As everyone knows, there are many nations which have a huge diaspora spread across the world and most of the people who live abroad send money back to their native country. One such country is Nigeria. Hundreds of thousands of professionals from the African nation now work in different countries all around the world and send money back to their families back home. The total remittances that are sent every year run into billions, but according to a study from the auditing firm Pricewaterhouse Coopers, that figure could go up significantly over the coming years.
The firm released a white paper titled Strength from Abroad: The Economic Power of Nigeria’s Diaspora and stated that the total remittances could go up to as much as $34.89 billion by the time 2023 comes along. However, the paper was quick to point out that the total remittances are going to increase at a remarkably fast clip in the intervening years as well. By the end of 2019, it could grow to $25.5 billion a year, while in 2021 it is projected to hit $29.8 billion. That represents massive growth and also the fact that the Nigerian diaspora has done extremely well for themselves while working abroad. Dr. Andrew S. Nevin, who is the Chief Economist at the firm, stated that the analysis also illustrated the sort of importance that the diaspora has in the well-being of the Nigerian economy.
In a deeper analysis of the end-use of the remittances, the paper stated that as much as 70% of the money sent to Nigeria is spent for consumption purposes and the residual amount goes into investments in the nation. Dr. Nevin also stated that perhaps it is time that the Nigerian government started working more closely with the members of the country’s Diaspora. Dr. Nevin said,
In addition, we’re very keen to see state governments start to engage the Diaspora. The primary benefit of remittances to recipient households is the improvement in their general welfare. So, it is important that Nigeria has a Diaspora strategy both at the national and state level.
Considering the fact that the remittances are going to grow at such a fast clip, it is inevitable that the Diaspora is going to get far more powerful in the years to come and the government will be forced to collaborate with them more closely.