Dollar Scarcity Looms in Nigeria as Direct Remittances Drops by 62.4% to $1.96bn in 10 Months

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The latest data by Central Bank of Nigeria (CBN) has said that total direct remittances from Nigerians in Diaspora came by 62,4 percent to $1.96 billion in 10 months of 2021 from $5.21billion it recorded in the prior year’s 10 months.

Analysts attributed the functional drop to current global economic challenges a result of COVID-19 and dwindling global oil prices.

The CBN had said that Nigeria received $19.2 billion and $5.5billion in whole direct remittances between 2019 and 2020 respectively.

Remittances are funds transferred from migrants to their residence countries.

The introduction to CBN’s total direct remittances, based on its ‘international payment’ data said that, in January 2021, $185million was remitted, when in February, $452million was the full direct remittance.

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Based on the CBN, $227million and $165mllion was the full direct remittance between March and April 2019 respectively. The information disclosed that total direct remittance dropped to $150million in May; $378million in June and $37.6 billion in July 2021.

For August and September, the apex bank reported $86million and $224million was remitted to the country’s economy, respectively.

It added that $51.74million was the full direct remittance in October.

The CBN had licensed International Money Transfer Operators (IMTO) and monitors legitimate foreign currency, most importantly Dollar inflow in to the country.

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Additionally, banks and oil companies also remit foreign currency to your CBN.

The World Bank had projected $17.6 billion diaspora remittances into Nigeria in 2021, representing 2.5 percent increase from $17.2 billion recorded in 2020.

The financial institution had attributed the moderate improvement in Nigeria’s Diaspora remittances to the increasing influence of policies meant to channel inflows from the banking system.

Amongst other things the report projected 7.3 percent improvement in remittances to low and middle-income countries in 2021.

The World Bank also projected a 6.2 improvement in remittances to Sub-Saharan countries in 2021. The World Bank stated: “Remittances to low- and middle-income countries are projected to get grown. This get back to growth is better quality than earlier estimates and follows the resilience of flows in 2020 when remittances declined by only 1.7 percent despite an intense global recession caused by COVID-19, based on estimates through the World Bank’s Migration and Development Brief released today.

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“Remittance inflows to Sub-Saharan Africa returned to boost in 2021, increasing by 6.2 percent to $45 billion. Nigeria, the region’s largest recipient, is experiencing an average rebound in remittance flows, partly as a consequence of the increasing influence of policies meant to channel inflows from the banking system.”

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