Dollars inflow to Nigeria falls by 28 percent: World Bank

The World Bank said dollar remittance inflows to Nigeria
declined by 28 per cent in 2020 because of COVID-19
pandemic.
The Bank also said remittance flows fell for Sub-Saharan
Africa by 12.5 per cent, according to its Migration and
Development Brief 33 Phase 11 entitled: “COVID-19 Crisis
Through a Migration Lens’’ published on Thursday.
The report said the decline in remittance flows to Nigeria
was largely responsible for the fall in remittance flows to
Sub-Saharan Africa.
“The decline in flows to Sub-Saharan Africa was almost
entirely due to a 28 per cent decline in remittance flows to
Nigeria.
“Excluding flows to Nigeria, remittances to Sub-Saharan
Africa increased by 2.3 per cent, demonstrating resilience,’’
the report stated.
According to the report, the relatively strong performance of
remittance flows during the COVID-19 crisis has also
highlighted the importance of timely availability of data.
It stated that given its growing significance as a source of
external financing for low- and middle-income countries,
there was need for better collection of data on remittances.
It emphasised that there was need for better collection of
data on remittances, in terms of frequency, timely reporting,
and granularity by corridor and channel.
The report quoted Dilip Ratha, lead author of the report on
migration and remittances, as saying “the resilience of
remittance flows is remarkable. Remittances are helping to
meet families’ increased need for livelihood support.
“They can no longer be treated as small change.
“The World Bank has been monitoring migration and
remittance flows for nearly two decades, and we are
working with governments and partners to produce timely
data and make remittance flows even more productive.”
With global growth expected to rebound further in 2021 and
2022, however, remittance flows to low- and middle-
income countries are expected to increase by 2.6 per cent
to 553 billion dollars in 2021 and by 2.2 per cent to 565
billion dollars in 2022.
The report stated that global average cost of sending 200
dollars remained high at 6.5 per cent in the fourth quarter of
2020, more than double the Sustainable Development Goal
target of three per cent.
It stated that Sub-Saharan Africa continued to have the
highest average cost (8.2 per cent) adding, supporting the
remittance infrastructure and keeping remittances flowing
includes efforts to lower fees.
In addition, it stated that the decline in recorded remittance
flows in 2020 was smaller than the one during the 2009
global financial crisis (4.8 per cent).
It was also far lower than the fall in Foreign Direct
Investment (FDI) flows to low- and middle-income
countries, which, excluding flows to China fell by over 30
per cent in 2020.
As a result, remittance flows to low- and middle-income
countries surpassed the sum of FDI (259 dollars billion) and
overseas development assistance (179 dollars billion) in
2020.

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