With the numerous resources available to us today, sending money is as easy as nothing, even to countries like Nigeria. No wonder, this country’s remittances have been increasing steadily over the years despite factors like the COVID-19 pandemic and other economic drawbacks. But technological advancements aren’t the only factors contributing to Nigeria’s remittance growth, the country’s migrant workers also play a big part.
Remittances are basically funds being transferred to another party, overseas. Over the years, just as Nigeria’s immigrants have increased, so have remittances. Based on data provided by the Central Bank of Nigeria, Nigeria’s diaspora remittances rose by 5.1% in the first quarter of 2021. This upward trend continued in the 2nd and 3rd quarters when it rose from $4.92 billion to $4.97 billion. And based on the projection by World Bank, the Country’s Diaspora remittance is set to increase to $29.2 billion this year because of higher food prices and other factors. In March 2021, Yemi Osinbanjo the Vice president of Nigeria disclosed that 70% of Nigeria’s remittances are for family support, and only 30% is allotted for investments. This alone shows that Nigerian migrants contribute the most to its remittances, and it shows that as more Nigerians choose to migrate, the more, the country’s remittances are most likely to increase.
Dr. Biodun Adedipe, a renowned economist and chief economist, noted that Nigeria was occupying the top position on the list of nations with the largest number of migrant workers. This is no surprise as due to the economic situation and underdevelopment in the country, Nigerians have migrated to more developed countries to seek better employment opportunities and attain a higher standard of living. These individuals also have the goal of being able to financially support and improve the well-being of their loved ones back home, by sending money frequently. Most times, they succeed and so Nigeria’s remittances increase. Based also on a study by the Central Bank of Nigeria, Nigeria’s remittance in Diaspora stands at an average of $34bn annually. The World Bank has also reported that Nigeria will most likely continue to dominate remittance inflows in sub-Saharan due to its large size of Migrants, concentrated in the two key host countries; the U.S (375,000) and the U.K (220,000)
It can be deduced from the graph above that Nigeria’s personal remittances have increased over time, though there was a drop in 2020. In 2010, its remittance was at $19.74bn, where it increased on 2011 to 20.6bn. it attained an all-time high in 2014 when its remittance was $21bn and then dropped to $19.7bn in 2016. The country’s remittances reached a peak within the 10-year period, at $24.31bn, and had a huge drop in 2020 to $17.21bn.
Technology has enabled the creation of numerous payment solutions, whereby migrants can make payments with fewer hassles and within a short period of time. This is one of the main reasons why Nigeria’s diaspora remittance Is increasing at a fast pace.
If you are a migrant who frequently sends money to Nigeria, you would want a Money transfer platform that enables you to make payments at the best rates and at a low fee. You would also want your recipient in Nigeria to receive the best value of your money’s worth. That is why at ATL money transfer we have designed a platform to suit your needs and references. We value your money just as much as you do, and so we offer the best rates and charge a low fee for all transactions processed by us.
ATL money transfer is a globally trusted money transfer platform located in London, United Kingdom. Thousands of transactions are handled by us daily, and we provide a great alternative by bypassing the redundancies caused by traditional money transfer avenues.
How to send money to Nigeria using the ATL money transfer platform
Visit the website or download the ATL money transfer app
- Enter the amount you wish to transfer
- Fill in the details of the recipient
- You will then be directed to the payment section, after which your transaction is complete.