2024 Diaspora Remittance Industry Report

Overview of the Report

This report analyses the trends, key factors, and implications of diaspora remittances to Nigeria in 2024. Diaspora remittances, funds transferred by Nigerians residing abroad, play a crucial role in the Nigerian economy, supporting households, enhancing welfare, and stimulating local investments.

Remittances continue to be a vital source of external financing for many low and middle-income countries (LMICs), including Nigeria, contributing to economic stability and development. Despite global economic challenges, remittance flows to LMICs have demonstrated resilience, driven by strong ties between diaspora communities and their home countries. However, in 2023, global remittance flows are projected to experience modest growth due to inflationary pressures and rising living costs in major remittance-sending regions, such as the United States, the United Kingdom, and the Eurozone. This economic climate, coupled with job losses in key markets, has impacted the disposable income of many migrants, influencing their remittance patterns.

Africa received an estimated $94.8 billion in diaspora remittances in 2023, with Egypt and Nigeria being the primary recipients, accounting for nearly half of the continent’s inflows. In Nigeria, remittances have not only supported household consumption but have also significantly bolstered foreign reserves. The sustained inflow of funds highlights the diaspora’s commitment to family and community welfare, emphasising the growing importance of remittances in the country’s economic landscape.

This report provides a comprehensive review and analysis of the following:

• Global remittance landscape: Trends and patterns in remittance flows and key sending regions.
• Impact of macroeconomic factors: How inflation, currency fluctuations, and economic conditions in destination countries affect remittance flows.
• Growth drivers and risks: Key drivers of remittance growth, as well as risks that could hinder future inflows.
• Modalities of remitting funds to Nigeria: A look at the most common channels and innovations in remittance transfers.
• Competitive landscape: Profiles of key industry players and market dynamics in the remittance sector.
• Regulatory framework: Overview of Nigeria’s regulatory environment for remittance flows.
• Recent developments: Insights into trends such as digital remittances, policy changes, and technological advancements.