- Oct 25, 2021
- Reaction score
The Impact of Nigerian Policies on Remittances
According to the November 17, 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.
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.
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.