For these stakeholders, the efficiency of remittance services, especially as provided through commercial banks’ and International Money Transfer Operators partnerships are critical to boosting dollar liquidity in the economy.The PwC forecasts suggest that Nigeria’s remittance flows could reach US$34.89 billion by 2023, hence the need for the apex bank and commercial banks to continually work closely to ensure that more funds flow into the economy.
The apex bank also mandated the IMTOs to unambiguously disclose to remittance beneficiaries that such recipients have exclusive discretion to decide the mode of payment while ensuring that all funds received in favour of beneficiaries in Nigeria are promptly deposited into the agent bank’s correspondent account.
In addition, the apex bank believes that this new policy measure will encourage banks and financial institutions to develop products and investment vehicles, geared towards attracting investments from Nigerians in the diaspora. This policy shift is expected to help to finance a future stream of investment opportunities for Nigerians living abroad.
It stated: “In 2021, remittance flows to the region are projected to rise by 2.6 per cent, supported by improving prospects for growth in high-income countries. Data on remittance flows to Sub-Saharan Africa are sparse and of uneven quality, with some countries still using the outdated Fourth IMF Balance of Payments Manual rather than the Sixth, while several other countries do not report data at all.