Published On: Fri, Oct 7th, 2016

Nigeria impacts on Sub-Saharan Africa remittances

WORLD REMIT 1LAGOS, (CAJ News) – REMITTANCES to Sub-Saharan Africa are expected to decline slightly in 2016 and grow considerably the following year underpinned by flat remittances in Nigeria.

This is according to research by the World Bank, carried on its latest paper on Migration and Development.

The bank projected remittances flows to Sub-Saharan Africa to decline by 0,5 percent in 2016.

For 2017 remittances are expected to grow at 2,5 percent.

Nigeria accounts for two-thirds of remittance flows into the region Sub-Saharan Africa region. In 2015, an estimated US$21 billion flowed into the West African country mostly from United States and United Kingdom.

Other key corridors include Cameroon, Ghana and Italy.

However, exchange controls in Nigeria have disrupted the flow of remittances.

Meanwhile, amid a backdrop of weak global growth, remittances to developing countries are expected to increase only slightly in 2016, the World Bank projected.

Remittances to low and middle income countries are expected to increase 0.8 percent to $442 billion.

The global growth of remittances to developing countries is projected to remain modest at about 3,5 percent over the next two years. Developing regions other than Latin America and the Caribbean are projected to have growth of 2 percent or lower.

The global average cost of sending $200 remained at 7,6 percent in the second quarter of 2016.

Average costs have dropped from 9.8 percent in 2008.

The highest-cost region to send money continues to be Sub-Saharan Africa at 9,6 percent while the least costly to send remittances to is the South Asia region.

CAJ News

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