In 2022, the World Bank reported that the total remittance flow to Sub-Saharan Africa had reached $53 billion, with Nigeria receiving the largest share.
The data revealed by Investors King showed that between 2015 and 2022, Nigerians in the Diaspora remitted a total of $168.33 billion back home, playing a key role in keeping the country’s forex reserve afloat amidst fluctuating foreign investment inflow.
The sustained increase in Diaspora remittance since 2021 has been attributed to several new policies implemented by the Central Bank of Nigeria. However, the Nigerian Diaspora community has expressed concerns that the current global economic hardship may affect its ability to transfer a lot of funds home.
According to the World Bank, the Nigerian Diaspora community’s remittances are one of the top sources of non-oil foreign exchange for the country, and have offered a lifeline to many Nigerians.
The $53 billion in remittance flow to Sub-Saharan Africa represents a significant contribution to the economies of the countries in the region, especially in light of the challenges posed by the COVID-19 pandemic.
While Nigeria received the largest share of the remittance flow, other countries in the region also received significant amounts. For example, Kenya received $3.1 billion in remittances in 2021, while Ghana received $3.3 billion.
Remittances from Diaspora communities are expected to continue to play a vital role in the economies of Sub-Saharan African countries, as they provide a stable source of foreign exchange that is not dependent on foreign investment inflow.
The $53 billion in remittance flow to Sub-Saharan Africa is a testament to the resilience of the region’s Diaspora communities, and the important role they play in supporting their home countries’ economies.
