World Bank: disapora remittances hit $22b

Diaspora Nigerians sent $22 billion  home last year, an African record and the fifth largest remittance by immigrants, the World Bank has said.

Egypt received $20 billion from its citizens abroad, according to figures published by the bank.

The World Bank said payments from immigrants back to their home countries rebounded to reach a new record last year but the costs of transferring funds also increased.

The stronger-than-expected recovery in remittances — payments that are key to supporting the economies of many poor countries — was driven by growth in Europe, Russia and the United States (U.S), the World Bank said in a report.

The bank estimates that the officially recorded remittances to low and middle-income countries reached $466 billion in 2017, an increase of 8.5 per cent over $429 billion in 2016. The remittances are expected to increase by about four per cent this year.

Remittance inflows improved in all regions. The top remittance recipients were India with $69 billion, followed by China ($64 billion), the Philippines ($33 billion), Mexico ($31 billion), Nigeria and Egypt followed.

The global average cost of sending $200 was 7.1 per cent in the first quarter of the year, and sub-Saharan Africa remains the most expensive place to send money to, where the average cost is 9.4 per cent.

“While remittances are growing, countries, institutions, and development agencies must continue to chip away at high costs of remitting so that families receive more of the money,”  the lead author of the report, Dilip Ratha, said.

The bank urged countries to take steps to simplify the process to reduce the costs, including “introducing more efficient technology”.

By region, Europe and Central Asia saw the biggest growth last year, jumping 21 per cent, while sub-Saharan Africa rose 11 per cent.

East Asia and the Pacific saw the biggest inflows of $130 billion, as South Asia received $117 billion, followed by Latin America with $80 billion.

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