Charting the 10-Year Contribution of Diaspora Remittances from Nigeria to the Economy

Why We Looked Into This? » Foreign remittances, often called, ‘Diaspora Remittances’ in Nigeria, is a major source of revenue to the government. How much are Nigerians abroad sending back home? What countries are the top sources? We find out the total amount of money being sent to Nigeria from abroad and identify the main source countries of these remittances.

Diaspora Remittances as % of Nigeria’s GDP

• Inward Remittances remain a source of income for Nigeria, contributes to the GDP and improve BoP (balance of payments) position.
• On December 3, 2020 the Central Bank Governor announced ways to improve remittance inflows into Nigeria via official channels.

Diaspora Remittances vs FDI as % of Nigeria’s GDP

• Recently, remittances dipped and with the impact of COVID-19, this will reduce further. Despite this, this inflow from Nigerians in diaspora contributes to the GDP than FDI (Foreign Direct Investment).

Top Sources of Nigeria’s Remittance Inflow

• The United States and United Kingdom remain the top source of remittances over time.

Nigeria as a Top 10 Global Recipient of Foreign Remittances

• In the past ten years, Nigeria has featured in the top 10 recipient of foreign emittances globally.
• India and China have consistently been the top two recipients. These two countries are the most populous in Asia and the world, while Nigeria is the most populous country in Africa.
• Since 2017, Egypt (the third most populous country in Africa) has overtaken Nigeria as the top recipient in Africa.