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

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

Nigeria is once 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 World Bank report has shown. The Impact of Nigerian Policies on Remittances

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

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

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

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

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

Also, this sending cost also shows that the Sub Sahara Africa region is still way above the UN sustainable development goal (SDG) 10.c 1 target of reducing this to less than 3 percent. So far, only the South East Asia region has sending costs that are close to this SDG indicator with 4.6 percent. Tags in this story Central Bank of Nigeria, cross border remittances, Exchange rate, remittances corridor, remittances sending cost, UN SDG, World Bank

Do you think it’s possible to reduce the cost of sending remittances to Sub Sahara Africa to under 3%? Tell us what you think in the comments section below. ‘Inflation in the News Driven by Rich People’ — Media Pundits Claim "Inflation Is Good" as Americans Struggle With Less Purchasing Power ECONOMICS | 1 day ago As the Dollar"s Purchasing Power Drops, Janet Yellen Stresses "Pandemic Calls the Shots" for the Economy, Inflation ECONOMICS | 5 days ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleRussians to Pay Fees on Digital Ruble Transactions, Central Bank Says Next articleAvalanche Value Surges Reaching an All-Time High, AVAX Joins the Top Ten Crypto Markets Show comments More Popular NewsIn Case You Missed ItDCG Mining Subsidiary Foundry Launches Range of Services for 20 Crypto Staking Networks

Foundry, the Digital Currency Group (DCG) subsidiary and cryptocurrency mining and consulting firm from Rochester, New York announced the launch of a new platform on Wednesday called Foundry Staking. The company says the product currently supports 20 blockchain networks and ... read more.Sotheby’s to Bring Down the Hammer in Ethereum on 2 Iconic Banksy Paintings SEC Rejects Vaneck Bitcoin Spot Market ETF Over Price Manipulation Concerns Indonesia"s Islamic Authority Declares Cryptocurrency Haram, Forbidden for Muslims Ripple Launching Liquidity Hub Despite SEC Lawsuit Over XRP