The Central Bank of Nigeria (CBN) has released total direct remittances for 2022 at $2.16 billion, a decline of 11.18 per cent from the previous year.
The bank in its “International payment” data disclosed that the country recorded $2.43 billion in total direct remittances in 2021, amounting to an 11.18 per cent decline when compared to 2022 remittances.
According to a breakdown report, Nigeria recorded $130,115,888.7 remittances in January 2022, February was slightly elevated at $132,110,312.6, March was also elevated at $203,794,664.3 with a total of $466,020,865.5 for the first quarter.
Also, the month of April saw inflows of $165,771,432.3, May at $184,644,196.8, and the month of June, which saw the highest inflow for 2022 pegged at $394,546,934.47 totally the second quarter inflows to $744,962,563.6.
The third quarter started with $ 196,664,820.4 for the month of July while August saw $309,834,560.8 and September saw the lowest inflow in the year at $100,083,873.1 in direct remittances.
Also, in October there was a flow of $110,778,558.7, November $124,668,760.4, and December with a decline to $102,577,897.5.
The report released in the fourth quarter of 2022 titled, “Remittances Brave Global Headwinds Special Focus: Climate Migration,” stated that it represents a 7.5 per cent rise from the prior year of 2021.
According to the report, Nigeria, the largest recipient of remittances in the region, which witnessed a sharp recovery in flows during 2021 of 13.2 per cent, maintained the improved momentum of 2021 into the first quarter of 2022.
However, growth fell in Q2 data to 0.5 percent vis-à-vis the same period of 2021. Moreover, the country is reaping little benefit from the surge in crude oil prices, while the expatriate community faces real income losses in the United States, the United Kingdom, and the Euro Area. A falloff in remittance flows to the growth of 7.5 percent is likely for 2022.”
Furthermore, the report noted that the remittance outlook cites that the risk of further adverse developments in the external environment will persist through 2023, “and act to lower the pace of remittance flows to Africa to 3.9 per cent. Price pressures for wheat, oil, and fertilizers are likely to continue into 2023, although ebbing from peaks of the previous year.
“Food affordability and deterioration of real incomes across African states will place a damper on economic growth, while government spending on subsidies and support for farmers will widen fiscal gaps. Little easing of current account deficits is seen given continuing adjustment to the large terms of trade changes of 2022. And depreciating currencies against the US dollar will magnify the rise in import prices measured in local currency.”