Nigeria is once again the largest recipient of remittances from sub-Saharan Africa in the region, where remittances rose 6.2 percent to $ 45 billion, according to a new report from the World Bank.
The impact of Nigerian policies on remittances
According to the press release of November 17, 2021, this increase in the value of remittances sent is actually a rebound from the total remittances sent by Nigerians during the corresponding period last year. The press release attributes this increase in part to measures introduced by the country’s monetary authorities in the first quarter of 2021.
These measures aim to encourage the use of formal channels when sending money home.
“Nigeria, the region’s largest recipient, is experiencing a moderate rebound in remittance flows, in part due to the growing influence of policies aimed at channeling inward flows through the banking system,” the statement said.
As previously reported by Bitcoin.com News, the Central Bank of Nigeria (CBN) – which had just released its directive targeting crypto entities – announced the start of an incentive program rewarding recipients for their withdrawal through the banking system. in March 2021. Since then, officials have claimed that the program is helping to improve the flow of official remittances in the country.
Shipping cost still well below the UN target
Regarding the cost of remittances, the World Bank statement said the region’s mailing costs – which fell slightly from 8.9% to 8% in the first quarter of 2021 – still remain one of the highest. raised to the world. The World Bank attributes this high cost of sending remittances to sub-Saharan Africa to “small amounts of formal flows and the use of black market exchange rates.”
In addition, this shipping cost also shows that the sub-Saharan Africa region is still well above the UN Sustainable Development Goal (SDG) 10.c 1 of reducing this rate to less than 3%. So far, only the Southeast Asia region has shipping costs close to this SDG indicator with 4.6%.
Do you think it is possible to reduce the cost of sending remittances to sub-Saharan Africa to less than 3%? Let us know what you think in the comments section below.
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