Nigeria experiencing a rebound in remittance flows, $18bn in 2021—WBG

World Bank Group has estimated that Nigeria remittances inflow will hit $18 billion in 2021 out of the $45 billion remittances projected for sub Sahara Africa. In its latest publication of top Remittance Source and Recipient Countries it said “Nigeria, the region’s largest recipient, is experiencing a moderate rebound in remittance flows, in part due to the increasing influence of policies intended to channel inflows through the banking system”. The World Bank said “after contracting by 14.1 per cent in 2020, remittance flows to Sub-Saharan Africa are expected to recover in 2021—registering a growth of 6.2 per cent to reach $45 billion. Nigeria, the largest recipient in the region, is experiencing a moderate rebound in remittance flows, in part due to the increasing traction of novel policies intended to channel inflows through the banking system.

In 2021, the top five recipient countries for remittances are India $87 billion, China $53 billion, Mexico $53 billion, the Philippines $36 billion, and Egypt $33 billion. India experienced a substantial 4.6 per cent gain in remittance inflows during 2021, as higher oil prices enabled stronger remittance payments from expatriate workers among the GCC economies, and the dramatic spread of COVID-19 yielded additional financial support from the diaspora. Mexico’s surge in recorded inflows to $53 billion is tightly linked to the US recovery—and gains in employment there for Mexican migrants—as well as to flows from home countries to the large number of Central American transit migrants. 

Remittances from Egyptian immigrant workers increased to $33 billion in the year, a robust 12.6 per cent advance, benefitting from higher oil prices and returns from expatriates in the Gulf, as well as the pickup in economic activity in Europe and the United States. And in Ukraine, remittance inflows increased sharply to $16 billion, on stronger demand for labor services in Central and Eastern Europe. Countries where the value of remittance inflows as a share of GDP is significant include the Gambia (33.8 percent), Lesotho (23.5 percent), Cabo Verde (15.6 percent) and Comoros (12.3 percent). In 2022, remittance inflows are projected to grow by 5.5 per cent due to continued economic recovery in Europe and the United States. Costs averaged 8 per cent in the first quarter of 2021, down from 8.9 percent a year ago. Although intra-regional migration makes up more than 70 per cent of cross-border migration, costs are high due to small quantities of formal flows and utilisation of black-market exchange rates.