In Nigeria, remittances from the diaspora were 11 times higher than FDI captured in 2018. This is what
as PriceWaterhouse Cooper (PwC) said in a new report on the weight
economy of the Nigerian diaspora.
According to the report, in 2018, Nigeria received $23.63 billion from its migrants, roughly
83% of the federal government budget. This amount is more than seven times greater than that of aid for
development received by the country in 2017 ($3.4 billion), also represented 6.1% of Nigeria's GDP.
By 2023, Nigerian diaspora remittances to home country could reach 34.8
billion $. According to the experts, this peak should be consecutive to an ascending curve, which will be recorded by the
remittances from migrants of Nigerian origin, in 2019 ($25.5 billion) and 2021 ($29.8 billion). The
forecasts indicate that over the period 2009-2023, migrant remittances will almost double,
from $18.3 billion to $34.8 billion.
These forecasts come as Nigeria, whose diaspora is one of the most active on the continent in
in terms of remittances, tries to strengthen the participation of its migrants in local development.
Despite the use of many informal channels by them to transfer money to their countries
(making it difficult to trace them), the report indicates that for four consecutive years, shipments of
official funds exceeded Nigeria's oil revenues. However, 70% of these shipments are used at
consumption while only 30% is for investment purposes.
“The report is an analysis that shows the critical importance of the diaspora to Nigeria's economy. The
Nigerian Diaspora Commission (NiDCOM) recently established and led by Mrs. Abike Dabiri-Erewa,
indicates that the federal government recognizes the strategic importance of the diaspora,” commented
Andrew Nevin, chief economist at PwC, quoted by This Day. And to add: "the next key step
for the new commission is to formulate and implement a strategy aimed at maximizing the
benefits of the Nigerian Diaspora”.