Expatriates send money to Nigeria during pandemic has seen slight declination due to ban on transport and money transfers through informal channels. Covid-19 is a virus that has wreaked havoc on people all over the world. The COVID-19 pandemic is wreaking havoc on economies all over the world, including Nigeria, which was already dealing with its fiscal challenges. Foreign development invest will continue to invest with businesses in the country as it recovers from the coronavirus.
Nigeria’s gross domestic product (GDP) grew again after entering its first recession in 25 years in 2016, albeit at a slower rate than population growth. This implies that Nigeria, known to be Africa’s most populous country between 2017 and 2019, became impoverished. The economy has started to show signs of improvement, but the pandemic would stifle this.
Why Is Remittance Significant Support To The Economy Of Developing Countries?
Money transfers to Nigeria, generally termed as Remittance, have emerged as a modern phenomenon in the global financial system due to its scale and influence. According to World Bank data, total remittances in 2015 were £14.90 billion, up from £671.47 million in 1996, representing a rise of over 2000 percent. This is why it was necessary to look into the effect of remittances on Nigeria’s economic development. The study’s overall goal is to assess the impact of remittances on Nigeria’s economic growth.
International remittances have long been recognized as a major economic driver in most developing nations. It is essential in rural areas for poverty reduction, income redistribution, and economic development. Nigeria is the largest recipient of remittances in Sub-Saharan Africa, according to Hernandez-Coss and Bun (2006). According to Hernandez-Coss and Bun, the nation receives approximately 65 percent of officially registered regional remittance flows and 2% global flows as online money transfers to Nigeria.
While being a show of connection to the country of origin, diaspora remittances act as a mechanism for the country’s economic development. In a report on the effect of migrant remittances on economic growth in Sub-Saharan Africa, with a focus on Nigeria, Ghana, and South Africa, researchers found that The remittances of migrants were found to have a positive effect on the economies surveyed, though to varying degrees. The Nigerian government is making efforts to enhance Remittance by providing accessible services to send money to Nigeria online.