Nigeria’s diaspora remittances may beat World Bank’s projection, rise 10% to $14.2bn

Nigeria’s diaspora remittances inflow is set to beat the World Bank’s projection for 2021, as it rose to $14.2 billion in the nine months ending September 2021, up 10 per cent Year-on-Year, YoY, from $12.9 billion in the corresponding period of 2020, reflecting the impact of post-COVID economic recovery measures.

This is contained in a data from the Central Bank of Nigeria, CBN, which also shows that diaspora remittances rose by 5.1 per cent, quarter-on-quarter, QoQ, to $4.28 billion in the first quarter of 2021 (Q1 ’21) from $4.07 billion in Q4’2020. The upward trend continued in Q2 and Q3, when diaspora remittances rose QoQ by 21 per cent and 1.0 per cent to $4.92 billion and $4.97 billion.

Going by the trend, which translates to average quarterly remittances of $4.72 billion, annual diaspora remittances may hit $18 billion, slightly above the $17.6 billion projected by the World Bank for 2021. But observers believe it could be more going by the usual increases on Yuletide activities.

Citing increasing influence of policies intended to channel inflows through the banking system, the World Bank in a report titled, “Migration and Development Brief 35,” released last November, had projected that Nigeria’s diaspora remittances will increase 2.5 per cent to $17.6 billion in 2021 from $17.2 billion in 2020. The 10 per cent, YoY increase in 9M-21 also represents a reversal of the 41 per cent decline recorded in 2020 when diaspora remittances fell to $16.94 billion from $23.45 billion in 2020 due to the impact of COVID-19 triggered economic lockdown on the incomes of Nigerians in diaspora.

In a bid to forestall this trend in 2021, the CBN in December 2020 introduced measures to encourage Diaspora Nigerians to send their remittances through the banking system. Among other things, the measures allow beneficiaries to have unfettered access and utilization to foreign currency proceeds, either in foreign exchange cash and/or in their Domiciliary Accounts. Furthermore, the CBN directed payment switching and processing companies to stop local currency transfer of diasporal remittances received through International Money Transfer Operators (IMTOs).

The apex bank also directed Mobile Money Operators (MMO) to disable wallets from receipt of funds from IMTOs.

To complement these measures, the CBN in February 2021 introduced the “Naira4Dollar” scheme, which rewards beneficiaries of remittances with N5 for every $1 of remittance sent through the banks. 

By Babajide Komolafe

Vanguard

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Nearly 100 hostages, most of them women and children, have been rescued more than two months after they were abducted by armed groups in northwest Nigeria.

Among the 97 freed hostages were 19 babies and more than a dozen children, Ayuba Elkana, police chief in Zamfara state, said on Tuesday.

Mostly barefooted, weary and in worn-out clothes, the ex-captives trickled out of the buses that took them to Gusau, capital of Zamfara state. Women with malnourished-looking babies strapped to their backs trailed behind.

Coming a few days after 21 schoolchildren were freed by security forces, the rescue brought a sigh of relief in Nigeria where armed groups have killed thousands and kidnapped many residents and travellers in exchange for ransoms.

Police said the hostages were “rescued unconditionally” on Monday in joint security operations targeting the camps of armed groups that have been terrorising remote communities across the north-west and centre of Africa’s most populous country.

They had been abducted from their homes and along highways in remote communities in Zamfara and neighbouring Sokoto state.

The hostages had slept on the ground in abandoned forest reserves that serve as hideouts for the gunmen. The first batch of 68 “were in captivity for over three months and they include 33 male adults, seven male children, three female children and 25 women including pregnant/nursing mothers respectively,” Elkana said.

Another set of 29 victims were also rescued “unconditionally” in Kunchin Kalgo forest in the Tsafe local government area of Zamfara, police said.

It is not clear if ransoms were paid for the releases as is usually the case in many remote communities in Nigeria’s troubled north. Authorities have said the hostages’ freedom was the result of military operations including airstrikes.

The large bands of assailants are mostly young men from the Fulani ethnic group, who had traditionally worked as nomadic cattle herders and are caught up in a decades-long conflict with Hausa farming communities over access to water and grazing land.

The Guardian