigrants in one country to their home country are known as remittances. For example, you send money to Nigeria online from the UK, usually through payment services to family members. Personal transfers in cash or in-kind between resident and non-resident households and remuneration of employees, which refers to the income of individuals who work in another nation for a brief length of time, are the two most common types of remittance.
Migrant labor is becoming a more important part of the global economy and a result of globalization. Many migrant workers are seasonal, but many others work for long periods of time. Even those who have stayed in a host nation and obtained citizenship continue to send money to extended family in their home country.
Remittances are a challenge for both national governments and international financial organizations. This is because many transactions are performed informally through the shadow economy and go unreported, making them difficult to trace and measure with any degree of accuracy. Officially authorized money transfer firms (MTBs), such as banks, online money transfers to Nigeria and other parts of the world, and specialist transfer enterprises are among the formal routes. Informal transfers are made through pathways that do not involve a formal business but are not subject to financial regulation. Semi-formal transfers are made through channels that do not include a formal business but are not subject to financial regulation.