Thursday, April 26,
2018 /09:19 AM / FBNQuest Research
see from the CBN’s Quarterly Statistical Bulletin for Q4 2017 that net current
transfers amounted to US$5.85bn, their highest since Q4 2013. Our chart shows
an annual peak in the fourth quarter, which coincides with the principal
holiday season in Nigeria.
It also shows a broad dip in these inflows, which
consist 95% of workers’ remittances, from mid-2014 through to mid-2017. This
correlates with the crude oil price of course but, more significantly, with the
economic fundamentals in the leading remittance countries (the US, the UK and
is also the possibility that these remittances through official channels picked
up once the CBN introduced its fx reforms last year, including the opening of
windows with more market-related exchange rates.
policy documents in Nigeria and elsewhere routinely identify the diaspora as a
target to tap for investment, but generally do not produce a strategy for the
task. India and Israel are probably the most effective countries in engaging
with their diaspora communities. The FGN did raise US$300m from its maiden
diaspora bond in 2017.
We can only speculate
where remittances to Nigeria are deployed because the recipient institutions
(banks and money transfer agencies) are not required to ask for any information
of the beneficiaries. If the authorities had this data, they could put together
policies and incentives for particular sectors of the economy to boost the
diaspora participation in the economy.
World Bank data released
at the start of this week showed an 8.5% increase in remittances to low and
middle-income countries in 2017, to US$466bn. India and China topped the list
with US$69bn and US$64bn respectively. Nigeria occupied fifth position with US$22bn,
which is consistent with the balance-of-payments series in the CBN’s bulletin.
- A Recovery in Inward Remittances
- Ample Scope to Boost Remittances
- Untapped Potential of Remittances
- Illicit International Money Remittances through the
- Emerging Markets Driving the payments transformation
- Current trends and the future of financial services
in Nigeria - PwC Journal
- Nigeria-Investing in a Cashless Future