The Central Bank of Nigeria has launched the ‘Naira for Dollar’ scheme. The scheme would offer a reward of five naira for every $1 sent by Nigerians living abroad through international money transfer operators in the country. The scheme is reflective of the importance of diaspora remittance.
Diaspora remittances to the country totalled $25bn (£18bn) in 2019 but dipped to just over $5.3bn in 2020, according to data from the Central Bank of Nigeria.
Nigeria depends on diaspora input to such an extent that in 2018 when the country recorded $23.5bn in remittances, it was 83% of that year’s budget, 6.1% of the GDP and 11 times higher than the foreign investment flows in the same period, according to management consultancy firm PricewaterhouseCoopers.