Remittance flow to Nigeria will rise to $26 billion by 2025 from $20.1 billion in 2021, according to estimates by Agusto & Co., a Pan-African credit rating agency.

The improved economic conditions in developed nations will drive the overseas inflows.

However, unpopular policies of the Central Bank of Nigeria (CBN) have restricted remittance flow into the country, Ripple Nigeria newspaper reported, citing the agency.

“The slow economic recovery and cost of living crises that confronted many developed economies in 2022 were indicative of this trend and constrained remittance flows into Nigeria,” it said.

Implementing capital controls and other unpopular policies by the CBN restricted inflows through official channels.

Despite more Nigerians being discouraged by the country’s gloomy economic conditions and looking overseas for opportunities, their remittances continue to play a crucial role in sustaining the Nigerian economy, the report said.

In June, the World Bank said that remittances to low and middle-income countries are expected to grow by 1.4% to $656 billion in 2023, following a remarkable 8% growth in 2022 and 10.6% in 2021.

(Editing by Seban Scaria seban.scaria@lseg.com)