2023 Diaspora Remittance Industry Report

Overview of the Report

Remittances have grown to become a significant source of external financing for most low and middle-income countries (LMICs), playing an increasingly important role in their economies. In 2020, remittance flows to LMICs exceeded the flow of foreign direct investments (FDI) and overseas development assistance to LMICs (excluding flows to China) and served as a major lifeline to these vulnerable economies as they grappled with the adverse effects of the COVID-19 pandemic. Global remittance flows, which increased by 5% to $831 billion in 2022, are expected to grow by a more modest 1% to $840 billion in 2023. The anticipated moderation is hinged on the elevated cost of living in several advanced economies, including the United States of America (USA), the United Kingdom (UK), and the Eurozone, which accounted for almost half of global outward remittances in 2022.

The steady inflow of funds from the Nigerian diaspora reflects the strong bond between the diaspora community and their home country, fostering economic stability and contributing to economic development. The increasing importance of remittances in supporting the country’s reserves has necessitated a better understanding of the dynamics of remittance flows into Nigeria. The Nigeria Diaspora Remittances report and survey covers a detailed review and analysis of remittances to Nigeria including:

1. Global remittance landscape
2. Impact of key macroeconomic factors on remittances
3. Key growth drivers and risk areas of diaspora remittances
4. Current modalities of remitting funds to Nigeria
5. Key industry operators and competitive landscape
6. Recent trends and developments
7. Regulatory environment

We believe the information, analyses, and opinions contained in the report will prove indispensable to:

1. International and local money transfer operators who wish to keep abreast of the key developments in the remittance industry
2. Banks aiming to establish or improve service offerings tailored to the diaspora community
3. Regulators and policymakers seeking to deepen their knowledge of Nigeria’s foreign remittances and trends
4. Analysts and researchers who need a better understanding of the dynamics of remittances into Nigeria