World Bank Forecasts Significant Growth in Nigeria’s Diaspora Remittances for 2024
The World Bank has forecasted a substantial increase in diaspora remittances to Nigeria in 2024, signaling a positive economic outlook for the nation. This anticipated growth is particularly timely, as it promises to provide crucial foreign currency inflows while Nigeria navigates several economic challenges.
Historically, Nigeria has benefited significantly from diaspora remittances, averaging around $20 billion annually over the past decade. In June 2024, the World Bank reported that Nigeria emerged as a leading recipient of diaspora remittances in Sub-Saharan Africa, capturing approximately 35% of the region’s total inflows in 2023. The report highlighted that Nigeria received around $19.5 billion last year, the highest in the region.
Despite this leading position, diaspora remittances to Nigeria saw a 3% decline in 2023, totaling $19.5 billion, down from over $20 billion in 2022. The World Bank attributed this decline to a broader trend of slower recovery from the impacts of the coronavirus pandemic. Remittance flows to Low and Middle-Income Countries (LMICs), including Nigeria, grew modestly between 2022 and 2023, reaching an estimated $656 billion—an increase of just 0.77%, compared to the 8.3% growth seen between 2021 and 2022.
Looking ahead, the World Bank projects a recovery in remittance inflows to Nigeria. “The growth of remittance flows to LMICs is expected to recover to 2.3% in 2024 and 2.8% in 2025, reaching $690 billion by 2025,” the bank noted. This anticipated increase in remittances could provide a much-needed boost to Nigeria’s economy as the country continues to address its economic challenges.
