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90% Of 2023 Diaspora Remittances Didn’t Get To Nigeria — Oyedele - Business (6) - Nairaland

Nairaland Forum / Nairaland / General / Business / 90% Of 2023 Diaspora Remittances Didn’t Get To Nigeria — Oyedele (18044 Views)

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Re: 90% Of 2023 Diaspora Remittances Didn’t Get To Nigeria — Oyedele by Winnin009: 6:33am On Jan 29
MRSALT:

That's not true. Ask yourself where Fintech will get the naira to pay the recipient in Nigeria? They buy naira with dollars of course. The only issue is that they buy through the parallel markets instead of the Central Bank. Last year, an Indian company in Nigeria asked me to pay some dollars in their international account, while they deposit the naira equivalent in my account. If the deal was done, it would help to take the pressure off the demand for dollars and straighten the local currency.

Lol. You sad it’s not true but went on to prove his point. Lol.
Re: 90% Of 2023 Diaspora Remittances Didn’t Get To Nigeria — Oyedele by Konquest: 6:10pm On Feb 20
FreeStuffsNG:
90% 2023 diaspora remittances didn’t get to Nigeria — Oyedele

https://www.vanguardngr.com/2024/01/90-2023-diaspora-remittances-didnt-get-to-nigeria-oyedele/#google_vignette

Findings have shown that about $18 billion representing 90 percent of the estimated $20 billion Nigeria’s diaspora remittances in 2023 did not end up in the country, Taiwo Oyedele, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, has said.


Recall that the World Bank had estimated that diaspora remittances to Nigeria in 2023 was $20 billion.


However, speaking in a panel discussion at the 2024 Economic Outlook and Budget Analysis organised by the Lagos Chamber of Commerce and Industry (LCCI), Oyedele estimated that more than 90 percent of the remittances were externalized.

His words: “In our interactions with multinationals, rating agencies and other stakeholders, many of them said to us that exchange rate difficulty is more than 50 percent of all the challenges in Nigeria combined, as far as they are concerned. So, this is a major issue that we have to address.

“And we thought it is going to be an area where we can easily demonstrate how the monetary and fiscal policies can work together. So, to that extent, we have done a sensible amount of work on the fiscal side. And we have been speaking to the Central Bank of Nigeria (CBN). The ultimate objective being that, first and foremost, we think that the biggest problem we have is the fact that we have divergence in exchange rates.”


“The World Bank said for 2023, our diaspora remittance was about $20 billion. We estimate that more than 90 percent of that did not get to Nigeria, they are being externalized. We have spoken to loads of Nigerians almost everywhere, in the US, UK, etc. They told us how they send remittance. They use Apps, and we have tried some of those Apps, they use parallel market rates. So, you take $1,000 in New York, and tap on your phone that you are sending $1,000 to someone, a Fintech, they pay the Naira equivalent in Nigeria without bringing the dollars, unless of course if the source of the money is illicit.

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Re: 90% Of 2023 Diaspora Remittances Didn’t Get To Nigeria — Oyedele by Konquest: 6:14pm On Feb 20
MeineMutter:
All those TransferGo, TransferWise (Wise) etc are responsible. The dollar didn’t come.

Government should ban them.

Only companies like Moneygram, Western Union, Ria etc really remit dollars to Nigeria.

Greed too is k..1lling our people. They want to get money at black market rate and they are complaining Nigerian Naira is not better. Eating your cake and still trying to have it.
Re: 90% Of 2023 Diaspora Remittances Didn’t Get To Nigeria — Oyedele by onegig(m): 2:17am On Feb 22
onegig:
Now government is thinking. Took them too long. There's multiple issues to tackle here. How do these companies source FX, post fx and model of determining rates.

Lemfi, Passepeer , AfriXchange and all other fintechs use USDTNGN or some arbitrary rates to change. The processes of how those rates were determined is opaque and sometimes ridiculous. T

The money does not get into the official system. Most money exchange in the world use a variation of small margins and charge you a transaction fee or percentage of the total fee as transaction charges.

I am all for fintech developments but we should do such within the law. Where in the world does an app determine an exchange rate they would use arbitrarily? And the CBN was watching them. Also why are we allowing "Microfinance banks" to offer exchange services?

Wise.com which is one of the largest exchange business in the world charges a % and not some arbitrary fees.


We have to understand how we are an import dependent country and should be working on protecting vested interest from causing running inflation against 200M people.

And don't get me started on Cryptocurrency and whatnot. We saw how USDTNGN jumped from 1200 to 850 in a matter of days. Not a single fundamentals or technicals dictated the price points. Just people manipulating such rates and we(Government)allow such to dictate our economy and lives.



Everyone can see the story of Binance and USDTNGN out in the open. We would be the most unserious country in the world if we don't ban crypto currencies or what not in Nigeria. If anyone trades crypto in Nigeria they should face criminal offences.

Nigerian government should also pursue those exchange companies like Binance and whatnot. Work with the US government and lay terrorism finance and money laundering charges against the companies. Doesn't take you less than 6months to get them under the carpet.

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Re: 90% Of 2023 Diaspora Remittances Didn’t Get To Nigeria — Oyedele by Chukatabra: 9:26am On Feb 26
This stat is mind-blowing.. I got more enlightened after reading this article by Changera guys which I use for my remittance movement - https://blog.changera.co/recent-trends-in-international-remittances/

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