By Omoh Gabriel

The World Bank Group has projected that Nigeria will in 2014 receive an inflow of $21 billion as remittances from Nigerians living and working abroad. This figure will place Nigeria as the top receipt of foreign remittance in Africa. Nigeria will be followed by Egypt with a projected remittance of $18 billion.

This fact is contained in a release by the World Bank Group on” Migration and Remittances: Recent Developments and Outlook; Special Topic: Forced Migration “.

According to the report “Remittances to developing countries are projected to grow by 5.0 per cent to reach $435 billion in 2014 accelerating from the 3.4 per cent expansion of 2013, and rise further by 4.4 per cent to $454 billion in 2015.

In 2013, remittances were more than three times larger than ODA and, excluding China, significantly exceeded foreign direct investment flows to developing countries. Growth of remittances in 2014 is being led by three regions: East Asia and the Pacific, South Asia, and Latin America and the Caribbean.

“Officially recorded remittance flows to developing countries are projected to reach $435 billion in 2014, 5.0 per cent higher than last year (Figure 1.1 and Table 1.1). The growth in remittances is expected to moderate to 4.4 percent in 2015, raising flows to US$454 billion. This outlook is based largely on lower projected GDP growth rates in key remittance-sending countries. Global remittance flows, including flows to higher-income countries, are expected to follow a similar pattern, rising from US$582 billion in 2014 to US$608 billion in 2015.

“Remittances are an essential source of external funds for developing countries. These flows were three times larger than official development assistance in 2013, and are steadier than both private debt and portfolio equity.

Remittance flows are significantly larger than total foreign direct investment to developing countries, excluding China. They are also a more stable component of receipts in the current account, reliably bringing in foreign currency that helps sustain the balance of payments and dampen gyrations

“The global average cost of sending remittances continued its downward trend in the third quarter of 2014, falling to 7.9 percent of the value sent, compared to 8.9 percent a year earlier. Competition and the expansion of mobile-phone and internet-based technologies hold much potential to continue driving down fees.

Risk-based approaches to the application of anti-money laundering regulations to remittance operators and international banks hosting their bank accounts will be important to ensuring that compliance does not result in undue costs, which could slow the fall in remittance costs and leave substantial flows underground.

The report said “With over 14 million people born in India living abroad in 2013 (estimated to be the largest emigrant stock in the world), India is projected to remain the largest recipient of officially recorded remittance inflows, which may reach $71 billion in 2014. Other countries expected to receive large remittances in 2014 include China $64 billion, the Philippines $28 billion, Mexico $24 billion, Nigeria $21 billion, and Egypt $18 billion”.