Remittance to Nigeria as developing countries can be defined as expatriates send money to Nigeria to fulfil families’ basic needs. According to the World Bank’s latest Globalization and Investment Brief, remittances to low- and middle-income countries hit a new high in 2018. According to the Bank, officially reported annual remittance flows to low- and middle-income countries totalled $529 billion in 2018, up 9.6% from the previous peak of $483 billion in 2017. In 2018, global remittances, including flows to high-income countries, totalled $689 billion, up from $633 billion the previous year.
What Are The Changes In The Flow Of Remittance After Record High Remittance In 2018?
One of the most tangible ties between migration and growth in remittances. Foreign direct investment (FDI) and official development assistance obtained by low- and middle-income countries are more diminutive. According to the World Bank, global monetary flows by migrant workers and others reached a new high of $714 billion in 2019. In 2019, remittances to low- and middle-income countries totalled $554 billion. Massive job losses and limits on global migration in the aftermath of the coronavirus pandemic, on the other hand, make it more difficult for people to transfer money to Nigeria and other developing countries to help their families back home.
What Is The Regional Flow Of Remittance During The Recent Couple Of Years?
Regionally, remittance inflows increased by nearly 7% in East Asia and the Pacific and 12% in South Asia. A more robust economy and job situation in the United States, as well as a recovery in outward flows from some African Union Council (GCC) countries and the Russian Federation, drove the overall rise. Remittances to middle- and lower countries ($462 billion) were slightly higher than foreign direct investment flows ($344 billion) in 2018, excluding China.
After 2018 Online money transfer to Nigeria and other neighbouring countries has experienced a steep rise, remittances to Sub-Saharan Africa increased by nearly 10% to $46 billion, owing to improved economic conditions in high-income countries. Comoros has the highest share of remittances as a percentage of GDP, followed by Gambia, Lesotho, Cabo Verde, Liberia, Zimbabwe, Senegal, Togo, Ghana, and Nigeria.
The Bottom Line:
During the rise of 2018 and the steep fall of remittance worldwide, sending money abroad is more digitalized and modernized. People now prefer to send money to Nigeria online compared to visiting banks and agents in the early days. This trend is following all over the world; now, sending money to home countries is more manageable and straightforward for both receiver and sender through the digital financial system.