Association for Free Research and International Cooperation

Nigeria: Diaspora remittances were 11 times higher than FDI captured (PWC)

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In Nigeria, remittances from the diaspora have been 11 times higher than FDI captured in 2018. PriceWaterhouse Cooper (PwC) reported in a new report on the economic weight of the Nigerian diaspora . According to the report, in 2018, Nigeria received $ 23.63 billion from its migrants, about 83% of the federal government's budget. This amount, more than seven times higher than the development aid received by the country in 2017 ($ 3.4 billion), also accounted for 6.1% of Nigeria's GDP.

By 2023, remittances from the Nigerian diaspora to the country of origin could reach $ 34.8 billion. According to experts, this peak is expected to be due to an upward trend, which will be reflected in remittances from migrants of Nigerian origin in 2019 ($ 25.5 billion) and 2021 ($ 29.8 billion). Forecasts indicate that over the 2009-2023 period, remittances will almost double, from $ 18.3 billion to $ 34.8 billion.

These predictions come as Nigeria, whose diaspora is one of the continent’s most active in terms of remittances, is trying to strengthen the participation of its migrants in local development. Despite the use of many informal channels by them to transfer money to their countries (making traceability difficult), the report indicates that for four consecutive years official remittances have exceeded Nigeria’s oil revenues. However, 70% of these shipments are used for consumption purposes while only 30% are for investment purposes.

“The report is an analysis that shows the crucial importance of the diaspora for Nigeria’s economy. The newly created Nigerian Diaspora Commission (NiDCOM), led by Abike Dabiri-Erewa, says the federal government recognizes the strategic importance of the diaspora, said Andrew Nevin, chief economist at PwC, quoted by This Day. He added: “The next key step for the new commission is to formulate and implement a strategy to maximize the benefits of the Nigerian diaspora.”

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