Connect with us

Economy

Diaspora remittances on steady growth, rise by 5% to $4.3bn in Q1’21

Published

on

Spread the love

Remittances by Nigerians in Diaspora witnessed a steady growth as it rose by 5% by quarter-on-quarter, QoQ, to $4.3 billion in the first quarter of this year, Q1’21, from $4.1 billion in the preceding quarter, Q4’20.

The rise was as a result of the Central Bank of Nigeria’s measures to boost dollar supply through this channel, which it disclosed in its statistical bulletin for Q1’21.

Read Also:  Breaking: Legislature, Executive set to clash over illegal multi-billion naira SIP disbursements

The bulletin however showed that the year-on-year, YoY, basis, remittances fell by 23 per cent from $5.6 billion in Q1’2020.

Recall that the CBN in December 2020 introduced measures to boost remittances into the country. These include allowing beneficiaries of diaspora remittance to be paid in foreign currency.

This was followed up with another policy announced in the second quarter of this year tagged Naira4dollar scheme, which involves the CBN paying diaspora Nigerians N5 rebate for every $1 of remittance sent through licensed International Monetary Transfer Operators (IMTOs). adsbygoogle || []).push({});

The introduction of the measures followed the 27 per cent YoY decline in remittances to $17.2 billion in 2020 from $23.55 billion due to the severe impact of the COVID-19 pandemic on the incomes of Nigerians living abroad.

Financial Vanguard analysis shows that remittances inflow fell, YoY, in both halves of the year. In the first half of 2020, H1’2020, remittance inflow fell by 23.7 per cent, YoY, from $11.82 billion in H1’2019. This trend worsened in H2’2020 with remittance inflow falling by 30 per cent, YoY, to $8.2 billion from $11.73 billion in H2’2020.

Further analysis, however, shows an upward trend in remittances inflow in the Q3’2020 and Q4’2020.

After suffering q/q decline of 5.3 per cent to $5.64 billion in Q1’2020, and 40 per cent decline to $3.38 billion in Q2’2020, remittances inflow revived and rose q/q by 15 per cent to $3.89 billion in Q3’2020 and further by 10.6 per cent to $4.1 billion in Q4’2020.

Trending

Contact Us:

  • Address: Address: 1st Floor,  Nwakpabi Plaza,  Suite 110, Waziri Ibrahim Crescent, Apo,  Abuja
  • Tel: +234 7036084449, +234 8066722600, +234 7012711701
  • Email: info@capitalpost.ng
  • Email: capitalpost20@gmail.com

Quick Links: