The Federal Government has disclosed that the $25 billion remittances Nigerians in diaspora sent to the country in 2018, represent about 83 per cent of the country’s national budget and 6.1% of its GDP.
The Secretary to the Government of the Federation, Boss Mustapha made this known while delivering his speech at the 2019 National Diaspora Day held in Abuja on Thursday. He lauded Nigerians in the Diaspora for their immense contributions to national development adding this indicates that the Diaspora is a potent force for national development.
The figures reflect the research findings in the World Bank’s Migration and Remittances report issued in April 2018. According to the report, remittances to Nigeria reached $22 billion in 2017, a 10 per cent increase on the $19.64 billion sent in 2016. Remittances were worth 5.6 per cent of GDP in 2017, thus exceeding the $20 billion generated by Nigeria’s oil revenues.
Despite the rise in remittance inflows to Nigeria and Africa in general, the average cost for money transfers to sub-Saharan Africa remains the highest in the world. According to Remittance Prices Worldwide (Q3 2018), the average cost to send money to Africa is 8.96 per cent, compared with a global average of 6.94 per cent.
Boss Mustapha noted that monies sent are presently utilized as social security funds to families in paying school fees, feeding allowances, hospital bills including investment in housing and estate development, hospital projects, schools and commercial enterprises.
He said “There is urgent need to galvanise this into an investment fund for development.”
According to him, Nigerians in diaspora being at the cutting edge of technology and appropriately exposed at the international business community level are the right connectors to propel government’s economic recovery and growth plan.
“We therefore call on you to key into this and be the vanguard for its implementation. I encourage the Nigerians in diaspora to engage with Nigeria at the wider macro-economic level especially in the organised private sector,” he said.
Mustapha added that there is an urgent need for unity among diaspora leaders and membership at large. “Nigeria is a diverse country. Our strength lies in the unity of our diversity. United we stand, divided we fall is a popular adage in Nigeria. Our diaspora population should therefore unite and engage with the Nigerians in Diaspora Commission with a view to accelerating the development of Nigeria” he said.
Innocent Odoh, Abuja
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
