₦airaland Forum

In recent times, diaspora remittances to Nigeria have been an important contribution to our foreign exchange earnings. It is no surprise that the Central Bank of Nigeria (CBN) in 2024 said diaspora remittances to Nigeria reached $4.22 billion from January to October, a 61.1 percent increase from the same period in 2023.

This increase was attributed to improved efficiency in the remittance process, the policies of President Bola Tinubu, and increased confidence in Nigeria’s financial system. It is therefore logical to conclude that the more Nigerians go abroad (Japa), the more remittances the Nigerian economy will get, all things being equal.

Ironically, in the last few years, the Nigerian government has been worried about the mass exodus of skilled and unskilled Nigerians leaving the country for greener pastures elsewhere. Amusingly, the same government also covertly and overtly depends on diaspora remittances and is often worried whenever there is a drop.

Remittances from the Nigerian diaspora are a significant source of foreign exchange for the country and also an important part of Nigeria’s economic recovery. They are a vital source of income for families and a steady inflow into the economy. They also play a significant role in alleviating poverty and improving nutrition and are linked to better outcomes such as higher birth weights and increased school enrolment.

Despite interventions, the rate has not held up to expectations, and according to the CBN, in 2024, Nigeria received an estimated $23.4 billion in remittances from its diaspora community, making it the largest recipient of remittances in Africa and one of the top five globally. The CBN is most likely to continue its interventions after the World Bank predicted that Nigeria will see increased remittances in the years ahead, due to higher food prices.

This can only be true if the planned repatriation of Nigerians by President Donald Trump’s administration and some European governments is not followed through. As diaspora remittances are from both the skilled and unskilled Nigerians who went abroad either legally or illegally.

We are not against the government exploiting the gains from its diaspora population. If anything, we think remittances do help the economy; however, they are not a sustainable strategy for long-term economic growth. Nigeria has an economy that is dominated by consumption rather than production. So, once the remittances are received, they will merely be used to service an import-oriented economy. In other words, the money will simply go back to where it came from.

Nigeria therefore needs to increase production for a sustainable growth in the economy, knowing well that production requires the best in human resources.

A situation where Nigerian leaders take advantage of a condition that is costing its economy more in terms of human capital does not augur well for our future. The energy the government is putting in to attract more remittances could also be used to put the country in a better state that will help reduce the number of young Nigerians the country is losing on a daily basis.

In 2024, the UK granted over 430,000 visas to Nigerian nationals, according to the British High Commissioner. This included visas for study and relocation, a December 2024 report showed. In the year ending June 2024, the UK issued 432,225 student visas, noted GOV.UK, a 13 percent decrease from the previous year, but 61 percent higher than in 2019.

In the first half of 2024, the UK processed over 225,000 visas for Nigerian nationals. The figure above is for the skilled labour, while for the unskilled who use intermediaries, it is not known. For the UK, Nigerian migrants also showed by far the biggest growth among the top five nationalities granted skilled work visas. For every talent that leaves Nigeria, a local business is suffering because it cannot find a suitable replacement on such short notice.

We have reported several times how banking operations could not run efficiently because many banks are losing their best workers to companies in the US and Europe.

To date, Nigerian hospitals are losing the best talents in doctors and nurses, and patients are suffering for it. Between December 2021 and May 2022, no less than 727 Nigerian-trained medical doctors relocated to the UK, and between March 2021 and March 2022, at least 7,256 Nigerian nurses left for the UK also.

Irrespective of how much we get from diaspora remittances, it is time the government stops and improves on the issues chasing the country’s best away. We know it is possible for Nigeria to generate more diaspora remittances without the discouragement that drives away our skilled workforce. Instead, the government can create an encouraging environment so that even when the skilled talents decide to travel outside for work, they would always come back willingly to contribute their expertise to the local economy.

“The care of human life and happiness is the only legitimate object of good government." - Jeffersonian Credo

HydraFeeds:
I don't believe in Japa,the billion dollars remitted by diasporans is not up to the potential of the amount Nigeria will generate locally if all of them stay back home .

motayoayinde:
Millions apply for slots in the university yearly without success.

Hundreds of thousands want to study medicine but are denied yearly.

Polytechnics are wasting away churning out trash, university are wasting resources teaching unwanted, outdated courses.

It's simple: Convert polytechnics into universities training highly skilled work force.
Fund universities to do same.

Give everyone a chance at quality education including the poor.

Watch how the country will becomes self sufficient with skilled work force and not notice any Japa effects.

DesChyko:
Diaspora remittances is a key reason Nigeria still breathes as a country. There is not enough jobs for the teeming youth; not enough advancement for the geniuses amongst us to thrive; yet the government is pushing that we all suffocate here??

Crazy.

motayoayinde:
Millions apply for slots in the university yearly without success.

Hundreds of thousands want to study medicine but are denied yearly.

Polytechnics are wasting away churning out trash, university are wasting resources teaching unwanted, outdated courses.

It's simple: Convert polytechnics into universities training highly skilled work force.
Fund universities to do same.

Give everyone a chance at quality education including the poor.

Watch how the country will becomes self sufficient with skilled work force and not notice any Japa effects.

erico2k2:
I think you are under estimating the remittance by those abroad. Do you know people send N2m each month to thier bank accounts in Nigeria? now howmany people who are working can save up to N2m monthly after all bills
you guys dont know

motayoayinde:
Millions apply for slots in the university yearly without success.

Hundreds of thousands want to study medicine but are denied yearly.

Polytechnics are wasting away churning out trash, universities are wasting resources teaching unwanted, outdated courses.

It's simple: Convert polytechnics into universities training highly skilled work force.
Fund universities to do same.

Give everyone a chance at quality education including the poor.

Watch how the country will becomes self sufficient with skilled work force and not notice any Japa effects.

ednut1:
5m out of 220m japa. Why not focus on the remaining 215m. This obsession is getting tiring . For everyone that japa there are at least 5 available people that can be trained to replace them except for doctors. Make una rest