Nigerians abroad handed over N9trn in 2018, their highest level in 13 years

… 7 times the size of foreign aid in Nigeria

Remittances from Nigerians residing abroad stimulated the economy in 2018, with a total amount of $ 25 billion (about 9 trillion naira), the largest influx of diaspora in the country in the last 13 years.

Giving this information in a report titled "Nigeria's Economic Outlook: The Top 10 Themes for 2019," the global accounting giant, PricewaterhouseCopers, PWC, pointed out that this amount accounted for 83% of the federal government's budget in 2018 and 11 times higher investment (FDI) over the same period.

The figure, they also noted, accounts for 6.1% of the country's gross domestic product (GDP).

The influx of funds from Nigerian migrants was also seven times higher than the net foreign development badistance (foreign aid) of US $ 3.399 billion received in 2017.

The report showed that remittances from Nigerians in the diaspora have risen steadily over the past 13 years and peaked at 201.3 percent in 2018 compared to 14.640 billion in 2005, while 036% IED entries.

Conversely, FDI inflows into the country, which amounted to $ 2.2 trillion during the 2018 period, were 1,036% lower than migrant remittances.

The detailed distribution of migrant remittances over the 13-year period has shown a considerable increase over the past three years, rising from $ 19.679 billion in 2016 from 11.79% to $ 22.001 billion in 2017, before a new growth of 14% in 2018 compared to the current figure.

According to the report, the world's leading countries in remittances include the United States of America, Germany, Russia and China.

Andrew S. Nevin, Chief Economist, PWC, said in his comment: "Nigeria's biggest exporter is not oil; it's really the people, because of the remittances coming in. Electoral uncertainty, coupled with poor implementation of political reforms, has an impact on the influx of FDI. "

"Global FDI flows have fallen by 19% in 2018. However, FDI flows into Africa in 2018 have increased by 6%, from $ 38 billion to $ 40 billion. dollars. South Africa increased by 446%; Egypt by seven percent. Nigeria, by contrast, lost 36 percent (to $ 2.2 billion) and was overtaken by Ghana with $ 3.3 billion, "said PWC in the report.

Further in 2019, the report indicated that FDI flows into the country would be hampered by poor implementation of reforms, indicating that the main risks for foreign investment included the reduction of credit spreads. interest as the advanced economies continued to tighten policy interest rates and political instability after 2019. elections, an unfavorable investment climate and macroeconomic instability.

The report further stated that the economic recovery in Nigeria was characterized by a poor recovery, adding that Nigeria would need an investment rate of at least 26 percent of GDP to reach a rate of growth of 7%.

According to the report, real GDP growth is expected to increase slightly to 2.5% year-on-year, thanks to a moderate improvement in net exports and domestic demand.

The report states: "Nigeria is not among the fastest growing economies in sub-Saharan Africa (SSA) as a percentage of GDP growth. The largest economies in sub-Saharan Africa offer growth opportunities for businesses, especially if one is considering an expansion into new regions. Declining oil demand, supply-side reductions and price fluctuations will affect the growth trajectory of the economy.

"The investment climate will also be reduced in the short term by the uncertainty generally badociated with pre- and post-election cycles in the country."

The report claimed that members of the Organization of the Petroleum Exporting Countries (OPEC) had not complied with the agreement to reduce production and increase shale production, the slowdown of economies characterized by strong relations with Nigeria, especially China, the United Kingdom, policy normalization in the United States which could result in a reversal of foreign capital and limit future flows, high inflation caused by election expenses and the lack of money. Adjustment of gasoline prices and electricity tariffs could pose a threat to the country 's policy continuity, economic recovery and macroeconomic growth in the medium term.

According to the report, other emerging threats include the disruption of oil production, justified by attacks on oil and gas facilities by militant groups in the Niger Delta region, the succession of leaders after the elections, which could hinder the Policy Continuity and the Continuing Insurgency in the Northern Region.

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