Diaspora remittances to Nigeria declined by 27.7 per cent in 2020 the World Bank states. Nigeria which makes up for about 40 per cent of remittances to Sub-Saharan Africa saw a sharp decline in the year which the World Bank has attributed to the COVID-19 pandemic.
In Sub-Saharan Africa, the remittances declined by 12.5 per cent in 2020 to $42 billion but in other countries aside from Nigeria, the remittance flow increased by 2.3 per cent.
The report says, “Remittance growth was reported in Zambia (37 percent), Mozambique (16 percent), Kenya (9 percent) and Ghana (5 percent). In 2021, remittance flows to the region are projected to rise by 2.6 percent, supported by improving prospects for growth in high-income countries.”
“High-frequency phone surveys in some countries reported decreases in remittances for a large percentage of households even while recorded remittances reported by official sources report increases inflows.
“The shift from informal to formal channels due to the closure of borders explains in part the increase in the volume of remittances recorded by central banks. Remittance costs: Sub-Saharan Africa remains the most expensive region to send money to, where sending $200 costs an average of 8.2 percent in the fourth quarter of 2020.
“Within the region, which experiences high intra-regional migration, it is expensive to send money from South Africa to Botswana (19.6 percent), Zimbabwe (14 percent to), and to Malawi (16 percent).”