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A recent report by Agusto & Co., a Pan-African credit rating agency, estimates that remittance flow to Nigeria is set to increase to $26 billion by 2025, surpassing the $20.1 billion recorded in 2021. The projected rise in remittances is attributed to improved economic conditions in developed nations, driving overseas inflows to Nigeria.
However, the report also highlights that the Central Bank of Nigeria’s (CBN) unpopular policies have been constraining remittance flow into the country, as reported by Ripple Nigeria newspaper. The economic challenges and cost of living crises faced by many developed economies in 2022 have contributed to the slowdown in remittance flows to Nigeria.
The CBN’s implementation of capital controls and other unpopular policies has further restricted inflows through official channels. Despite the discouraging economic conditions in Nigeria, many Nigerians continue to seek opportunities abroad, and their remittances remain vital for sustaining the Nigerian economy.
The World Bank’s projections in June indicated that remittances to low and middle-income countries are expected to grow by 1.4% to $656 billion in 2023, following substantial growth rates of 8% in 2022 and 10.6% in 2021.
As Nigeria aims to foster economic growth and financial stability, the impact of the CBN’s policies on remittance inflows requires careful consideration and potential adjustments to ensure sustained economic development.
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