Boost for Naira as World Bank Predicts Diaspora Remittances for Nigeria in 2023, FG Sets FX Rates
Nigeria is expected to receive about $20 billion in total diaspora remittances in 2023
The report was released by the World Bank which said that total diaspora remittances into Africa would rise by 1.9%
It said Nigeria would continue to dominate the continent in diaspora remittance, followed by Ghana
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The World Bank has stated that Diaspora remittances to Nigeria will exceed $20 billion by the end of 2023 as total remittances into sub-Saharan Africa rise by 1.9%.
The bank revealed this in its latest Migration and Development Brief released in December, saying that the global remittances flows would continue to rise in 2023 but at a slower rate.
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The World Bank projects Nigeria as the highest diaspora remittance in Africa
The report said:
“Remittances to Nigeria, accounting for 38 percent of remittance flows to the region, grew by about two percent, while two other major recipients, Ghana and Kenya, posted estimated gains of 5.6 percent and 3.8 percent, respectively.”
The bank stated that fixed exchange rates and capital controls were diverting remittances to the region from official to unofficial channels.
It predicted that flows to Africa are projected to increase by 2.5%, stating that while remittance from the United States has remained stable, the euro has recovered as output remains at 2.2% below pre-pandemic forecasts.
The Punch reports that at the official rate of N885.99 per dollar, the expected total diaspora remittance to Nigeria is about N17.717 trillion.
Top countries in Africa with the highest remittance
Remittances are vital sources of financing for Sub-Saharan Africa, the World Bank says, and have remained more stable than Foreign Direct Investment for over 20 years.
Remittances to Africa outpaced FDI flows in 2023.
The bank said that in 2023, Uganda led the continent with the highest diaspora remittances at 16.8%, Ethiopia at 16%, and Mozambique at 48.5%.
It said Nigeria remains the largest recipient of diaspora remittances on the continent and is expected to receive over $20 billion in official remittances in 2023, a marginal increase compared to 2023.
The World Bank said that Ghana, the second-largest recipient in Africa, witnessed increased remittance to $921.17 million in 2023 from $691.60 in 2022.
In 2022, Nigerians abroad remitted $20.1 billion to the country.
“It Is Possible”: FG speaks on Naira to US dollar exchange rate, sets new target for 2024
Legit.ng reported that Ben Akabueze, the director-general of the federation's budget office, has said that the Naira will strengthen in value in the foreign exchange market in 2024.
Speaking in an interview with Channels TV on Tuesday, December 26, 2023, the Budget Office DG said this will be possible as the country expects an increase in dollar supply.
He noted that the Tinubu-led government expects the reforms initiated in 2023 to start yielding results in 2024, which is why it maintains a positive stance on the exchange rate.
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Source: Legit.ng
