The World Bank says Nigeria will record an inflow of $22 billion from foreign remittances in 2017, an increase from the $19 billion recorded in 2016.
According to the Migration and Development Brief released by the bank on Tuesday, global remittance flow will recover in 2017 after two consecutive years of decline.
Foreign remittance is money sent by a person in a foreign country to his or her home country.
“Officially recorded remittances to developing countries are expected to grow by 4.8% to $450 billion for 2017. Global remittances, which include flows to high-income countries, are projected to grow by 3.9% to $596 billion,” a statement on the bank’s website read.
“Among major remittance recipients, India retains its top spot, with remittances expected to total $65 billion this year, followed by China ($61 billion), the Philippines ($33 billion), Mexico (a record $31 billion), and Nigeria ($22 billion).
“Buoyed by improved economic activity in high-income OECD countries, remittances to Sub-Saharan Africa are projected to grow by a robust 10 percent to $38 billion this year. The region’s major remittance receiving countries, Nigeria, Senegal and Ghana, are all set for growth.
“The region is also host to a number of countries where remittances account for a significant share of GDP, including Liberia (26%), Comoros (21%), and the Gambia (20%). Remittances will grow by a moderate 3.8% to $39 billion in 2018.”
The bank said the global average cost of sending money remained stagnant at 7.2% of the amount in the third quarter of 2017.
“This was significantly higher than the Sustainable Development Goal (SDG) target of 3%. Sub-Saharan Africa, with an average cost of 9.1%, remains the highest-cost region.
“Two major factors contributing to high costs are exclusive partnerships between national post office systems and any single money transfer operator (MTO), which stifles market competition and allows the MTO to raise remittance fees, as well as de-risking by commercial banks, as they close bank accounts of MTOs, in order to cope with the high regulatory burden aimed at reducing money laundering and financial crime.”