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SEQ CHAPTER \h \r 1Nigerians Abroad Send Home $21 Billion
-contribute more to the economy than 34 states combined
Nigerians living abroad sent home about twenty-one billion dollars ($21billion) to family and for various projects in 2013, a sum which is about two third of the nation's total budget for the year. Nigeria's 2013 budget approved by the national Assembly was $31.63 billion.
According to the World Bank Migration and Remittances Brief of April 11, 2014, diaspora remittances remain a key source of external resource flows for developing countries, far exceeding official development assistance and more stable than private debt and portfolio equity flows.
In the report, Nigerian diaspora remittances was fifth largest in the world topped only by India with $70 billion, China ($60 billion), the Philippines ($25 billion) and Mexico ($22 billion). Other top nationals include, Egypt ($17 billion), Pakistan ($15 billion), Bangladesh ($14 billion), Vietnam ($11 billion) and Ukraine ($10 billion).
With an estimated 17 million diaspora population, the $21 billion remittances in 2013 was second only to the oil revenue which was $52.2 billion in 2012. The World Bank projected a 7.8% increase in the diaspora remittances for 2014.
Nigerians in diaspora make this contribution to the homeland through trials, tribulations and triumph of determination; simply put: hard work. Our perception is that eventually, with the unchecked corruption in oil and gas sector, diaspora remittances will overtake oil as the leading source of foreign exchange inflow to the country in the near future.
Also, according to report, Nigerians in the Diaspora contribute more to the nation's economy than 34 of the country's 36 states. The World Bank's Remittances Unit shows that only Lagos and Rivers States have higher Gross Domestic Products (GDP) than the amount remitted back home by the Diaspora.
In light of the significantly growing financial power of our people abroad, the Nigerian government recently arranged a series of meetings in London, New York, Washington DC and Houston between September 2 and 4, 2014, to update the Diaspora community on the developments in the Nigerian economy, the major achievements of the Transformation Agenda under President Goodluck Jonathan and the opportunities available in the country for Diaspora Nigerians.
The high-level federal government team comprising the executive and legislative arms and led by Dr Okonjo-Iweala were reported to have “reassured Nigerians of the developments in Nigeria with respect to the Ebola Virus Disease (EVD) and the Government's management of the situation. Participants expressed concern however about the security situation and urged the government to do more particularly with respect to Boko Haram insurgency and kidnapping incidents. Participants also showed a lot of interest in contributing to development with investments in infrastructure, SMEs and in the housing sector.
The concern however is that a significant amount of remittances sent by the Diaspora are used for direct consumption without getting into long term investment and savings, thus diminishing the money's impact on the development of Nigeria. The Federal Government, has as a result proposed a $300 million Diaspora Bond, targeted at Nigerians in the Diaspora, which is expected to have a maturity period of between five to seven years.
According to Global Nigerian report, the Director-General of the DMO, Dr Abraham Nwankwo said that “the bonds are tax-exempt, implying bigger income for the investors; the bonds provide an alternative investment to equities, real estate and bank deposits. Bonds can also be used as collateral for borrowing from banks and discount houses.
In addition, the Federal Mortgage Bank of Nigeria has also proposed a mortgage scheme for Nigerians in the Diaspora to own their choice homes in Nigeria and thereby mobilizing foreign funds directly into the mainstream economy.
The ability of the diaspora to develop and evolve into a coherent power block and the capacity of the Nigerian government to establish conditions and institutions for a sustainable partnership, may be the missing spark that will revolutionize our economic and developmental growth by turning the present brain drain to brain gain. According to Chukwuma Soludo, “ it may not be inappropriate to also surmise that at least 40 per cent of Africa's most talented and skilled manpower reside outside of the region.”
What can Nigeria learn from these? India is currently experiencing a reverse migration and return of her highly skilled professionals. But then, India was quick to recognize the importance of her diaspora and created a full- fledged Ministry of Overseas Indian Affairs headed by the Minister of State with Independent Charge to deal with affairs related to Overseas Indians.
Currently, one of the major grievances of the Nigerian diaspora has to do with their continued disenfranchisement despite highly visible contribution to the economic well being of the country. Nigerians abroad believe that Absentee Ballot legislation is long overdue to enable them contribute to the political process back home.
The Nigerian diaspora are amongst the best educated and successful communities in the world today, and have made significant contributions to the economies of their host countries. Many left the shores of Nigeria with nothing except their capacity and determination to acquire and apply new knowledge. Their resilience led them to survive in a highly complex and competitive environment. They navigated the contours of racism and national origin discrimination to rise to the very top of their fields and become captains of industries. Therefore, to view these fine ambassadors only through the narrow prism of remittances and financial inflows will be missing the point. They are an important bridge to the developed world.