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A new report from the World Bank shows that Nigeria has once again become the largest recipient of remittances in sub-Saharan Africa, with remittances in the region increasing by 6.2% to US$45 billion.
The impact of Nigeria’s policy on remittances
According to November 17, 2021 Press releaseThis increase in the amount of remittances is actually a rebound in the total remittances of Nigerians in the same period last year. The statement attributed this increase in part to the measures taken by the country’s monetary authorities in the first quarter of 2021.
These measures are designed to encourage the use of formal channels when sending remittances back home.
The statement explained: “Nigeria is the largest recipient country in the region, and remittance flows are rebounding moderately, partly because of the growing influence of policies aimed at guiding capital inflows through the banking system.”
As before Report Author: Bitcoin.com News, Central Bank of Nigeria (CBN)-just issued instructions Targeted Crypto Entities-Announcing the launch of an incentive program that will reward recipients who withdraw funds through the banking system in March 2021. Since then, officials have claimed that the plan is helping to improve the flow of official remittances into the country.
Delivery costs are still far below the UN target
Regarding the cost of remittances, a statement from the World Bank stated that remittance fees in the region-which fell slightly from 8.9% in the first quarter of 2021 to 8%-are still among the highest in the world. The World Bank attributed the high cost of remittances to sub-Saharan Africa to “a small amount of official remittances and the use of black market exchange rates.”
In addition, this delivery cost also shows that sub-Saharan Africa is still far above the United Nations Sustainable Development Goal (SDG) 10.c 1 to reduce it to less than 3%. So far, only the sending cost in Southeast Asia is close to this SDG indicator, which is 4.6%.
Do you think it is possible to reduce the cost of remittances to sub-Saharan Africa to less than 3%? Tell us what you think in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons
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