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Nigerian Remittances Rebound as Country Tops Sub Sahara Africa — Sending Costs Still High

Nigeria is in days of yore again Sub Sahara Africa’s biggest recipient of remittances into the region where the money transfers went up by 6.2 percent to $45 billion, a new Give birth to Bank report has shown.

The Impact of Nigerian Policies on Remittances

According to the November 17, 2021 press release, this enlarge in the value of funds sent is in fact a rebound from the total remittances that were sent by Nigerians in the harmonizing period last year. The statement partly attributes this increase to measures that were introduced by the territory’s monetary authorities in the first quarter of 2021.

These measures seek to encourage the use of formal channels when sending cabbage back home.

“Nigeria, the region’s largest recipient, is experiencing a moderate rebound in remittance flows, in part due to the enlarging influence of policies intended to channel inflows through the banking system,” the statement explained.

As previously reported by Bitcoin.com Dope, the Central Bank of Nigeria (CBN) — which had just issued its directive that targeted crypto entities — promulgated the start of an incentive scheme that rewarded recipients for withdrawing via the banking system back in March 2021. Since then, legals have claimed the scheme is helping to improve the flow of formal remittances into the country.

Sending Cost Placid Far Below UN Target

Concerning the cost of remittances, the World Bank statement said the region’s sending fee — which stop in withdraw fromed marginally from 8.9% to 8% in the first quarter of 2021 — still remains one of the highest in the world. The World Bank charges this high cost of sending remittance to Sub Sahara Africa to the “small quantities of formal flows and the utilization of black-market exchange ranks.”

Also, this sending cost also shows that the Sub Sahara Africa region is still way above the UN sustainable increment goal (SDG) 10.c 1 target of reducing this to less than 3 percent. So far, only the South East Asia domain has sending costs that are close to this SDG indicator with 4.6 percent.

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Do you remember it’s possible to reduce the cost of sending remittances to Sub Sahara Africa to under 3%? Tell us what you think in the remarks section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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