Nigeria is again the largest recipient of remittances in sub-Saharan Africa, where remittances rose 6.2 percent to $ 45 billion, according to a new World Bank report.
Impact of Nigerian policy on remittances
According to a November 17, 2021 press release, this increase in the value of remittances is actually a return from total remittances sent by Nigerians during the same period last year. The statement attributed the increase in the first quarter of 2021 to measures introduced by the country’s financial authorities.
These measures try to encourage the use of official channels when sending money home.
“Nigeria, the region’s largest recipient, is experiencing a moderate rebound in remittance inflows, in part due to the growing impact of policy aimed at channeling flows through the banking system,” the statement said.
As previously reported by Bitcoin.com News, the Central Bank of Nigeria (CBN) – which has issued guidelines targeting only crypto entities – has announced the launch of an incentive scheme that rewards recipients for withdrawal through the banking system in March 2021. Since then, officials have claimed that the scheme is helping to improve the flow of formal remittances in the country.
The cost of sending is still below the UN target
Regarding remittance spending, the World Bank said in a statement that regional remittance fees – which fell slightly from 8.9% to 8% in the first quarter of 2021 – are still among the highest in the world. The World Bank blames the high cost of sending remittances to sub-Saharan Africa on “low volume of ceremonial flows and the use of black market exchange rates”.
Also, the cost of this dispatch shows that the sub-Saharan Africa region is still well above the United Nations Sustainable Development Goal (SDG) 10.c1, which is much lower than 3 percent. So far, in Southeast Asia alone, remittances near the SDG index have been 4.8 percent.
Do you think the cost of sending remittances to sub-Saharan Africa can be reduced by less than 3%? Tell us what you think in the comments section below.
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