Nigeria received the chunk of migrant remittance flows to Sub-Saharan Africa and these could grow to $25.5 billion in 2019, according to PwC's latest estimates.
According to the estimates, migrant remittances to Nigeria could grow to $29.8 billion and $34.8 billion in 2021 and 2023 respectively.
The PwC's latest White Paper Series, "Strength from Abroad: The Economic Power of Nigeria's diaspora", revealed that migrant remittances accounted for 77.2% of the Federal Government budget in 2018 and more than 10 times the foreign direct investment (FDI) flows in the same period.
Nigeria's remittance inflows also 6.8 times larger than the net official development assistance (foreign aid) received in 2018 of $3.4 billion.
Over a 15-year period, PwC expects total remittance flows to Nigeria to grow by almost double in size from $18.37 billion in 2009 to $34.89 billion in 2023.
Andrew S. Nevin (Ph.D), Partner & Chief Economist, urged Nigeria to formulate and execute a strategy to maximise the benefits of Nigeria’s diaspora.
“The report is an analysis which shows the critical importance of the diaspora to Nigeria’s economy. The recently established Nigerians in Diaspora Commission (NiDCOM) led by Abike Dabiri-Erewa, indicates that the Federal Government recognises the strategic importance of the Nigerian diaspora. The key next steps for the newly established Commission is to formulate and execute a strategy to maximise the benefits of Nigeria’s diaspora.
“In addition, we’re very keen to see State Governments start to engage the diaspora. The primary benefits of remittances to recipient households is the improvement in their general welfare, and studies show that 70% of remittances are used for consumption purposes, while 30% of remittance funds go to investment-related uses. So it is important Nigeria develop a diaspora strategy both at the national and state level.”
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