The World Bank has indicated that financial flows to Nigeria and other Sub-Saharan African (SSA) countries is slowing down though it will reach $53 billion in 2022 , up from $50 billion in 2021.
The Bank disclosed this in its ‘Migration Development Brief 37’ released yesterday noting that the growth rate in SSA remittances slowed to 5.2 percent when compared to 16.4 percent growth recorded in 2021.
It said: “Remittance flows to Sub-Saharan Africa surged 16.4 percent to $50 billion during 2021, the strongest increase since 2018.
“However, the region is exposed to the effects of the concurrent crises affecting the global economy in 2022.
“Remittance out turns will depend on the balancing of increasing needs for support from the African overseas labor force, and the availability of incomes in host countries to be remitted.
“Remittance gains are likely to be held to 5.2 percent in the year, an 11 percentage point fall off in growth from 2021.
“The economic crisis induced by the COVID19 pandemic caused a decline in remittances of 14 percent for countries in fragile and confict-affected situations (FCS)in 2020.
“This is mainly due to the medium-intensity conflict (as well as regulatory change unfavorable to officialy recorded flows) in Nigeria, the largest remittance-receiving country in SSA and eighth largest among low-and middle-income countries. The drop in remittances was initially expected to be sharper in 2021 but flows bounced back, helped again by countries with medium intensity conflict, especially South Sudan. “
The World Bank further projected a 3.9 percent growth rate in remittances to SSA countries in 2023, represented a 1.3 percent points decline from 5.2 percent growth for 2022.
It however the projected the value of remittances to SSA to stand at $55 billion in 2023.
“The likelihood of further adverse international developments persisting into 2023 is high, and the pace of remittance flows to Sub-Saharan Africa may ease to 3.9 percent from the stellar 16.4 percent advance of 2021.
“Food affordabiity and deterioration of real incomes across African states indicate the need for financial support.”