It is not news that remittances play a vital role in the economic development of many countries, and Nigeria is no exception. Nigerians living abroad often send money back home to support their families and loved ones. But beyond the immediate benefit to individual households, these remittances contribute significantly to the overall growth of the Nigerian economy.
According to the World Bank, between 2015 and 2022, Nigeria received a whopping $168.33 billion in remittances – making it the king of remittances in sub-Saharan Africa. Most of this money comes from Nigerians living in the UK, USA, Canada, and Europe. And guess what? This money party contributes up to 6% of Nigeria’s GDP – and that’s a big deal for our economy.
So, what’s the secret behind these remittances and their impact on the Nigerian economy? Let’s break it down:
Boosting Households: Remittances sent by Nigerians living abroad serve as a lifeline for countless families back home. These funds cover the essentials – food, housing, healthcare, and education. All that spending juices up local businesses, like retail and services, and helps the economy grow.
Startup Central: Who doesn’t love a good startup story? Lots of remittance money finds its way into small businesses and new ventures. People use it to kickstart their dreams or expand their existing businesses. It’s like a boost for entrepreneurship, creating jobs and opening more opportunities.
Homes Sweet Homes: Remittances also play an important role in the real estate game. Families use the money to build or fix up their homes, creating a demand for construction infrastructure and services. So, boom! The construction industry grows, and jobs pop up like magic.
Improving financial inclusion: The more remittances come in, the more banks and payment services reach out to people. Digital platforms like Blaaiz make it easy for money to flow to and fro, creating the ease of transacting anytime, anywhere.
Less Poverty, More Equality: Remittances are a poverty alleviation tool, especially in rural areas with limited employment opportunities. By providing families with additional income, remittances help alleviate poverty and reduce income inequality. This leads to a more equitable distribution of resources and improved social welfare.
Education-tainment and Health Care: Education and healthcare also get a boost too! Remittances help families pay for school fees, books, and better healthcare. Noteworthily – a well-educated and healthy population is key to a prosperous country.
So, to Diasporan Nigerians abroad, please keep those remittances flowing. You’re doing more than just sending money home – you’re fueling the country’s growth and making dreams come true.
Remittance platforms like Blaaiz are on course to provide a quick, reliable and secure avenue to make sending and receiving these payments as convenient as possible.