August 18, 2008
By Chijama Ogbu Business Editor
Remittances from Nigerians abroad almost doubled last year, rising to $17.9 billion from $10.5 billion in 2006, the Minister of Finance, Dr. Shamsuddeen Usman, said in Lagos.
This shows a significant growth in the level of the remittances in the past two years in comparison with the 2005 figure, which stood at $6.5 billion.
Usman, who spoke in Lagos last week, said the growth in remittances from abroad underscored the growing confidence in the Nigeria’s economy.
Remittances provide the backbone for the economies of many developing countries, including those of Kenya, Ghana and Philippines, where they account for about 10 per cent of the Gross Domestic Product.
Monies sent home by Nigerians living abroad are spent on food, education and health needs of the senders’ relatives; as well as on investments in real estate, stock exchange and the transport sector.
Analysts predict that slowing global growth may limit jobs abroad as companies lay off workers and freeze expansion, reducing the amount of money expatriates can send home in the coming months. Many Nigerians are living in the United States, the United Kingdom, Germany, France and other developed economies.
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