Findings have shown that about $18 billion representing 90 percent of the estimated $20 billion Nigeria’s diaspora remittances in 2023 did not end up in the country, Taiwo Oyedele, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, has said.


Recall that the World Bank had estimated that diaspora remittances to Nigeria in 2023 was $20 billion.


However, speaking in a panel discussion at the 2024 Economic Outlook and Budget Analysis organised by the Lagos Chamber of Commerce and Industry (LCCI), Oyedele estimated that more than 90 percent of the remittances were externalized.

His words: “In our interactions with multinationals, rating agencies and other stakeholders, many of them said to us that exchange rate difficulty is more than 50 percent of all the challenges in Nigeria combined, as far as they are concerned. So, this is a major issue that we have to address.

“And we thought it is going to be an area where we can easily demonstrate how the monetary and fiscal policies can work together. So, to that extent, we have done a sensible amount of work on the fiscal side. And we have been speaking to the Central Bank of Nigeria (CBN). The ultimate objective being that, first and foremost, we think that the biggest problem we have is the fact that we have divergence in exchange rates.”

“The World Bank said for 2023, our diaspora remittance was about $20 billion. We estimate that more than 90 percent of that did not get to Nigeria, they are being externalized. We have spoken to loads of Nigerians almost everywhere, in the US, UK, etc. They told us how they send remittance. They use Apps, and we have tried some of those Apps, they use parallel market rates. So, you take $1,000 in New York, and tap on your phone that you are sending $1,000 to someone, a Fintech, they pay the Naira equivalent in Nigeria without bringing the dollars, unless of course if the source of the money is illicit.”

Earlier in his welcome address, LCCI President, Mr Gabriel Idahosa, said policy reforms by the government, especially the removal of fuel subsidies and floating of the exchange rate, are expected to boost fiscal revenue and contribute moderately to the improvement of the country’s growth this year.

Also speaking at the event, Director General, Budget Office, Ben Akabueze, said one of the challenges facing the nation is that of low public revenue against a growing population, adding that Nigeria has had over three decades of deficit budget.

FreeStuffsNG:
"We have spoken to loads of Nigerians almost everywhere, in the US, UK, etc. They told us how they send remittance. They use Apps, and we have tried some of those Apps, they use parallel market rates. So, you take $1,000 in New York, and tap on your phone that you are sending $1,000 to someone, a Fintech, they pay the Naira equivalent in Nigeria without bringing the dollars, unless of course if the source of the money is illicit.”

If the forex doesn't land in Nigeria then it's wrong of World Bank to classify such funds as diaspora remittances. To qualify as diaspora remittances then the fund must leave the foreign country and land in our own financial system. What predominates does not quantify as remittance because the foreign currencies remain in the overseas account of the operators of those apps who mostly open and operate their bank accounts from illicit funds havens like the British Virgin Islands, Bahamas, Ireland, Mauritius etc.

Those app platforms are the real wall blocking the remaining 90% of the total diaspora funds from getting into our banking system. If regulatory control doesn't reach those fintechs, our tax laws should.

FreeStuffsNG:
"We have spoken to loads of Nigerians almost everywhere, in the US, UK, etc. They told us how they send remittance. They use Apps, and we have tried some of those Apps, they use parallel market rates. So, you take $1,000 in New York, and tap on your phone that you are sending $1,000 to someone, a Fintech, they pay the Naira equivalent in Nigeria without bringing the dollars, unless of course if the source of the money is illicit.”

If the forex doesn't land in Nigeria then it's wrong of World Bank to classify such funds as diaspora remittances. To qualify as diaspora remittances then the fund must leave the foreign country and land in our own financial system. What predominates does not quantify as remittance because the foreign currencies remain in the overseas account of the operators of those apps who mostly open and operate their bank accounts from illicit funds havens like the British Virgin Islands, Bahamas, Ireland, Mauritius etc. So while you send $1000 from US, you get paid in naira here but your $1000 lands in a bank account in British Virgin Islands! That's not a diaspora remittance!

Those app platforms are the real wall blocking the remaining 90% of the total diaspora funds from getting into our banking system. If regulatory control doesn't reach those fintechs, our tax laws should.
May God bless Nigeria for ever! Check my signature for free stuffs!

FreeStuffsNG:
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shadrach77:
This is a big lie! If I send money to someone back home and the person gets it, how can you say the money didn't reach Nigeria when it landed in the person's aza?

Kingray10:
So bc it didn't drop in hard currency now means it's not diaspora remittance

FreeStuffsNG:
"We have spoken to loads of Nigerians almost everywhere, in the US, UK, etc. They told us how they send remittance. They use Apps, and we have tried some of those Apps, they use parallel market rates. So, you take $1,000 in New York, and tap on your phone that you are sending $1,000 to someone, a Fintech, they pay the Naira equivalent in Nigeria without bringing the dollars, unless of course if the source of the money is illicit.”

If the forex doesn't land in Nigeria then it's wrong of World Bank to classify such funds as diaspora remittances. To qualify as diaspora remittances then the fund must leave the foreign country and land in our own financial system. What predominates does not quantify as remittance because the foreign currencies remain in the overseas account of the operators of those apps who mostly open and operate their bank accounts from illicit funds havens like the British Virgin Islands, Bahamas, Ireland, Mauritius etc. So while you send $1000 from US, you get paid in naira here but your $1000 lands in a bank account in British Virgin Islands! That's not a diaspora remittance!

Those app platforms are the real wall blocking the remaining 90% of the total diaspora funds from getting into our banking system. If regulatory control doesn't reach those fintechs, our tax laws should.
May God bless Nigeria for ever! Check my signature for free stuffs!

Jamie248:
The sensible thing is for these fools to set up their own app and capture the forex from source too but they are mentally lazy, all they will do is blow grammar, rob the treasury and whine

Brain-dead mongoloids