Diaspora remittances into Nigeria fell by 27 percent, year-on-year (y/y) to $12.9 billion as at September 2020 from $17.6 billion in the corresponding period of 2019. The 27 percent decline is 3.9 percentage points higher than the 23.1 percent decline projected by the World Bank for the Sub Sahara Africa region in 2020.
However, quarter-on-quarter, remittances into the country rose in the third quarter of 2020 (Q3’20) by 14.8 percent, thus reversing the declining trend recorded in Q2’20. In its Q3’20 Economic Report, the Central Bank of Nigeria (CBN) stated: “Inflow of personal transfers in the form of workers’ remittances increased significantly by 14.8 per cent to $3.87 billion, relative to $3.37 billion in the second quarter of 2020.”
This is in contrast to the 42 percent decline recorded in Q2’20 when remittances fell to $3.37 billion from $5.64 billion in Q1’2020. In a bid to boost the inflow of remittances through official channels into the country, the CBN recently introduced a new Diaspora Remittances policy.
Under the new policy, recipients of diaspora remittances will receive the proceeds through designated banks of their choice. Such recipients may have the option of receiving the funds in foreign currency cash (US Dollars) or into their domiciliary account.