Do you know that Diaspora remittances continue to support the Nigerian economy? According to the 2019 Nigeria Economic Outlook by PWC, the Nigerian diaspora sent an estimated US$25 billion in remittances to the country in 2018, representing 6.1% of GDP. This was an increase from US$22 billion in 2017. The 2018 figure translates to 83% of the Federal Government budget in 2018 and 11 times the FDI flows in the same period. Nigeria’s migrant remittance inflows was also 7 times larger than the net official development assistance (foreign aid) received in 2017 of US$3.359 billion.
The report predicts an expected growth in Real GDP of only 2.5%y/y on moderate improvements in net exports and domestic demand. This slow growth trajectory is as a result of depressed oil demand coupled with production supply cuts and price fluctuations. In addition, elections are expected to dampen the investment climate in the short term. This is expected because of pre and post election cycles in the country. Apart from the 2019 elections, unfavourable investment climate and macroeconomic instability are key factors affecting the economy negatively.
The report concludes that the emergence of a new government is likely to increase the output of oil production which will accelerate the slow recovery process of the economy.
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