Nigeria tops Africa in home remittances, $21bn involved

BY OMOH GABRIEL in Washington Nigeria got a total of $21 billion as home remittances flows from Nigerians living abroad in 2013. This puts the country as the fifth largest recipient of foreign remittances among developing countries and first in Africa. Data released by the World Bank in Washington, weekend, showed that India remained in the top spot, with $70 billion in remittances in 2013. Other large recipients according to the Bank are China ($60 billion), the Philippines ($25 billion), Mexico ($22 billion), Nigeria ($21 billion), Egypt ($17 billion), Pakistan ($15 billion), Bangladesh ($14 billion), Vietnam ($11 billion) and Ukraine ($10 billion). The World Bank in its release said: “In terms of remittances as a share of GDP, the top recipients were Tajikistan (52 per cent), Kyrgyz Republic (31 per cent), Nepal and Moldova (both 25 per cent), Samoa and Lesotho (both 23 per cent), Armenia and Haiti (both 21 per cent), Liberia (20 per cent) and Kosovo (17 per cent). The report said: “After remaining broadly unchanged in 2012, remittances to Sub‑Saharan Africa grew by 3.5 per cent in 2013 to reach $32 billion. Flows are forecast to rise to $41 billion in 2016. According to available data, Nigeria remains the largest recipient by far, with migrants sending about $21 billion in 2013. Remittances to countries in East Africa continued to grow robustly last year, by 10 per cent to Kenya and 15 per cent to Uganda. In contrast, West African countries, such as Cote d’Ivoire and Senegal, saw only modest increases in 2013, after a slowdown in 2012. Sub‑Saharan Africa is one of the few regions in the world where official development assistance is larger than remittances, and both are much more stable than either foreign direct investment or private financing flows. Many countries in the region have large Diaspora overseas, with substantial Diaspora savings that could be mobilised for development financing.” According to the Bank: “In addition to the large annual flows of remittances, migrants living in high income countries are estimated to hold savings in excess of $500 billion annually. These savings represent a huge pool of funds that developing countries can do much more to tap into. The Bank further said: “International migrants from developing countries are expected to send $436 billion in remittances to their home countries this year, despite more deportations from some host countries, says the World Bank’s latest issue of the Migration and Development Brief, released today. “This year’s remittance to developing countries will be an increase of 7.8 per cent over the 2013 volume of $404 billion, rising to $516 billion in 2016, according to revised projections from the latest issue of the brief. “For many developing countries, remittances are an important source of foreign exchange, surpassing earnings from major exports, and covering a substantial portion of imports. For example, in Nepal, remittances are nearly double the country’s revenues from exports of goods and services, while in Sri Lanka and the Philippines, they are over 50 per cent and 38 per cent, respectively. In India, remittances during 2013 were $70 billion, more than the $65 billion earned from the country’s flagship software services exports. In Uganda, remittances are double the country’s income from its main export of coffee.