The Central Bank of Nigeria has introduced a scheme that would offer a reward of five naira for every $1 sent by Nigerians living abroad through international money transfer operators in the country in what it calls "naira for dollar".
It is a step that shows Nigeria’s reliance on diaspora remittances, which has dipped over the last year, likely due to the impact of the Covid-19 pandemic on the earnings of Nigerian migrants.
Diaspora remittances to the country totalled $25bn (£18m) in 2019 but dipped to just over $5.3bn in 2020, according to data from the Central Bank of Nigeria.
Nigeria depends on diaspora input to such an extent that in 2018 when the country recorded $23.5bn in remittances, it was 83% of that year’s budget, 6.1% of the GDP and 11 times higher than the foreign investment flows in the same period, according to management consultancy firm PricewaterhouseCoopers.
The central bank is targeting at least $2bn monthly in diaspora remittances in 2021, but a report by the African Growth Initiatives suggests that sub-Saharan Africa could record a further reduction in remittances by up to $3bn this year.
Latest Stories
-
Quincy Jones: His brilliance explained in 10 songs
3 hours -
Nigeria and Britain hail partnership to boost economic ties, security
4 hours -
Chad threatens to withdraw from multinational security force
4 hours -
Cocoa farmers hoard beans in anticipation of price hike, reports Reuters
4 hours -
Boat capsizes off Comoros islands, 25 killed, UN agency says
4 hours -
How are votes counted in the US election?
4 hours -
Mozambique presidential runner-up escapes alleged assassination attempt
4 hours -
Nigerian children who collapsed in court released
5 hours -
Quincy Jones: From ‘street rat’ to music mastermind
5 hours -
Bawumia outlines plans to develop three major railway lines alongside road projects
5 hours -
I want you to be millionaires through my responsible mining policies – Bawumia assures miners
5 hours -
‘Constitution reigns supreme in Ghana’- Declares Attorney General
5 hours -
‘Efua Ghartey’s GBA presidency has a divine touch’, says Attorney General Dame
6 hours -
Esports Ghana: Stakeholders gear up for pivotal meeting in Accra
6 hours -
GPL 2024/25: Legon Cities beat Yong Apostles to record back-to-back wins
6 hours