Remittance flows into Nigeria in 2018 have been projected to hit its highest point in history at $25 billion. This would mark a 14 percent growth from $22 billion inflow into the country in 2017, according to a recent edition of the World Bank’s Migration and Development Brief.
Although it is positive as the pace of growth seems on track to accelerate significantly in 2018, the Bank projects that the growth rate might weaken and grow even much slower in the coming year for Sub-Saharan African countries. The report indicates that the inflows account for 6.1 percent share of Nigeria’s Gross Domestic Product (GDP) in 2018. In 2016, Nigeria recorded $19.68 billion in remittances which grew by 11.8 percent to $22 billion in 2017.
The country ranked second in Sub-Saharan Africa, outpaced by Egypt which recorded $25.68 billion remittance inflows in 2018, according to the World Bank’s latest estimate. Ghana is projected to record $3.8 billion inflows in the year in review while South Africa is seen recording $921 million inflows in 2018 compared with $873 million achieved in the previous year.
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For Sub-Saharan Africa Remittances, growth has been sustained since 2016 and it is expected to inch higher by 9.8 percent to $45 billion in 2018, on the back of strong economic conditions in advanced economies, specifically the United States where many of the region’s migrants rake their earnings.
“Projections indicate that remittances to the region will keep increasing but at a lower rate of 4.2 percent in 2019,” the Bank said.
“In addition, because of large intra-regional migration flows in the region, remittance flows are expected to keep increasing due to projected strong regional economic growth in 2019.”
The Bank projects further that remittances to developing countries comprising low and middle income nations will officially increase by 10.8 percent to hit $528 billion in 2018, following 7.8 percent growth in 2017.
Global remittances, which include flows to high-income countries, are projected to grow by 10.3 percent to $689 billion.
India distinguished itself in the circle of chief remittance receivers to retain its top position with an aggregate of $80 billion this year. China trailed with $67 billion while Mexico and the Philippines are expected to record $34 billion remittances each.
As global growth is projected to moderate, future remittances to low- and middle-income countries are expected to grow moderately by 4 percent to reach $549 billion in 2019. Global remittances are expected to grow 3.7 percent to $715 billion in 2019.
OLUWASEGUN OLAKOYENIKAN & TEMITAYO AYETOTO
