Remittances to Nigeria and other Sub-Saharan African countries are likely to drop by 9 per cent to $44billion in 2020 due to the effects of the coronavirus(COVID-19) pandemic, the World Bank has said.
The Bank, which made this prediction in its latest, “Migration and Development Brief,” also projected that as the pandemic and economic crisis continue to spread, the amount of money migrant workers send home is expected to decline globally by 14 per cent by 2021 compared to the pre – COVID-19 levels in 2019. Specifically, the World Bank stated: “Remittances to Sub-Saharan Africa are expected to decline by around 9% in 2020 to $44 billion.
“Within the region, remittances to Kenya have so far stayed positive, though flows are likely to eventually decline in 2021. All major remittance-receiving countries will likely see a decline of remittances.
“As the COVID-19 pandemic affects both destination and origin countries of Sub-Saharan migrants, the fall in remittances is expected to further lead to an increase in food insecurity and poverty. Remittance costs: Sending $200 remittances to the region cost on average 8.5 per cent in the third quarter of 2020, representing a modest decrease compared with nine per cent a year ago.
“Sub-Saharan Africa is the costliest region to send remittances to. The promotion of digital technology, combined with a regulatory environment promoting competition in the remittances market and review of AML/CFT regulations, are essential to lowering remittances fees for the region.”
In addition, the Bretton Woods Institution stated that remittance flows to Low and Middle-Income Countries (LMICs) are projected to fall by seven per cent, to $508 billion in 2020, followed by a further decline of 7.5 per cent, to $470 billion in 2021. According to the World Bank: “The foremost factors driving the decline in remittances include